Post demonetisation, small traders, retailers, shopkeepers and even push cart vendors have embraced point of sale (POS) machines in the cities. However, these machines are still looked upon with suspicion in rural and semi-urban areas, and banks are trying to convince local traders of the virtues of swiping cards.
Banks managers in Chennai and other parts of Tamil Nadu said there had been a 70 to 80 per cent increase in enquires about installing POS machines. “Many traders and small establishments who have their accounts with us have asked us about how this machine works and what it would cost them,” said a manager of HDFC bank.
Ramu (name changed), a push cart vendor in T. Nagar, said: “I have been selling fruits here for the last 15 years. After November 8, my sales dropped drastically and I had to throw or give away the fruits to people on the road side. One of my customers advised me to get a POS machine and I managed to get one two days ago.” He added: “Sales have now gone up because people who come to the temple and park are swiping cards and purchasing more fruits from me now.”
S. Jayaraman, who sells vegetables and fancy items on the roadside in Sowcarpet, said: “I have put up a paper board saying I accept cards here.”
Pointing at the board, he said: “Though my business is yet to pick up I feel this will help me long term.” Mr. Jayaraman does not know how to use this machine so he has kept it in his friend’s shop which is adjacent to the pavement where he sits. “My friend is teaching me how to enter the amount and what details I need to enter into the machine,” he said in an excited tone.
A small bangle shop owner at Rameswaram Street, near Ranganathan Street, said, “I got the machine two days before demonetisation was announced. Unfortunately, no one has swiped here so far.” According to him, people who come shopping were middle class people who prefer cash transactions to cards. “They are still not confident about swiping their cards and punching in their PIN details. They feel it’s a security threat. One of my customers walked out of the shop when I asked whether she had a card,” he added.
Traders in T. Nagar, Sowcarpet, Pondy Bazaar, Ritchie Street, and Koyambedu said they were still sceptical about getting POS machines. In some places, shopkeepers are using POS machines borrowed from their neighbours. For instance, at a complex in Pondy Bazaar, two shops have these machines. The remaining shops in that location are using the POS machines and they are taking the cash in hand once in two days.
Shanmugasundaram, a small grocery merchant who runs his shop in Chengam Road, Tiruvannamalai, has lost more than 70 per cent of his business. “People come to purchase groceries for Rs. 50 and Rs. 60 and they give me Rs. 2,000. I can’t afford to give change to all my customers.”
About installing a POS machine, he said, “This idea will not work out for my business. There are customers who ask me for mustard seeds for Rs. 5 and some walk in asking for ginger for Rs. 2. I cannot ask them to get their cards,” Mr. Shanmugasundaram added.
At Tiruchi, POS and mobile wallets are yet to gain traction. A handful of traders and retailers who have a POS machine say that awareness is very low.
A. Ravichandran, a hair dresser at K.K. Nagar, Tiruchi, said that his customer prefer paying cash rather than using POS. Mr. Ravichandran has also put up a notice outside his building about this option. “I bought this machine during Deepavali.Only 20 people have used this facility post demonetisation,” he said.
In Salem region , State Bank of India, Omalur branch, has called upon the traders of Omalur town and surrounding areas to come forward to collect the POS machines from the bank.
In a statement here on Saturday, Arumugam, senior manager, Omalur branch of the SBI, said the bank was prepared to provide the POS machines to the traders, for which they have to remit a monthly rent of Rs. 400. For collecting the POS, the traders have to open a current account, the statement said and called upon the traders to avail this opportunity for promoting their business.
( With inputs from A.D. Balasubramaniyan in Tiruvannamalai, S. Ganesan in Tiruchi, and Syed Muthahar Saqaf in Salem)
