E-commerce giant Flipkart’s payments arm, PhonePe has launched a low-cost point-of-sale (PoS) machine, as part of their strategy to expand into the offline market. They will compete against e-wallet leader Paytm, who presently has a strong offline presence in the country through its QR codes payments model.
The low-cost PoS device from PhonePe will double up as a calculator, and will help with offline daily transactions. It comes equipped with Bluetooth. Hence, it does not require internet connection to work.
The company will pilot the low-cost PhonePe PoS device at some 5,000 merchants in Bengaluru, before a final roll-out across top 10 Indian cities, by the next quarter.
The PhonePe PoS device will be available with a security deposit of Rs. 699/-. The company plans to go city by city, as it requires merchant education.
The PoS device will get powered by AA batteries. It resembles a calculator integrated with an extra set of buttons to accept payments. Payment will be initiated by the consumer’s PhonePe mobile application, and it will work via bluetooth. The money thus transferred, will directly be deposited in the merchant’s bank account.
The recent RBI guidelines have mentioned that wallet-specific QR codes will not work. They need to have interoperable QR codes, which will give PhonePe PoS devices a direct advantage over Paytm’s QR code based payment solution.
The target market primarily for these PoS devices would be local merchants, kirana stores and fuel stations among others.
The PoS device will also be used by Flipkart’s logistics arm, Ekart which will help them to convert the CoD transactions to PoS-enabled payments.