Say Bye To Swipe, Pay With Android Phone Card Reader
Bangalore: Soon the credit card point of sales (POS) will do away with “zip zap” swipe machines, thanks to Android card reader. The RBI has given its nod for a card reader that in conjunction with an android phone, does everything that a POS terminal can do, reports TOI.
The gadget comes in size of cigarette box that can record signatures on a touchscreen from a stylus. It is developed by Bangalore-based Ezetap Mobile Solutions and has obtained regulatory clearances for its launch.
How it functions? The card reader is connected to an android phone with requisite app or the merchant can have his custom deigned app for the gadget.
Citibank has been the first one off the bunch to use this technology, and it already has many merchants trying out this new technology that includes Shoppers Stop, Vodafone and Bajaj Allianz. Citibank is also talking to a fleet cab company for accepting card payments.
"Besides replicating the job of the POS terminal, the mobile payment solution can be customized to specific business needs and also be integrated with the businesses back-end system, thereby making the process very efficient," said Muge Yuzuak, country head, cards and personal loans, Citibank India.
Though mobile based payment system are not a new thing, the difference is, other than involving a separate platform, this new technology replicates the card POS and somewhat dilutes the line between mobile and credit card payments.
"The device complies with the securities standards prescribed by the Payment Card Industry Security Standards Council. We have also got the necessary approvals from the Reserve Bank of India for card transactions through this mobile payment solution," Said Yuzuak. "The mobile card reader does everything that a current POS terminal provides and is competitively priced. The transaction costs are the same for the merchant. But to what extent it would replace POS terminals would depend on each bank's strategy. One must recognize that any form of behavioral change in the market place is always gradual," Yuzuak added.
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