MTS mPOS offers acceptance of card based payments through mobile phones and tablets. It would be a mobile substitute to the conventional credit or debit card swipe machines and would thus reduce the high hardware costs of a conventional POS terminal and the monthly maintenance charges. Through this service, MTS is targeting retailers, home-delivery based service models like e-commerce players, food chains, pizza delivery outlets and companies into direct sales model like FMCG etc for using this product.
For using this technology, users would have to download the mPOS application on their smartphones. To authorize a transaction, the signature of the debit or credit card holder can be taken on the phone screen. On completion of a transaction, the user will get a message and the amount will be transferred directly into the merchants’ account.
According to an MTS official, “At no point card data is saved on the phone or on the mPOS attachment. The transactions conducted will be secure and safe. The entire end-to-end solution is PCI (Payment Card industry) DSS ( Data Security Standards) compliant”.
MTS has partnered with e-commerce players like Flipkart.com and Yebhi.com for the pilot service on MTS MTag 3.1 Smartphones. The total bundle — MTS MTag 3.1, mPOS attachment and one-year data plan — would be priced between Rs 3,000 and Rs 4,000. The average monthly spends on usage would be between Rs 200 and Rs 300.