SBI ropes in Ezetap to deploy 5 lakh mobile POS devices by 2019

In a move that could boost mobile-based payments in India, State Bank of India (SBI) has inked a pact with Ezetap Mobile Solutions, a Bangalore-based payment service provider, to deploy five lakh mobile point-of-sale (POS) devices for merchants across the country in the next five years.

The start-up was founded in 2011 by CEO Abhijit Bose, CTO Bhaktha Keshavachar and Sanjay Swamy, former CEO of mChek, a payments company. Pramod Verma, former chief architect of UID project is the CTO of the start-up.

Aimed at merchants, the Ezetap solution comprise a lightweight card reader, a configurable mobile app and a flexible platform that allows the firm to provide customized value-added services and integrate it to a merchant's existing systems. The card reader when plugged into a mobile device transforms it into a point-of-sale device. It is capable of processing both credit and debit card transactions.

Acceptance of mobile POS devices has been low in India despite the 300 million credit and debit cards users.

The high cost of the POS devices currently used by most merchants has been a reason. As most payment companies like Ezetap are offering a cost-competitive solution, mobile POS is all set to witness more acceptance. The Ezetap solution is priced under $50 and has been entirely designed and developed in India.

Ezetap is currently focusing on emerging markets and is being seen as India's answer to Square, a US-based payments company. Square offers a square-shaped dongle, which when fitted into a smartphone converts it into a device that accepts payments. Founded in 2009 by Jack Dorsey and Jim McKelvey, the company has raised multiple rounds of funding from Khosla Ventures, Sequoia Capital and Citi Ventures among others.

Last year, Ezetap had announced partnerships with fashion retailer Myntra and online grocery store Big Basket to enable them to accept payments using its solution. The company has deployed over 12,000 devices across South East Asia and Africa and plans to accelerate growth in Asia and Africa.

"The market demand is strong in all verticals whether it is small retailers or large enterprise clients across verticals like travel and tourism, health care or FMCG businesses," says Swamy, Chairman, Ezetap.      

Ezetap has also acquired Clinknow, a Hyderabad-based loyalty solutions company, as part of its move to offer integrated payments and loyalty solutions to merchants.

In February, Ezetap had raised $8 million led by a clutch of investors, including Helion Advisors, Silicon Valley-based Social+Capital Partnership and Berggruen Holdings. The company had also got additional funding from American Express. Since then merchants could activate Amex on new or existing Ezetap devices by signing up via Amex sales team or directly from Ezetap. The company was incubated by Bangalore-based start-up incubator Angel Prime.

Other payment start-ups in India are also gaining traction.

iKaaz, a Bangalore-based payments company founded by former Nokia Money team is one of them. The company which offers 'Tap and Pay' technology for payments, raised seed funding from angel investors, including Ananda Kallugadde, Managing Director of NeoBytes Software Solutions, early this year.

Another start-up, Mumbai-based Mswipe Technologies raised Series B round of funding from Matrix Partners, Axis Bank and DSG Consumer Partners.