What is POS Machine and How does GPRS POS Machine works?

POS machines or Point Of Sales machines are one of the most widely used payment accepting devices. Tailor-made for every type of business, these machines have gained popularity pretty quickly.

What is a POS Machine?

In general terms, a POS or Point Of Sale machine is a terminal or part of the checkout process that processes credit or debit cards and finalizes the transaction.

Sometimes it can be a whole terminal with a cash register, printing uni, display monitor, etc. or sometimes it can be as small as a mobile.

As the technology and payments landscape evolves, business needs to evolve with them, making the requirement for POS quite customizable.

The introduction of sim-based POS made this easy.

The flexibility of these machines is that it integrates perfectly with the business requirements. This device makes payment collection easy as a customer just has to swipe their credit/debit card and enter the pin to pay.

It is perfect for indoor as well as home delivery-based services, requires low space with little to no maintenance, and is extremely easy to operate for any type of staff.


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Most of the POS terminals use a standard telephone line, wired or wireless connection, or SIM cards to enable payment transactions.

Based on the method POS terminals can be distinguished as follows:


One of the most commonly used POS machines is the one that use GPRS SIM cards for data transmissions and are known as GPRS POS.


This POS machine uses PSTN i.e. The public switched telephone network or commonly known as a standard telephone line.

3. Ethernet POS:

As the name suggests, this POS uses ethernet IP and can connect external hardware like printers to cloud-based applications.

4. Mobile POS or MPOS:

Mobile POS represents an application that needs to be installed on mobile through which payment transfer/acceptance is done. It enables mobile payment via various technologies like NFC, BlueTooth, etc.


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In this article, we will focus on GPRS-based POS.

So, how do these GPRS SIM-based POSs work?

SIM-based POS machines use GPRS SIM for connectivity. This GPRS POS machine allows merchants to accept card-based payments. Just insert the SIM in POS and you are good to collect payments.

Transaction flow of POS Machine:

The customer swipes the credit/debit card.

The customer then enters the PIN and initiates the transaction for said amount.

After the initiation, the request for the IP address gets forwarded to the local telco.

Telco then forwards this request to the corresponding SIM solution provider’s infrastructure.

After passing through the provider’s firewall, the infrastructure will authenticate and authorize the request.

It will then allocate a static IP address to the SIM card.

This static IP is then assigned to the SIM creating a data communication between client POS and host.

Based on the IP address and service provider’s server configuration the transaction will get forwarded.

From here, the request for transaction passes through card schemes, and banks pass through authentication at each stage. After the details are confirmed, the said amount is reduced from the customer’s bank account and transferred to the merchant’s account. The authentication of the transfer comes through the receipt which can be collected at the POS terminal.

How to get a GPRS SIM Solution for your POS terminal?

Lyra India provides services to route payments through the GPRS network – a one-stop shop for banks/customers when they need sim cards from multiple telecom operators.

Lyra India also offers an M2M GPRS solution long with SIM card management and transaction security handling any query related to SIM card management like activation, replacement, roaming activation, etc.

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Features and Advantages of Lyra GPRS SIM POS Solution:

  • Real-time status monitoring of GPRS sim
  • PCI DSS certified solution
  • Real-time transaction monitoring & sim card management
  • Works with multiple telecom operators
  • Selects the telecom operator based on the network strength
  • Region/location-wise grouping/segregation of the sim cards
  • Secure & dedicated common private APN
  • Ensures higher availability since the dynamic hunting of IPs is not required in this case.
  • Lyra provides 24 X 7 support to its customers and also manages the liaising with telecom operators for issues

POS solutions offered by Lyra India ensure maximum security and reliability with regard to the sensitive data of cardholders/customers on a daily basis.

Along with the Lyra SIM solutions, Lyra also offers;

Real-time Distant POS management – LUMA (Lyra Update Manager), an application combined with a web portal that allows to supervising and operate POS terminals

And network optimization tool – OptiNet, which optimizes connection to the payment terminals by manually or automatically switching to the most efficient mobile network.

OptiNet visualizes and diagnoses the status of the available mobile networks by sending real-time data to the payment gateway.

Lyra helps customers to access tools tailored specifically in accordance with their needs in the field of online transactions.

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