PhonePe has launched a new device called point-of-sale (POS) that allows merchants to accept payments through debit cards, credit cards, and UPI. This device comes with the PhonePe POS App installed and supports various transaction methods such as tap, swipe, dip, and interoperable dynamic QR codes.
This move by PhonePe intensifies the competition with its rival Paytm. Paytm had been providing all-in-one POS machines to check-out counters across the country, which were previously using devices from established banks. Paytm's parent company, One97 Communications, reported a significant increase of 118 per cent in payment devices subscribed by its merchants in the first two months of the current fiscal year. Shares of One97 Communications (Paytm) hit a 52-week high of Rs 854.90, gaining two per cent on the BSE in the second week of June.
PhonePe aims to expand its POS solution across India by leveraging its extensive network of over 35 million merchants nationwide. The company plans to deploy 150,000 devices by the next year, according to a report by the Economic Times. By accepting credit and debit transactions, merchants can expect an increase in their average ticket size, leading to overall business growth.
PhonePe is offering the device at a "nominal" monthly rental, although the exact amount was not specified. The rapid digitisation in India, increased usage of smartphones and plastic cards, and government initiatives to reduce cash transactions have resulted in significant adoption of POS devices by merchants. According to a PwC report from 2021, India witnessed a 300 per cent rise in the adoption of POS terminals over the past five years, making it a lucrative market segment.