After Freecharge, Axis Bank wins virtual POS provider Paynear for its UPI platform

Paynear, which helps shopkeepers and businesses to accept card payments without buying a point-of-sale (POS) machine, has tied up with Axis Bank to implement support for UPI or Unified Payment Interface.

UPI allows users to send and receive money and make payments using IDs that resemble email addresses (for example, rajesh@icici).

Paynear is an Indian startup that is most notable for allowing shops and businesses to accept card payments using its mobile app and no POS machine. The company also has a miniature POS machine for those who are interested in the ‘real’ thing.

The company said it has become first mobile-POS provider to support National Payments Corporation of India’s unified payment interface.

“With this addition, all the 15000+ merchants of paynear would be enabled with UPI, facilitating them to accept this payment option,” it said.

The Hyderabad-based Indian startup has deployed more than 10,000+ devices in more than 150 cities and towns, it added.

“Given the fact that UPI is going to be the next big revolution in Indian Fintech Space, Paynear is delighted to bring UPI to all its Merchants and Paynear will take all efforts not only in enabling UPI as an option but also in educating the merchants on how to accept Payments thru UPI which enables in higher adoption,” said Managing Director Prabhu R.

Typically, most third-party payment app developers such as Flipkart have chosen Yes Bank as their UPI partner. The development marks a milestone for Axis Bank, which has also bagged the contract to be the UPI platform provider for Freecharge.

App-based, or virtual POS reduces the merchant’s cost of accepting card payments from their customers. PayTM also introduced a mobile-POS feature, but rolled it back soon after over security concerns.