The rise of virtual PoS – Pay your expenses by credit card with Paymatrix

“We started with a small use case of offering rent-related payments on credit cards to eventually evolve into a virtual scanning machine or PoS (Point-Of-Sale) software that allowspayment of all expenses and bills by credit card. The idea of ​​Paymatrix was conceived when we faced a similar situation of arranging INR 300,000 as rental deposits to our landlord in Bombay,” disclosed Mukesh, CEO of Paymatrix.

Since their landlords didn’t accept any credit card payments, Mukesh and Muralidhar pitched the idea of ​​a platform that can help individuals meet cash needs for large payments or unexpected expenses. Muralidhar goes on to say that their Paymatrix app allows individuals and businesses to use their credit cards to pay any expense to the recipient’s bank account. It’s like a digital swipe machine/virtual POS and that’s also Paymatrix’s core value proposition. Individuals can pay rent, maintenance, suppliers, tuition, etc. and businesses can pay expenses such as payroll, vendors, and vendors directly into their bank account using a credit card.

“We facilitate various value-added services to customers such as-credit card bill payments, rent payments, utility bill payments (electricity, postpaid mobile, postpaid landline, postpaid broadband, tuition, etc.) and even recharge payments (DTH, cable TV, housing, company , etc.) using a credit card. So we are moving towards a complete fintech app instead of being a payments-focused app,” said Muralidhar, co-founder and CTO of Paymatrix. The founders believe the app has also bridged the gap between payers and merchants.

India is one of the fastest growing markets for the proliferation of credit cards. The RBI record shows that the country has a base of 71 million credit cards in April 2022 and about 9.03 Lac Cr was spent on the same in the year 2021-2022. Around 45% of this spending is done on PoS terminals, which are estimated to number around 4.7 million in 2021. not a proportional growth of outlets. issue or a drastic change in the way payments are accepted in Indian cities.

The same justifies the need for a Soft PoS/Virtual PoS in which your mobile can work as a swipe machine, thus breaking the form factor barrier. Mukesh goes on to add that “Imagine a scenario where a mobile app on your smartphone can be used to collect payments from anyone through any payment method, be it credit card, debit card, online banking, UPI, wallets, etc. Paymatrix simplifies the problem by functioning as that much-needed virtual point of sale or swipe machine.” No hassle of maintaining a PoS machine or a payment gateway link, it’s also convenient!

Mukesh and Murali were fortunate to have the backing of some highly coveted early-stage investors in the market such as Smart City Dubai, XSeed Partners, IIIT-H Seed Fund, IIIT-H Foundation, SucSEED Ventures, etc. However, May 2021 was a watershed moment for them, when Muthoot Pappachan Group invested and acquired a majority stake in Paymatrix. “Muthoot Pappachan Group being one of the biggest financial powerhouses in India with its offering in various financial products like Loans, Insurance, Vouchers etc. shares a common vision of what we would like to turn Paymatrix into” , added Mukesh. Beyond As an investor, the MPG group closely supports them in the transformation of Paymatrix into a full-stack payment application by relying on their skills, experience and expertise in the field of finance.

The payments market in India has come a long way in terms of simplifying the form factor and underlying technology to serve the masses. Guguloth adds that “Paymatrix started by solving the problem of a small focus group of credit card holders. We are now working to establish our app to host a broader and stronger value proposition that can enable us to acquire and retain a broader target customer segment.” The app is designed to function as a true point of sale virtual with a host of value-added services such as credit card bill pay, credit score tracking, top-ups, bill payments, quick loans, overdraft facilities, digital gold savings , etc.

India has been at the forefront of the fintech revolution. The subcontinent is at the heart of the most innovative and evolving fintech market in the world. “Our country has been at the forefront of fintech. We have seen several remarkable initiatives like Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana, UPI, Rupay Cards, payment aggregation schemes, etc. The evolution of the fintech market requires us to be nimble enough to embrace innovation faster than ever. At Paymatrix, we are building a team and a culture so that we can embrace this change and be part of it for the greater good,” concluded Mukesh Chandra Anchuri of Paymatrix.

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