Paymate, one of the leading company in India for mobile payments has launched PayPOS, a mobile app that converts your mobile phone into a card processing terminal and allows merchants to accept credit card payments on the move.
India currently has plenty of mobile apps that allow consumers to make payments for array of services on their mobile, however, none of them had facility to accept payments. Paymate’s PayPOS is India’s first mobile app which allows small businesses, individuals & merchants to accept and process electronic transactions using credit and debit cards directly on their mobile phones at the point of sale (POS) itself.
How PayPOS works
The merchant or individual who wishes to use PayPOS needs to first sign up with PayPOS – Once registered as a merchant, they will be provided a Merchant ID (MID) and a Device ID (DID) that will enable use of mobile phone as a POS device and have your Merchant name show in the customer’s card statement.
The merchant has to download the mobile app and start transacting instantly. Currently, PayPOS is available for Android & iOS devices.
To charge a customer, Merchant has to simply enter his / her 10-digit mobile number and amount to be charged on the screen. The customer then simply enters their credit card details and 3D secure password. Once the customer has entered the details, the transaction will be processed within a few seconds.
PayPOS also provides transaction history and other reports on the mobile device as well as on the PayPOS website.
The PayPOS app is totally free.
However, PayPOS will charge the merchant credit card payment gateway fee of 2.95% + taxes. It will be deducted from the transaction amount during settlement. Merchant has an option to pass on the fee to their customers as well.
One this is for sure, PayPOS will benefit businesses in the unorganized retail sector tremendously. Paypos will also be very attractive to individuals & freelancers who can now accept payments without much hassle.
Currently, PayPOS does not seem to have a physical card reader extension – equivalent to popular Square app in the US. However, I am sure Paymate will have plans to have something similar in the future.
I have personally registered for it, but was not able to use as the account has not been activated. One thing for sure – if PayPOS does what it says, it is sure to be a hit with merchants!
What do you think?