You are here: Home » Technology » News » Apps
Business Standard

Paytm's in-app POS system: How it works

Recently, Paytm has been exploiting the opportunity at a breakneck speed to capture and disrupt a large part of the market with its e-wallet

BS Web Team  |  New Delhi 

Paytm reaches for the cashless crown
Paytm reaches for the cashless crown

Ever since Prime Minister Narendra Modi announced of higher old currency notes, has been exploiting the opportunity at a breakneck speed to capture and disrupt a large part of the market with its e-wallet.

Recently, the online payments company launched a feature for its mobile wallet app that allows shopkeepers to accept payments via credit cards and debit cards. The app was an immediate hit amidst much fanfare. This latest feature is supposed to eliminate the need for a physical point-of-sale (PoS) terminal or a card swipe machine.

How does point-of-sale (PoS) system work?

Point-of-sale (PoS) system allows merchant transaction via credit and debit cards. The POS component interacts with the Card component to obtain necessary credit card information to complete a sale. Hence with Paytm's new App POS, merchants will be able to accept debit and credit cards using the App without having to buy a card swipe machine.

Paytm’s POS is limited to those merchants who have a smartphone, a working Internet connection and the app

It is quite simple to use this app:

* After generating the bill, the shopkeeper will give his/her smartphone to the customer to enter the card details.

*After a user has a typed in their card details, takes them to the bank’s website for the two-factor authentication

* Customer will then get an OTP (One Time Password) on their device.

* The generated OTP will have to be entered in the shopkeeper's device. Thus, the transaction is complete. 

* Essentially, a user will have to rely on the bank’s network for the transaction to get through.

According to Paytm, POS transaction is more cost-efficient and simple.

will charge 0 transaction fees for this till December 31. However, for credit card transactions, it will charge 2 per cent merchant fee. They will also have to self declare themselves as a business on Paytm, give bank account details, and then start accepting all debit and credit cards.

While the economy is grappling with currency crunch, transactions on mobile wallets have more than doubled. 

The founder and Chief Executive Vijay Shekhar Sharma on Thursday said by 2020, the target is to have 50 crore Bank accounts. The company claims to be signing up close to 40,000 merchants. For this, it has tied up with Citibank.

Some industry experts have voiced concerns that in backdrop of the surge in traffic on digital payments systems of wallet companies, there could be flaws in security features, as an outcome of the firms' eagerness and haste to expand systems.

However, downplaying concerns about security, said, card details are not stored in app nor on servers, hence there is no security threat as such.

RECOMMENDED FOR YOU

Paytm's in-app POS system: How it works

Recently, Paytm has been exploiting the opportunity at a breakneck speed to capture and disrupt a large part of the market with its e-wallet

Recently, Paytm has been exploiting the opportunity at a breakneck speed to capture and disrupt a large part of the market with its e-wallet
Ever since Prime Minister Narendra Modi announced of higher old currency notes, has been exploiting the opportunity at a breakneck speed to capture and disrupt a large part of the market with its e-wallet.

Recently, the online payments company launched a feature for its mobile wallet app that allows shopkeepers to accept payments via credit cards and debit cards. The app was an immediate hit amidst much fanfare. This latest feature is supposed to eliminate the need for a physical point-of-sale (PoS) terminal or a card swipe machine.

How does point-of-sale (PoS) system work?

Point-of-sale (PoS) system allows merchant transaction via credit and debit cards. The POS component interacts with the Card component to obtain necessary credit card information to complete a sale. Hence with Paytm's new App POS, merchants will be able to accept debit and credit cards using the App without having to buy a card swipe machine.

Paytm’s POS is limited to those merchants who have a smartphone, a working Internet connection and the app

It is quite simple to use this app:

* After generating the bill, the shopkeeper will give his/her smartphone to the customer to enter the card details.

*After a user has a typed in their card details, takes them to the bank’s website for the two-factor authentication

* Customer will then get an OTP (One Time Password) on their device.

* The generated OTP will have to be entered in the shopkeeper's device. Thus, the transaction is complete. 

* Essentially, a user will have to rely on the bank’s network for the transaction to get through.

According to Paytm, POS transaction is more cost-efficient and simple.

will charge 0 transaction fees for this till December 31. However, for credit card transactions, it will charge 2 per cent merchant fee. They will also have to self declare themselves as a business on Paytm, give bank account details, and then start accepting all debit and credit cards.

While the economy is grappling with currency crunch, transactions on mobile wallets have more than doubled. 

The founder and Chief Executive Vijay Shekhar Sharma on Thursday said by 2020, the target is to have 50 crore Bank accounts. The company claims to be signing up close to 40,000 merchants. For this, it has tied up with Citibank.

Some industry experts have voiced concerns that in backdrop of the surge in traffic on digital payments systems of wallet companies, there could be flaws in security features, as an outcome of the firms' eagerness and haste to expand systems.

However, downplaying concerns about security, said, card details are not stored in app nor on servers, hence there is no security threat as such.
image
Business Standard
177 22

Paytm's in-app POS system: How it works

Recently, Paytm has been exploiting the opportunity at a breakneck speed to capture and disrupt a large part of the market with its e-wallet

Ever since Prime Minister Narendra Modi announced of higher old currency notes, has been exploiting the opportunity at a breakneck speed to capture and disrupt a large part of the market with its e-wallet.

Recently, the online payments company launched a feature for its mobile wallet app that allows shopkeepers to accept payments via credit cards and debit cards. The app was an immediate hit amidst much fanfare. This latest feature is supposed to eliminate the need for a physical point-of-sale (PoS) terminal or a card swipe machine.

How does point-of-sale (PoS) system work?

Point-of-sale (PoS) system allows merchant transaction via credit and debit cards. The POS component interacts with the Card component to obtain necessary credit card information to complete a sale. Hence with Paytm's new App POS, merchants will be able to accept debit and credit cards using the App without having to buy a card swipe machine.

Paytm’s POS is limited to those merchants who have a smartphone, a working Internet connection and the app

It is quite simple to use this app:

* After generating the bill, the shopkeeper will give his/her smartphone to the customer to enter the card details.

*After a user has a typed in their card details, takes them to the bank’s website for the two-factor authentication

* Customer will then get an OTP (One Time Password) on their device.

* The generated OTP will have to be entered in the shopkeeper's device. Thus, the transaction is complete. 

* Essentially, a user will have to rely on the bank’s network for the transaction to get through.

According to Paytm, POS transaction is more cost-efficient and simple.

will charge 0 transaction fees for this till December 31. However, for credit card transactions, it will charge 2 per cent merchant fee. They will also have to self declare themselves as a business on Paytm, give bank account details, and then start accepting all debit and credit cards.

While the economy is grappling with currency crunch, transactions on mobile wallets have more than doubled. 

The founder and Chief Executive Vijay Shekhar Sharma on Thursday said by 2020, the target is to have 50 crore Bank accounts. The company claims to be signing up close to 40,000 merchants. For this, it has tied up with Citibank.

Some industry experts have voiced concerns that in backdrop of the surge in traffic on digital payments systems of wallet companies, there could be flaws in security features, as an outcome of the firms' eagerness and haste to expand systems.

However, downplaying concerns about security, said, card details are not stored in app nor on servers, hence there is no security threat as such.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard