Cashless payments, payments and banking solutions company API, in a new report, said softPoS can be a game-changer to foster digital payments, due to increased internet and smartphone penetration in semi-privileged areas. -urban and rural.
The company’s report titled “Supporting the Adoption of Digital Payments through the Promise of softPoS” created in partnership with The Digital Fifth, a Fintech consultancy and advisory firm, highlights the importance of softPoS and the role it can play in increasing the penetration of digital payments, especially in semi-urban and rural areas of India.
Point-of-sale (PoS) terminals today are increasingly sophisticated, feature-rich, easy to use, and available at various price points. The advantage that softPoS brings here is that it is a simple application/SDK (software development kit), creating a payment acceptance infrastructure that is inexpensive and easy to distribute. Any merchant can start accepting payments through an app download on an NFC-enabled device, quickly converting it into a PoS terminal without any additional hardware like a card reader or separate installation. The softPoS thus enables quick and easy acceptance of card, UPI, QR code and payment link payments for merchants, even on their existing smartphones and other devices, according to the industry report.
For small and medium enterprises, factors such as cost, time to acquire and maintain become a barrier to PoS adoption, leading to a preference for cash payments. Second, another critical factor is the heavy reliance on imported physical PoS terminals.
The report dives into the evolution of the PoS terminal, the changing payments landscape with the entry of UPI and the potential of softPoS to level the playing field for cards in the offline space, the specific benefits that the softPoS offers for specific businesses, from retailers to restaurants to service providers. to government, and finally the many steps providing essential regulatory support ahead and the challenges that remain with the adoption of softPoS, according to the industry report.
Akash Sinha, CEO and Co-Founder of Cashfree Payments, said, “At Cashfree Payments, we are already working to offer smart and simple softPoS solutions for a sustainable digital payments ecosystem and intend to provide merchants with a simple, safe and instant payment. .”
Sameer Singh Jaini, Founder and CEO of The Digital Fifth, said, “SoftPoS will bring merchants, from the smallest kirana stores to MSMEs, into the digital financial fray. This will drive growth from below and propel financial inclusion. It will also form the basis for integrated POS in mobile apps, a feat that was not possible before. This will significantly improve the payment process for all entities involved and seamlessly integrate the tedious reconciliation process. We need to prepare for new and innovative use cases that will positively impact the payments ecosystem.”
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