The Indian government’s various moves to shift more low-value transactions from cash to electronic channels is driving rapid expansion and investment in mobile point-of-sale devices by diverse manufacturers.
Mumbai-based Mswipe Technologies, a maker of mobile POS devices, is set to close another $21 million with funds from new investor Fosun, a China-based venture capital firm, along with existing investors Falcon Edge Capital and DSG Consumer Partners, according to a report in The Hindu. Mswipe raised its first round of $25 million in 2015.
Mswipe has seen a surge of growth since November 2016 when India’s government removed its largest banknotes from circulation, driving up usage of mobile payments services. On the heels of that move, the government launched Bharat Interface for Money (BHIM) a QR code-based mobile app to broadly facilitate electronic payments directly through banks. Aadhaar Pay, another initiative encouraging merchants to accept electronic payments, goes live with 20 Indian banks next week.
The National Payments Corporation of India recently announced it expects to see the number of mobile POS terminals more than double in the nation over the next six months, from 2.4 million to 5.5 million, with strong demand in smaller cities and towns where ATMs are still scarce, the report said.