ToneTag introduces cashless mobile payments through feature phones

Though many initiatives have been taken to decrease the impact of demonetization, not all of them have reached the under-served people of rural India to tackle the after-effects of demonetization, mainly because of limited access to smartphone-based services and mobile internet.

It is to help such people without high-tech devices, ToneTag, a sound-based proximity communication provider has introduced cashless mobile payments through feature phones i.e without the Internet, smartphones or credit cards, enabling cash free rural India. The technology enables anyone with a standard phone to make cashless payments seamlessly without having to download an app or worrying about internet connectivity.

ToneTag’s breakthrough technology uses audio signals or “tone tags” for data exchange between devices. Payment instructions can be transmitted, using a sound signal, through a traditional phone line, without any additional hardware or software requirements or dependencies.

A feature phone user just needs to call an IVR number (180030101887) and bring the phone close to the merchant’s ToneTag enabled phone or other computing devices, that is enabled to accept payments. The merchant will transmit the billed amount and transaction details by sending an audio signal or “tone tag” which is captured on the IVR server.

The customer’s unique mobile number serves as the first factor of authentication. The customer then enters a PIN from the dial pad on his/her feature phone, as the second factor of authentication, resulting in an easy and secure cashless payment transaction from a regular feature phone. Processing takes place through IMPS or existing IVR banking infrastructure in real-time.

“By enabling feature phones to pay, we are removing hardware costs and the steep learning curve many Indians had associated with mobile payments. With this accessible technology ToneTag is sure to include many into the digital financial ecosystem especially as demonetization has disrupted the formal cash economy,” said Kumar Abhishek CEO, ToneTag.