NMB Bank has started Soft POS service, the first time in Nepal from any bank. Calling the move a key step in digital transaction technology, the service lets merchants use their mobile phone as a POS machine to receive payments for their goods and services.
The digital service benefits merchants by allowing them to get payment for their goods and services electronically without having a traditional POS infrastructure. Small and Medium Enterprises (SMEs) merchants can receive payments from debit and credit cards from buyers through their mobile phones.
What is SoftPOS?
SoftPOS is a technology that allows merchants to use their smartphones as a POS machine for receiving transactions. The technology uses NFC of a phone, which, when connected with payment cards of customers, can process payment without requiring traditional POS hardware. It’s all digital.
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How does SoftPOS payment work?
A SoftPOS transaction works like this:
- A merchant uses a SoftPOS application from their concerned bank
- The app leverages the NFC built into the phone
- A customer taps their credit or debit card on the merchant’s phone
- The NFC establishes communication between the payment card and the merchant’s smartphone
- The transaction is processed and authorized using the data connection on the phone
NOTE: The requirement for a SoftPOS is that merchants need to have an NFC-supported smartphone and must enable the feature, if not for the service to work. It also requires an active internet connection.
Requirements
These are the things required for a SoftPOS transaction:
- NMB Bank-issued debit/credit card for the bank’s customers
- An NFC-supported smartphone and an NMB SoftPOS app for the merchant
- an active internet connection on the merchant’s phone
Check out: Top 5 Mobile Banking Apps in Nepal, Find the List Here!
Regarding the launch of the service, NMB Bank Chief Executive Officer Govinda Ghimire said, “SoftPOS service is not just a new technology, it is a big step towards Nepal’s entrepreneurship and digital future. The mobile phone in every business’s pocket will now become a payment terminal, and business operations will become easier and safer.”
The bank says that its SoftPOS payment service complies with international security standards and is safe for customers to use.