Mobile point sales (PoS) industry has emerged as main beneficiary of the digitization move initiated by the government. The move has yielded positive results for the industry over the past year.
Firms like Mswipe and Ezetap noted significant improvement in their revenue which helped them to minimize their loss margins, according to filling with the corporate affairs ministry.
During the period under review, Mswipe reported 140 per cent increase in total revenue from Rs 58 crore to Rs141 crore. Ezetap’s revenue also noted 100 per cent increase in revenue from Rs23.6 crore to Rs48 crore.
“We believe by the end of this financial year we will attain a revenue of Rs200 crore and this will be achieved through rapid scaling up of our portfolio supported by the recent round of fundraising,” ET quoted Manish Patel, founder, Mswipe as saying.
These firms could manage to note such growth as they majorly targeted majorly small merchants either local grocery or roadside shops as they were those who were unable to go ahead with bank-deployed terminal. Affirmative answer from these traders helped mobile PoS firms to achieve tremendous growth.
After demonetisation, as demand for terminals increased across the country, mobile PoS companies targeted small merchants, local kirana stores and roadside shops who could not afford a bank-deployed terminal. From having to convince micro merchants to start accepting digital payments, the tables turned when these players started asking for such solutions to run their businesses as cash got sucked out.
“We had seen a massive gain just after demonetisation. Then there was a little pull and now, with goods and services tax demand stabilising across markets, we hope 2018 will continue to be steady,” added Patel.
Besides generating revenue from each transaction, these companies also generate revenue from various forms of services they offer to merchants. “Merchants are not only opening up to deploying more terminals but also looking at software for inventory management and other services which open up much more of revenue streams for players like us,” said Abhijit Bose, cofounder of Ezetap in an ET report.