Titan-SBI, Axis Bank look at wearables to replace debit cards

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Financial power is about to flow from fingertips to the wrist. With more and more people embracing digital transaction methods, the devices through which one can conduct such transactions also appear to be expanding fast. Credit/debit cards, QR-based payment systems are passe. Big public sector and private banks are now proceeding towards enabling payments through smart watches and wristbands.

Banks such as SBI and Axis Bank are coming up with these smart wearables that can be use as the payment points.

From a smartwatch to a smart wrist band or a smart loop is in trend. One can just wear them and it obviates the need to carry a debit card or credit card or pay through UPI.

SBI smartwatch

‘Titan Pay’ smart watches start at Rs 2,995 and go up to Rs 5,999. All these devices use near-field communication technology (NFC) for payments.

The devices, therefore, need not be smart devices with other functionalities. They have an NFC chip embedded in them. For payments, these devices are linked with the customer’s bank account.

Known as Titan Pay, Titan and SBI are launching a range of stylish new watches with contactless payment functionality for the first time in India.

SBI account holders can tap their Titan Pay watch on contactless payment POS machine without the need of swiping or inserting their SBI bank card.

Payments of up to Rs 2,000 can be made without entering a PIN. A secure certified NFC chip embedded in the watch strap enables all the functionalities of a standard contactless SBI debit card. The watches always be linked to one of the bank accounts of the customer and the amount would be credited from the account directly.

Fastrack SBI

Youth accessories brand Fastrack has partnered country’s largest public sector bank SBI to enter a smart wearable category of fitness bands with digital payment component under its sub-brand Reflex to strengthen its foothold in the wearable and fitness category for the youth.

According to industry insiders it might take a month or two for these devices to enter the market.

Axis Bank

One of the major private banks, Axis Bank, too, is offering multiple smart pay wearables such as wristbands, loops, key chains to customers. The issuance fee is Rs 750 and it attracts an annual cost of Rs 500.

One can use this smart wearable for a purchase up to Rs 1 lakh. No PIN is needed for transaction up to Rs 5,000.

Axis Bank is offering 10% cash back only on the first three transactions within 30 days of the device’s issuance, and the total spend must be Rs 600 or more. The max cash back will be Rs 100.

There are also cashbacks on the fifth transaction every month, where the customer must spend at least Rs 200, and the maximum cash back that the bank will offer is Rs 100.

Axis Bank also offers a fraud cover. It is available if the fraud happens due to the bank’s deficiency, or is an act done by a third-party.

In the case of negligence by the customer, the insurance cover will not be valid.

Common point

For any transaction above Rs 5,000 users would need to authenticate payments using their PINs. Only up to five transactions in a day can be done without a PIN, even if they are below the Rs 5,000 limit.

The limit for a single purchase limit is Rs 1 lakh.

“We believe this innovative offering will redefine the shopping experience for our customers with Tap & Pay technology. With the latest technological advancements, State Bank of India has always been striving towards providing innovative, best-in-class banking services for our customers,” a statement from the bank said.

“Contactless payments are the future of payments industry in India. To tap into this market, our Wear ‘N’ Pay program brings in convenience in contactless payments at a budget friendly price point, offering a safe and secure mode of payments on the go,” said Sanjeev Moghe, EVP & Head-Cards & Payments, Axis Bank.