Market Trends of India POS Terminals Industry
Retail Segment is Expected to Hold a Significant Market Share
- The COVID-19 pandemic made a big impact on how people in India shop. More and more people started buying things online because they couldn't go to stores during lockdowns. This especially happened in smaller towns and villages.
- India's widespread connection and its around 700 million Internet users were major factors in a generational transition, as stated by the Economic Times. The retail industry, which is expanding across sectors and is anticipated to reach USD 1 trillion by 2025, would benefit from these dynamics after the pandemic.
- Further, by implementing a digital ecosystem, both established retail chains and new competitors may benefit from changing consumer and industry trends. Businesses need to establish business concepts that fit the local environment, and those that provide top-tier goods to Indian customers will succeed.
- Moreover, retailers may increase value and income with subscription-based services in addition to rapid PoS financing. It makes it easier to cross-sell and up-sell expensive, durable items. Retailers of consumables (including those selling toiletries, milk, and supplies) can also use an app-based service. The subscription model allows customers to choose the quantity and frequency of shipments while assisting merchants in realizing economies of scale.
- As per the Reserve Bank of India database on the Indian Economy, the POS segment in retail was valued at INR 42,266 Crores (USD 5202.0 million) in May 2022, with an increase of 6.17% compared to the previous month, April 2022, for the financial year 2022 - 2023. The significant value during the period in the POS segment in retail contributes to the major market shares.
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Mobile Point-of-Sale is Anticipated to Register Significant Market Growth
- Card and mobile payments are becoming more popular than taking money from ATMs. This is because people are using more digital methods of paying for things. The coronavirus made people want to use less cash and use more digital payments. This trend will continue in the future. We can see this by examining how many people use store card payments.
- Recently, the Indian population has used the Unified Payment Interface (UPI) on their phones to buy things from stores. But using UPI at the store itself is becoming more popular. They are trying to use near-field communication to make it even easier to use UPI at the store. This would be helpful because it would reduce the need to touch things when paying and make more stores accept UPI. It would also make it easier for stores to get paid digitally, which UPI hasn't done much of before.
- Many past milestones in mPOS were established globally to face challenges during COVID-19, significantly impacting the Indian POS market. For instance, In India, several financial services businesses introduced a white-label (app-based) solution for retailers.
- PayNearby, a popular banking and digital payments network in India, has joined forces with Visa and RBL Bank to introduce SoftPoS and mPOS. These new technologies make it easier for PayNearby's 1.5+ million retailers to accept digital payments, which is important because many people in India don't have access to traditional banking services. The COVID-19 pandemic made it even more important to have contactless payment options to keep everyone safe from germs.
- The mPOS trends in India are improving because of various initiatives of POS companies. RapiPay produces hybrid micro-ATMs that can function as mobile point-of-sale (mPOS) machines. As a result, customers will be able to swipe credit cards in addition to debit cards for any transaction or purchase at a RapiPay station. In contrast to traditional ATMs, RapiPay Micro ATMs provide users the ultimate convenience by allowing them to withdraw cash and do other comparable banking operations at any RapiPay Direct Business Outlet. The company will increase their production for machines in 2022 and 2023.
- Additionally, As per the Reserve Bank of India dataset, Mobile Payments in May 2022, the payments were valued at INR 17,53,658 Crores (USD 21.4 billion), with an increase of 4.17 percent growth compared to the previous month, April 2022, which was valued at around INR 16,83,381 Crores (USD 20.52 billion). The growing trends in the adoption of mobile payments lead to a rise in mPOS systems, which makes digital transfers faster and more portable.
