Bangalore-based mobile point-of-sale company Ezetap announced universal mobile wallet acceptance on its platform which will allow in-person transactions at home or at store. Initially, Ezetap will be bringing on board Paytm, Mobikwik, Freecharge, and Novopay, with support for additional major wallets soon to be announced.
Existing mechants on Ezetap can get the new service by simply accepting the Terms & Conditions in the Ezetap Mobile POS application. New customers will have access to the solution automatically. The company adds that as new wallets come online, they will be made immediately available to Ezetap merchants through the same application.
Merchants can convert their mobile phones into point of sale terminals by plugging in an Ezetap card reader. The company says the card reader can connect to a mobile device via Bluetooth, USB, or Audio and supports feature phones, smartphones and tablets.
When it comes to interoperability in digital payments, this is a significant development and other players in the mobile POS space would do well to adopt it. According to a study by PriceWaterhouseCoopers India, Internet and Mobile Association of India (IAMAI) and Payments Council of India (PCI), the number of transactions on prepaid payment instruments in 2014-15 were 314 million while the value of transactions on wallets was Rs 21,300 crore. Compare this with Reserve Bank of India data (for the month of May) which shows that the number debit card transactions on POS terminals were over 88 million and the value of the transactions was over Rs 12,000 crore. Allowing universal wallet payments on POS terminals will only increase their adoption and the move to a cashless economy.
Ezetap funding: In August, the company raised Rs 150 crore in a round of funding from existing investors Social+Capital, Helion Advisors and Berggruen Holdings and new investor Horizons Ventures.
Ezetap had previously secured an undisclosed amount of funding from American Express in return for a minority stake in March last year. This funding had come a month after the company had secured $8 million investment in Series B funding led by Helion Advisors with participation from existing investors Social+Capital and Berggruen Holdings. In 2012, the startup had raised $3.5 million investment from Social+Capital, Peter Thiel, Nicolas Berggruen & David Sacks.
Clinknow acquisition: In June last year, Ezetap had acquired the Hyderabad-based loyalty platform Clinknow to launch an integrated payments and loyalty solution for merchants across India. Ezetap CEO Abhijit Bose had claimed that the integrated solution will be able to recognize a repeat customer during check-out and apply the best active offer.