HDFC Bank has become the first bank in India to launch DigiPOS, a Point of Sale (POS) machine that offers a complete suite of digital payment options.
DigiPOS will offer customers various digital payment options such as UPI, Bharat QR, SMS Pay and PayZapp, in addition to the facility to pay through debit / credit cards, a media report said.
The bank has a network of over 4 lakh PoS machines used by 3 lakh merchants across 4000 locations. In the next 3-4 months, HDFC Bank will convert its entire network of over 4 lakh PoS machines to DigiPOS without any investment by the merchants. The pilots are being carried out in all four metros with large retailers.
Through a market survey, the bank realized that the merchants were faced with several challenges around payments. The multiple payment modes and multiple devices cluttered the entire mechanism, multiple transaction reports resulted in reconciliation hassles, the complex steps in receiving payments required the merchants to train their counter staff and the multiple service providers added to the confusion. The DigiPOS payment solution alleviates these pain points and provides simplicity, value, convenience, security to the merchants. The customer interface is simple and intuitive. It gives the merchant one single report at the end of the day which reconciles all his transactions across payment methods.
The payment solution is available as a software upgrade for the existing POS terminals. The merchant does not have to make any fresh investment to access DigiPOS. After a software upgrade done by the bank’s service engineer, the merchant can use the same POS terminal to avail of the payment solution.
In addition to debit/credit card payment facility, the bank has integrated all popular digital payment methods like UPI, Bharat QR, SMS Pay, and PayZapp on the DigiPOS machines thus offering greater convenience to both customers and merchants. For example, using the Bharat QR or UPI option, customer can scan the QR code and make payment using their smartphones. Similarly, SMS Pay option on the DigiPOS can be initiated by merchants in the home delivery business to facilitate payments through SMS to customers. As the largest acquirer in the country, HDFC Bank aims to enable all its existing merchants to accept digital payments thereby driving rapid adoption of digital transactions.
Customers of all banks pay using these payment options as per their convenience. It will also be available on mPOS.
“The software and the entire ecosystem around it is modular so if new and innovative modes of payment are introduced they can be easily incorporated into the machine thereby ensuring that the network is future ready. DigiPOS will be a part of the bank’s new acquisition policy,” said Parag Rao, Country Head – Card Payment Products, Merchant Acquiring Services, and Marketing, HDFC Bank.
“We are revolutionizing the way customers pay at merchant outlets Digital Banking means offering convenience not just for customers but also for our merchant network. Merchants no longer have to keep different devices to receive payments and our entire PoS network will be converted to DigiPOS soon. We believe Digital PoS is a significant step towards further encouraging both customers and merchants to adopt the various digital payment platforms,” he added.