Companies that help in processing card payments look set to benefit from rising demand for portable card swipe machines after the Reserve Bank of India adopted new rules to prevent fraud and enhance security.
Merchants in India usually swipe cards through a reader to generate receipts that customers sign, but the new rule, effective Dec. 1, adds another layer of security by making debit card holders enter their personal identification numbers to validate transactions via these machines, also referred to as point-of-sale (POS) terminals.
Businesses such as fuel stations, hotels and restaurants that normally keep their card machines out of the customer’s reach will have to buy the portable, GPRS-enabled devices to offer convenience to clients.
Sunith Menon, India’s managing director for France-based Ingenico S.A., which manufactures such devices and supplies them to various banks, expects revenue to rise by 20 percent as demand for the wireless POS terminals rises after the new RBI mandate.
“We are seeing an increased requirement coming in from banks,” he said, adding that ICICI-First Data, Bank of Baroda and Axis Bank were among those who have placed orders for GPRS-enabled POS terminals.