Mobile POS provider MobiSwipe has been acquired by United Arab Emirates (UAE) payments solution provider OMA Emirates for an undisclosed amount. MobiSwipe allows merchants to use Android mobile phones or tablets as Point of Sale (POS) terminals with the capability to accept credit and debit card payments. Merchants can process payments on the go via the pocket-sized card reader connected to the MobiSwipe app via Bluetooth.
OMA Emirates that the investment will broaden overall services and solutions portfolio in the Middle East, Eastern Europe, and the APAC regions. It added acquisition of MobiSwipe is a step towards its solutions available for its entire network.
MobiSwipe had raised funding from Paytm’s parent company One97 Communications in 2012 following which CEO Vijay Shekhar Sharma joined the board of the company. TechCircle also points out that the company was in talks to raise $5-7 million in its Series A round of funding.
MobiSwipe was founded in 2012 by Suresh Santhanaramakrishnan, a founding member of BharatMatrimony.com, and Harmeet Singh Arora, a veteran in the internet, online gaming and mobile domains.
POS business in India recieved a fillip during the Budget 2017-18 as the finance minister reiterated the goal of setting up 10 lakh POS terminals in the country which was mentioned during the demonetization period. At the same time, he added that 20 lakh Micro-ATMs which can process Aadhaar payments would be set up in the country. The minister also relaxed custom and excise duty for firms engaged in the manufacturing of digital devices such as micro ATMS, POS/ mPOS.
As we have pointed out many times, India has the dubious honour of having one of the lowest POS terminal penetration, according to a 2015 Ernst and Young report. The report said there were only 693 machines per million of India’s population, compared to similar emerging countries such as Brazil, which has 32,995 terminals per million people and China and Russia, each of which has around 4000 terminals per million people.
The Reserve Bank of India’s data shows that there are over 700 million debit cards and 25.94 million credit cards and there are only 14 lakh POS terminals in the country.