Update: Nitin Gupta, PayUmony’s CEO, told MediaNama that the company charges a flat 2% transaction fees to merchants. Of which, PayUmoney keeps 0.3% and the rest will be divided by bank issuing the card and the bank accepting the payments.
He added that PayuMoney has not added NFC technology on their POS terminals as it would increase the cost of the device. Merchants can add NFC capabilities to their machines by adding a module if they wish.
Earlier: Payment gateway PayUmoney has launched its POS terminal in a bid to acquire more merchants. The company had told MediaNama that it would be launching the product in April 2016.
PayUmoney’s POS terminal will not charge a monthly rental to customers or a minimum balance and an option to link with any bank account. Most POS terminals require merchants to open a current account with the acquiring bank. The machine costs Rs 7,000 and says it will accept all credit and debit cards. Note that PayU Biz’s head of business Rahul Kothari said that the company would also be looking at payment through a wallet or an OTP.
PayUmoney’s POS terminal does not come with bundled SIMs and merchants can choose their telecom operator. The company says that the machine does not use paper to print a receipt, but instead a transaction acknowledgement will be sent to the buyer’s mobile with a link that opens up a soft copy of an e-slip. The merchant gets an email copy of the same, every time a transaction takes place.
It’s worth noting earlier in February 2016, PayU announced a partnership with Turkish payments company CallPay and launched an mPOS app. The application reads the card details and PayU mPOS can process transactions in multiple currencies and supports installment sales in Turkey. Merchants can then email or SMS transaction receipts to their customers.
RBI paper on POS terminals
In March, The Reserve Bank of India came out with a concept paper for improving the card acceptance infrastructure. Accordingly, the RBI has outlined a broad strategy to enhance the growth in acceptance infrastructure through POS terminals and usage of cards which includes further rationalisation of merchant fees for debit card transactions. More on that here.
Developments in the POS space
– In March, hyperlocal marketplace Zopper acquired EasyPOS Solutions in a cash and stock deal. EasyPOS Solutions is a cloud based point of sale software for billing, inventory, employee and loyalty management.
– In February, Ezetap partnered with FreeCharge to accept wallet payments on their mobile POS terminals. Earlier in October 2015, Ezetap had announced universal mobile wallet acceptance on its platform. Around the same time, the company partnered with the State Bank of India to launch ‘Chota ATM’, a solution that can double as an ATM device as well as a PoS terminal that can accept payments from any debit and credit card.
– Payment solutions provider Oxigen Services introduced ‘Super PoS’, a device that will upgrade a network of 200,000 locations under the Jan Dhan Yojana. According to the company, it will bring the platforms of financial inclusion, cards payment and recharge/bill payments on the PoS device.
– In July 2015, Mumbai-based mPOS solutions provider Mswipe raised $25 million in a series C round of funding from new investors Falcon Edge Capital, Ola Cabs and Meru Capital, and existing investors Axis Bank, Matrix Partners India and DSG Consumer Partners.