India POS Terminal Market, By Component (Hardware, Software, Service), By Type (Fixed Point of Sale Terminals, Mobile/Portable Point of Sale Terminals), By End-User (Entertainment, Hospitality, Healthcare, Retail, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India POS Terminal Market was valued at USD 13.16 Billion in 2025 and is expected to reach USD 24.68 Billion by 2031 with a CAGR of 10.88% during the forecast period.

The India Point of Sale (POS) Terminal Market includes hardware, software, and services that help businesses process payments and manage transactions. POS systems are used across retail, hospitality, healthcare, and transport sectors to accept payments through cards, digital wallets, UPI, and contactless methods. Modern POS terminals also integrate with inventory, billing, CRM, and analytics systems, improving efficiency and customer experience.

The market has grown rapidly with the rise of digital payments, the government’s cashless economy push, and the expansion of e-commerce and retail. POS terminals have evolved from basic card readers to smart, cloud-connected devices with touchscreen interfaces and support for multiple payment options like NFC, QR codes, and mobile wallets.

Different types of POS systems serve varied business needs. Countertop devices are common in large retail stores and restaurants, while mobile POS systems provide flexibility for delivery services, taxis, and small retailers. Integrated POS systems combine hardware, software, and payment features, offering real-time insights on sales, inventory, and customer trends.

Growth is driven by smartphone penetration, better internet access, and rising demand for cashless and contactless payments. Government programs like Digital India and electronic payment incentives have encouraged adoption across both urban and semi-urban regions. The growing number of SMEs and the expansion of retail and hospitality sectors are also fueling demand for POS systems that improve accuracy, speed, and security in transactions.

Technological advancements such as cloud-based POS, AI analytics, and loyalty program integration are helping businesses gain insights from sales data and make better inventory and marketing decisions. As omni-channel retailing expands, POS systems are becoming essential for connecting in-store and online transactions.

The India POS terminal market is set for continued growth, supported by digital transformation, strong policy backing, and a shift toward secure, efficient, and intelligent payment solutions across industries.

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Key Market Drivers

Rising Adoption of Digital Payments and Cashless Transactions

The India POS terminal market is growing rapidly due to rising digital payment adoption and the country’s shift toward a cashless economy. Government initiatives such as Digital India, the Unified Payments Interface (UPI), and demonetization policies have increased consumer reliance on electronic payments, with UPI transactions alone crossing 20 billion in August 2025 with a total value of ₹24.85 trillion. This has prompted merchants to deploy POS terminals for faster, secure, and efficient transactions, growing the market to an estimated value of $3.33 billion in 2025.

POS systems offer convenience and speed, while also enabling operational benefits like real-time sales tracking and inventory management. Cloud-based solutions allow merchants to access data remotely and streamline accounting. The Indian market is nearly evenly split between fixed POS terminals (52%) and mobile POS terminals (48%).

Smartphone proliferation, with over 905 million users in India in 2023, and the adoption of contactless payments have further fueled growth. Younger, tech-savvy consumers increasingly prefer digital wallets and mobile banking, supporting widespread POS deployment. Financial institutions and payment providers are promoting POS adoption through incentives, extending reach into semi-urban and rural areas. The growth of e-commerce, with sales reaching approximately $125 billion in 2024, and a 164% growth in organized retail over the last decade also strengthen demand as businesses aim to deliver seamless payment experiences.

Security features such as EMV chip technology, which saw over 500 million cards issued by 2023, and end-to-end encryption enhance trust in digital transactions. Globally, over 75% of consumers prefer digital payments, and more than 60% of in-store transactions are contactless. Overall, supportive government policies, operational benefits, evolving consumer behavior, and technological advancements are driving robust growth in India’s POS terminal market.

Growth of Retail and Hospitality Sectors Driving POS Terminal Adoption

The rapid growth of India’s retail and hospitality sectors is a major driver for the POS terminal market, which generated over $3.1 billion in revenue in 2024. Organized retail chains and supermarkets are investing in POS systems to handle high transaction volumes efficiently. Over the past decade, retail sales in India have grown by 164%, and organized retail is now concentrated in over 40 cities with populations exceeding one million. Rising consumer spending and urbanization are prompting retailers to streamline payment processes with POS terminals that support cards, mobile wallets, and contactless payments.

In hospitality, restaurants, hotels, and quick-service outlets are adopting POS terminals to manage orders, payments, and loyalty programs. Integration with inventory management and CRM tools allows businesses to optimize operations. Real-time transaction data and analytics help managers make strategic decisions on staffing and promotions.

The rise of e-commerce, with sales reaching approximately $125 billion in 2024, has pushed traditional retailers to integrate digital payment solutions in-store. POS terminals facilitate mobile payments and QR code scanning, ensuring a seamless customer experience across online and offline channels. Tier-2 and tier-3 cities are emerging as significant markets, with SMEs deploying cloud-enabled POS solutions. Government incentives and financial support, such as the Payment Infrastructure Development Fund (PIDF), are accelerating POS deployment in these regions.

Advanced features such as EMV chip compliance and end-to-end encryption enhance security and convenience. Globally, over 75% of retail businesses implement advanced POS systems, and 70% of hospitality establishments use digital payment solutions. As consumer expectations rise and businesses expand into smaller cities, POS adoption across India continues to grow.

Government Initiatives and Financial Inclusion Programs Supporting Market Expansion

Government initiatives promoting digital payments and financial inclusion are driving strong growth in the India POS terminal market. Programs like Digital India, the push for cashless transactions, and the Unified Payments Interface (UPI) have created a favorable environment for POS deployment, with digital transactions in India growing from 2,071 crore in 2017-18 to 18,737 crore in 2023-24. This has encouraged merchants of all sizes to adopt electronic payment solutions.

Financial inclusion efforts targeting rural and semi-urban areas have opened new markets. Micro-merchants, small retailers, and kirana stores are increasingly accepting digital payments with support from banks and payment providers through incentives and training. This collaboration has accelerated POS adoption in previously underserved regions.

Government mandates for secure and standardized payments such as EMV chip compliance, end-to-end encryption, and tokenization have increased trust in digital transactions. Contactless and QR-based payment initiatives are also driving demand for advanced POS devices, especially post-pandemic, where hygiene is a priority.

Digitalization is encouraging the adoption of cloud-based and mobile POS solutions that reduce upfront costs and provide real-time data. SMEs benefit by accessing advanced payment infrastructure without heavy IT investments. Integration with loyalty programs and analytics further enhances customer engagement and revenue generation.

Overall, government-led digital payment initiatives, financial inclusion programs, and secure transaction regulations are key drivers of the India POS terminal market. By fostering an environment conducive to digital adoption and extending reach to rural areas, these programs are accelerating the adoption of POS terminals across diverse sectors in India.

Key Market Challenges

High Initial Investment and Infrastructure Costs

A key challenge in the India POS Terminal Market is the high upfront investment and ongoing maintenance costs. For many SMEs, especially in tier-2 and tier-3 cities, purchasing hardware, integrating software, and training staff can be prohibitive. Additional costs include software licenses, updates, and cybersecurity measures.

Infrastructure limitations, such as unstable internet and power supply, further hinder adoption, causing transaction disruptions and higher maintenance expenses for backup solutions.

Rapid technological evolution adds pressure, as mobile POS, contactless payments, and integrated systems require frequent upgrades. Recurring fees for updates, support, and cloud analytics further increase total ownership costs.

These factors slow adoption among small-scale retailers and street vendors, who make up a large portion of India’s retail sector. Despite benefits like faster transactions and better record-keeping, financial risk deters transition from cash-based operations, limiting market penetration.

Addressing high costs, infrastructure gaps, and technology upgrades through cost-effective solutions, flexible financing, and robust support is crucial for expanding POS adoption, particularly among SMEs in semi-urban and rural areas. Without such measures, market growth risks remaining uneven.

Security and Fraud Concerns in Digital Transactions

Security and fraud concerns are a major challenge for the India POS Terminal Market as digital payments grow. POS systems, especially cloud-based and mobile-integrated solutions, are vulnerable to malware, data breaches, and unauthorized access, exposing sensitive financial and customer data.

Merchants and consumers worry about card skimming, phishing, and unauthorized transactions. Security breaches can cause financial losses, reputational damage, and regulatory penalties, while consumer fear of fraud may slow adoption.

Compliance with standards like PCI-DSS adds complexity and cost. Smaller providers often struggle to maintain secure hardware, encryption, and software, creating uneven security across the market.

Rapid adoption of contactless payments, mobile wallets, and QR transactions introduces further risks. Fraudsters exploit software, app, and social engineering vulnerabilities, requiring merchants to invest in training, monitoring, and proactive security measures.

Security concerns also affect partnerships with banks, fintechs, and payment networks, leading to stricter obligations and audits. Smaller merchants may hesitate to adopt advanced POS systems, limiting market penetration in emerging regions.

Overall, while POS terminals improve transaction efficiency, cyber threats, fraud, and compliance challenges pose significant hurdles. Addressing these through advanced security, monitoring, and consumer education is essential to build trust, support adoption, and ensure sustainable market growth.

Key Market Trends

Shift Toward Mobile and Contactless POS Solutions

The India POS Terminal Market is shifting from traditional cash registers and countertop systems to mobile and contactless solutions. Smartphone and digital wallet adoption is driving demand for portable devices, with mobile and portable terminals accounting for over 62% of the market in 2024. Mobile POS (mPOS) systems, along with newer SoftPOS solutions that turn smartphones into payment terminals, allow SMEs and large retailers to process payments efficiently without heavy infrastructure costs, while integrating with inventory and accounting software.

Contactless payments via NFC cards, QR codes, and digital wallets are increasingly preferred, with India recording 100 million digital transactions daily in 2020, a number the RBI expects to rise to 1.5 billion per day. The COVID-19 pandemic accelerated adoption, especially in retail, hospitality, and healthcare, where hygienic payments are valued.

Advanced features like cloud platforms and AI-driven analytics enhance POS utility. AI integration can help automate up to 80% of manual data tasks, helping businesses understand customer behavior, optimize inventory, and run personalized promotions. Government initiatives supporting digital payments, such as the Payment Infrastructure Development Fund (PIDF), which subsidizes POS deployment in tier-3 to tier-6 cities, further encourage adoption.

Mobile and contactless POS systems also empower smaller merchants and rural enterprises, enabling digital payments without complex infrastructure. This expands revenue opportunities and supports India’s digital economy. As technology evolves, POS terminals are expected to become multifunctional hubs, integrating loyalty programs, analytics, and financial services, reinforcing the shift toward mobile and contactless solutions.

Integration with Omnichannel Retail and E-Commerce Platforms

A key trend in the India POS Terminal Market is the integration of POS systems with omnichannel retail and e-commerce platforms. Retailers are focusing on seamless customer experiences across stores, online platforms, and mobile apps. Modern POS systems connect with e-commerce, inventory, and CRM tools, enabling a unified view of operations and customer interactions.

This integration synchronizes online and offline sales, ensures consistent pricing, promotions, and inventory management, and allows loyalty programs and offers to work across channels. Customers can, for example, order online and pick up in-store, with real-time inventory tracking.

Rising smartphone penetration and digital literacy are fueling consumer demand for convenience, personalization, and speed, making cloud-connected POS terminals with robust APIs essential. SMEs and emerging retailers are also adopting integrated systems, supported by modular and scalable solutions from POS providers.

As e-commerce grows, omnichannel POS integration is becoming a competitive necessity, helping retailers optimize sales, streamline operations, and gain insights into customer behavior. This trend is set to accelerate, offering opportunities for providers to innovate and differentiate their offerings.

Adoption of Advanced Analytics and Value-Added Services

A key trend in the India POS Terminal Market is the adoption of advanced analytics and value-added services in POS solutions. Modern POS systems are evolving into intelligent platforms that provide actionable insights beyond payment processing.

Equipped with cloud connectivity, AI, and machine learning, these systems allow businesses to analyze transaction patterns, customer behavior, and sales performance in real-time. Retailers can optimize inventory, identify peak sales periods, and run personalized marketing and loyalty programs.

Value-added services like integrated billing, invoicing, digital receipts, and financial reporting are becoming standard, helping automate accounting, reduce errors, and ensure regulatory compliance. In hospitality and healthcare, POS systems also manage bookings, appointments, and patient billing.

Subscription-based POS models allow businesses, especially SMEs, to access advanced analytics and cloud services without heavy upfront costs. Tiered packages combining hardware, software, and analytics enable scalable solutions.

By leveraging analytics and value-added services, smaller businesses can compete with larger players, improve customer engagement, and make data-driven decisions. As adoption grows, POS providers are expected to expand offerings with predictive analytics, inventory optimization, and AI-powered marketing, positioning POS systems as essential business tools.

Segmental Insights

Component Insights

The Hardware segment held the largest share of the India POS Terminal Market in 2025, driven by growing digital payments and cashless transaction adoption. Government initiatives like Digital India and financial inclusion programs have accelerated POS adoption across urban and semi-urban areas, prompting retailers, restaurants, and small businesses to invest in terminals with touchscreens, contactless readers, and biometric authentication.

E-commerce and omnichannel retailing further boost hardware demand, as POS devices integrate with inventory, billing, and customer management systems for seamless in-store and online experiences. Modern POS terminals serve as business management tools, helping track sales, manage stock, and analyze customer behavior.

The hospitality and food service sectors are also driving growth. Hotels, restaurants, cafes, and quick-service outlets adopt POS hardware to manage high-volume transactions, reduce errors, and improve customer experience. Portable devices, wireless connectivity, and integration with kitchen systems and loyalty programs enhance operational efficiency.

Security concerns are increasing demand for robust hardware with encryption, EMV chip compatibility, and biometric features. Businesses expect fast, reliable, and secure transactions, creating opportunities for innovation.

SMEs in tier-2 and tier-3 cities are adopting affordable, scalable, and durable POS hardware to serve tech-savvy consumers. Customizable solutions that suit different business sizes are gaining traction.

Digital payment adoption, omnichannel integration, growth in retail and hospitality, security needs, and SME expansion are driving investment and innovation in POS hardware, making it a key enabler of India’s digital economy.

Type Insights

The Fixed Point of Sale (POS) Terminals segment held the largest share of the India POS Terminal Market in 2025, driven by rising digital payment adoption across retail, hospitality, healthcare, and service sectors. Merchants and large enterprises are upgrading infrastructure for faster, secure, and reliable transactions.

Fixed POS terminals suit high-volume environments like supermarkets, retail chains, restaurants, and large service providers, reducing cash handling and streamlining payments. Consumer preference for digital payments, including debit/credit cards, UPI, and digital wallets, further drives adoption. These terminals support multiple payment methods, including EMV chip, NFC, and QR-based solutions, meeting growing expectations in urban and semi-urban areas.

Government initiatives promoting cashless transactions, such as Digital India and incentives for SMEs, encourage fixed POS adoption. Compliance with GST and accurate transaction recording also motivates businesses to invest in these systems. Organized retail growth increases demand, as fixed POS terminals provide reliability, advanced features, and integration with inventory and sales management systems. Hospitality and healthcare sectors benefit from improved billing, operational efficiency, and transparency.

Technological advancements, including faster processing, enhanced security, touchscreens, and value-added services like loyalty programs and analytics, make fixed POS terminals attractive investments. Rising consumer trust in electronic payments further supports adoption, as stationary devices are viewed as more secure than mobile alternatives, especially in high-footfall locations.

Fixed POS terminals in India are driven by digital payment growth, supportive government policies, organized retail expansion, technological improvements, and increasing consumer confidence, positioning this segment as a key growth area in the POS market.

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Regional Insights

South India held the largest share of the India POS Terminal Market in 2025, driven by rapid digitalization and the increasing adoption of cashless payments. The growth in digital transactions is significant, with the total value of UPI transactions surging from ₹21.3 lakh crore in FY2019-20 to ₹213.8 lakh crore by January 2025. Rising smartphone penetration, internet connectivity, and mobile wallet usage have led consumers to prefer electronic payments, creating strong demand across the retail, hospitality, healthcare, and transportation sectors.

Organized retail growth in cities like Bengaluru, Chennai, Hyderabad, and Kochi is a major driver, with these urban centers becoming hubs for organized retail in India. Shopping malls, supermarkets, and specialty stores are integrating POS systems for faster transactions, inventory management, and real-time analytics. Some advanced POS systems can generate over 350 different types of management information system (MIS) reports, helping SMEs improve customer service while reducing operational costs.

Supportive government policies, including a ₹1,500 crore incentive scheme for FY 2024-25 to promote low-value UPI transactions up to ₹2,000, tax benefits, and UPI expansion, have strengthened the digital payment ecosystem, making POS adoption easier for merchants. A tech-savvy population and high smartphone usage have accelerated contactless payments, QR-based transactions, and mobile POS adoption, with businesses upgrading to smart terminals supporting multiple payment modes.

The hospitality and food service sectors further boost demand, requiring fast, reliable, and flexible payment solutions. POS systems are evolving to include features like loyalty programs, inventory management, integrated billing, and direct integration with online food aggregators such as Swiggy and Zomato, helping businesses deliver seamless, personalized customer experiences.

South India’s POS terminal market is propelled by digital adoption, organized retail growth, supportive regulations, a tech-aware population, and expanding service sectors, positioning it as a key, fast-growing segment in India.

Recent Developments

• In August 2025, PG Electroplast, a diversified electronics manufacturer, signed a definitive agreement with PAX India to manufacture POS devices in India. This deal marks PG Electroplast's entry into the fintech hardware sector and supports the "Make in India" initiative by localizing the production of PAX-branded payment terminals. Manufacturing is expected to commence by the end of 2025.
• In April 2024, Fintech company BharatPe launched "BharatPe One," an all-in-one payment device that integrates a POS terminal, QR code reader, and speaker into a single unit. This product is designed to streamline transactions for merchants by consolidating multiple payment methods into one device.
• In May 2024, Razorpay POS, the offline payments division of the fintech provider, launched Q-Zap, an innovative solution designed to streamline retail checkout processes. The platform aims to reduce billing time by up to 40% while delivering potential annual operating cost savings of up to 20% for retailers. By enabling faster and more efficient transactions, Q-Zap positions Razorpay POS as a key driver of operational efficiency and enhanced customer experience in the evolving retail payments landscape.
• In June 2024, QueueBuster entered a strategic partnership with Otipy, integrating its advanced POS technology with Otipy’s electric carts for fresh produce retail. This collaboration enhances operational efficiency by enabling real-time transaction processing and inventory management directly on the carts. It aims to streamline checkout processes, reduce wait times, and elevate customer satisfaction, reinforcing both companies’ commitment to technological innovation and superior service delivery within India’s modern retail ecosystem.
• In February 2024, CSB Bank announced a strategic collaboration with fintech firm Bijlipay to strengthen its payment ecosystem through comprehensive POS solutions. The partnership leverages Bijlipay’s integrated technology to streamline transactions, improve service delivery, and enhance customer satisfaction across the bank’s network. By adopting these advanced solutions, CSB Bank seeks to modernize its merchant and retail services, providing faster, secure, and efficient payment experiences while reinforcing its position as a digitally progressive financial institution in India.

Key Market Players

• Ingenico Group
• PAX Technology
• Verifone Systems Inc.
• Samsung Electronics India
• ITZ Cash Card Ltd.
• Mswipe Technologies Pvt. Ltd.
• Paytm Payments Bank
• First Data India Pvt. Ltd.
• Oxigen Services India Pvt. Ltd.
• Infinite Peripherals India

Report Scope:

In this report, the India POS Terminal Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India POS Terminal Market, By Component:

o   Hardware

o   Software

o   Service  

• India POS Terminal Market, By Type:

o   Fixed Point of Sale Terminals

o   Mobile/Portable Point of Sale Terminals  

• India POS Terminal Market, By End-User:

o   Entertainment

o   Hospitality

o   Healthcare

o   Retail

o   Others 

• India POS Terminal Market, By Region:

o   South India

o   North India

o   West India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India POS Terminal Market.

Available Customizations:

India POS Terminal Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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