With digital transactions picking up preference as the future of payments, POS machines market is undergoing a mature change in the recent times. Over the years, the transformation of e-commerce and rising governmental initiatives towards promoting digitization have essentially brought down the risks associated with the traditional modes of payments like cash. Experts theorize this disruptive mix of consumer behaviour & preference changes and government initiatives to provide a rather competitive spur to the overall POS machines market.
The demonetization drive by PM Narendra Modi wherein the high-valued currency notes were pulled back from the circulation in the economy and the lack of available cash in India has fuelled the POS machines market demand in India as the people in the country are transitioning more and more on digital modes of payment for goods and services. Demonetization has expanded the pace of digital transactions across the nation, which has led to a rapid increase in the demand for POS machines to provide e-payment facilities to buyers besides other basic facilities for the seller. Though, there are a comparatively lesser number of POS machines in supply to fulfil the excess demand for such machines, which is why several players find this market attractive, who will get a solid grip in the market by offering best possible solutions at the best possible price.
Increasing diffusion of the organized retail industry in the country and rise of several e-commerce players offer huge stimulus for the India POS machines market growth. The POS system helps in streamlining the e-commerce operational platform and empowers businesses to sell items online and in-store with much ease. The POS software used in retail outlets helps in automatically creating customer profiles with every card transaction and monitor important customer information and purchase history.
India mobile POS (mPOS) market share is projected to grow at a CAGR of over 16% by 2022, inferable from the increasing acceptance of the mobile wallets by the customers, which offers faster and seamless payment alternative. The mobility offered by these alternatives further intensifies the demand as it enables merchants to accept payments through number of modes including credit/debit payments. In addition, the convenience, mobility, and low-cost advantages offered by mobile POS system as compared to fixed POS systems will be a major contributor to the growth.
India POS systems market is foreseen to witness a significant growth over the conjecture course of event as it offers several advanced features such as restaurant billing, detailed reporting dashboards, and also serves the purpose of the inventory management systems. Nowadays, advanced cloud-based POS machines are not only limited to cash and digital payments, but also provide insights into customer purchasing, inventory management, collection of customer data, and purchase history for effective shopping and speed checkouts. Such centralised or single-view POS machines allows businesses to make their tasks simpler and streamlined.
India POS machines market will witness a noteworthy growth in the near future as it offers integrated value-added services such as discounting, couponing, outlets management and mobile wallets. Moreover, it also helps with a higher return on investment by improving accuracy, profitability, and sales throughout the business operations. The POS machines are pre-integrated with software applications that enable store owners to manage and streamline all their business operations on the same device they use to accept the payments.
The healthcare segment is predicted to observe a rising demand in the India POS machine market due to the rising need to gather patient’s data through eKYC and the need for streamlining payments flow across healthcare service facilities. The POS system enables the healthcare business to accept payments from digital payment modes and manage the patients’ information with advanced reporting options. Increasing number of healthcare facilities accompanied with the evolving digital payment landscape is expected to contribute to the India POS machine market size.
Banking is another segment which shows a huge demand for POS machines to contribute to a revolutionary new way to bank right at customer doorstep making banking a whole lot easier and hassle free. The whole concept of doorstep banking incorporates the banking correspondent entertaining the customer at their doorstep to deposit, withdraw and transfer funds from their bank accounts with the help of a POS in banking. The customer can get instant eKYC done and get an account opened sitting back at his home without any branch visits. Also, all transactions conducted at regular ATM can be done at doorsteps via POS machines and Micro ATM like balance inquiry, bill payments, mini statements, account updates and more.
The rural areas in the India POS machines market is foreseen to observe a rising demand for the POS owing to the effect of demonetization and rising government initiatives to facilitate the region with the digital payments technology to make provision for the cash-crunch throughout the economy. To support the digitization in the payments ecosystem and promoting cashless transactions, organizations, such as the National Bank for Agriculture and Rural Development (NABARD), were planning to deploy POS machines in over a lakh villages, as a stepping stone towards financial inclusion for the disadvantaged population.
The India POS machine market is supported by various government initiatives to enable cashless transactions and digitization in the country. For instance, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) has increased the sales for POS in banking sectors in the country which also acts as micro ATMs. The restaurants are increasingly adopting the cloud-based POS machines, that integrates the POS application at all locations or outlets into a centralized server to ensure smooth business operations. There is also an inclination towards mPOS devices in the country, which offers convenient transaction options to the customers.
These competitive instances vibrantly put forward the fact that POS machines manufacturers, suppliers, retailers and other participants are already involved in the process of establishing a solid foundation for digital payments in the future. Indeed, it wouldn’t be wrong to cite that the new digital payments modes brought forth by POS machines industry players has altogether altered and revolutionized the old school payment approach that were only centred around cash as a medium of exchange. In effect, industry experts envision this implementation of advanced and digital payment mode that is practically disrupting every industry vertical to bring about a revolutionized transformation in POS machine industry outlook. It comes as no surprise indeed, that global POS machine industry size has been assessed to outperform a valuation of over $ 125 billion by 2024.