Bengaluru-based Flipkart owned fintech firm PhonePe has taken yet another step to expand its presence in the offline payments segment. PhonePay has launched Point of Sale aka POS device to serve the needs of the small merchants. The company claims it is the ‘lowest cost’ PoS device in the world.
In an official statement, PhonePe claims, that the POS device is the first such product in the Indian digital payments space. It works like a traditional calculator commonly used in local stores.
Powered by Bluetooth technology, the POS device provides an experience similar to near-field communication (NFC). It is meant to serve merchants of all sizes – from kirana stores to petrol pumps and food chains to quick service restaurants (QSRs) among others. The consumers can bring their phone close to the POS device installed on the merchants’ outlet and it would automatically show the merchant details & amount to be paid.
The merchant does not need to have an Internet connection to confirm the success of a transaction. Apart from being low-cost, the device is portable and claims to have no scope for misuse. It can run for 8-12 months on AA batteries.
Commenting on the development, Sameer Nigam, CEO PhonePe said, “We are really excited at the potential of the PhonePe POS device. It ticks all the boxes for Indian shopkeepers to adopt digital payments rapidly – it is very cheap, easy to use and highly durable. The PhonePe POS will help accelerate the pace of digital inclusion for millions of local merchants and customers in India. At market launch, we will be giving the device for free to merchants, against a nominal security deposit.”
Talking about the technology Rahul Chari, CTO of PhonePe said, “The device has been built keeping Indian merchants and customers in mind. It does not require an internet connection and runs on a regular battery. The use of Bluetooth as the underlying technology makes the protocol used for the transaction robust and widely compatible. The solution provides several layers of security to ensure merchant and customer transaction safety.”