To help offline merchants opt for cashless transaction, ShopClues announced the launch of ‘Reach’ under its Business Edge initiative today. The solution will enable merchants to accept electronic payment from any mode be it wallet or credit/debit cards through a SMS link, in which the customers don’t have to part with their details and can enter them on their own smart-phones post receiving a link from the merchant.
While addressing the gathering, Sanjay Sethi, CEO and co-founder, ShopClues said, “In the wake of the unprecedented demand for digital payments, the launch of ‘Reach’ will, most essentially, offer a level playing field to the brick-and-mortar retailers across the country, who at present, are bearing the brunt due to unavailability of PoS machines at their stores.”
Salient Features of ‘Reach’
- The SMS-based process involves three step payment mechanisms and the best part is that neither the customer nor the seller needs the mobile application to make the payment and the price. It also eliminates the intermediary digital wallet by directly transferring the payment to the beneficiary’s bank account at an introductory rate of 0% TDR on transactions.
- ‘Reach’ can be used by ShopClues-affiliated merchants as well as offline merchants who are not associated with the platform alike.
- Other features of ‘Reach’ include assisting retailer in order management, inventory management, e-Billing, centralized inventory status for multiple stores, and merchant store promotion.
“This move will also prove to be pivotal for offline merchants by offering them the technological platform to upscale their business in predominant market conditions,” said Sanjay.
With the move, the company is expecting 30% increase in total revenue within 24 months.
Govt. Push For PoS Terminals across the country
In order to promote digital transactions across the country, the government has asked banks to install 10 lakh additional point of sale (PoS) terminals within four months. Towards this end, banks have already placed orders for 6 lakh PoS machines and another 4 lakh are likely to be ordered in the next few days, a finance ministry statement said.
There are about 15 lakh PoS terminals currently across different merchants to facilitate card-based payments. With differential payment services such as ‘Reach’ and one that of Paytm’s, local merchant’s life should get smoother post demonetization.