Fintech firms join forces to create hardware-free mPOS for Android handsets

Credit cards
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A syndicate of fintech businesses have joined forces in a bid to shake up the POS marketplace. The collaboration wants to develop a hardware-free mPOS system that converts Android mobile devices into contactless payment terminals.

German fintech firms Rubean, CCV Group, Intertrust and Riscure have been developing the PhonePOS idea with a view to bringing the convenience of card acceptance to so-called micro-merchants.

Android handsets running 8.0 Oreo or later will be able to use the contactless payment terminal concept, which supports PIN entry without the need for any additional hardware such as card readers or dongles. The consortium hopes to deploy the solution through European-based acquiring banks. It’ll also be offered as a service via CCV, the European payment solutions provider.

Payment revolution

Using an Android device with the mPOS system installed will allow merchants to accept credit card payments for both goods and services, with everything being done on the phone. The initiative has already been certified to both Visa and Mastercard brand pilot programs.

The mPOS idea has been developed to PCI CPoC standards with the aim of launching the idea first in Germany and then rolling it out across Europe. The syndicate is also working at integrating the application into professional retail tablets and commercial terminals.

Günther Froschermeier, chief technology officer of CCV Germany, commented, “PhonePOS is an important breakthrough for electronic payments. As cashless payments explode, the benefits of POS integration are becoming paramount.

For example, instead of using additional hardware micro-merchants can use their Android smartphone for card acceptance, hospitality providers can integrate electronic payments within their ordering devices, and even large corporations can extend their business with home delivery solutions.”

Rob Clymo

Rob Clymo has been a tech journalist for more years than he can actually remember, having started out in the wacky world of print magazines before discovering the power of the internet. Since he's been all-digital he has run the Innovation channel during a few years at Microsoft as well as turning out regular news, reviews, features and other content for the likes of TechRadar, TechRadar Pro, Tom's Guide, Fit&Well, Gizmodo, Shortlist, Automotive Interiors World, Automotive Testing Technology International, Future of Transportation and Electric & Hybrid Vehicle Technology International. In the rare moments he's not working he's usually out and about on one of numerous e-bikes in his collection.