The number of point of sale (PoS) devices installed in the country is likely to increase five-fold to 76 lakh in the next five years, according to a report.
“Increased penetration of debit and credit cards, growing e-commerce sector, increasing disposable incomes together with government’s massive thrust on promoting a cashless economy provide a lucrative opportunity for growth of PoS devices in India,” said the report.
“Post-demonetisation, the PoS transactions have grown manifold in the country. The cash transactions in the country has come down,” said Assocham national secretary general D. S. Rawat on the joint study by Assocham and RNCOS.
“The country’s retail industry together with sectors like healthcare, hospitality, food and beverage are major contributors to growing revenue of PoS market,” he said.
At present, the PoS penetration in the country is just about 16 lakh and will grow at a compounded annual growth rate(CAGR) of 30%, according to the study.
‘Huge potential’
The study found with over 74 crore debit and credit cards in India, there was a huge potential for growth of PoS machines. The value of transactions can reach ₹7.5 lakh crore by 2022 from ₹63,500 crore in 2016, it said.
The total transaction volume of PoS in India was 30 crore in 2016 and s likely to grow at a CAGR of 48% to reach 310 crore by the end of 2022, it said.
However, Assocham noted that issues pertaining to factors like privacy, security, trust and lack of complete integration of telecom infrastructure need to be sorted out effectively as this was a major roadblock for the industry.
It also said though as of 2016, private banks accounted for 58% share in the total number of PoS machines installed across India, this trend was likely to reverse in the coming years as enterprises were shifting to public sector banks (PSBs).
