Citibank India has launched a mobile payment system that enables retailers to handle card payments from customers by attaching a dongle to a smartphone.

The Reserve Bank of India has approved the dongle that costs Rs1,500 ($28) and enables a point-of-sale terminal to be replaced by Android handset, according to Times of India.

Seven retail brands have been trialling the system including Flipkart, Shoppers Stop, Bajaj Allianz, Bookmyshow and Vodafone. The bank is also reported to be in talks with a cab company about using its payments system.

The dongle is supplied by local vendor Ezetap Mobile Solutions, which also worked on developing the system with Citibank.

Both other Indian companies have developed similar technology. Local rivals to Ezetap’s dongle and system include MobiSwipe Technologies, Mswipe Technologies,PayMate India and iKaaz Software.

Citibank’s system complies with global security standards of the Payment Card Industry Security Standards Council and can be integrated with the global network of parent company Citigroup.

Citibank India is the first of Citigroup’s national divisions to launch the mobile payment technology.