Digital payment company PayMate India has announced that it’s processing more than $500M in annual payment processing run rate.

PayMate offers services for consumers to make payments and transfers, for businesses to accept payments and make B2B payments. The company claims that its B2B e-payment business has been working strong for them.

After launching a slew of products and partnering with number of services in 2012, PayMate went silent for the last six months. Speaking with MediaNama, PayMate Founder and Managing Director, Ajay Adiseshann, informed us that PayMate will be launching new services that address e-commerce and home delivery in coming months. It’s currently not clear how PayMate will be addressing these segments, however, we suppose it plans to launch a mPOS device that will accept debit cards as well.

In May 2012, PayMate has launched a PayPOS mobile application, which allows small businesses to accept credit and debit cards and process electronic transactions directly on their mobile phones at the point of sale (POS). The application has no setup fee, rentals, variable fees or minimum transaction threshold. The problem with such solution is that it is essentially using an online payment gateway for offline transactions, and it also involves an additional step for the customer- of entering the card details including the card number, CVV code and the 3D secure Pin or an OTP, which would make it a little cumbersome compared to swipe and pay terminal solutions. Also, some customers could be finicky about paper receipts.

Why E-commerce and Home Delivery Segment?

It appears that a lot of digital payment companies in the last few months are targeting E-Commerce and Home delivery segment. We believe that E-Commerce in India is finally on the verge of taking off and Indian consumers are now confident enough to order products online. However, everything fails at making payments online. That said, high transaction failure rates at payment gateways isn’t helping the cause either. E-commerce companies in India have introduced cash on delivery to overcome this hurdle and this segment seems to be growing enough to catch PayMate’s attention.

Other mPOS devices

A lot of mobile payment companies have launched its mPOS devices. Earlier this month, Bangalore based mobile point of sale (PoS) payments startup Ezetap launched a new mobile PoS device worth $50 (~Rs 3000). The device has a magnetic stripe and chip card reader with a pin pad integrated. The pin pad will allow support for debit cards in the country.

In December 2012, Yes Bank had launched a mobile point of sale (mPOS) which allowed GPRS enabled mobile phones to be converted into Point of Sale terminals. In September 2012, Payments solutions provider Oxigen had launched a Mini ATM device called OxiShaan which also acts as a mobile point of sale (PoS) terminal and can be used for utility services like Mobile recharges, DTH Recharges, and Merchant Payments among others. In July 2012, Axis Bank had partnered with Prizm Payments and Mswipe Technologies to launch an mPOS solution called Swipeon while the CDMA based mobile operator, MTS India, had also launched its own mobile point of sale device called MTS mPOS which can be attached to MTS mobiles for mobile transactions.