Handset maker Nokia on Thursday said it will spread its Mobile Money services pan-India by next year, enabling consumers to transact and make payments directly using their Nokia phones, a top official said.

Mobile Money allows the users to make electronic transactions in exchange of products or services without the use of hard cash.

Kaustuv Chatterjee, head of solution marketing, mobile phones, said the originator has to be a Nokia handset and the recipient can be any one.

"By 2012 it will become a pan-India product. The focused market is semi urban and rural markets and also below average income urban markets," Chatterjee told reporters on the sidelines of the launch of Nokia's dual SIM phone X1-01 and C2-00 in Andhra Pradesh market.

Nokia at present has a tie-up for the e-wallet facility with YES Bank and Union Bank of India, and the company is considering a tie-up with other banks.

Replying to a query, Chatterjee said they do not need any license to offer services as Nokia powers the banks for the service. The service currently is available in few cities in the country, including Pune and Chennai.

Continuing with its strategy offering consumers relevant and differentiated products, Nokia also embedded its Mobile Money services on Nokia X1-01. The Mobile Money service provides the unbanked, access to financial services through their mobile phones, thus empowering people and their business and driving financial inclusion in the country, said TS Sridhar, director-south markets, Noika India said.