Market Trends of India POS Terminals Industry
Retail Segment Expected to Hold Significant Market Share
- Several key factors in India's retail sector are propelling the growth of the POS terminals market. The expansion of organized retail chains and a rising number of independent stores are boosting the demand for efficient transaction processing systems in India. As retailers aim to elevate customer experiences and operational efficiency, the adoption of POS terminals is becoming essential.
- Moreover, the government's initiatives, such as Digital India, are propelling retailers toward digital payment solutions. This momentum is reinforced by both demonetization and the GST implementation, which have spurred businesses to embrace formalized digital transactions.
- As per the Telecom Regulatory Authority of India, as of December 2023, Reliance Jio Infocomm Limited held the most significant service provider of internet subscribers, boasting more than 470 million subscribers, equating to a dominant market share exceeding 50%.
- Furthermore, the surge in e-commerce and omnichannel retailing is driving demand for unified POS systems capable of managing both online and offline transactions effortlessly. Retailers are now prioritizing sophisticated POS solutions, emphasizing features like inventory management, customer relationship management (CRM), and data analytics to maintain their competitive edge.
- The expanding middle class, bolstered by rising disposable incomes, is fuelling the rising consumer spending. This surge is directly translating into a spike in retail sales, underscoring the necessity for streamlined payment systems.
- In February 2024, Zoho Corporation unveiled its latest venture in India, introducing the Zakya brand. Zakya's primary focus is on providing modern Point of Sale (POS) solutions tailored for retail establishments. These solutions aim to simplify daily operations and offer centralized monitoring capabilities. Notably, Zakya's POS system, operating on the cloud, boasts a swift implementation process and a user-friendly interface. This feature set is designed to enable small- and medium-sized retailers to swiftly transition, go live, and initiate billing within an hour of setup.
Understand The Key Trends Shaping This Market
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Mobile Point-of-Sale Anticipated to Register Significant Growth
- Card and mobile payments are surpassing ATM withdrawals in popularity. The shift is driven by a growing preference for digital payment methods. The impetus for this change was the COVID-19 pandemic, which heightened concerns about cash handling, prompting a pivot toward digital transactions. This trajectory is poised to persist, which is evident in the rising adoption of store card payments.
- In India, the trend of utilizing the Unified Payment Interface (UPI) for in-store purchases via smartphones is gaining momentum. To further streamline this process, there is a push toward integrating near-field communication technology with UPI. This advancement not only minimizes physical contact during transactions but also encourages wider UPI adoption among merchants. Additionally, it enhances the digital payment landscape for retailers, an area where UPI has historically seen limited penetration.
- In April 2024, BharatPe, a player in India's fintech sector, unveiled 'BharatPe One,' marking India's all-in-one payment solution. This innovative product combines POS, QR, and speaker functionalities into a single device. This innovative product aims to simplify merchant transactions. It provides a variety of payment acceptance options, such as dynamic and static QR codes, tap-and-pay, and traditional card payments. These options cater to a vast spectrum of debit and credit cards.
- Moreover, India's mPOS landscape is evolving, spurred by initiatives from POS companies. RapiPay stands out, offering hybrid micro-ATMs that function as mobile point-of-sale (mPOS) machines. This innovation enables customers to use credit cards alongside debit cards at RapiPay stations. Unlike conventional ATMs, RapiPay's Micro ATMs offer enhanced convenience, allowing users to not only withdraw cash but also conduct a range of banking operations at any RapiPay Direct Business Outlet.
