From vegetable vendors, used booksellers and milkmen, many in the city sport a Point of Sale (PoS) machine, making the transition to a cashless economy to tide over the cash crunch that has crushed many businesses post-demonetisation.
You buy your share of veggies and fruits in Russell Market? Swipe your card. The market has seen a transition from zero PoS machines before November 8 to 22 today. Inayatullah, a vegetable vendor in the market, said he had put up a PoS machine recently and was doing brisk business. “I accept payment through card for any bills above Rs. 200. But, I have taken payments as low as Rs. 75 on the machine,” he said. Of the 475 shops in the market, only 22 now have PoS machines and a demand for another 200 machines has been placed, but are yet to be provided by banks. Even HOPCOMS, which did not have cashless payment options earlier, have now put up PoS machines at 250 of their outlets in the city.
Used booksellers of Avenue Road, hundreds of kirana stores and other smaller businesses have also made the transition. Interestingly, even milkmen and newspaper vendors, who do not even have an office address, are embracing cashless modes of payment through mobile payment gateways. Muralidhar B.M., a milkman in Vijaynagar, said one of his customers offered to pay him over Paytm, after which he installed multiple apps, including UPI on mobile, which has helped him collect bills on time.
Hurdles to avail PoS remain
Hurdles to shift to PoS are still daunting. C.E. Rangaswamy, a senior functionary of the city’s hawkers’ association said that the security deposit of Rs. 10,000 to get a PoS machine is a big hurdle. “Among us, around 150 who sell garments and other such big-value products are ready to put PoS, but its difficult to pay the security deposits. We are now in talks with the banks seeking a waiver of the deposit,” he said.
Even if you are willing to pay the deposit, there’s a long waiting period to get PoS machines. Manoj Garg, past president, Karnataka Hosiery and Garment Association, said they had approached banks and gave a list of 1,200 traders in the State wanting to install PoS. But not even five have got the machines. “It has been over 20 days since I applied for a PoS machine and every time I call the bank, they express helplessness over the shortage,” he said.
