Post initiation of Digital India and demonetization the financial transactions in India has been digitized at a rapid pace. The Point of Sale is one such market which has observed growth, due to the adoption of digitalization in segments such as restaurant, hospitality, healthcare, retail, warehouse, etc. Further, increasing use of debit and credit cards is also fuelling the growth of POS market in India.
Broadly the POS market can be divided into two categories i.e. Connected/Fixed POS terminals and Mobile POS terminals. The Mobile POS has been accepted with open hands in segments like retail, transport, restaurant, etc. Its foremost advantage of providing mobile transaction with security, has been the reason of growth for mobile POS. Whereas the Connected POS offers fast clearance of customer queues, improved security, adaptability with multiple segments and are also used to manage warehouses/inventories.
The digital transactions and the infrastructure needed to support these transactions have observed a comprehensive surge in the Indian market. Online payments at the POS terminals have almost doubled-up in the last couple of years. A consistent increase in the transaction rates can also be attributed to multiple leverages given by RBI like reduced Merchant Discount Rate (MDR) on debit card transactions, grievance redressal mechanism, reduced consumer liability for fraudulent digital transactions, etc.
The POS System business in India has a healthy presence in the metro cities, however the small towns and rural areas are yet to be tapped compared to the metro market. The demand in these regions are on the rise with supporting programs like DigiDhan Abhiyaan, Aadhaar enabled payment, Jan Dhan Yojana, Micro ATMs, and others.
The domestic companies providing POS based solutions, prefer to develop and manufacture the systems locally, than importing it from their foreign counterparts. This is because, for urgent requirements, the import of POS systems becomes a tedious and slow process. This creates huge opportunities for the Indian players to establish a strong foothold in the industry by offering competitive systems, thus creating healthy conditions for POS system market.
Although most of the retail sector is unorganized, the boost of ecommerce has led to an increased share of organized section in retail and this in turn has drawn demand for POS systems. Spectrum an indigenously developed next gen POS system, has a heavy foothold in the organized Retail segment. A robust Front Office POS system supporting multiple retail sub-verticals, Spectrum is a PCI PA-DSS compliant system with fraud prevention ability. Features include Scan and Sell, Ticket printing, customer management, discounts & promotions, inventory management, reports, etc. It provides the user a complete package for retail management.
With regular upgrades in technologies, lesser complications in POS systems and the end-user expectation of transactional security, it seems the market for POS in India has both challenges and opportunities in the coming years.