MSwipe has enabled Samsung Pay across its POS 200,000 terminals which will enable contactless NFC “tap and go” payments. To make payments, Samsung Pay customers will need to choose their debit or credit card and scan their fingerprint and tap their device on an Mswipe terminal to complete the purchase.
Note that all MSwipe terminals have NFC enabled on them and CEO Manish Patel had told MediaNama in a number of conversations that the company is betting on NFC payments. “At Mswipe, we have anticipated this and built terminals that are future-ready so that our merchants can accept payments seamlessly, even when there is a technology shift,” Patel said in a statement.
The adoption of NFC payments has been slow in India due to the lack of devices which can accept the corresponding cards. Last year, card network Visa said it issued over one million NFC contactless cards and has over 100,000 merchant locations which can accept NFC cards and transactions. In May 2016, State Bank of India (SBI), the country’s largest lender, said that it has issued 30,000 NFC terminals. ICICI Bank says that it has NFC terminals in over 991 locations in Hyderabad, Mumbai and Gurgaon.
But NFC payments have gotten a push from the Reserve Bank of India (RBI) and eased the norms for payments made using NFC cards and said that transactions below Rs 2,000 will not need an additional factor of authentication i.e. entering a PIN or signing transaction receipts.
However, it’s worth remembering Samsung Pay also features MST (Magnetic Secure Transmission) technology which works on any POS machine. MST allows a user to send a magnetic signal from a smartphone to the payment terminal’s card reader.
Tie-ups and integrations
Meanwhile, Samsung Pay has integrated the Unified Payments Interface (UPI) on the application in India. The company said that its UPI will be provided by Axis Bank and will have a separate handle called @pingpay. Samsung Pay also added that Indian users will be able to integrate their Paytm wallet into the app and will allow customers to scan QR codes to initiate a payment, transfer money from peers and generate one-time codes for merchants at stores.
Recently, employee benefits services provider Sodexo signed a partnership Mswipe employees could use Sodexo’s Meal Card at some 30,000 merchants like grocery stores, restaurants, cafes and food delivery services.
Mswipe is reportedly in talks to raise $40 million (around Rs250 crore) and has appointed Avendus Capital as for the same, as indicated by this Mint report. Meanwhile, it was reported RNT Capital Advisors, the investment platform set up by Ratan Tata, and International Finance Corp, were in discussion to invest $25 million in the company.
Its last funding round was in July 2015, where it raised Rs160 crore in a Series C round from investors such as Falcon Edge Capital, Ola Cabs and Meru Capital. Mswipe had earlier raised an undisclosed amount in a Series B round of investment from investors Matrix Partners and Axis Bank in January 2014. The company had also raised an undisclosed amount from Matrix Partners in January 2013, with Axis Bank’s participation.