Axis Bank, an Indian private sector bank, has partnered Prizm Payments and Mswipe Technologies, to launch Swipeon – a mobile phone based card acceptance service or mobile POS terminal. As per the company, Swipeon will include a card reader device which can be attached to a mobile phone working as a mobile POS terminal, while the customer is sent a receipt of the transaction via SMS or Email. The service can be delivered through any mobile phone including feature phones and smart phones (Android & iOS) platforms, and relies on mobile data connectivity. It also claims that merchants can accept card payments through mobile phones in a secure environment with two layers of encryption. The bank has not disclosed details about the cost of the service and transaction charges.
Note that Prizm Payments MD Loney Antony had informed MediaNama that the company has the distributorship for Mswipe’s device. It also has the transaction processor and the infrastrucutre which connects into Visa and Mastercard. He had added that Prizm gets a percentage from the transaction fee that Banks levy.
The company intends to target merchants with home delivery services, cash-on-delivery agents, taxi drivers and others who require payments on the go, and claims that it requires a very small investments on their part, while eliminating costs
associated with cash handling like loss, theft, accounting delay and other factors. Antony had said that there were several small merchants to whom banks don’t give a point-of-sales device, unless they have a certain number of transactions. Prizm will target lower value merchants will get these devices.
The Sequoia Capital backed company had claimed that it was “on track to process $50 billion in transactions this year, up from $30 billion last year, with 30,000 point of sale processing devices.”
Other M-PoS Players in India
The mobile PoS devices segment is witnessing a lot of action this year. Recently, CDMA based mobile operator, MTS, launched MTS mPOS, its own mobile point of sale device that can be attached to MTS mobiles for mobile transactions.
Earlier, PayMate, the mobile payments company,had launched a PayPOS mobile application, which also enabled credit and debit cards payments and electronic transactions on mobile phones at the point of sale (POS). However, unlike MTS’ mPOS service, PayMate is an application based payment application and is available on all Android/iOS devices.
Apart from that, PayPal launched PayPal Here, a mobile based payment solution for small businesses. PayPal Here is a similar solution, however, it’s only available on the iPhone and not available in India yet. Square also offers similar solution but it is also not available in India.