Mumbai-based digital payments startup Benow which acquires merchants for QR code based transactions is all set to move into the hardware point of sales business sensing stronger opportunity in the card payments space.
The company, founded by Mastek, is looking to finalise a $5 million fund raising plan within the next two months to fuel its ambitions in the retail digital payments space.
“Smartphone based digital payments for street corner shops is growing slower than expected, hence we are adding point of sales to our offering for our merchant partners, which will let them accept card payments as well,” said Sudhakar Ram, chief executive officer, Benow.
Ram said with one lakh onboarded merchants for their QR code UPI-based payment solution, the target is to push this number to 13 lakh in the next five years.
“We are seeing around 10 to 30% of the transactions at merchant outlets happening digitally and only 5% of them are happening via UPI, hence we are targeting card payments to flow through our platform as well,” he said.
Benow has struck partnerships with private banks like ICICI Bank, IDFC Bank, Kotak Mahindra Bank, Yes Bank and Axis Bank and payment gateway companies like PayU, Razorpay and Airpay to process card transactions in addition to its UPI business.
“Our device will be priced in the range of Rs 2200 and will have multiple additional features like customer engagement tools, analytical capabilities etc,” said Ram.
The company intends to deploy these devices across 10 cities and will start with Mumbai, Nashik, Pune, Hyderabad and Delhi and plans to expand operations across India eventually.