M1 has launched a mobile Point of Sale (mPOS) service aimed at enabling small retail businesses to accept card payments.
The service, developed in collaboration with CIMB Bank, Mastercard and electronic payment vendor Wirecard, allows smartphones and tablets running Android or iOS to act as mPOS terminals via the attachment of a proprietary card reader to the device.
Merchants using the service will be able to accept payments via MasterCard or VISA credit, debit or prepaid cards. Transactions on the mPOS solution can be completed anywhere through a wireless Internet connection.
According to chief product development & corporate solutions officer at M1 Willis Sim, the mPOS service is aimed at start-ups and businesses on-the-move.
Subscription to the service costs S$5.35 ($4) per month and can be tied to any M1 data-bundled mobile plan. Merchants can sign up for the mPOS service online at www.m1.com.sg/mPOS , with approval expected within two working days of registration. Commission rates start from 2.95% of the total transacted amount, with a $0.20 minimum commission per transaction. The service does not require a deposit or minimum monthly transaction commitment.
The mPOS card reader can be collected at any M1 shop nationwide and activated via a mobile app.
Merchants using the service will be able to track and view all transactions through the mobile app or an online web portal. Receipts can also be electronically generated and emailed to customers.
Retailers who have accounts with CIMB Bank, the party in charge of clearing and settlement for the mPOS solution, can receive funds from their transactions the next working day. Funds will otherwise take two to three business days to reach non-CIMB Bank accounts.
The service is currently available on Android devices, with iOS devices soon to follow.
Sim said the mPOS service’s low subscription cost is expected to appeal to retailers who have yet to adopt cashless payment methods. According to Sim, a typical credit card payment terminal which conducts transactions over a fixed line would cost retailers some S$50 – S$60 monthly.
Retailers signed up to the mPOS service include Cake Inspiration, Swee Lee Music, Dressing Room Salad Bar, Mobile Matrix, New Everyday Keropok.
According to Cake Inspiration’s Yian Koh, the decision to sign-up for the mPOS solution stemmed from staff lacking exact change when delivering goods to customers. “We do a lot of delivery services for consumers, as well as catering for events. While many customers pay us in cash, we do see a trend and preference toward card payment, and want to tap on this trend in our business,” said Koh.
For Swee Lee Music, deploying mPOS signifies greater convenience during roadshows. “The M1 mPOS solution opens up new opportunities for our events team by offering mobile and cashless payment solutions anytime, anywhere,” said MD for Swee Lee Music Kuok Meng Ru.
A May 2013 report from Timetric forecasts that by 2017, the adoption of mPOS terminals over standard POS terminals globally will be 46%, as opposed to the 17% that was seen in 2012. Over the forecast period of 2011 to 2017, mPOS terminal adoption worldwide is expected to increase from 4.5 million to a staggering 38 million by 2017, with a forecast CAGR of 42.7%, largely driven by growth in the retail sector, increased online trade and more smartphone and card users.
In June 2014, MasterCard worked with Vietnam’s Sacombank to equip merchants at Ho Chi Minh city’s iconic Ben Thanh market with mPOS terminals. The same month also saw Mastercard join hands with Telkomsel and Bank Negara Indonesia to provide mPOS payment services to insurance company Equity Life Indonesia.
CIMB Bank and Wirecard announced a partnership earlier this year to offer an integrated banking and e-payment solution suite to Singapore merchants. The collaboration with M1 is expected to further expand CIMB Bank’s merchant banking business.