Reliance has forayed into the MPoS market. The Jio MPoS plans to digitize the current kirana system by offering better services at lower prices. The move is expected to digitize 5 million kiranas by 2023.
Bengaluru: Reliance has now become a constant in the headlines. Recently, a study of Bank of America Merrill Lynch talked about the firm’s entry into online retailing. The report talked about how the firm could help expand the digitized retail stores to over 5 million by 2023.
The conglomerate already has 10,000 Reliance Retail stores spread all across India. This is one step forward towards creating the biggest online-to-offline (O2O) e-commerce platform in the country. Moreover, the firm is now eyeing the set up of Jio mobile point-of-sale (MPoS) devices at neighborhood stores.
Presently, India’s retail market is largely dominated by unorganized vendors, popularly regarded as kirana stores. They make up roughly 90% of the huge $700 -billion market. With the oncoming wave of digitization and technology-led businesses, the kirana vendors are not to be left behind. They are all for upgrading their tech and hopping onto the modernization bandwagon.
Reliance and MPoS: A modern love affair
Reliance plans to set up Jio MPoS devices at kirana stores. These devices will connect suppliers to its high-speed 4G network. This network could then be easily used by its customers to order supplies.
The MPoS market currently stays fragmented with SnapBizz, Nukkad Shops and Go Frugal being the key players. As it did with the telecom providers previously, Jio plans to give these companies a tough competition.
Jio offers a one-time investment offer of Rs. 3000 while its contemporaries offer the same in higher ranges. SnapBizz offers it within Rs. 30,000 while Nukkad Shops puts the price mark around Rs. 50,000. Go Frugal has a variable range, drawing the marker around Rs. 15,000 – 1 lac.
Jio MPoS has no merchant discount rate (MDR) on any charge and also offers a loyalty programme. Additionally, its monetization strategy includes merchandise delivery, advertising, and supply-side aggregation.
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With Reliance’s entry, the price points are expected to come down with visible merchant adaptability. Moreover, the market is expected to see the possibilities of consolidation in the near future.
With cheaper rates and bigger reach, the Jio MPoS is expected to boost the number of digitized kirana stores to a staggering 5 million from the current 15,000 by 2023.