Innoviti accelerates POS adoption in small towns with its new transfer feature
Innoviti Payment Solutions has announced the market launch of its innovative Innoviti-POS card payment acceptance solution targeted at accelerating the adoption of POS-based digital payment acceptance amongst small town retailers. A multi-pronged distribution strategy has been piloted in seven Tier-2/3 cities, including Jaipur, Jammu, Ambala, Dehradun, Surat, Nagpur and Indore.
Designed specifically to ease the transition from cash-to-cards for such first-time card accepting merchants, the Innoviti-POS solution hits these problems at their core. Firstly, the product transfers funds for all transactions done on a day till 6 p.m. on the same day at 8 p.m. The retailer can, therefore, withdraw his day’s sales proceeds as cash from an ATM or use it to issue cheques on the very same day.
Moreover, Innoviti-POS assures this same-day settlement on all 365-days of the years irrespective of bank holidays. This settlement on bank holidays helps them save valuable interest on any bank overdrafts taken by the retailer for managing the working capital for their business. Retailers reduce overdraft interest by depositing their daily excess earnings everyday into their bank current account. If their earning is in cash, they cannot deposit the same on bank holidays. However, if the earning is through Innoviti-POS that is directly deposited into their current account, thereby reducing the outstanding overdraft and therefore interest outgo.
There are ~120 bank holidays in a year, corresponding to weekends, festivals and other public holidays. Interestingly, these are the very days that the retailer does maximum business too. This nearly 1/3rd of the whole year corresponds to almost 50% of the retailer’s business. Since they cannot deposit cash on these days, the interest outgo from these days for a Rs.1,00,000 overdraft can amount to almost Rs.10,000 in a year. This constitutes a substantial potential business cost saving for the retailer by using Innoviti-POS.
To deliver this paradigm shift for the Indian retail market, the Innoviti-POS package also relieves the merchant of the need to open new current accounts to receive card settlements, as he can simply route them to any of his existing bank accounts.
These unique benefits, which they cannot get from cash or any other POS system, has attracted over 700 merchants in the pilot to adopt Innoviti-POS and start migrating their business from cash to card. Innoviti will now be commercially launching this product across the country.
“Small town merchants till now have only seen the cost side of accepting digital payments and increased hassles. With Innoviti-POS, they are being exposed to the real power of digital technology, where their hard-earned money can earn more money for them. We strongly believe our same day, every day fund transfer technology will help new merchants enter card acceptance with an experience that is as good, if not better than cash. This has the potential to be the key to plugging the currently yawning supply-demand gap in terms of POS infrastructure in India retail,” said Rajeev Agrawal, CEO, Innoviti.