Although Prime Minister of India, Narendra Modi has took the action against black money and took the step to ban Rs 500, Rs 1000 notes permanently in the country. With mobile wallet apps getting the boost post demonetization in India, new innovations are the way forward for any mobile wallet to gain market share. Regrading that, Paytm has unveiled its own app-based POS to enable small merchants to accept debit and credit cards. Paytm is definitely at the tick of things now.
Paytm has been updated its app to include this new feature. Paytm user will find an ‘Accept Payment’ icon now in the refreshed app where small businesses and shopkeepers can self-declare their bank account details to start receiving payments instantly.
The mobile wallet app however is also offering an introductory 0% fee for Rupay, Visa, Master and Maestro debit cards until December 31st. Paytm CEO and Founder Vijay Shekhar Sharma said at the launch event that:
“India needs a very innovating mobile pos machine and Paytm has already been accepted by many merchants. By extending our merchant network to all other payment networks, we are enabling digital payments to a very large number of Indians.”
For the unknown, Paytm already exists and enjoyed by a 150 million user base and with the new app-based POS service launch, the mobile wallet app seems to add 15 million merchants across the country. Paytm already claims its India’s largest mobile payment and commerce platform with the service accepted by grocery shops, restaurants, coffee shops, multiplexes, hospitals and by taxi and auto drivers.
Currently, not more than 3.5% of all retail outlets in India accepts debit and credit cards. There’s nearly zero penetration of POS services in the mass retail segment which awfully makes up for more than 90-percent of all retail in India. Paytm’s announcement comes on a day when Airtel’s Payments Bank has been announced. Paytm also claims it has the highest transaction in Hyderabad, and Chennei followed by cities like Delhi, Mumbai and Bangaluru, and the company behind that is all set to target more people in tier two and tier three cities to boost user base.
With the introduction of app-based POS, Paytm CEO added “We are on a mission to democratize payments and empower even the smallest merchants to be able to accept credit and debit card payments from their customers. We are very proud that we are able to contribute to the digitization of our economy.”
Paytm registers an average 5 million transactions on its app worth an annualized GMV of Rs. 30,000 crores. Paytm’s POS also involves a lot more steps and is not exactly seamless as say Apple Pay or Android Pay in countries like US, UK etc which are single action payment solutions.
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