Paytm has come out with an innovation that will turn vendors’ smartphones into Points of Sale machines, dubbed the Paytm Smart PoS. It will be utilising NFC (Near Field Communication) technology available in several Android phones today.
This feature will be leveraging SoftPoS or Software Point of Sale which does not require any hardware. Rather NFC technology will enable transactions completed simply by tapping the card on the merchant’s phone.
Normally during check outs after purchases the customer places their card on a separate EDC (electronic data capture) machine intended to scan the card and extract payment. But this will be made redundant since instead of a separate machine smartphones will be enough to complete the transaction.
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How It Works
The vendor will have to install Paytm for Business app on their Android phone which must be NFC compatible.
The Accept Card Payment option has to be activated by supplying business details and a setup fee payment.
In the final step, after a purchase is made the vendor simply needs to tap the customer’s card against the back of the phone and enter the chargeable amount.
Which Cards Are Eligible
Visa, Mastercard and Rupay are supported by the Paytm Smart PoS.
Only those cards will work here which have a WiFi logo on the front, which means the card can be used for contactless transactions.
The single transaction limit is Rs 5000, which is the figure of value for over 90% transactions in India.
Competition
This move pits Paytm against Sequoia Capital-backed Pine Labs which produces white devices specially made for card transactions.
Perks of a Smart PoS
As opposed to “dumb” or traditional-PoS, a Smart PoS offers further benefits such as GST compliance, scanner/printer, all UPI payments, Bluetooth connectivity and customisations according to merchant needs.
Updated Soundbox
Paytm also launched the Internet of Things (IoT)-based Soundbox 2.0 which gives out a sound alert upon successful completion of a purchase. The new version also generates a screen giving visual confirmation of successful receipt of payment by the merchant.
This device comes with a QR code and also offers a voice-based summary of total payments and amounts received at the end of the day.
Street vendors and micro merchants also stand to benefit as they can tap the “function button” twice to generate payment summary for the day and maintain transaction records.
Soundbox 2.0 costs a one time payment of Rs 750 and monthly payments of Rs 150.
Vijay Shekhar Sharma, founder and chief executive of Paytm, stated that the launch of both Smart PoS and Soundbox 2.0 allows small businesses to gain from new technologies at an affordable rate.
India is playing catch up to the global standard of contactless or tap payments. The new offerings by Paytm will propel India to adopt and use the technologies on a mass scale.
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