The next segment in target for Mukesh ambanis reliance to disrupt seems to be Fintech, after the first segment of Payment banks. With over 200 million subscriber Base, next for jio is the merchant Base through the point of sales (pos) segment. In fact if industry sources are reliable enough, then jio already has succeeded in launching its pos services in a pilot basis in 6 different cities including Mumbai, bangalore, hyderabad, chennai, pune, Kolkata.
How it works:
- A deposit of Rs 3000 has to be made for the reliance pos device by the merchants and retail provision stores.
- The merchant discount rate (MDR), ie the cost paid by the merchants to the bank every time a debit credit card is swiped for a purchase in the stores is zero for all Debit Card and Credit Card transactions up to Rs 2,000.
- POS accepts Reliance own jio money and National payments corporation of India’s Bhim. Soon it will add other payment wallets too.
- There is also a QR code scanner feature in the pos device
- the merchants can also access loans against card receivables.
Jio has partnered with Hindustan Unilever Limited for creating these POS devices, and every HUL distribution person will be incentivized for every merchant lead.
Reliance’s POS will be an online to offline approach following the footsteps of giant E-Commerce merchant Alibaba in China, further replicated by Paytm in India.
Jio’s Competition will not only be restricted to fintech companies but will extends to top banks as well, who dominate the POS market with about 70% share. Also in the competition are niche VC funded POS players like MSwipe, Pine Labs, ezetab, phone pe.
Current market scenario:
With over 300 million smartphone users and 100 million Debit Card and Credit Card users in the country right now, the total number of POS terminals and POS transactions through debit cards and credit cards is only increasing drastically. The substantial growth in The E-Commerce sectors and the government promoting digital payments, the pos sector is set to grow profitably.
Jio’s launch of its payment banks along with India’s largest bank, the State Bank of India being the first huge move and now the second being the one with the pos services, jio is yet to become an even bigger typhoon in financial services in the country.