It looks like payment companies and banks are scrambling to make sure that POS terminals will be able to accept newer forms of payment methods. YES Bank has partnered with Bonus Hub to enable acceptance of UPI and multiple mobile wallets including YES Pay, Idea Money, Jio Money, mPesa, Ola Money, Citrus, Airtel Money, Freecharge and Oxigen (it’s curious to see Paytm missing from the list of wallet it will accept).
YES Bank added that the solution will be implemented across more than 80,000 merchants by the end of the financial year.
Meanwhile, the bank added that it will be adding BharatQR as well. It’s worth remembering that the National Payments Corporation of India (NPCI) is merging the QR codes generated by the UPI and BharatQR.
The UPI and BharatQR have different merchant discount rates (MDR) so it will be a challenge for card networks and the NPCI to sort out where the transaction is originating and charge merchants accordingly. And that’s what BonusHub is looking to simplify for merchants and will provide them a single window alliance for acceptance of UPI & multiple wallets, as well as settlement & reconciliation. MDR is an interbank fee levied by banks on merchants to facilitate a digital transaction.
But what’s missing is the ability for these machines to accept NFC payments as many banks have not built acceptance infrastructure for the same.
YES Bank isn’t the only bank looking to increase different types of payments at POS terminals and last week HDFC Bank launched a POS machine called DigiPOS which will allow customers to pay via newer methods such as the Unified Payments Interface (UPI), BharatQR, SMS Pay and the PayZapp wallet, in addition to debit and credit cards. The bank added that it will be converting its entire network of PoS machines to DigiPOS without any investment by the merchants.
Meanwhile, the bank will face competition from third party POS players such as ItzCash, Mswipe, Ezetap and Paynear.
- ItzCash has integrated BharatQR on its POS machines, where customers can pay the amount of sale by scanning the QR code.
- Paynear, a digital payments company and a mobile point of sale (POS) terminal provider, is running an Aadhaar Pay pilot. The pilot included 50 merchants.
- Mswipe has upgraded all of its POS terminals to accept NFC payments and also has a partnership with Samsung Pay as well.