Indian banking major Yes Bank has joined forces with payment app Ultracash Technologies to enable proximity payments based on sound waves.

Under this deal, Ultracash will issue the bank’s sponsored mobile wallets and employ Yes Bank’s IMPS payments platform to enable processing of instant proximity transactions.

UltraCash will use these wallets to aid quicker, seamless and friction free payments, while the IMPS payments APIs of Yes Bank will enable merchant as well as person to person payments.

UltraCash’s technology will ensure that payment data is securely transferred from one device to the other using ultra high frequency sound waves.

This technology also ensures that UltraCash’s ‘Tap and Pay’ works on all devices and doesn’t require any special hardware or special NFC chips to make the payment.

Also, UltraCash’s sound wave technology enables mobile payments to be performed without the need for Internet connectivity using any of the options, such as bank accounts and cards.

Yes Bank said that this offering is expected to fuel proximity payments in India with the usage of a smartphone as an acquiring instrument for the merchants.

UltraCash has over 60,000 active app users who have done more than 120,000 transactions amounting to INR100 million in transaction value.

Yes Bank senior president and country head digital banking Ritesh Pai said: "With this collaboration, we are expecting to change the way Merchant payments are done across the country and lead the proliferation of the digital and mobile payments to the 25 million small scale retailers."