Visa is working on a new service, mVisa, targeting financial institutions, merchants and consumers in emerging markets, which will be tested in India later this year.

At the same time, the credit card giant opened a technology centre in Bangalore where it will work on digital commerce projects, including this one.

The mVisa service will be tested with select customers of Axis Bank, HDFC Bank, ICICI Bank, and SBI, and with merchants across the greater Bangalore region.

With mVisa, consumers can make cardless purchases, pay bills and send money to friends and family members, using their mobile device.

Consumers will be able to download the mVisa application to their smart or feature phone and link their Visa debit, credit or prepaid account to the mVisa application.

Once activated, mVisa will enable consumers to pay for purchases in stores and online by simply transferring funds from their account to the merchant’s account, therefore avoiding the need for NFC or contactless infrastructure that is less common in emerging markets.

The card firm did not give out further details how the service will work from a technical perspective.

Additionally, mVisa users will be able to pay bills and send funds to other Visa account holders.

Merchants benefit by offering consumers an easier way to pay, and are instantly notified via SMS text message when a payment has been received.

Starting in September, mVisa will be available to 20,000 merchants in the greater Bangalore region.