ToneTag is a Bangalore-based company founded in 2013. Basically it is a technology company that uses encrypted sound waves to make offline, proximity-based, contactless digital transactions.

Basically, here there is interaction of two devices through the medium of sound. Sound transfers the data.

ToneTag proprietary Software Development Kit (SDK) must be installed either on existing device or infrastructure. There is an algorithm in the kit built on soundwaves. The device interaction happens through irreversible set of codes. The transfer is fast and secure.

The technology could be used for payments which are person-to-person, through feature phones, through POS, from web to mobile payments, for cardless ATM transactions and through RetailPods. The payments can be made even when there is no internet/bluetooth connectivity.

A customer can open ToneTag app and select pay the merchant option. The phone is tapped on the RetaiPod, where it plays a tone. Recognising the tone, there comes a pop-up on the phone. The amount is entered and payment is confirmed. The RetailPod displays an acknowledgement message.

ToneTag has been given approval by the RBI after completing the first cohort under the RBI sandbox for retail payments. The regulated entities can now easily adopt this technology. It will be a boon for people who are not digitally savvy.