In a direct response to the escalating threats of terminal hijacking and device switching, fintech firm Nearpays has introduced AI-driven “Smart Firewalls” to its Soft POS system. The company aims to eliminate the vulnerabilities associated with traditional hardware terminals, which are frequently targeted by criminals for card skimming or physical device swaps that redirect revenue to unauthorized accounts.
The technical and structural consequence of this shift is the total removal of physical hardware from the payment flow. By transitioning the point-of-sale process into a software environment on a smartphone, Nearpays effectively nullifies the risk of a “physical swap.” The system is anchored by a sophisticated AI layer that monitors every transaction in real-time, learning the specific behavior of each merchant. If the system detects a significant deviation such as a sudden surge in high-value payments or activity from an unrecognized location the Smart Firewall can trigger instant biometric verification or place an immediate hold on the account to prevent potential losses.
Analytically, the security framework is reinforced by device fingerprinting, which binds the Soft POS application to the unique digital identity of the merchant’s smartphone. This prevents the cloning of terminals and ensures that the payment interface cannot be moved to another device without undergoing rigorous biometric checks. For multi-site businesses or logistics firms, a centralized security dashboard provides live oversight of where and when every “tap” occurs, allowing managers to spot delivery route deviations or unauthorized after-hours processing.
The impact on “Data Integrity and Merchant Trust” is a vital dimension of this deployment. Nearpays utilizes encryption and tokenization within the phone’s Secure Enclave, converting sensitive card data into tokens that never enter the device memory or the merchant’s view. This architecture ensures that even if a device were compromised, the actual payment data remains unreachable. According to CEO Victor Daniyan, the goal is to shift security from a reactive struggle to a predictive shield, turning the smartphone into a “digital vault” for small and medium-sized enterprises.
Furthermore, this AI-enhanced approach serves as a critical component of the broader “Trust Infrastructure” needed to accelerate cashless adoption. By providing small retailers with fraud-prevention tools traditionally reserved for major banks, Nearpays is working to lower the barriers to entry for the digital economy. The firm asserts that protecting revenue against human error and physical tampering is the only way to build long-term confidence in mobile-based financial services.
The long-term outlook for Nearpays suggests that the success of Soft POS technology will depend on its ability to outpace increasingly sophisticated fraud syndicates. As the AI continues to learn from new patterns, the company expects to reduce the “trust deficit” that currently slows digital transformation in many emerging markets. By replacing vulnerable plastic terminals with an adaptive, AI-monitored software layer, Nearpays aims to secure the financial future of merchants who have previously been victims of POS-related crimes.
