BankTech

QR Code based Mobile Payment Service OTPay, Rolled Out by OTP Bank Hungary

In February 2014, OTP Bank Hungary announced the launch of a new digital wallet to enable cardholder to pay at 30,000 MasterPass accepting merchants around the world. A few days earlier, OTP Bank began rolling out this new service - OTPay – in collaboration with MasterCard and Cellum.

OTPay is the first to bring in-store mobile payments to Hungarian users. It is  essentially an integrated mobile wallet for smartphones. OTPay was developed by Cellum Group, in accordance with MasterCard's standards for mobile payment systems. OTP Bank is responsible for the financial aspects of the service.

  • The new service is extremely simple to use: in stores, restaurants and web stores where OTPay's logo is displayed.
  • Users can just download the app and register a bank card.
  • Merchants usually decide to introduce mobile payments in their stores free of charge.
  • Participating merchants will be provided with a unique QR code next to their register that can be scanned by a consumer to authorize the transaction.
  • OTPay utilizes cloud payment technology that is meant to secure the transactions carried out by the user.
  • The highest banking grade security available is providedby Cellum’s unique patented card vault technology.
  • Joining OTPay's merchant network is also pretty simply as OTP Bank does not require entrants to open a new account.
  • Any account kept at any bank in Hungary can be utilized for the same purpose.
  • The service has no monthly or fixed fees and there is no requirement for POS terminals.
  • There is no entry or contracting fee either, says BBR.
  • OTPay is already accepted as a payment method at over 90 merchants across Hungary, since launch.

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"We have been hearing ever more frequently of cases where cybercriminals compromise merchants' traditional card storage systems and steal customers' card details, damaging hundreds of thousands of cardholders. These cases highlight how the increased security of mobile payments can benefit users." The noted specialist pointed out that through the use of OTPay payment data is encrypted and sent to the bank's system without passing through the merchant, thus the solution provides a much higher degree of security for the user, while taking a large burden off the merchant's shoulders. We're on the verge of some really exciting changes,” Founder and Chief Visionary of Cellum, Balázs Inotay, told BBR. “We've never been this close to the U.S. or Japanese markets in terms of mobile payments. We're technically letting anyone pay anywhere using a smartphone. This opens a new chapter in the evolution of mobile payments in the region.”

"OTPay is to date the most open mobile payment scheme in Hungary. The application isn't only for clients of OTP Bank, anyone can register any of the most popular bank card types. Besides in-store and online payments, clients of OTP Bank can use it for peer-to-peer money send and account balance query. Furthermore, the app can also be used for prepaid card top-up and donation," Péter Forrai, Managing Director of OTP Bank's Electronic Banking Directorate, told BBR. “Regarding plans for the future, he added: "The service will be expanded with new functions in the future, such as payment with MasterPass at over 30,000 merchants worldwide, as well as payment of OCR-enabled checks and in-app catalog orders."

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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