How mPOS & POS are Shaping our Country’s Payments Ecosystem
mPOS (Mobile Point of Sale) – To understand how mPOS is shaping the way India transacts, we need to first understand the device itself.
While the traditional POS or Point Of Sale is a connected, cashless infrastructure that enables all kinds of digital transactions, an mPOS or a Mobile Point Of Sale is a much more portable, wireless device that offers the same functionalities, but of course, with much more convenience.
An mPOS is the next stage in the evolution cycle of POS and helps overcome the shortcomings of the fixed POS system. To begin with, an mPOS is far more affordable than POS. Most importantly, it effectively serves the very purpose of its innovation – cashless payments anytime, anywhere!
Imagine a situation where a grocery store owner uses the traditional POS. If there is a long queue of customers waiting to make their payments, then chances are that you may go to the next shop, or just give up the idea of making a purchase for that moment, if it is not that important.
Now imagine that the same grocery store owner has empowered his staff with an mPOS. The staff can generate an invoice anywhere in the store and accept cashless payments. The same device could be a huge blessing for let’s say a bartender or a waiter, as they can generate an invoice and receive payments at your very table. So, with an mPOS, queues will become a thing of the past.
Another big advantage of using an mPOS is card-on-delivery. Being portable and wireless in nature, it could be carried to the residence of the customer and cashless payments accepted then and there. Something that a traditional, fixed POS system may not offer.
As a matter of fact, many e-commerce companies in India have boosted their sales by empowering their delivery boys with an mPOS device. Once the item is delivered, cashless payments are accepted at the residence of the customer.
A traditional grocer could also help his regular customers by functioning as a mini-ATM. An mPOS could be used by customers to withdraw money from their bank accounts using their debit cards or net banking. The retailer, in turn, stands to earn commission for every cash withdrawal.
Apart from regular transactions processing solutions wherein they accept payments through netbanking, debit/credit cards, e-wallets, online, UPI etc., devices like the Paynear mPOS also offer merchants with several value-added services to earn extra revenue, and in-built tools for better customer and store management.
Value-added services like bill payments, ticketing etc. can help the merchant earn extra revenue through means of commissions, rebates, discounts and cashbacks. In-built tools like e-invoicing, e-receipts etc. can help the merchant go paperless, while building better relations with the customers.
The potential of mPOS in India
According to a research published in the Forbes magazine, mobile retail is now a USD 5.7 Billion business worldwide and is growing like never-before. An mPOS is now being considered as the fastest moving trend in retail, after the advent of internet.
mPOS providers like Paynear are working with a variety of clients in India including banks, financial institutions, SMBs, retailers, ticketing companies, e-commerce giants, travel agents, cab services etc to help ease the burden of cashless transactions anytime, anywhere.
With the government of India showing utmost seriousness about making India a less-cash economy and with the end-customer now abdicating cash for other payment options, the need for mPOS is only projected to grow massively in the coming days.