PUNE

According to a report released in February 2014 by management consultancy firm IndigoEdge, “The value of POS (point of
sale) transac ons in India is ~$25 bn across ~1 bn transac ons. Average number of transac ons per POS terminal is
under 1,000 per annum. The average swipe on a credit card is over Rs 3,000 and on a debit card is over Rs 1,600.”
THE POS TRANSACTION (Merchant Warehouse)
MERCHANT MERCHANT POS GATEWAY ISO • ACQUIRING MERCHANT BANK
http://merchantwarehouse.com/the-point-of-sale-transaction
MERCHANT
BANK ACCOUNT
Authoriza on
Se lement
Issuing Bank
Visa/Master Card
Source: Merchant Warehouse
It further goes on to say that there are ‘only about 250,000 retail outlets across 700 ci es and towns in India’ that ‘are equipped
with a POS terminal’ and that ‘POS transac ons on debit cards are just about 10% of the number of ATM transac ons’. The
report points to the fact that there is enough poten al for the growth of POS transac ons with debit cards if people have
‘adequate access to POS terminals’.
In fact, the Reserve Bank of India’s governor Raghuram Rajan underlined the importance of mobile payments in his maiden
speech in September 2013. He said, “Finally, there is substan al poten al for mobile based payments. We will set up a technical
commi ee to examine the feasibility of using encrypted SMS­based funds transfer using an applica on that can run on any type
of handset. We will also work to get banks and mobile companies to co­operate in rolling out mobile payments. Mobile
payments can be a game changer both in the financial sector as well as to mobile companies.”
Financial inclusion has been on India’s agenda for quite some me now. Experts believe that mobile phones could be one
of the main catalysts in achieving financial inclusion faster than ever before. A report by Morgan Stanley has predicted
that India is likely to have 519 million mobile internet users by financial year 2017­18.
A report tled ‘INR 85,800 Crore Digital Money’ created by the Internet and Mobile Associa on of India (IAMAI), Payments
Council of India (PCI) and IMRB, says the digital payment industry in India was Rs 85,800 crore in December 2013 and is
expected to grow at 40% to touch Rs 120,120 crore by December 2014. This includes: Credit and Debit card payments, net
banking transac ons, pre­paid cash cards, immediate payment systems (IMPS) over the internet and payments done using
Mobile Wallet.
It further says that the four metropolitan ci es Delhi, Mumbai, Chennai and Kolkata “are approximately 60% of the total Digital
payment gateway market size” while the other major ci es including Bangalore, Pune, Hyderabad and Ahmedabad contribute
about 25% of the total market size.
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