This Tech Startup is Taking Cashless Payments Offline via NFC
A report by KPMG released at the India Mobile Congress 2018 says that India's digital economy is likely to cross $1 trillion by the financial year 2022. It also forecasts that mobile data usage in the country is likely to surge five times by 2023.
All of this predicates the fact that India is going to transform into a cashless economy in the days to come and for that, the economy is going to need as many tools to make sure the cash from our wallets fits easily into gizmos and cards.
Now, a tech startup is working on getting such a tool into the market.
Nearex is a startup which was founded in 2012 and has been working on different technologies to make cashless transactions possible. It’s recent endeavours include providing smart cards with near-field communication (NFC) that can help the everyday spender go absolutely cashless.
The primary pillars around which the company has based its products and services are NFC, biometric, QR code, audio and Bluetooth. The key focus of the company is to take payments completely offline and offer customers a solution that doesn’t require them to have mobile networks and internet connectivity to make cashless payments to vendors and retail outlets.
We had an opportunity to try some of their upcoming products at the India Mobile Congress 2018.
This little gizmo that looks like a regular calculator is a portable terminal the size of a credit card and doesn’t cost more than a feature phone. The XipPOS DXP22 comes with a SIM card slot and Bluetooth connectivity.
The startup provides customers with smart cards that can be recharged and customers have to tap the card to these portable terminals to make the payment.
The terminal also allows users to top-up their individual cards as most terminals are linked to mobile wallets like Paytm and more. To recharge, customers have to tap the card on the terminal, enter the amount, and you are good to go.
Technology similar to this is already being used in food courts and the Delhi Metro cards though it is restricted to a closed environment as of now.
The startup is also providing a mobile solution which is the XipPOS DXP32 that just extends the functionality of a portable payments terminal in a new form factor delivering 2G support and a larger display.
The DXP32 looks like a regular feature phone but is much lighter in form factor and comes with a rear camera to scan QR codes. This gizmo has specifically been developed for customers in the rural sector of the economy and will allow people with even 2G connectivity to make cashless payments.
There is an array of other technology like cards with digital displays that show the user remaining balance but that’s coming later.
Right now, the focus for Nearex is to coordinate with various clients to make sure this technology hits the Indian market soon. The company has said this could be as soon as late 2019.