Paytm said on Tuesday that it is turning NFC-enabled Android smartphones into point-of-sale machines, as it wins more merchants in one of the world’s largest mobile payment markets.
The Indian startup said that the Paytm merchant partner will now be able to enable the card acceptance feature on its phone from the Paytm business app. Once activated, they will be able to process the transaction by tapping a plastic card on their phone.
Paytm Smart POS supports Visa, MasterCard and Rupec, the startup said, while the amount limit on single transactions is 5000 Indian Rupees or about $ 69. (More than 90% of transactions in India are worth or equal to $ 69, industry estimates.)
The current batch of payment instruments in the market have not proved very successful in reaching small and medium-sized businesses in India, most of which live offline, today at a virtual press conference by Paytm founder and CEO Vijay Shekhar Sharma. said.
To win these merchants, Paytm has rolled out QR codes operating on a number of payment networks in recent years, and launched jukeboxes and other gadgets to make it easier for merchants to accept payments digitally.
With today’s move, Sharma said, “Even the obligation to buy POS machines, is no longer needed.” The startup stated that most new Android smartphone models support the NFC feature.
Paytm also unveiled the new generation Jukebox POS which looks similar to the QR placard. “The reason is that merchants have not actively adopted many of the existing POS machines, because they are not comfortable with it,” said Dilip Asbe, head of payment body NPCI at the virtual conference.
Indian startup that has been processed More than 1.2 billion transactions last month, Said it would charge merchant partners a small membership fee to access any of the above payment services.
The move, which in many ways pits Paytm against the Patio Capital-backed Pine Labs, is a market leader in the POS category, but a small startup, showing that Paytm is one of its payment platforms for merchants to go after. Is expanding
“Along the way, mobile phones saw an evolution from featurephone to smartphone, we believe that the merchant PoS market in India is at an inflexion point to evolve from traditional (aka dumb-POS) to smart-PoS. Traditional PoS Unlike, which allows only debit / credit-card transactions, Smart-PoS has some features: GST takes all payments including compliant bills, scanners / printers, UPI, Bluetooth enabled and customized for various merchants May suit their needs. While fintech companies are currently offering these devices, we expect banks to eventually catch up, “Bank of America analysts wrote in a recent note to customers.
More to follow…