wordpress blog stats
Connect with us

Hi, what are you looking for?

Prizm Payments Plans Square Clone; $50B In Transactions In India?

Prizm Payments, a Sequoia Capital backed company, has is “on track to process $50 billion in transactions this year, up from $35 billion last year, reports TechCrunch, adding that it now has 30,000 point of sale processing devices and 10,000 ATMs in the country,” and is looking to launch a clone of the Jack Dorsey founded mobile payments facilitation service Square.

First up, processing $50 billion in transactions is a lot of money, but I’d be surprised is most of this isn’t primarily via Prizm’s ATM business, rather than the card based payment processing business. If it is mostly from the ATM business, then it is hardly remarkable. The withdrawal of cash should be seen separately from the merchant card processing business, and from what little we can see from Prizm’s website, their primary focus appears to be the ATM business.

The App Based Point of Sales Approach

Techcrunch says that Prizm will roll out a point of sales transaction device and dongle based service for merchants, to around 200 merchants, allowing them to accept card based payments either at a store, on on delivery. However, it’s not very clear whether the idea here is to enable commerce or to encourage withdrawals. Enabling commerce will mean that it would tie up with merchants to allow purchase of goods, while mobile ATM’s would be about partnering with banking correspondents to enable withdrawal of money at even retail storefronts. But business correspondents model is yet to blaze a trail.

Note that Prizm wouldn’t be the first company to get into the app and device based point of sales payment clone: recently MTS launched mPOS, a merchant focused service which uses a phone with an terminal that gets attached to the phone via the audio jack, which merchants can use for swiping cards. Paymate also launched PayPOS, a similar service.

The differentiation that Prizm will try and bring to this is that it will take a feature phone approach, instead of smartphones. This means that it will be available to a wider variety of merchants, and there may not be a need for merchants to buy a new handset or already have a smartphone to use the application and/or device.

We’ve asked Sequoia Capital to connect us with Prizm for more on their business. We’ll update with more in case we hear from Prizm

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


A survey by the National Payments Corporation of India (NPCI) found that at least 80% of households now use digital payment apps like Paytm,...


In an affidavit filed before the Supreme Court, the Reserve Bank of India (RBI) has said that companies like WhatsApp, Google and Amazon have...


While digital payment adoption began to grow significantly post demonetisation, the COVID-19 pandemic accelerated this shift over the last year, according to PwC India’s...


We missed this earlier.  A technical policy paper authored by researchers at global card network Visa Inc. has proposed a common protocol that can...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ