Bangalore-based payments solutions company Ezetap has launched an open-platform, GPRS based point-of-sale (PoS) terminal called EzeSmart, which is Aadhaar Pay enabled and has eKYC (Know Your Customer) authentication option as well. EzeSmart also supports other payment modes such as UPI and Bharat QR, besides mobile wallets, and credit and debit cards.
So, if a customer has an Aadhaar linked bank account, they can complete a transaction by simply authenticating their fingerprint with that saved in the Aadhaar database via the fingerprint sensor of the device. Similarly, a business’ eKYC requirements can also be carried out using EzeSmart.
As of now, BigBasket is already using the EzeSmart terminal.
Ezetap isn’t the first. Mobile PoS terminal provider, Paynear had rolled out an Aadhaar Pay pilot in Hyderabad in June last year. The pilot began with 50 merchants in the city, and the company’s CEO Priti Shah had told MediaNama that there were still a number of interconnection issues which needed to be fixed before they could roll it out on a bigger scale.
Aadhaar Pay had been launched in January last year, which allows any one with an Aadhaar linked bank account to make and receive payments with a thumb impression alone. It is not the same as the Aadhaar Enabled Payment System (AEPS), which allows cash withdrawal, deposit and funds transfer at PoS (MicroATM) terminals, through a business correspondent of any bank via Aadhaar authentication.
PoS in India
Note that as per RBI data, there were 3.03 million PoS terminals in the country in December 2017, up 71% from 1.77 million in December 2016. However, the RBI data only shows terminal statistics from banks and does not include the number of devices from third-party players like MSwipe, Ezetap, ItzCash and Oxigen.
Note that back in June 2014, the State Bank of India had partnered with Ezetap to deploy 500,000 PoS terminals across the country over the next five years. Subsequently in October 2014, Ezetap and SBI partnered to launch ‘Chota ATM’, a solution that could double as an ATM device as well as a PoS terminal that accepts payments from any debit and credit card.
FortunePay acquisition & funding
In June last year, Ezetap had acquired FortunePay, which offers banks a platform that allows them to provide a mix of digital payments solutions as well as physical payment solutions.
In August 2017, the company had raised $16 million from US-based VC fund JS Capital Management, with participation from existing investors Social Capital and Horizons Ventures. The company planned to use the funds in sales and marketing and for strengthening its enterprise solutions.
One of Ezetap’s primary competitors, MSwipe raised $41 million in 2017 – $10 million from venture capital firm B Capital in December, and $31 million from UC-RNT fund and existing investors in June. As of December last year, the company had said that it had 280,000 terminals across 650 cities and towns, which had been augmented by MSwipe’s acquisition of PayU India’s PoS business in May 2017. MSwipe also supports BharatQR and UPI, but not Aadhaar Pay.