Paytm launches point of sale app that converts phones into card payment machines

Paytm has partnered with Visa, MasterCard, and RuPay for facilitating card payments for Smart POS. (Image: PTI)

Digital payments firm Paytm on March 9 launched a smart point of sale (PoS) application which will convert android phones into card payment machines.

With this PoS application, a merchant will be able to accept payments through a debit or credit card just like a normal EDC machine - by tapping the card on the back of their smartphones.

“Contactless payments or tapping to pay with a contactless card or mobile device, have fast emerged as the preferred way to pay globally with nearly 60 percent of Visa transactions outside of the US occurring with a tap. Paytm’s foray into the contactless card payment ecosystem will truly help propel the adoption and usage of contactless cards across India," said TR Ramachandran, Group Country Manager, India and South Asia, Visa.

Paytm has partnered with Visa, MasterCard, and RuPay for facilitating card payments for Smart POS.

There is a limit of Rs 5,000 for a single transaction on this device.

Merchants will need to sign up on the Paytm for Business App, after which they will be required to download the Paytm Smart POS on their android-based mobile phones. Once downloaded, merchants can start collecting payments from their customers. The payment is then collected and transferred to the merchant’s account along with other QR payments.

In India, many micro retailers are yet to exploit the full range of benefits of PoS machines, or deploy UPI and QR codes for payments. This technology will come handy to them as they will not be required to purchase an additional device to start accepting payments through cards.

On the other hand, it also launched an upgraded version of its IoT device Soundbox 2.0 which provides instant voice and visual confirmation to merchants in regional languages.

Now merchants will not be required to check their mobile phones for confirmation which will help in increasing efficiency. This device comes equipped with a screen that gives instant visual confirmation of the paid amount along with the voice-based response.

It is beneficial for merchants starting from street hawkers, medium to large retailers as it helps them maintain record of all transactions and streamlines all payments made during the day. Instant voice-based confirmations of payments also help them keep track of all transactions protecting them from getting duped by customers showing fake screens and false confirmations.

Currently, it is available in five languages - English, Hindi, Tamil, Telegu and Kannada. The company plans to add more regional languages including Marathi over the next few months.

The company currently claims to have 1 crore merchants on its business app and is targeting 5 crore merchants over the next few years.

"Paytm is committed to bringing new-age financial technologies and services to 5 crore small and micro-merchants in India. Today’s launch of Soundbox 2.0 and Smart POS for Android phones expands opportunities for small businesses to experience these latest technologies at the most affordable price," said Vijay Shekhar Sharma, founder and CEO of Paytm.

Paytm which competes with Walmart-owned PhonePe claimed on March 1 that it has crossed 1.2 billion monthly transactions across payments methods such as Wallet, UPI, cards and internet banking, PhonePe staked its claim for digital payments market leadership on March 2, with over 1.07 billion transactions across UPI, Cards, and Wallets.

On average, India clocks 3.3 billion digital transactions per month across payments methods such as UPI, credit cards, debit cards, wallets.