Mobile companies do some basic banking operations such as balance enquiry and remittances using applications on smart phones, but this service is akin to using internet banking on a mobile platform. Some banks use SMS for balance enquiry. But for menu-based transactions on a basic phone, banks must use USSD or unstructured supplementary service data that allows basic phones to make a live connection with a server by dial-in. Payments banks that the government envisages depend on the use of USSD platform which competes with the ATMs or branch transactions for low value banking. Banks say that ATMs and business correspondents with hand-held devices is not a viable solution for low-value banking. The target audience of the new payment banks is not the smart phone using clientele, but those who are new-to-banking customers, who do not hold any bank account. They have only numeric literacy and need an extremely simple and user-friendly interface. Telcoms may discourage the use of USSD platform, and thus may hamper the payment banks.