Ezetap Forays into the Micro-ATM Market in India


Ezetap is poised to connect small towns and villages in India through its mPOS (mobile point-of-sale) solutions. The mobile payment solutions startup, founded in 2011, is taking an initiative towards financial inclusion in India. Ezetap is already backed by investors like PayPal founder Peter Thiel and American Express. Moreover, Citibank has already approved Ezetap as its first mPOS service globally and is a preferred Visa partner for mPOS outside US and Europe.

Ezetap’s mobile payment platform has the ability to transform any mobile device into a POS terminal. It could provide cost effective services like micro-ATMs to help customers connect with banks, insurance companies and online shopping sites as well. The company hopes to target 600,000 villages in India with such cost effective means.

The pricing scheme of Ezetap solution includes:

  • One-time non-refundable deposit of Rs.499
  • Monthly fee of Rs.150
  • Commission of Rs.5 per cash back transaction.

(1 US$ is approximately Indian Rs 60)

For any POS transaction, the amount plus commission are settled into the merchant’s bank account the very next day.

Merchants can open a zero balance account with State Bank of India using Android or Windows Phone or a tablet with Wi-Fi or data connection. Ezetap, as an mPOS company, handles product design, hardware manufacturing, software development and manages integration with banks as well as the customers’ back end online transaction processing systems, all by itself.

Ezetap has also signed a deal with State Bank of India in order to provide the public sector bank with 500,000 POS devices over a span of 5 years. Ezetap is also live in multiple countries across Africa and South East Asia. It has over 5000 merchants including a mix of large and small enterprises across more than 600 cities. Ezetap works with leading ecommerce companies, bill payments and collections firms, insurance companies, FMCG, restaurants & hospitality, retail and taxi services. The company has deployed over 12,000 devices across South East Asia and Africa.

How does Ezetap work?

The “Reserve Bank of India (RBI)” introduced a regulation in 2006 allowing banks to provide service at people’s doorsteps through the use of third party services. This model is referred to as “Business Correspondents/Banking correspondents” in short BC’s. BC is a representative authorized to offer services such as cash transactions where the lender does not have a branch. Primary role of BC is to oversee the proper development and functioning of indirect banking channels.

Govt. institutions are demanding micro-ATMs as well. Use of technology along with banking correspondents can help banks tap the large unbanked sector effectively as banks can use mobile and micro ATM’s along with banking correspondent to deliver low cost banking solutions to unbanked customers.

Micro-ATMs can largely offer financial services to the unbanked population in India. With proper customer education, especially across villages, this use of technology can really drive financial inclusion. This notion itself could be the key reason behind Ezetap foraying into the micro-ATM segment.



MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

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