Nowadays, people are more attracted to using credit/debit cards or contactless methods for payment transactions. Because the transaction would be convenient and easy, people don't need to carry change with them all the time. At the same time, direct bank transactions for any purchase will increase accountability. In the sight of this scenario, banks started investing more in POS devices. Banks prefer to concentrate on POS devices than ATMs. In fact, POS devices are micro ATMs.

In this blog post, we will discuss how POS devices are helping banks and other financial institutes to become a better service provider.


Why should banks prefer POS devices?

The first and foremost thing to go with the POS device is the trend of using cashless payments anywhere they go. Retailers, businesses, and corporations prefer POS devices to do transactions to reduce time loss and increase convenience in transactions.

There are also other reasons to expand the POS network that are listed below:

the-utility-of-pos-devices-in-banking

Convenience

As it is a portable device, the convenience with POS devices is higher than other means of transactions. Bank can reach anywhere remotely and do the transactions for their customers. Unbanked and differently-abled people are still away from banking services. Bank can approach such people with the POS device. A bank executive with a POS device can reach a customer's residence to carry out the transactions. POS devices include a fingerprint scanner and facial recognition camera. Hence, authentication of customers would take only a few seconds.

For businesses, POS devices offer the same service differently. POS devices can help them expand the business into home delivery and online services.


Maintenence

The maintenance of POS devices is easy. Banks are investing more in POS devices because POS devices don't require separate space or room as ATMs do. Furthermore, it does not need a sophisticated security architecture or a maintenance team to inspect the device regularly.

All a bank needs to do is choose a POS device partner who offers good service 24X7. POS manufacturers like Mantra offer helplines to reach out through their service brand SERVICO. Please visit MeraPOS for more information on POS devices.


Cost

Concerning the service provided by the POS devices, they are inexpensive. Cash deposits, cash withdrawals, inter-bank transactions, and KYC registrations are all the services available on POS devices. That's why they are also known as micro ATMs. This service is available at 10,000 rupees on average, while an ATMs implementation costs lakhs.


Reliability

Banks usually use POS devices for in-house transactions and provide them to the business or retailers to keep transactions via bank. Banks can offer retailers better reliability and direct connection with the bank in each transaction. Many other means of transactions involve third-party applications.


Multiple modes of transactions

POS devices enable multiple modes of transactions; credit/debit cards and contactless transactions are the commonly used modes in POS devices. The government of India is promoting Aadhaar based transactions through POS devices. It requires only a person's biometrics to carry out transactions. For that, a person's Aadhaar card should link with his bank account.


Endnote

POS devices play a vital role in transforming the economy into cashless transactions. The system strengthens the banking system by bringing every transaction into the banking framework. In addition, Aadhaar based POS transactions could increase POS usage and simplify transactions.