Sistema Shyam TeleServices Limited that nationally operates its telecom services under the brand MTS with over 16 million customers is all set to launch an innovative service called MTS mPOS.

This service offers acceptance of card based payments through mobile phones and tablets. It is an easy to use, hassle free, economical and a mobile substitute to the conventional credit/debit card swipe machines (Electronic Data Capture Machines).

MTS mPOS is bound to add another dimension to retail and home delivery services, wherein even small shop owners like small chemist shops, provision stores, delivery boys etc will be able to offer ‘payment by card option’ to the customers anytime anywhere. This service reduces the high hardware costs of a conventional POS terminal & the monthly maintenance charges involved.

The company said that the service will be extremely useful for retailers, home delivery based service models like e-commerce players, food chains, pizza delivery outlets and companies into direct sales model like FMCG, Insurance providers etc.

Reports by IAMAI and Frost & Sullivan peg the mCommerce industry in India at Rs. 400 Crore and it is expected to go up to Rs 2000 Crore by 2015. The reports also suggest that there are about 35 million mCommerce users across the country. India boasts of a strong entrepreneurial culture and more than 50% of the population being self-employed. It is also significant to note that India with 900 million mobile phone users and over 290 million active Credit/Debit Card users offers immense potential for mPOS.

MTS in partnership with the solution provider is rolling out a pilot with India’s leading e-commerce retailers like Flipkart.com and Yebhi.com wherein MTS would provide MTS MTag 3.1 Smartphones and the data services required. This pilot makes MTS, the first telecom company in India to roll out this kind of an initiative. MTS shortly plans to launch this service nationally.

The total bundle (MTS MTag 3.1, mPOS attachment & One year Data plan) would be priced between Rs.3000 - 4000. The average monthly spends on usage of MTS mPOS would be between Rs.200 - Rs.300.