Its been 9 days since the central government imposed demonetisation (scrapping of the old Rs 500 and Rs 1,000 note currencies), but still there has been not much of a rectification on cash crush the common people are facing. This has not only created a ruckus in public, but has also effected many business in one form or the other. With no cash in hands, people in urban and semi-urban areas are opting for electronic payments even for their small daily needs.
In the light of the above mentioned fact, various small businesses in these areas are rerouting their payment gateway towards the electronic mode. These businesses are desperately requesting their banks to install card-swipe machines or PoS (point-of-sale) terminals in their stores so that they don’t lose their potential customers.
These machines have came out to be a saviour as it accepts payment of customers by swiping of their debit/credit/pre-paid cards. As per an HDFC Bank official, there has been a significant splurge in the demand of PoS terminals. While the bank used to get 5,000 such requests on a monthly basis, post the demonetisation announcement, it has climbed up to 5,000 request in a day, he added.
As per Axis Bank, there has been a record three fold hike in demand for POS machines over the last few days.
Talking about the same with Indian Express, an official from ICICI Bank said that they have witnessed a phenomenal hike in demand for its payment solutions at various retail outlets and for deployment of PoS machines — significantly higher than its weekly average. These banks are now appointing additional manpower to cater to this increased demand and to be able to deploy its solutions to merchants at the earliest.
The request for the deployment of PoS terminals are coming from new segment of merchants and retailers including salons, small kirana stores and even vegetable vendors.
As per bank records, the number of PoS terminals has climbed to double from 7.14 lakh in September 2012 to 14.9 lakh in September 2016. This hike includes not only metro cities, but also there is a great demand for the same in tier II cities of the country.
As per experts, the surge in demand for POS machines is beneficial for the economy. It is also believed that once an individual starts electronic transactions, it usually becomes a habit due to the ease it gives. Electronic transactions also enhances cash management and enable speedy payment options.
These POS terminals are easily provided by the banks through their branches. Any existing customer or non-customer may enable the services very easily. All they need to do it open a current account with the bank and should have a valid business establishment running for a minimum of six months.