You no longer need to carry plastic to pay for your coffee or impulse shopping. You can do it from your mobile, because your credit card will come 'embedded'. With the new system, you can also pay for purchases by friends or family, sitting in office or at home.

Soon cellphones will allow fund transfers between people as well. So far, because of technical limitations, you could not receive funds on your credit card, but that barrier could go in the near future.

Airtel has tied up with ICICI Bank to offer credit services on your SIM card. Other banks and mobile operators will soon follow. Mobile operators like Hutch and Idea and banks like HDFC Bank and SBI are likely to tie up for this facility.

Here's how the new mobile credit system will work: When you apply for a credit card, you'll be given the choice of either the plastic card or a SIM-based card or both. Existing cardholders will have to apply afresh for a new card with their mobile and credit card numbers.

After you've done your shopping, the merchant will send you the bill from his mobile and it'll reach you in seconds. It will come to you as an SMS that'll flash on your screen. You have to okay it within 60 seconds before it times out.

After your okay, the system will verify with the bank for payment. Money will be transferred to the merchant. A receipt will be sent to customer and merchant's phones.

Source: TOI