At an event in New Delhi on Wednesday, Paytm announced the launch of its App POS (Point of Sale) system, which would allow merchants who are using the Paytm app to accept payments even from credit or debit cards. At the launch, Paytm pointed out that there are only 1.4 million POS machines in India at present, and that this covers only a small fraction of the country.

With the new App POS, small merchants will be able to accept credit or debit card payments without an expensive swipe machine, using only their smartphones. The way it will work is simple – if you don’t have a Paytm account, the merchant will create the bill and then give you the phone, to enter your card details. Then, you will receive an OTP on your registered mobile number – enter that into the app, and it will complete the transaction. It is a little cumbersome, but represents a big saving for small vendors such as your local vegetable seller, for example, who will be able to accept payments from your debit card.

Paytm announced that every updated Paytm app on phones can now be used to power the App POS, making it easy for any merchant to use Paytm as the centre of all transactions – merchants who accept payment via Paytm will now find it easier to accept multiple modes of payment, and this could be a huge boon for small merchants, particularly as the RBI has now raised the limit merchants can send to their bank account even without KYC to Rs. 50,000.
According to the company, it will take just five minutes to become a merchant accepting payments via the POS. To do so, all you have to do is go to, self-declare as a business, give your bank account details, and you can start accepting payments. The new POS machines will accept payments via RuPay, Visa, and MasterCard, and Paytm says that it will charge no transaction fees until December 31. Merchants using App POS will be eligible for a Rs. 50,000 limit, after which KYC will be required.
The POS facility will be available on the Android version of the app at present, with an iOS version to follow. Paytm, which claims 158 million users, and an annual gross transaction value of Rs. 30,000 crores, across 2 billion transactions a year. According to the company, it has 1.5 million merchants on board, with a target of 15 million merchants to be added in a week from the launch of the App POS.