By Nitish Asthana
For India’s small and medium-sized companies, money has historically been the favoured mode of accepting funds. The perceived price issue across the level of sale (POS) terminals has been a key barrier to the adoption of digital funds in India. The 12 months 2020 introduced in a contemporary perspective.
Fintech improvements that we’re witnessing at this time are anticipated to additional obliterate the digital divide. POS has emerged as the brand new OS that’s driving progress for India’s kirana shops, mother and pop outlets, and different companies, making them embrace digital funds in a giant manner.
For the longest time, small and medium enterprise homeowners in India believed POS gadgets helped them in solely accepting funds. Trendy-day POS expertise empowers these retailers to supply Pay Later EMIs in few faucets of the system and convert that informal retailer walk-in buyer right into a sale. A lot wanted in occasions like at this time when retailers are in search of methods to woo prospects again to their shops after a protracted interval of lockdown.
POS gadgets are quick evolving and coming to some thrilling on a regular basis makes use of, and serving to retailers handle their retailer operations effectively. From stock administration, managing loyalty applications, to working promotional campaigns and even supporting their GST compliance wants. Sensible tech integrations like enterprise apps on POS are making it doable to make the POS a full-fledged OS that declutters the checkout counter and makes a single system carry out a number of features with ease.
POS is evolving with the altering shopper behaviour. In the present day, there isn’t any single most well-liked mode of fee for India as an entire. With so many digital fee choices, the Gen-Zers, millennials, and the older inhabitants every favor their very own manner of trying out from a retailer. Be it a fast ‘faucet and pay’ of the credit score/debit card on the POS for contactless funds as much as Rs 5,000/- to utilizing UPI, wallets, QR codes and even loyalty factors.
Providing affordability to prospects: The pandemic lowered footfall and decreased gross sales for a lot of native retailers, however the Purchase Now Pay Later (BNPL) EMI provides out there at offline shops through POS are turning out to be a potent device for small and medium companies to revive gross sales. Whereas BNPL helped shoppers make small-ticket purchases, it has additionally discovered traction in driving the acquisition of white items and different big-ticket gadgets.
Making it a win-win ecosystem for all: Fintech improvements like BNPL through POS have led to better collaboration between fintechs, banks and NBFCs, and even fee networks. Trendy POS gadgets are providing new and revolutionary methods for shoppers to resolve how they store and the way they pay, and on the similar time, it’s empowering retailers, banks, and different lenders to hitch the rising development of shopper financing on the level of sale. There’s a main uptick within the BNPL providing through POS gadgets, and the development is right here to remain.
A 2020 report by Nielsen and the IAMAI reveals that rural India had round 227 million lively web customers—round 10% greater than the 205 million web customers in city India. Growing smartphone penetration coupled with web growth in smaller cities is accelerating digital funds adoption by retailers.
Amid this fast adoption of digital funds in India, clearly good POS merchandise are quick rising as a lifeline for retailers in search of cost-effective methods of working their retailer operations, minimising danger, driving profitability. As this development catches up, India’s retailers have quite a bit to realize from the improvements taking place within the POS area.
The writer is president & COO, Pine Labs. Views are private