India POS Terminal Market Size Likely to Reach at a CAGR of 12.8% By 2033

As per the current market research conducted by the CMI Team, the India POS Terminal Market size is expected to record a CAGR of 12.8% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 39,665.1 Million. By 2033, the valuation is anticipated to reach USD 117,271.1 Million.

India POS Terminal Market: Growth Factors and Dynamics

• Rising Digital Payments Adoption: India’s increasing shift towards digital payments, driven by government initiatives like Digital India and demonetization, fuels demand for POS terminals. With a growing preference for cashless transactions among consumers and businesses, the POS terminal market has experienced significant growth.

• Expanding Retail Sector: The rapid expansion of organized retail chains, supermarkets, and e-commerce platforms drives demand for POS terminals. Retailers require efficient payment solutions to process transactions securely and provide a seamless checkout experience, leading to increased deployment of POS terminals across various retail segments.

• Government Regulations and Mandates: Government regulations mandating the adoption of digital payment systems in certain sectors, along with initiatives to promote financial inclusion, act as catalysts for the POS terminal market’s growth. Regulatory measures such as the introduction of GST and interoperable payment systems encourage businesses to invest in POS infrastructure.

• Technological Advancements: Continuous advancements in POS technology, including the integration of contactless payment options, mobile POS solutions, and cloud-based analytics, drive market growth. Merchants seek innovative POS solutions that offer enhanced security, flexibility, and functionality to meet evolving consumer preferences and business needs.

• Increasing Demand from SMEs: Small and medium-sized enterprises (SMEs) represent a significant market segment for POS terminal adoption. With growing awareness of the benefits of digital payments and the availability of affordable POS solutions, SMEs across various industries, including hospitality, healthcare, and transportation, are increasingly investing in POS infrastructure to streamline operations and improve customer service.

• Partnerships and Collaborations: Strategic partnerships and collaborations between POS terminal providers, financial institutions, software developers, and e-commerce platforms drive market dynamics. Partnerships enable POS solution providers to expand their market reach, offer integrated payment solutions, and tailor offerings to specific industry verticals, fostering market growth and innovation.

• Emergence of Contactless and NFC Technology: The adoption of contactless payment methods and Near Field Communication (NFC) technology is a significant growth driver in the India POS terminal market. With increasing concerns over hygiene and convenience, consumers and merchants alike are embracing contactless payment options.

India POS Terminal Market: Partnership and Acquisitions

• In 2024, Razorpay Software unveiled the Enterprise QR Soundbox, a versatile POS device supporting QR-based payments, tap card payments, and various other functionalities. This innovation aims to offer businesses a comprehensive payment solution, enhancing convenience and flexibility in transaction processing.

• In 2022, Worldline launched the LINURA LP 7220, a LINUX-based 4G POS terminal with advanced security features, a Dual Core Cortex CPU, and 256MB RAM. This innovation aims to enhance the in-store digital payment experience in India, benefiting businesses and customers alike.

Report Scope

India POS Terminal Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the India POS Terminal Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Decline in Retail Activity: During the COVID-19 pandemic, lockdowns and restrictions led to a significant decline in retail activity across India. With shops closed and consumer spending reduced, the demand for POS terminals plummeted as merchants postponed or canceled their plans to invest in new payment infrastructure.

• Shift Towards Contactless Payments: The pandemic accelerated the adoption of contactless payment methods in India as consumers prioritized safety and hygiene. This shift in consumer behavior increased the demand for POS terminals with contactless payment capabilities, while traditional POS systems faced challenges due to concerns over physical contact with payment devices.

• Focus on Hygiene and Safety Features: POS terminal providers are enhancing their offerings with advanced hygiene and safety features to address concerns arising from the pandemic. This includes the integration of contactless payment options, antimicrobial coatings, and hygiene protocols to instil confidence among merchants and consumers.

• Rapid Deployment of Contactless POS Terminals: To meet the growing demand for contactless payments, POS terminal providers are accelerating the deployment of contactless-enabled terminals across retail establishments. This allows merchants to offer safer and more convenient payment options to their customers, driving the recovery of the POS terminal market.

• Promotion of Digital Payments: Government initiatives and promotional campaigns aimed at encouraging digital payments are bolstering the recovery of the POS terminal market. Incentives such as cashback offers, discounts, and subsidies for POS terminal adoption incentivize merchants to invest in digital payment infrastructure, thereby stimulating market growth.

• Partnerships with Financial Institutions: POS terminal providers are forging partnerships with banks and financial institutions to offer attractive financing options and support to merchants. Flexible payment plans, zero-interest loans, and subsidized rates for POS terminals enable merchants to overcome financial constraints and invest in payment technology, facilitating market recovery.

• Integration with E-commerce Platforms: POS terminal providers are integrating their solutions with e-commerce platforms and omnichannel retail systems to cater to the evolving needs of merchants. Seamless integration enables merchants to accept payments both online and offline, offering a unified shopping experience to customers and driving the adoption of POS terminals in the post-pandemic era.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Indian POS Terminal Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the India POS Terminal Market:

• Mswipe Technologies Pvt. Ltd.
• Pine Labs Pvt. Ltd.
• Innoviti Payment Solutions Pvt. Ltd.
• Ezetap Mobile Solutions Pvt. Ltd.
• Paytm Payments Bank Ltd.
• PayU Payments Private Limited
• SBI Cards and Payment Services Private Limited
• ICICI Merchant Services Pvt. Ltd.
• HDFC Bank Ltd.
• Axis Bank Ltd.
• State Bank of India
• FSS (Financial Software and Systems) Pvt. Ltd.
• PAX Technology India Pvt. Ltd.
• Verifone India Sales Pvt. Ltd.
• Ingenico ePayments India Pvt. Ltd.
• Others

The India POS Terminal Market is segmented as follows:

By Mode of Payment

• Contact-Based
• Contactless

By Type

• Fixed Point of Sale System
• Mobile/Portal
• Point of Sales Systems

By End User Industry

• Retail
• Hospitality
• Healthcare
• Others