India (Point of Sale) POS terminals market is likely to scale extensive heights of growth, primarily driven by the recent 2016 wave of demonetization that shook the financial roots of the nation. Post demonetization, the Indian government has been implementing strategic plans to encourage online transactions. According to State Bank of India, payments through credit or debit cards on POS terminals have currently amounted to INR 70,000 crore, a target that could have taken nearly three years to reach in the absence of the demonetization outbreak. It is no surprise therefore, that demonetization has led to an escalated growth in POS terminals industry in India. Furthermore, SBI reports that financial institutions across the country have deployed nearly 11.8 lakh more POS machines post demonization, and the number is likely to rise in the future with the robust increase in the number of online transactions via these terminals. Global Market Insights, Inc., states that India POS terminals market, worth USD 450 million in 2016, is slated to generate a revenue of more than USD 3 billion by 2024.
India POS Terminals Market in Tier-One Cities, By Application, 2016 & 2024 (USD Mn)
As per reports from reliable sources, point of sale terminals will go multi-lingual within a span of few months, which is a major step taken by the Indian government to promote cashless fiscal transactions. The move is expected to subsequently impact India POS terminals market share. The languages predicted to be made available on POS machines include Kannada, Bengali, Telegu, Malayalam, Gujarati, Marathi, Punjabi, and Tamil. BHIM (Bharat interface for money) had already launched a popular application on 30th December 2016, which was available in seven regional languages and was downloaded 18 million times by the end-users. Current end-user trends have displayed that more users prefer making online payments in their local languages, which in turn, is projected to majorly influence India (Point of Sale) POS terminals industry revenue over the years ahead.
Thriving e-commerce activities across the nation have resulted in escalating demand for both fixed as well as mobile point of sale terminals. India POS terminals industry size from mobiles is projected to record a CAGR of more than 10% over the coming timeframe with more consumer preference for user-friendly mobile wallets. High demand for these products across the hospitality, retail, entertainment, healthcare, and restaurant sectors will further leverage the expansion of India POS terminals market. As per the Central Government data report publications, there has been a rise of nearly 13% in the sale of POS terminals since October 2016, which implies that many retailers in the country are accepting online mode of payments through POS terminals, a factor that will lead to the development of India POS terminals market size from supermarkets, specialty stores, and the like.
However, POS machines are more prone to hacking and are vulnerable to viruses and malwares. A solution to this problem is the enactment of an effective data protection law by the Indian government, which has become need of an hour. In the event that the solution is not implemented, it is likely to arrest the growth of India POS terminals industry.
In India, high product penetration is witnessed across tier-one and tier-two cities. Many of the government schemes such as Pradhan Mantri Jan-Dhan Yojana, Direct Benefit Transfer Scheme, Atal Pension scheme, and Aadhar-enabled systems are expected to boost the product sales across remote regions. NABARD has decided to install more than 1 lakh POS machines in villages to enable effective, time-saving, and quick monetary transactions, gradually leading the country towards a paperless economy and segmenting India POS terminals industry size.
India POS terminals market share from the healthcare sector is set to experience a prominent expansion over the years to come, subject to the rising need for collating and assorting the patient data along with high demand for effective modes of payments. Rapidly improving healthcare infrastructure across various parts of the country will offer more opportunities for the expansion of POS terminals market in India.
POS terminals provide value-added services to customers via connected and standalone payment terminals. India POS terminals industry growth curve from products incorporated with the connected functionality is expected to witness an upswing over the coming years, owing to the high product demand across retail shops and restaurants. Its high usage in inventory management along with its ability to offer robust security and free floor space will lucratively impact India POS terminal market development. The ability to reduce the waiting period of the end-users and affordability has made the product more popular across the country, thereby leveraging POS terminals market trends in India.
India POS software industry is predicted to experience a luminous expansion over the next few years with the software offering prominent benefits such as stock control management, billing, effective customer data collection, automation, real-time data gathering, and comprehensive dashboard reporting.
Major participants in India POS terminals industry include Paynear Solutions Private Limited, Ezetap Mobile Solutions Private Limited, VeriFone Holding Incorporation, Skilworth Technologies Private Limited, Mosambee, NEC Corporation, Visiontek Telesystems Private Limited, MobiSwipe Technologies Private Limited, and Demandware Incorporation. Many of the participants such as MSwipe and Ezetap have declared to install various mPOS equipment across the country by 2017 and such moves will favorably influence the POS terminals industry landscape in India.