Payment company iKaaz, which specializes in near-field communication (NFC), has developed a low cost point-of-sale (PoS) terminal which enables customers to `tap and pay' even without an NFC-enabled card or phone.The terminal, which is made in India, is available for Rs.3,000 -less than a fourth the cost of conventional swipe machines. The company has tied up with 3,000 merchants in Bangalore and is in the process of rolling it out across India.
iKaaz promoter Soma Sundaram, who was earlier part of Nokia Money , said that the PoS terminal -MOWA Wave -comprises a keypad, LCD screen and connects using a built-in SIM card or through Wi-Fi.
NFC cards made their entry in the form of closed loop pre-paid cards such as smart cards used for toll or for transport in buses and metro. Banks have only now started incorporating the NFC feature in credit and debit cards. However, most of the cards in the country do not have the NFC feature. NFC is considered superior to magnetic swipe cards or chip cards because the card or phone never leaves the possession of the account holder. The RBI has also waived the need for a PIN authorization on payments of up to Rs.2,000.
To make tap-and-pay available to those who do not have NFC cards, iKaaz has come out with a mobile application MOWA app, which enables cardholders to conduct a `tap and pay' transaction by storing their credit card details in an app on their phone.“We have developed an innovative protocol which can transform any smart phone into a proximity device, eliminating the need for the customers to buy any hardware like NFC card or NFC phone. The customers need to simply download the MOWA mobile app,“ said Sundaram.
The government this week put out a proposal for promoting payments by cards. One of he proposals is to increase he number of places where credit cards are accepted. At present, payment companies can install card acceptance machines only in partnership with banks. iKaaz has tied up with DCB Bank and a large private bank, said Sundaram.
iKaaz promoter Soma Sundaram, who was earlier part of Nokia Money , said that the PoS terminal -MOWA Wave -comprises a keypad, LCD screen and connects using a built-in SIM card or through Wi-Fi.
NFC cards made their entry in the form of closed loop pre-paid cards such as smart cards used for toll or for transport in buses and metro. Banks have only now started incorporating the NFC feature in credit and debit cards. However, most of the cards in the country do not have the NFC feature. NFC is considered superior to magnetic swipe cards or chip cards because the card or phone never leaves the possession of the account holder. The RBI has also waived the need for a PIN authorization on payments of up to Rs.2,000.
To make tap-and-pay available to those who do not have NFC cards, iKaaz has come out with a mobile application MOWA app, which enables cardholders to conduct a `tap and pay' transaction by storing their credit card details in an app on their phone.“We have developed an innovative protocol which can transform any smart phone into a proximity device, eliminating the need for the customers to buy any hardware like NFC card or NFC phone. The customers need to simply download the MOWA mobile app,“ said Sundaram.
The government this week put out a proposal for promoting payments by cards. One of he proposals is to increase he number of places where credit cards are accepted. At present, payment companies can install card acceptance machines only in partnership with banks. iKaaz has tied up with DCB Bank and a large private bank, said Sundaram.
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