In a rapid ascent, Axis Bank has secured a leading position in the credit card terminal market within just four years. Previously ranked fourth in FY21, the bank’s strategic expansion into card terminals is driving its success, with the aim of boosting deposits and offering loans to small businesses.
As of June 2024, the Reserve Bank of India (RBI) reports that Axis Bank now operates 18.7 lakh card terminals out of the country’s total 89.6 lakh, capturing a market share of 20.8%. This advancement places Axis Bank ahead of ICICI Bank, which has 17.4 lakh terminals.
Axis Bank’s strategy focuses on increasing merchant acquisitions by targeting businesses with high UPI transaction volumes. The bank currently processes over 25% of such transactions, leveraging its extensive presence in the payment services sector. To facilitate this growth, Axis Bank has introduced new card acceptance devices available for rent at a competitive rate of Rs 150-200 per month.
Sanjeev Moghe, Axis Bank’s Head of Payments, highlighted the bank’s technological advancements, saying, “Previously, merchants needed a throughput of nearly Rs 2 lakh to justify the cost of a card swipe machine. Our new technology allows businesses with monthly transactions as low as Rs 30,000 to deploy these devices.”
Axis Bank’s innovations include an affordable card reader that works with any smartphone and a soundbox designed for UPI payments, which also supports contactless cards through NFC (near field communications). Furthermore, the bank is working on a low-cost soundbox that incorporates a credit card reader.
On Tuesday, Axis Bank unveiled Neo, a new merchant app aimed at simplifying payment processes for retailers. This app enables merchants to accept payments, view transaction reports, and submit service requests directly from their mobile devices, removing the need for a relationship manager and providing valuable insights into transactions and settlements.
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