TITAN ROLLS OUT CONTACTLESS DIGITAL PAYMENTS WATCHES
With the Covid-19 pandemic putting digital payments at the centrestage, watches-to-jewellery maker Titan has taken e-payments to another level by rolling out the country’s first contactless payments watches.
Called Titan Pay, the new range of watches has been launched in collaboration with State Bank of India (SBI), allowing its YONO account holders to tap the watch on contactless (Pointof-sale) POS machines without swiping or inserting the bank card.
The launch of the watch, which had been in the works for over two years, was fasttracked after the Covid-19 outbreak. “We felt that this product was something the future was ready for and because of the Covid-19, the future was here and now,” said Suparna Mitra, chief executive officer, watches and wearables division, Titan.
A secure near-field communication (NFC) chip developed by start-up Tappy Technologies is embedded in the watch strap that enables contactless transaction. The Canada-based firm has developed these chips, which can be embedded into any fashion accessory turning it into a smart payments wearable.
For the registered users of SBI YONO, there is an option called wearables on the app that takes the person through a three step process, with the final step of keying in a unique identification number which comes with the watch to link it with the bank account.
Once a user waives the watch near a
Mastercard-enabled POS machine, any payment of up to ~2,000 can be made without entering a PIN. The payment feature on these watches will be accessible on over two million contact less Mastercard enabled POS machines in the country. If the watch gets misplaced or stolen, the user will have to raise the issue with the bank or block the chip through the YONO app. “The product is perfectly secure and the transaction limit of ~2,000 itself ensures that there is no big loss to the user,” said Rajnish Kumar, chairman, SBI.
Priced between ~2,995 and ~5,995, the Titan Pay range will be available in five styles on the Titan website. “SBI is the perfect partner to introduce a payment solution for the new normal, which is fast, secure, and seamless,” said CK Venkataraman, managing director, Titan.
The lifestyle company has been investing heavily in research and development to develop smart watches that will be ahead of their times and do things such as switching off lights, locking, and unlocking doors, the company had earlier told Business Standard.
The Tata Group firm, which launched its first smartwatch in 2016, sold over 17 million timepieces globally last year. However, Titan’s watches division, which accounts for 12-15 per cent revenue of the Bengaluru-headquartered firm, was the worst hit during Q1, as demand for the accessory has drastically fallen after the pandemic. The segment recorded a decline of 89 per cent in revenue for the quarter. Hence, the company has been betting big on the gifting strategy to revive sales.