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Payment technology has transformed multi-fold in the last few years. This is majorly due to technological advancements that have led to an increase in digital transactions. From large-scale retailers to local vendors, almost everyone is gradually getting accustomed to the new-age payment collection systems. These new payment methods make card payments simpler and more convenient for merchants and consumers.
Over the years, payment solutions have changed significantly – they have become simpler, easy to use, and even portable. Nowadays, a range of point-of-sale (POS) payment collection solutions, particularly PIN through a terminal, glass, and mobile, have been helping businesses cut down costs while ensuring hassle-free electronic payment collection. These are primarily distinguished by how PIN used to authenticate a transaction is entered into the device.
The POS technology has evolved from a traditional GPRS-enabled terminal or mPoS (mobile POS) solution with buttons to an android-powered glass-based or PoG (pin on glass) mechanism and then to an even more user-friendly PoM (pin on mobile) version. Let’s understand the core difference between the three to decide better when choosing a PIN-based payment system.
PIN on terminal
PIN on Terminal refers to entering the PIN on a PCI-certified payment device, such as card readers or terminals with physical PIN pads. It is one of the earliest enablers of card payments and is widely adopted by businesses across the country. As of May 2022, India had more than In this hardware payment system, customer needs to swipe their credit or debit card on the device, after which they enter the PIN on the physical keypad to process the transaction. PIN, as well as other card details, are securely transmitted to the issuer for authentication. The transaction is approved once the issuer verifies the details. This is a commonly used method in the retail, hospitality, and healthcare sectors, among others.
PIN on glass
An advanced version of the terminal payment system, PIN on glass, uses android technology to facilitate transactions. It does not require a physical keypad. Herein, customers can swipe or tap the card on the PCI-approved device. After that, one can directly enter the PIN through the payment device’s touchscreen to process payment. The confidential card details and PIN are securely transmitted to the payment issuer (banks) for authentication. Once approved, the transaction is processed. It provides users with a software-based seamless experience. Gradually, it is being increasingly adopted by businesses across sectors for a seamless customer experience and payment collection.
PIN on mobile
PIN on mobile (PoM), commonly known as SPOC (single-point-of contact), is an emerging revolutionary technology in the payment landscape. It involves a software-based PIN entry system on Consumer-Off-The-Shelf Devices (COTS). Simply put, customers have to tap or swipe their card on a handy small-sized PCI-authorized card reader device. It is usually like a puck and is portable. After swiping the card, customers can directly enter their PIN into the merchant’s phone to complete the transaction. One of the most customer-friendly mechanisms that allow transactions on the go, this new-age payment technology helps merchants transform any phone into a payment terminal. With the ongoing rise in cashless payments and eCommerce sales, this is an ideal solution for delivery executives.
Compared to other payment solutions, PoM is an affordable payment mechanism. The card reader or SPOC device costs one-third of the traditional mPOS device. Furthermore, it also enables high-end security with a robust backend system that shuts down any interference from the mobile device, ensuring a completely secure transaction.
Way ahead for PIN-centric payment solutions
By 2024, India will potentially have around 220 million online shoppers. To facilitate this growth, it has become more vital than ever for businesses to digitize their payment processes. The new-age PoM solutions can equip businesses with affordable and secure payment collection solutions. They ensure ease of transactions and enable on-the-go payments.
The number of card payments in India crossed the 6.18 million mark in fiscal 2022, and this momentum will continue. Digital payments are expected to reach $10 trillion by 2026. The government’s Jan Dhan Yojana is further facilitating this evolution. Promoting financial inclusion through bank accounts is gradually enabling small and medium-sized businesses to start accepting online payments. A seamless easy-to-carry payment solution like PoM can further power the increase in card payments while helping even small retailers digitize their payment processes. This, in turn, will equip merchants to provide a ‘pay from anywhere’ facility.
The author is the CEO and Founder, AaoNxt, leading OTT platform
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