Businesses are going nimbler and consumer-centric with the revolution of cashless & paperless transactions. Demonetization has further supported this shift, creating a tremendous increase in the utilization of e-wallets & swipe machines.
In an era of digitization, the smart Point-of-Sale (POS) or mobile POS (mPOS) machines are gaining traction in the retail industry. Here are a few reasons why enterprises & businesses shall look beyond the conventional payment processing methods by embracing the next-generation POS terminals. But before that, let us get acquainted with the term ‘biometric POS terminal’ — a modern point-of-sale system.
What is a Biometric POS terminal?
Biometric POS terminal is a modified version of a Point-of-Sale (PoS) device, which verifies the identity of a consumer using his/her fingerprint or IRIS image with the help of biometric sensors before making financial transactions. The device will be connected securely with the bank’s core system, to extract information regarding a consumer, allowing individuals to dispense or deposit their cash in a bank account, initiate fund transfers to other banks through Aadhaar Pay transactions, check the account balance, or make payments at retail shops.
The state-of-the-art device devised with multiple biometric identification modalities like fingerprint & IRIS sensors is widely utilized in India to verify the identity of a beneficiary for getting subsidized edible and non-edible commodities through Aadhaar-based biometric identification process under PDS system at fair price shops (Ration Store).
Why retail businesses are increasingly adopting biometric-enabled POS terminals?
The traditional POS terminals demand a lot of hardware installation (multiple components) and involve maintenance hassles. Installation of a computer, connecting the devices, and updating the software require a great deal of time & space along with timely external technical service support.
Also, training the personnel to handle the cash counter calls for additional investment — thus increasing a business or enterprises’ capital expenses. Hence, embracing an all-in-one integrated biometric POS terminal proves to be a smart move as it eliminates the need for deploying multiple hardware devices and PCs.
The cutting-edge biometric technology based smart POS terminals or mPOS machines by conducting secure & efficient financial transactions aims at bolstering the growth of the fintech ecosystem in the private & public sectors. The device has been a game-changer for businesses as it supports accurate individual identification through fingerprint & IRIS recognition.
An all-in-one integrated biometric POS terminal works wirelessly with minimal hardware setup (smart card-reader hardware, a smartphone, QR & barcode reader, and a GPRS or Wi-Fi connection being in a single device).
Secure for consumers and retailers
Biometric POS terminals designed with various control functions can extend autonomy, reconfiguration, safety, and fault-tolerance to eliminate all the unacceptable risks and meet functional safety requirements.
A smart biometric POS or mPOS devised with SAM (Secure Access Module) slot offers ultimate security. With the help of SAM, all the transactions are encrypted securely in the terminal itself before it leaves the machine. A SAM Card is utilized to enhance the security and cryptography performance in devices and perform secure identification & transactions.
It makes the entire retail business operation much more reliable and efficient for both — the consumers and retailers. When biometrics is blended well with the existing technologies and systems, it provides advanced security to serve a bigger purpose.
Modern Biometric-enabled POS terminals driving a payment revolution in India
Biometric-based smart POS or mPOS also implies less expense in terms of space requirement, device setup, and external resources. These innovative POS machines are user-friendly, needing little to no effort in getting the assigned person started with cutting-edge technology.
If a business or enterprise relocates the office to a new location, then they do not have to fret about holding off POS services until the setup & installation comes to an end. Smart biometric POS machines can work from anywhere at any time as long as network connectivity is available — be it through Wi-Fi or GSM (via SIM card). That means portable biometric mPOS devices can be incorporated efficiently in any form of business.
Major applications in India
An integrated biometric POS terminal is an all-in-one device that can be utilized efficiently in several applications where biometric identification is required. The cutting-edge Aadhara-enabled biometric device is also widely employed in distinct industries for different identity-based authentication applications such as:
- Retail industry — To perform secure and rapid payment operations for seamless consumer experience.
- Banking sector — Identify customers and authorize banking transactions like cash withdrawal, deposits, and balance inquiries in a more secure and convenient manner.
- Fair price shops — For the transparent implementation of the PDS system and fair distribution or edible and non-edible commodities to eligible beneficiaries through Adhara-enabled biometric authentication.
- Canteen management — As a ticketing or token system for hassle-free meal distribution. It also drives a cashless and paperless financial ecosystem in canteens.
As per TOI reports, in July 2018, the Ludhiana’s ration distribution scheme implemented smart biometric-enabled e-POS machines for bringing transparency and accountability in the PDS scheme. Also, in almost 13 states, more than 90% of food grain distribution was successfully carried out using Biometric Authentication.
How do biometric-based POS works in UPPDS?
For Aadhaar identification of beneficiaries in UPPDS, 19661 fair price shops in Western Uttar Pradesh utilized Mantra’s all-in-one Biometric POS terminals in disbursing commodities to approximately 8.6 million eligible families.
A biometric POS terminal captures the fingerprint or IRIS image of a beneficiary and sends an authentication request to UIDAI’s server via a central server. UIDAI server then matches his/her biometric details against the stored biometric data of an individual. The response will then be sent back securely to the device.
A beneficiary will be authorized to receive the benefits under the PDS program only if his/her biometric fingerprint/IRIS image matches UIDAI’s database. If the captured biometric data fails to match the UIDAI’s database, then an individual posing as beneficiary will not be allowed to claim the benefits under the PDS scheme.
“An integrated multi-modal Biometric POS terminal has penetrated the Biometric PoS Terminals industry and Indian B2G market segment to secure & build the trust of consumers/beneficiaries,” says Mr. Hiren Bhandari (Technical Director of Mantra Softech India Private Limited).
The advantages of using Biometric POS Terminal
Some of the major advantages of biometric-based POS terminal are listed underneath:
- A single POS terminal eliminates the need for deploying multiple devices
- Easy to set-up and operate
- Provides strong security and greater convenience
- Highly efficient offering rapid and easy verification functionality
