PhonePe, a leading fintech company, has announced the introduction of its Point-of-sale (POS) device, allowing merchants to accept payments via debit cards, credit cards, and UPI. This move signifies PhonePe’s ambition to become a comprehensive offline payment service provider.
PhonePe Expands Merchant Services with POS Device, Aims for Nationwide Adoption
Vivek Lohcheb, Head of Offline Business at PhonePe, explained that by accepting credit and debit transactions, merchants can anticipate an increase in their average ticket size, leading to overall business growth. PhonePe aims to expand this solution across India, leveraging its extensive network of over 3.5 crore merchants, with a goal of deploying 150,000 devices by the following year.
The PhonePe POS device is equipped with the PhonePe POS app and supports transactions through tap, swipe, dip, and interoperable dynamic QR codes. According to a statement from PhonePe, the device is offered at a nominal monthly rental cost and guarantees world-class product quality and service.
This development comes at a time when the Reserve Bank of India is considering implementing additional regulations on KYC and other payment processes for companies offering offline POS devices. Currently, the POS device market is dominated by players like Pine Labs, Razorpay, and Paytm.
PhonePe’s direct competitor, Paytm, recently launched a new POS device that accepts cards and UPI payments. It also serves as an audio-assisted smart device with a portable speaker for daily payment alerts, utilizing SIM-based connectivity.
Razorpay’s Acquisition of Ezetap Paves the Way for Offline Payments, while PhonePe Expands Services and RBI Reveals POS Device Statistics
In 2022, Razorpay, another fintech unicorn, acquired Ezetap in a cash-and-equity deal worth approximately $150 million, marking its entry into the offline payments space.
PhonePe has been actively introducing new services and products. In June, it launched an online payment gateway to cater to Micro, Small, and Medium Enterprises (MSME) merchants nationwide. Additionally, PhonePe launched a merchant lending platform, enabling banks and NBFCs to provide digital and seamless access to credit for its vast base of over 35 million merchants.
According to RBI data as of May 2023, there are approximately 7.9 million POS devices in India. Paytm Payments Bank accounts for around 640,000 devices across the country.