Technology for MSMEs: Alibaba-backed Vijay Shekhar Sharma's Paytm has targeted to issue more than 2 lakh devices in the coming months to generate more than 20 million monthly transactions.
Technology for MSMEs: Digital payments company Paytm on Monday announced a pocket-sized point-of-sale (PoS) device focusing on small and medium enterprises (SME) to accept orders and payments on the go. Enabled with integrated billing software, camera for QR scanning, Wi-Fi and Bluetooth-based connectivity, etc, the device “is the first such Android-based device to be introduced in India,” said Vijay Shekhar Sharma-led Paytm. The Alibaba-backed fintech company would charge Rs 499 as an introductory monthly rental for the device that “is much more powerful than the portable Linux based POS devices”.
Paytm said in a statement that it would invest Rs 100 crore on distribution and marketing of the device in FY21 even as the device is offered at “the lowest price in the market” to help SMEs, restaurants, takeaway joints, kiranas, etc. with contactless ordering and payments. The company added that it has targeted to issue more than 2 lakh devices in the coming months that will generate more than 20 million monthly transactions.
The device is also integrated with the ‘Paytm for Business’ app to generate GST compliant bills and manage transactions and settlements. “It is our endeavour to help merchants & traders to easily digitize their business operations, without any investment in technology or backend infrastructure,” said Renu Satti, Sr. Vice President, Paytm.
Wooing small businesses has been perhaps the top priority for e-commerce and payments firms to push growth amid Covid pandemic. While the likes of Amazon and Flipkart have been focusing on onboarding small businesses to enable their recovery post-Covid, Paytm has also taken steps to attract small businesses such as Kirana stores. The company had in May announced a Rs 100 crore loyalty programme for such stores to cover up losses due to transaction charges. Businesses paid a 1 per cent merchant discount rate for transferring payment received on Paytm wallet to their bank accounts. The fund has been aimed to help small businesses with different marketing tools, access to financial services, and encourage them towards digital payments.