The Indian government is now trying everything to push for digital payments. This is after a decision to remove Rs 500 and Rs 1000 notes, leading to insufficient cash. Finance Minister Arun Jaitley recently announced some plans and incentives. Among them was a plan to install 2 PoS in over 1 lakh village with a population of less than 10,000.
Another reason for moving toward less-cash is to get a better trail of transactions. This means less chances of evading taxes including VAT. While the demonetization boosts the campaign, more incentives can drive it further. Like the decision to lower import duties on PoS to make them more affordable. To ease the cost burden, the government also asked state- owned banks to cap monthly rentals to Rs 100. This avoids merchants from shelling out large sums to operate the machines. It is a big improvement based on the current rentals that range from Rs 250 to Rs 500. Learn more about POS
Banks have started placing order of these machines. They have started placing large orders but the delivery is still uncertain. Those in the payment industry say that it will take at least 5 to 6 weeks for vendors to manufacture and deliver these machines. At present India has about 15 lakh PoS terminal which accepts card payment. According to RBI Deputy Governor R Gandhi they will need over 2 crore to reach even the average of BRIC nations.
The demand for PoS now appears to be above the capacity of local manufacturers, causing added lag. This caused some merchants trying to move to digital payment to find alternatives. Some are using digital wallets to accept payments. Mobile Point of Sale MPOS
To remedy the increasing shortage on PoS, banks are now considering importing. As bulk of the order can easily be completed by large manufacturers like China. With the current flow of technology mPOS are also making their way into retail. They can perform the same task as a full PoS at a smaller factor. The cost is also lower, as any phone or tablet can be used as one. mPOS are software driven, so a simple installation is all it takes and the merchant should be all set. Docking stations called sleds are also available. This hardwareadd- in allows receipt printing and bar-code scanning. Considering these new advancements may also ease the need for PoS.