HDFC bank to launch Digital Wallet

Seeing the growth in e-commerce and its shift from desktop to mobile phone, HDFC bank has planned to launch digital wallet and an electronic marketplace for various online merchants. The digital wallet gives the facility to an accountholder or cardholder (even a non-HDFC Bank debit and credit cardholder) to register for a digital wallet and transact on most websites using only wallet credentials.

The digital wallet can be accessed from a mobile app or online and will enable contactless payment using Near Field Communication (NFC) by flashing the phone in front of readers that can accept NFC payments.

The wallet meets RBI's requirement of two-factor authentication but does away with the hassle of filling card details every time. The digital wallet will enable the transaction to be completed in two steps instead of the steps that can go up to 11-12, including filling in the 16-digit card number, name, expiry date, CVV and other details. This will substantially cut down the failure rate on mobile phone purchases, which is as high as 50%.