India-based SBI Cards & Payments Services has launched contactless mobile phone payments service known as SBI Card Pay.

After feeding their card details in the SBI Card mobile app, the cardholders can pay in a contactless manner at near field communication (NFC)-enabled point of sale (PoS) terminals.

Upon unlocking their phone screen, the users can complete payments by giving one tap of their mobiles near the PoS, reported news agency Press Trust of India (PTI).

SBI Card Pay, which eliminates the use of the physical credit card and PIN, is designed to support quicker card payments using smartphones while addressing security woes.

Desired daily and per transaction caps can be set up with the new offering, SBI Card managing director and CEO Hardayal Prasad told PTI.

This is unlike other HCE-enabled apps, which offer per transaction cap of INR2,000 ($28.06) and a maximum daily limit of INR10,000, Prasad noted.

Currently, SBI Card Pay is available on VISA platform and compatible with Android OS KitKat version 4.4 or above.

SBI Card was quoted by the publication as saying: “As a first of its kind payment solution in India, it is built as part of the SBI Card mobile app providing ease to customers to use just one app to manage their credit card account as well as make contactless payments.”

SBI Cards & Payments Services is a joint venture (JV) between India’s largest lender State Bank of India (SBI) and American private equity firm The Carlyle Group.

SBI, which holds a 74% stake in SBI Cards, is looking to divest part of its stake to raise around INR50bn-INR60bn, The Economic Times reported in July.

At present, SBI Card has a market share of 17% and serves nine million customers.