M-POS (Mobile Point of Sale) & Digital Banking
M-POS or Mobile Point-Of-Sale terminal is a smartphone or tablet equipped with an application/ software provided by a vendor to convert it as a POS terminal. A dedicated wireless device that performs the functions of a cash register or electronic point-of-sale terminal wirelessly can also be termed as M-POS. Apart from carrying out transactions based on mag-stripe/EMV/ NFC /credit/ debit/prepaid/ mobile based virtual cards, M-POS is capable of supporting other different types of payment channels and devices, both existing and emerging.
System requirements for M-POS
To install an M-POS, a retailer needs an internet connection, a card reader, and an application provided by the vendor downloaded to the mobile phone/ tablet that is intended to be used for the transactions. Normally, the card reader is provided by the vendor which the merchant can use by plugging into the audio jack of the mobile phone. An M-POS can also be connected with bar code scanner, cash drawer and printer. Devices, called sleds, that integrate the additional components to mobile phones are also provided by the vendor.
An M-POS can function as a stand-alone device linked to the bank account of the merchant or as a terminal of large integrated POS network.
Benefits offered by M-POS
The biggest advantage offered by the M-POS to the merchant is the freedom of movement. The device need not be linked to a telephone line. M-POS can be easily upgraded to accept transactions based on latest innovations in digital channel payments by simply downloading the upgraded software. Better mobility and upgradation features provide better customer convenience and experience. M-POS systems are widely used with services and goods on movement, home delivery, service providers at home, door to door sales, stalls installed along with exhibitions/ trade fares etc.
M-POS is cost effective with minimum initial cost. Monthly recurring charges like rent are eliminated. It can also be deployed along with traditional counter top POS terminals to manage queues for payments/ settlements. Though, mobile devices and M-POS terminals are prone to cyber security risks, the vendors normally ensure that the data is encrypted and preserved with the best practices. Data related to transactions are never stored in the mobile phone.
M-POS evolution and trends
US based Square Inc’s little card reader launched in the year 2010 paved the way for MPOS in US. In Europe, the MPOS revolution happened with the establishment of iZettle in Sweden in April 2010.
Presently, the major m-POS providers are iZettle, ShopKeep, Square Inc, Lightspeed, Shopify, PayPal Here, Payleven, mPowa , SumUp, Verofone and SalesVu. They are spreading the power of MPOS across the globe. A 2018 study by Juniper Research estimates that M-POS transactions will represent 24% of all POS transactions by 2023.
Present day M-POS technology is experimenting use of biometrics — fingerprint and facial recognition — to confirm identities during payments. Biometrics is widely believed to be the most secured authentication method.
In India, with increased focus on digital channel payment systems and digital banking, M-POS is gaining acceptability. Predominately cash based Indian economy is gradually moving towards e-money based economy prompted by banks and government. Types of Point Of Sale (POS)Terminals
