India’s Suvidhaa Infoserve (SIPL), a payment and remittance firm, announced that it acquired point of sale (POS) startup Aasaanpay.
Aasaanpay was started by engineering dropouts Sainath Gupta, Pruthvi Sabbu, and Shashank Sahni in 2011. Its technology helps carry out transactions via smartphone instead of a traditional bulky POS machine. The startup secured seed funding from Tvarita Capital three years ago.
Suvidhaa plans to use Aasaanpay’s technology to tap into the 150 million cards issued by the Indian government under theJandhan Yojana. This acquisition will fast-track Suvidhaa’s plan to reach small merchants, especially in rural areas.
“The acquisition will lead to a new customer experience, enable instantaneous conversions for service providers such as ecommerce companies, and will also cut out the hassles of collecting cash for various businesses. The technology will help small time retailers – who are not yet entirely connected to the debit and credit transactions,” the company said in a statement.
Besides making card payment transactions, point of sales tools allow for cash withdrawals and money transfers. They serve as a micro-ATM, allowing a customer to walk into a shop and withdraw cash using their PIN.
“Any technology that cuts out the infrastructure bottleneck as well as reduces cost will be a game changer. With our experience of handling 30 million unique customers at the bottom of the pyramid over the last seven years, this technology acquisition will accelerate our merchant acquiring capabilities several times,” Suvidhaa founder Paresh Rajde said.