POS terminals are the most favorite payment method in the country. Last year, they accounted for 85% of total electronic transactions, while internet payment services and mobile payments accounted for a paltry 2.27% and 12.71%.
Data from Shaparak, the domestic payment and settlement network, shows there are more than 4 million active POS terminals in the country which are all imported. According to Tehran Chamber of Commerce, Industries and Mining, POS terminals worth $104.7 million were imported during the previous fiscal year (ended in March 19), mostly from China. Each terminal is priced between 5 to 10 million rials.
The need for standard devices, equipped with modern technology, is on the rise, as the country is planning to introduce international credit cards. On the other hand, low-quality terminals have created problems for both payment service providers and users.
Now with the lifting of sanctions many companies have shifted their focus to major international producers, and some new members are emerging in the market hoping to produce POS terminals inside the country.
Call for Quality
InfoTech International, a private company specializing in banking and payment solutions, is planning to introduce new technology in collaboration with its foreign partners, including France’s Ingenico Group.
The company’s owner said in an interview with Way2pay.ir that “our partners have plans to expand their operations in Iran’s market. We were focused on research and development programs during the sanctions, which resulted in developing new technologies.”
“Sanctions made way for low-quality products that dominated the payment industry to meet pressing and momentary needs,” however, he thinks Iranian banking and payment industries are capable of accessing modern technology.
The main challenge for the industry would be offering added value to customers. He urged importers to offer quality products to prevent future loss to the industry.
InfoTech International, founded in 2003, is a Tehran-based company. It also has offices in London and Dubai. It has partnered with leaders of the cards and payment industry worldwide, including Ingenico Group, Famoco, Gemalto and Bull.
Exporting banking and payment solutions is also on InfoTech agenda.
Domestic Player Emerges
FANAP Company, affiliated with Bank Pasargad Iran, has launched a POS terminal production line in Khorramshahr Free trade Zone, in Khuzestan Province.
It unveiled the first assembled POS terminal in late May, and has plans to assemble 200,000 POS terminals in cooperation with Taiwan’s Castles and in line with PCI standards.
The Payment Card Industry Data Security Standard (PCI DSS) is a proprietary information security standard for organizations that handle branded credit cards from the major card schemes including Visa, MasterCard, American Express, Discover, and JCB.
The company is set to officially start operating in a few weeks. While in the primary phase it will only assemble the terminals, it is seeking to also produce terminals inside the country.
