Bharti Tele-Ventures has tied-up with ICICI Bank and VISA, to launch the country's first "mobile wallet". The new service called "mChq" will enable Airtel subscribers and ICICI Bank Visa cardholders to pay for their purchases through their mobile phones.

With "mChq", Airtel subscribers in Mumbai and Delhi can purchase goods for as low as Rs 50. Once the product is bought, the retailer will send an SMS mentioning the amount to the customer. The customer will enter his/her personalized PIN number and reply via SMS , acknowledging the amount to be paid. The transaction is sealed with both parties getting a confirmatory SMS.

The "mChq" does away with the need for carrying cash or having a point of sale (POS) because the mobile phone serves as both payment mechanism and POS.

While Airtel customers subscribing to this service will get a new SIM card free-of-cost, ICICI Bank cardholders will be issued an add-on card on the basis of their existing ICICI Bank-Visa card.

The new service can be availed at a monthly fee of Rs 10, which will be added to the monthly credit card bill of the customer. An additional SMS charge for the transaction will also be applicable.

Airtel's technology partner - A.Little.World, is the supplier of the mChq technology while RBI's technology arm - IRDBT, is the principal management and certification authority for "mChq".

According to sources, "mChq" will be made available across 100 retail outlets in Mumbai and Delhi in the first phase; which would then be extended to over 500 outlets and beyond in subsequent phases.

ICICI Bank says that the rationale behind launching "mChq" is the desire to tap the ever-increasing potential of the Indian mobile market. According to Bharti Tele-Ventures, "mChq" will transform mobile phones into virtual wallets; revolutionizing the whole concept of merchandising.

Akhil Gupta, Joint Managing Director, Bharti Tele-Ventures, said, "With the launch of this new service today, mobile phones now turn into virtual wallets and there is chance that the entire concept of payment may change. The product is a boon for customers, financial service providers, retailers and mobile service providers."