PoS (Point of Sale) machines are small compact devices which are used to make payments at retail markets and shops. Mostly in today’s time we see that these machines are used to make payments through credit/debit cards only, but what if we have a similar device which can offer more services to consumers such as Aadhaar integration to facilitate AEPS (Cash In/Cash Out), Bank Transfers, eKYC using Aadhaar, NFC (Tap Pay), all Card Payments (Rupay, Visa, Master Card), Cash @ PoS using Cards to withdraw money just like an ATM.
ATM machines are costly to install. They need a dedicated area for installation, the machine itself costs around Rs. 2 – 3 lakhs approx. plus the interiors and air conditioning is required for the set up. The cost further goes up to 5 – 6 lakhs when an additional uninterrupted power supply is needed to run the entire setup. This does not end here, the monthly cost to run an ATM comes out to Rs. 40 – 50 thousand keeping in mind the security, rent, electricity and maintenance. This is one of the reasons that banks don’t find it a viable solution to install ATM’s at last mile locations.
Now imagine If one from rural area has to withdraw money from an ATM or a bank and has to travel away from his location to withdraw the same. There may be no banks or ATMs within miles, and no good roads to reach them, even if one travels, it will be at a high cost as compared to the money to be withdrawn. Micro ATM concept comes as a boon in this kind of situation. Micro ATM is a compact device that looks like a card swiping machine but is capable of providing branchless banking to the last mile. Micro ATMs are Point of Sale (PoS) Devices that work with minimal power, they connect to central banking servers through GPRS, thereby reducing the running costs considerably, as low as Rs. 10,000 in case of Oxigen Services Micro ATM as a setup fee.
Micro ATM was originally developed to help people in rural areas to achieve financial inclusion where people can do transactions at a location near to them like a next-door retailer concept. Being hand-held devices these can be taken to the remotest of locations and can provide banking transactions independently. Kirana shops and small merchants can install these devices at their shops making it as a mini bank branch/ATM and can actually earn a handsome fee on the transactions. Merchants in addition to banking services to offer get access to offer all services related to digital payments, recharges and bill payments by becoming an Oxigen Super Services Agent (OSSA).
To offer service like cash @ PoS, the merchant doesn’t necessarily need to arrange separate cash for the transactions. Merchant can use his own petty cash earned through other earning sources. This will further encourage less rotation of cash. Cash @ PoS is a simple way to withdraw money from a Micro ATM. User just has to swipe his debit card, enter the associated password pin code and take money from the merchant.
Overall Oxigen Super PoS is the most viable solution to offer branchless banking, card payments and recharges/bill payments. It creates new channels for cash out other than ATMs and bank branches and also provides a huge boost to increase the reach of Indian financial systems to the grassroots.