A Mobile Point of Sales (mPOS) device is a portable, wireless device that performs the functions of a cash register or an electronic Point of Sales (POS) terminal. It processes a range of payments made through credit/debit cards and also scans barcodes.
An mPOS can either be in the form of a handheld POS device or a smartphone/tablet that can be transformed into an mPOS by inserting an extra piece into the device’s audio jack. Both kinds of mPOS devices can generate digital bills which can be sent to the customers’ mobile numbers and emails thus, saving printing charges.
An mPOS is also efficient as it is both cost-effective and does not occupy physical space like other POS models. An mPOS also saves cardholder information on Cloud Storage thereby protecting the data.
Due to their portability, mPOS devices can be used anywhere such as, on spot billing in stores, valet parking, at roadside shops, tradeshows and exhibitions, public transport providers etc.
In today’s Post-Demonetization scenario, with the government urging the economy to move to the threshold of Digital transaction, mPoS devices are taking the centre stage due to a spike in the amount of cashless transactions.
The paucity of payment terminals has indeed created a platform for mobile payment companies like MobiSwipe and MobiKwik, which offer mobile phone-based payment facility.
Recently, MobiSwipe has announced that they will be realising more than 50,000 mPoS devices for retail vendors.
However, the rising trend of e-wallets such as Paytm, Freecharge, Ezetap, etc in the Digital transaction scenario, serves as a competition to mPoS devices.
According to Niranj Sangal, Group CEO of OMA Emirates Group, mPoS devices are preferable over the e-wallets for the following five reasons:
mPOS vs E-Wallet
1. No Wallet Account: The flip side of transacting through e-wallets is the need to have a Wallet account on the same platform both for the vendor and the consumer. There are innumerable e-wallets that can be utilised and it is easier for a vendor to use an mPoS or PoS device than to open wallet accounts.
2. Lack of fund transfer: Transfer of funds to a Digital Wallet is restricted to Rs.20,000 for non-KYC consumers and thus, the amount of transactions and the size of purchases is reduced too. In case of high-level purchases that require a huge sum, Digital Wallets cannot assist buyers.
3. Familiar Infrastructure: An mPoS converts a mobile device to a PoS device and is thus, easy to handle by the user. And as mobile devices today are highly user-friendly, the user only requires sufficient knowledge about mobiles to operate an mPoS.
4. Direct Source: A direct transaction is more recommended as it eliminates any third party involvement which isn’t possible through e-wallets.
5. Provides Quality Experience: Consumers no longer need to wait in queues or dip a card in the PoS terminal. Thus, the versatility of the mPoS caters to the better consumer experience.
Apart from this, mPOS devices can be utilised for back-end business operations like inventory handling, staff management, real-time sales monitoring, customer loyalty programme, to name a few.
Thus, as long as the Go-Cashless motto is on the rise, there is a booming market ahead for mPoS devices in the years to come.