6 Reasons How mPOS is more Cost Effective than Traditional POS
- A right fit for any size and type of business: From individuals offering professional services to small and medium business set ups – mPOS is a perfect payment solution. Smaller merchants cannot afford to use traditional POS due to various reasons, but with mPOS all they need is a smartphone with Internet access. Smartphone usage is on the rise and with today’s technology is easily affordable by any individual. mPOS eliminates the requirement of a fixed line, hassles of applying and maintaining POS from banks; thus saving merchants time and money.
- Cut down on the MMC: Compared to a regular POS, mPOS comes with a much lesser monthly maintenance cost. There are no commitment charges like POS, which lessens the burden. Regular POS can have MMC ranging from Rs. 700-1500 per month whereas mPOS comes with a lesser MMC of Rs. 400 per month.
- Easy to Maintain: If you’re thinking of incorporating a POS into your business, then you need to be aware of the additional costs it comes with. Training the staff on POS usage, maintenance and repair of the hardware, software and security upgrades all require external support which comes at a cost. With mPOS, all you need is to download the app and start using it. Since the card reader is a small device, maintenance is absolutely zero. The app updates happen automatically through app store and with the interface being so easy to use, anyone can easily use it.
- No performance charges: Performance charges can vary on the type of POS you have chosen – PSTN or Desktop GPRS. Merchants have to shell out anywhere between Rs. 250 to 500 with a regular POS, whereas with mPOS there is absolutely no performance charges levied.
- Free downloadable statements: How satisfying would it be to actually not have to spend Rs. 100 for every duplicate statements from the banks? When you use mPOS downloading duplicate statements gets so much better – at zero cost. Saved your 100 bucks.
- Automatic settlements: With mPOS, merchants need not open new bank accounts, they can use their existing bank account for settlements. With automatic settlements happening on a T+1 cycle, merchants don’t need paper receipts to manually settle the payments with the bank.
POS vs. mPOS comparison: A merchant with Rs. 25,000 per month in transactions using GPRS POS pays roughly around Rs. 375 per month (per transaction approx. Rs. 1.5). That combined with the additional downloaded statement at Rs. 100 and telephone line rental at Rs. 700 gives a total cost of Rs 1175. Compare that to a merchant with same Rs. 25,000 per month in transactions using mPOS pays around Rs. 425 monthly (per transaction approx. Rs. 1.7). Since there are no costs for additional statements and performance charges, the only thing a merchant pays is the monthly rental of Rs. 400, bringing the total cost to Rs. 825.