Digital PoS is a payment method where the customers can scan and user QR codes to make payments via mobile devices.
The RBI has proposed to increase the usage of card payments to reduce the usage of cash.
Some of the policies by RBI to promote Digital PoS:
- By 2021, the card acceptance will increase by six times of what it is now.
- With the introduction of e-commerce, digital PoS is expected to change the cash on delivery method to all digital transactions.
Some of the policies by RBI that can create a rise in Digital PoS
- There will be an increase in the usage of digital modes of payment for purchase of goods and services though an increase in the PoS transactions.
- Allowance of mobile-based payments are also expected to increase by a 50%.
Why this change is required and how it can have an impact on digital payments:
1. Relevance of internet connectivity
For a web-based PoS system an internet connection is required. In India in many areas there is an issue of power shortage which can create difficulties in processing the payment.
2. Expensive
Installing a PoS system is expensive as there is a requirement to upgrade the software to be up-to-date with technology. Especially the web-based ones can prove to be more expensive.
3. Risk to security
Not all of the transactions can be safe. Some error can cause double transactions to take place.
It can relatively change digital payments.
1. Usage of QR codes
Current trend is to use QR codes. They are not dependent on the internet connectivity. This can soon help with the PoS payments.
2. Artificial intelligence
Because of artificial intelligence, the transactions will be more secure. The aim is to have more up gradations to the hardware and software used so that there is no human interference.
Language translation, sending emails, etc will soon be some of the new features.
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