Real-Time Payment via POS System Transforms Businesses

by Beverly McNally I love to read and write about technology such as

Real-Time Technology

Real-time technology! What is it? Is it a newbie to the technology world?

It’s a time-constraint technology. Won’t you get what does it mean?

Let me simplify it. The real-time technology is another name of the real-time computing. You can take it this way. You’re a human-a reality. But, machines run on an artificial mechanism. Artificial is something that is not real. Today, tech geeks are busy in evolving machines as we’re. They want them to sense like us. The real-time technology defines one of its fractions.

So, what’s it actually?

It’s a technology that defines responsiveness of machines within specified time constraints. Take an example of a calculator. You feed some figures into it. A click on the equal to (=) command tab computes the result in a wink. This is what the real time technology symbolizes. You would get the desirable result in a millisecond or a microsecond. This is what it aims at. However, temporal aspects influence it. So, you can’t bet on its accurate responsiveness within a defined time frame.

Real-Time Payment:

The real-time payment is similar to the aforesaid concept. Have you seen the POS (Point of Sale) systems in a Walmart or any other mall? How do transactions process there?

You, being a consumer, pay either in cash or through plastic money (like debit card, credit card or loyalty card). The scanner attached to the POS system computes how much money you have to pay. It takes just a few seconds or a minute. And eventually, you get the final bill.

The real-time payment apps, like Paytm or Tez in your mobile phone skip the role of a third party. And finally, the money channelizes from consumers, merchants and financial institutions like a payment of bills and money transfers.   

Why the real-time payment is a necessity?

1.       Cost cutting:

Reconsider the example of a POS system installation in the malls. Can you figure out how much cost you have to incur over the terminals and peripherals (of POS)? It’s from a hundred bucks to millions.

Just imagine-isn’t it a piece of pie to scan and click on the payment button in your app? It is. You would have seen it in your Facebook also. The Android phone users can recharge their data pack while chatting with the Facebook community. 

There is no data seller who involves. Neither does the consumer pay to the third party. Isn’t the best thing to save money, it is.      

2.       Single window for payment:

A transaction involves consumers, banks and merchants. If any of these parties transfers money from a payment gateway, there is no role of a third party aggregator. The money flows from the real-time window.     

3.       Integration of loyalty bonus:

Do you have accumulated loyalty points? Would you like to use them in your shopping experience? Yes, it happens. You can grab an offer by using those points while making payment via the real-time payment app.

For example-Paytm offers lucrative discounts on this kind of payment via its app. The day is not so far when you would be able to add your loyalty bonus (received from Dominos or any other brand) with the discount offers. It would be an Aha moment for all.  

4.       Pay from anywhere at any time: 

It defines a true beauty of the real-time payment. You can pay while enjoying a Hollywood thriller. Or, you can click to pay your bills from your couch. 

What’s likely to integrate in the real-time payment?

The urgent requirement of the real-time payment app is a reality. Grab, the biggest rival of Uber in the Southeast Asia, has inked a deal with an India-based startup iKaaz. It has already attracted 70 million to download its app. Now, it’s eyeing on more than 600 million population of this region. iKaaz will provide its cloud-based platform for online sellers, point of sale hardware of the retailers and a mobile wallet solution, according to a Techcrunch report .  

Let’s catch the future strategy of the Grab that attracted it to merge: 

1.       Vital inroads in POS:

The POS system transits money from the customers to the banks. But, it takes time to credit that amount to the merchant’s accounts simultaneously. They have to wait for hours to days. Thereby, the fund remains in transit for a long time.

Now imagine- how is it if the corporate gets that fund at a drop of a hat? Won’t it be beneficial for them to have enough funds for the next production period? If so happens, they will be pushed to make early payments. The quicker they will receive, the more they will grab the discount from the banks.

These future payment options would undoubtedly remove the delays.  

2.       Cash management:

You would love the concept of the gig economy. You get the wages of the day by the end of the working hours. You don’t need to wait for a whole week or a month. Your cash will be instantly available. This technology is capable of introducing this kind of economy. Cash management won’t be a hassle. Rather, it is likely to be inevitable via this payment system.  

3.       Willingness of the scaling companies:

It’s the most important aspect to consider. You never give up a thought to scale up. You want it. With the incorporation of machine learning, artificial intelligence and IoT (Internet of Things), the growth seems achievable. You need not sweat out hard. Just capitalize these technologies.

The day will soon be here when the devices, like Alexa or Home, would say, “Your electricity bill is paid; your bank received $XXXXX.” It will be possible with the real-time payments only. And even, catching fraudsters would be a walkover.

Final Words:

The real-time technology is in a nascent stage today. The day is not so far when it artificial intelligence would take it beyond cost cutting and time saving. The direct interaction of a consumer and the merchant would no more be a pain point. It would be a reality.

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Created on Oct 12th 2018 02:21. Viewed 488 times.

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