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How Value

According to the Economic Survey, Unified Payments Interface (UPI) is the single largest retail platform in the country, in terms of volume of transactions. This could be traced back to the Government of Indiau2019s incentives for payments made through digital means and the removal of service tax on MDR for low-ticket transactions on RuPay debit cards and UPI. These incentives continue to encourage digital payments and subsequently the deployment of PoS terminals, particularly across fuel retail outlets. More recently, according to a survey conducted by a fintech company, fuel retail industry cons

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How Value

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  1. How Value-Added Services Can Fast-Track The Adoption Of Digital Payments Across Retail Sector? The retail industry has traditionally been cash intensive in India. However, in the past few years, there has been an increased adoption of digital transactions at retail outlets. According to the Economic Survey, Unified Payments Interface (UPI) is the single largest retail platform in the country, in terms of volume of transactions. This could be traced back to the Government of India’s incentives for payments made through digital means and the removal of service tax on MDR for low-ticket transactions on RuPay debit cards and UPI. These incentives continue to encourage digital payments and subsequently the deployment of PoS terminals, particularly across fuel retail outlets. More recently, according to a survey conducted by a fintech company, fuel retail industry constitutes 10% of the total transactions that

  2. take place on the Point-of-Sale machine, making PoS an important part of the OMC’s retail outlets. Through PoS machines, retailers/merchants have been able to attract many customers to their outlets. This is mainly because of the host of services that can be offered through the mighty PoS. In addition to swifter & secure payment, merchants can now offer value-added services and also run loyalty programs through PoS to expand their customer base. Let us have a look at the various Value-Added Services that have the potential to accelerate the adoption of digital payments Paperless Motor Insurance through PoS machines To diversify customer-centric offerings and increase revenue generating avenues, payment players now enable motor insurance solutions through PoS machines. An excellent offering for fuel retailers, this solution aims at adding convenience to the end-user by making a fuel station a single stop providing fuelling and renewal of insurance. Additionally, retailers can earn attractive commissions per insurance payment, thereby increasing overall revenues for the outlet. Integrated Payment Solutions Pioneered by AGS Transact Technologies’ wholly owned subsidiary India Transact Services Limited, Integrated Payment Solutions (IPS) is an offering that is integrated with the merchant’s PoS terminal to offer a host of solutions across OMC outlets, in addition to payments. While this solution offers greater transparency when making digital payments as manual intervention is negated, a fuel retailer can also provide instant discounts offered by the Government of India for such transactions processed at the PoS machines. Additionally, the integration of PoS and fuel automation solutions provides merchants with access to sales volumes and payment transaction data, allowing seamless reconciliation for OMCs. Cash@PoS Another facility that has gained popularity in the recent times is Cash@PoS. It enables a bank’s customer to withdraw cash by swiping a debit card at the PoS machine. As the retail sector is cash-intensive to a large extent, Cash@PoS empowers merchants to use the existing collection to dispense cash to customers. Further, through this facility, a merchant earns additional revenue by the means of card swipes while their customers do not have to

  3. wait in long queues at ATMs or bank branches to withdraw the required amount. Co-branded Cards & Loyalty Programs To ensure loyalty and frequent footfall, many big & small retail brands in India have introduced multiple closed-loop card-based programs for their customers. These loyalty programs aim at offering lucrative benefits such as discounts & rebates to loyal customers and providing them with a sense of convenience. In conclusion, retailers are now diversifying their offerings by providing a host of services to strengthen & increase their customer base while adding to their revenue pie. In the near future, Value-added services or VAS can add to the retail outlet’s overall revenue stream and continue to generate business avenues. Furthermore, as the abovementioned solutions can be offered through PoS terminals, it comes as no surprise that retailers will continue encouraging digital transactions for leveraging the incentives that VAS offer to both – the customers & merchants.

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