The rollout comes as many SMEs across markets face rising costs tied to payment hardware and service support.

By turning a smartphone into a payment terminal, the firm says it is cutting a long-standing cost burden that has shaped how merchants accept payments.

For years, access to card payments has depended on a physical POS device. Merchants have had to buy or lease terminals, manage repairs and replace units when faults occur.

These steps have slowed the adoption of digital payments among many SMEs that rely on cash to keep their daily trade running.

Nearpays says its model changes this path by allowing merchants to install an app and begin to accept tap payments through NFC on their phones.

Nearpays said the system uses Artificial Intelligence to manage transactions, monitor performance and generate records that support credit access.

The firm argues that removing hardware costs allows merchants to use funds for stock, wages and expansion rather than for devices. In markets where traders operate with thin margins, the shift could alter how merchants plan growth and manage risk.

“The ‘hardware tax’ has stifled growth for far too long,” said Victor Daniyan. “A fruit vendor in a local market or a freelance photographer shouldn’t have to choose between buying inventory and buying a payment machine. With Nearpays, the tool they already carry in their pocket, their smartphone, becomes their most powerful business asset.”

The system routes each payment through channels that show higher uptime, based on real-time data. The firm says this routing reduces failed payments, which often lead to lost sales and disputes.

The app also updates itself and flags issues before they disrupt service, a step that replaces repair visits linked to physical terminals.

Merchants can view each payment as it occurs and track daily inflows, a record that lenders often request before they issue credit.

Industry data shows that many SMEs run without formal payment records, a gap that limits access to loans.

Nearpays states that its ledger can close this gap by turning each tap into a stored entry. The firm believes this trail will help merchants build a history that banks and fintech lenders can review when they assess risk.

The rollout also has an effect on waste. Traditional terminals rely on paper receipts and produce scrap when units reach the end of life.

A phone-based system replaces paper with digital receipts and removes the cycle of device disposal. This shift aligns with moves by regulators and payment networks that seek lower waste across payment infrastructure.

As deployment expands, Nearpays says it will focus on onboarding traders across retail, services and delivery sectors.

The company plans partnerships with banks and payment schemes to widen acceptance and settle funds without delay. For many merchants, the change could mark a point where access to card payments no longer depends on owning a device, but on using the phone already in hand.

Traditionally, these devices have been viewed merely as payment acceptance tools, but they hold the key to unlocking a wealth of opportunities for businesses willing to look beyond this limited perspective.

The evolution of POS technology presents a pivotal moment for SMEs. When integrated with a comprehensive banking relationship, these devices can be transformed from simple transaction processors into powerful business enablers.

This shift can be particularly significant when the POS solution comes from a bank, as it can form part of a comprehensive and holistic view of the business and its entire financial landscape, rather than just being a payment device.

With their deep understanding of their business clients’ financial position, needs, and potential, banks are uniquely positioned to leverage POS data to solve many of the challenges that SMEs typically face.

This comprehensive insight enables the creation and seamless delivery of tailored solutions that address the specific pain points of each business.

One of the most significant advantages of this integrated approach is the potential for capital advances based on POS sales, which can revolutionise cash flow management for SMEs.

By providing access to funds based on real-time sales data, banks can help businesses optimise their cash flow, take advantage of growth opportunities, and navigate seasonal fluctuations with greater ease.

This has the potential to be a game-changer for many small businesses given that liquidity issues are one of the main reasons why many SMEs struggle to stay afloat.

Beyond capital advances, an integrated POS solution can address several other critical challenges faced by most SMEs. For instance, it can help streamline the reconciliation process, providing real-time insights into sales patterns and financial performance.

This data is very useful in terms of informing inventory management decisions, helping businesses buy and hold stock efficiently and reduce waste and risk.

What’s more, the integration of POS data into the broader banking relationship can enhance credit assessments.

With a clearer picture of a business’s cash flow and sales trends, banks can make more informed lending decisions, potentially improving access to credit for SMEs.

The self-service capabilities of modern POS solutions are also a key benefit. The ability to manage accounts, resolve issues, and access detailed reports through digital platforms empowers business owners, saves them time and provides greater control over their financial operations.

Finally, another often-overlooked benefit of a bank-supplied POS system is the valuable customer insights these devices offer the business and its banking partner.

By analysing transaction data, businesses can gain a deeper understanding of their customer base, enabling more targeted marketing efforts and improved customer service.

These insights are also invaluable in deepening the value that the bank can offer the business. It gives business bankers great insights that they can leverage to tailor enabling business solutions and offer business growth and expansion advice.

Ultimately, the true value of a POS device provided by a business bank lies in its ability to facilitate a more holistic and integrated financial partnership.

Through a comprehensive view of the business’s financial health, it enables the bank to offer more appropriate solutions, underpinned by tailored and timely support.

In other words, a POS device provided by a bank with a full understanding of the business becomes a gateway to a more sophisticated, integrated approach to financial management.

This evolution takes payments and financial management to the next level, transforming them from necessary business functions into true business-building enablers.

For SMEs looking to thrive in an increasingly competitive landscape, embracing this new paradigm of POS functionality could be the key to unlocking their full potential.

By viewing POS devices as strategic tools rather than mere conveniences, businesses can leverage their banking relationships more effectively, paving the way for enhanced financial management, improved decision-making and, ultimately, sustained growth and success.