The mobile point of sales (PoS) industry is among the prevalent beneficiaries of the express digitisation of payments, and this reflects in the financials of the companies over the past year.
Entities such as Mswipe and Ezetap have boosted their revenue figures and narrowed their loss margins, as per filings with the corporate affairs ministry.
Mswipe has reported total revenue of ₹141crore for 2016-17, up 140% from ₹58 crore reported a year ago. Similarly Ezetap reported a total revenue of ₹48 crore for the fiscal, up more than 100% from ₹23.6 crore in the previous year.
“We believe by the end of this financial year we will attain revenue of ₹200 crore and this will be achieved through rapid scaling up of our portfolio supported by the recent round of fundraising,” said Manish Patel, founder, Mswipe.
After demonetisation, as demand for terminals increased across the country, mobile PoS companies targeted small merchants, local kirana stores and roadside shops who could not afford a bank-deployed terminal. From having to convince micro merchants to start accepting digital payments, the tables turned when these players started asking for such solutions to run their businesses as cash got sucked out. “We had seen a massive gain just after demonetisation. Then there was a little pull and now, with goods and services tax demand stabilising across markets, we hope 2018 will continue to be steady,” said Patel.
Besides generating revenue from each transaction, these companies also generate revenue from various forms of services they offer to merchants. “Merchants are not only opening up to deploying more terminals but also looking at software for inventory management and other services which open up much more of revenue streams for players like us,” said Abhijit Bose, cofounder of Ezetap.
A boom in revenue figures has not yet converted into profit for these entities, but they have largely impaired their losses.