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3 reasons SoftPOS is an ideal acceptance solution for MSME’s in India

By Leandra Monteiro

October 13, 2021

  • Domestic Payments
  • India
  • MSMEs
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SoftPOS“The digital payments space in India is witnessing a remarkable transformation with the adoption of multiple payment mechanisms like cards, wallets, QR codes, UPI etc. Given the high penetration of smart mobile phones in the country and extensive telecom availability across remote locations; providing a low cost, ‘asset-lite’ acceptance solution in the form of SoftPOS is emerging as a revolutionary concept. SoftPOS is a mobile first, mobile-only acceptance solution, that enables merchants to transform their NFC enabled smartphones into Point of Sale terminals, eliminating the need to invest in traditional POS terminals.

In a country with approximately 6.3 crore MSME’s, most of which aren’t part of the digital payments ecosystem, SoftPOS presents an incredible opportunity for these merchants to accept contactless payments, as well as other digital modes of payment, offering a seamless experience to their customers.

Currently, the MSME sector contributes approximately 30% towards the GDP through national and international trade. Rise in digital adoption and integrating digital payments could further help accelerate growth within the sector,” shared Avinash Luthria, SVP & Business Head, Financial Institutions, Worldline South Asia and Middle East.

Here are three reasons Avinash believes SoftPOS is the ideal acceptance solution for MSME’s in India:

  • SoftPOS is a simple & intuitive application to be downloaded by the merchant, the on-boarding process is DIY in nature and merchants can be registered in few minutes. Thus, enabling numerous merchants to the formal payments ecosystem in short time. Beside accepting different modes of digital payments i.e. contactless, SMS invoicing & QR code, the app helps MSMEs in maintaining transaction records and outstanding dues just as traditional diaries. This unique feature called ‘Khata’ assists merchants to view individual unsettled amounts and keep a track on total outstanding dues.
  • As the pandemic continues to accelerate adoption of technology, almost 64% of startups and micro, small and medium enterprises (MSMEs) have seen higher sales via digital or e-commerce channels in the last 12 months. The low cost, convenient and user-friendly features of SoftPOS will further drive digital adoption among MSMEs, as the solution leverages dependable and stable infrastructure available in the country.
  • According to a recent survey conducted by Local Circles, almost 26% of MSMEs said that they have increased listings of their products and services on e-commerce platforms or aggregator websites. MSMEs and smaller startups participating in the survey also said that they have upgraded their website or app, allowing customers the option to pay digitally. SoftPOS will surely be another significant step by the MSME segment towards further digitalization and automation.

India has a burgeoning merchant base, however, only a small fraction has been tapped by digital payment mechanisms like cards, QR, wallets etc. This is an exciting phase in the payments industry, as we anticipate that SoftPOS will bring the next big leap in payment acceptance infrastructure. As the MSMEs continue to focus on technology, digitization and quality services across the country, digital payments are set to grow exponentially in this sector, courtesy SoftPOS.

ALSO READ: Global Payments Vendors and Landscape Report Q2 2021

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