With the rising mobile Internet usage in the country it was about time that someone came along and used it for Point-Of-Service transactions. Ezetap, a service which allows merchants and sellers a easy mobile based method to carry out transactions, has been unveiled today by Angel Prime, a startup incubator. This is the first company which debuts from the incubator which was founded by serial entrepreneurs Bala Parthasarathy, Shripati Acharya and Sanjay Swamy.
Ezetap is a service which has been founded by Industry veterans like former Oracle and NGPAY executive Abhijit Bose who is the CEO and former Intel executive Bhakta Kesavachar who is the CTO. Payment industry veteran Sanjay Swamy is Ezetap’s Chairman.
The service uses an external card reader (like the ones in Square and Paypal Here) which when used in conjunction with a Ezetap app on the mobile, serve as POS terminals. This can help independent merchants as well as more established retail ones in making it easier and cheaper to process payments. How cheap? The company’s card reader costs Rs. 1500 as opposed to existing POS terminals which cost more than Rs.10000 in general. Looking at the cost itself, one can claim that this product will be a major disruption. Also, Ezetap says that its service is fully compliant with the global industry best practises. The service charges on credit card transactions are decided between banks and merchants. Debit card transactions have a service charge limit of 0.75% for transactions below Rs. 2000 and 1% for those above Rs. 2000, according to the latest mandate by the RBI. All in all, this boils down to lower operating cost for the merchants as opposed to existing POS terminals.
Abhijit Bose, Founder & CEO of Ezetap was all praises for Angel Prime due to their guidance on this venture.
“Ezetap is serving the burgeoning Mobile Point of Service market – both in India and other emerging markets. Working with AngelPrime truly helped us jump-start our foray into this complex industry – providing not just adequate startup capital, but also hands-on participation in setting product and business strategy, sales, marketing and other operational aspects. AngelPrime allowed the Ezetap team to focus on bringing our exciting product to market in a highly compressed timeframe”.
Angel Prime’s Managing Partners also made a statement about Ezetap and its potential.
“We are delighted to bring Ezetap to the world – our charter is to work side-by-side with great entrepreneurs and create game-changing companies from scratch in India – putting together high-quality teams and providing the initial seed capital and incubation infrastructure required. Ezetap is a prime example of the kind of companies and entrepreneurs we work with.”
Although the concept is not a new one (Square was the first), applying it to India will be challenging. Of course the pricing will definitely help it garner popularity. Convincing independent merchants (like Mom and Pop stores) will be difficult but once they see how easy it this new tech is, the usage may jump. Further, the service differs from Square and Paypal Here because it offers support for even feature phone. I don’t have all the details about this but the company singles out Nokia S40 as an example. They also have Android, Windows Mobile and iOS apps. Smartphones have proliferated but there is heavy usage of feature phones too. By making the service compatible with feature phones, I feel that Ezetap has plugged an important hole in the payment ecosystem. The company stresses that all the technology has been developed from the ground up in India and I think it is about time that every Indian company does that.
What are your thoughts about Ezetap’s service? Do you think it will see massive adoption? Share your thoughts with us.
Website | EzeTap