Point of Sale systems have come a long way from where they were a decade back. At a time when smartphones are becoming payment instruments, Mobile Point of Sale or mPOS technology is evolving simultaneously. Now that the Indian Government has taken a major step towards making the economy cashless, it has become a requirement for businesses to start accepting cashless payments as well. Installing an mPOS is a convenient, cost effective and a holistic approach to do so.
A Brief Introduction to mPOS
mPOS systems are portable hardware devices which work wirelessly and process payments through a range of payment methods – Credit Cards, Debit Cards, Chip-based cards etc. With mobile wallets and NFC technology gaining popularity, many of the mPOS hardware allow payments through these as well.
These are much more cost effective than PSTN (public switched telephone network) or Desktop GPRS POS systems, which have high installation & maintainance costs. Additionally, most of the available mPOS systems are suitable for all sizes of business. Since the hardware unit comes equipped with a SIM slot, merchants in remote areas can also process payments through GPRS, in the absence of a fixed line network.
mPOS machines can be paired with a smartphone or a tablet, hence making them easy to use by anyone. Large store owners, can buy several mPOS devices which can be linked to a central register. This helps in eliminating a single point of check out. Click here to read more about what is mPOS.
Types of mPOS Systems
We can broadly classify the presently available mPOS hardware into two categories.
1. Hand Held POS Terminals
You can think of these as compact portable credit card/debit card swipe machines. These are light, and can operate over GPRS or WiFi. They can be paired with a mobile app, which can also be used for managing the bank account and transaction history. Besides swiping, certain such machines accept chip-based (EMV) cards as well.
2. Compact Smartphone/Tablet Terminals
These type of terminals convert any smartphone or a tablet into an all in one cash register. These are bluetooth enabled swipe machines, that need to be inserted into standard 3.5 mm audio jacks. The supporting apps come with the provision of taking the customer’s signature, hence eliminating the need of printing receipts.
Both handheld terminals, and smartphone card swipers offer the provision of sending digital receipts to customer’s mobile number and email. This saves printing paper & ink costs.
How to Get Started
As a merchant, you can avail an mPOS device from any of the dedicated companies given in the list below, or directly from banks like SBI, HDFC etc. These firms will help you choose a device & plan as per your requirement. You can sign up on the website and request a visit by their representatives. Most companies requires standard documents for onboarding – KYC forms, address proof and PAN card. While there are some mPOS providers that will directly integrate with your bank, some might require you to create a bank account with their supporting bank.
Once you have the device, you would need to link it with the respective provider’s desktop or mobile app. Link the device merchant account with your bank account, and you are good to start taking payments.
Some Important Things to Know
While you are shortlisting which is the best device for you, here are a few terms you may come across:
- PCI DSS Compliant – This is a global standardisation for accepting payments securely. It stands for ‘Payment Card Industry Data Security Standard’. Check if the mPOS provider you are dealing with is PCI certified.
- Issuer – Issuer represents the bank that issues cards. This is the bank your customer has an account at.
- Acquirer – This is the bank which will facilitate payments into your account. It is directly linked to your POS terminal. SBI is the biggest acquiring bank of mPOS terminals in India, followed by HDFC & Axis Bank.
- Merchant Discount Rate(MDR) – This may also be called Merchant Service Fee(MSF). It is the commission that the acquirer bank charges for facilitating payments. RBI regulates MDR, and has capped it at 0.75% for transaction values upto Rs.2000 and at 1% for transaction values above Rs.2000 for debit card payment. No limit has been set for credit card payments.
- Near Field Communication (NFC) – This technology allows contactless payments using smartphones or EMV cards.
List of mPOS Solution Providers in India
Below is a list of firms that offer mPOS payment solutions in India. All of these firms provide hand held POS terminals. Some these companies and banks either source the hardware from international terminal manufacturers like Ingenico & Verifone (International OEMs) or local manufacturers like Powercraft Electronics, Visiontek etc. While some like Ezetap, mSwipe etc. make both hardware and software. Most of these companies also provide compact smartphone swipers, as given below.
While all companies offer competitive pricing, some have plans varying upon the nature & size of a merchant’s business, and hence refused to disclosed the rates publicly, info na. has been stated in those places. All of these are PCI-DSS compliant.
|Name||Set up Fee Startig (Rs)||Rental Starting (Rs)||Debit Card Fees||Credit Card Fees||Bank Agnostic||Accepts Wallets||Smartphone swipers||NFC|
|HDFC Merchant Services||n.a.||n.a.||n.a.||n.a.||N||N||N||N|
|ICICI Merchant Services||n.a.||n.a.||0.75-1%||1.5-2%||N||N||Y||Y|
|MobiSwipe||2500||250||0.75-1%||1.65% to 2.10%||Y||Y||Y||N|
Some Key Points on Individual Providers
- Bijlipay – Bijlipay is also a partner with Indian Overseas Bank’s mPOS initiative. It was founded in 2012, and offers miniATM facility to merchants as well.
- ePaisa – ePaisa terminals allow merchants to accept UPI payments and Bitcoin payments as well. Additionally it offers analytics, inventory management solutions & omni-channel payment acceptance solutions.
- Ezetap – Ezetap hardware solutions are compact and are suitable for eCommerce companies, and companies with outdoor field staff.
- HDFC Merchant Services – HDFC is the second largest acquirer bank after SBI. It also offers a mobile payment solution called ‘PayZapp for Business’ to accept mobile payments through wallets or UPI.
- ICICI Merchant Services – ICICI Bank offers mPOS solutions in partnership with global payments company First Data.
- Mobiswipe – Mobiswipe offers robust hardware manufactured by POS leader, Ingenico.
- Mosambee – Mosambee also offers a mobile app specifically for accepting mobile wallet payments. Plus it offers an AADHAAR Enabled Payments System too.
- MRL Posnet – It has a digital POS solution called Paytivo, which comes with a touchscreen and a battery life of 48 hours.
- Mswipe – Mswipe also offers its proprietary hardware. It is used by several big brands in different sectors including Asian Paints, Jabong, McDonald’s, Quikr, Spectranet etc.
- Paynear – Paynear also white labels its payment & hardware solutions. ICICI bank is one of its clients.
- PayU – It is also a payment gateway provider & offers quick availment of mPOS, with just the Pan Card and a cancelled cheque. It has no monthly rentals.
- Pine Labs – It claims to have over 60,000 retail merchants using its solutions. This includes large chains like Bata, Big Bazaar, CCD etc.
- SBI Merchant Acquiring Business – It also offers fixed/desktop based POS terminals. Even non-SBI merchants can use SBI’s MAB Services.
- iKaaz – iKaaz isn’t mentioned in the above list, since it doesn’t offer a conventional mPOS terminal. However it does offer solutions to accept NFC based payments.
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