PhonePe has launched its smart POS (Point of Sale) device for merchant partners in India. Sporting the looks of a traditional calculator, the device is available for free to merchants - against a security deposit. It comes with an all-new technology that supports transactions over a Bluetooth connection instead of using active data connectivity.
The new POS device by PhonePe requires a smartphone with the PhonePe app to process transactions, without requiring any third-party hardware or software. The merchant enters the transaction amount through the physical keys of the device and records the same by hitting the giant PhonePe button. Once the transaction is recorded, customers need to bring their phone close to the POS device to establish a wireless connection. This will push the transaction details to the PhonePe app that could be verified and paid using a preferred payment mode.
As the payments proceed through the native PhonePe interface, merchants can abort the transactions in the middle. Also, consumers will get an update whether the last transaction succeeded or failed on their mobile devices.
The POS device works with AA batteries that are claimed to provide power for 8-12 months. Further, since the hardware uses Bluetooth connectivity, it can enable payments through all the mobile devices that can access the PhonePe app.
"The use of Bluetooth as the underlying technology makes the protocol used for the transaction robust and widely compatible. The solution provides several layers of security to ensure merchant and customer transaction safety," said Rahul Chari, CTO of PhonePe, in a press statement.
PhonePe is set to pilot its POS device in Bengaluru followed by a country-wide rollout. The development can serve merchants of all sizes, starting from kirana stores to petrol pumps and food chain outlets among others.
"The PhonePe POS will help accelerate the pace of digital inclusion for millions of local merchants and customers in India," said Sameer Nigam, CEO PhonePe.
Founded in 2015 as an UPI-based payments system, PhonePe claims to have more than 50 million installs. Moreover, the digital payments arm of Flipkart that raised over Rs.254 crores from Singapore-based Flipkart Payments earlier this month is touted to leading the market of UPI apps with a share of 45 percent.