Indian software giant Zoho has made a bold move into the hardware space by launching its own Point-of-Sale (POS) devices, potentially challenging established players like GPay, PhonePe, and Paytm in the digital payments ecosystem.
Zoho’s Strategic Hardware Entry
New POS Device Portfolio
Zoho has unveiled a comprehensive range of payment hardware solutions under its Zoho Payments division, including:
- All-in-one POS device: A unified Android terminal supporting billing and digital payments
- Smart POS device: Features dynamic QR and card payments with integrated sound box
- Static QR codes with sound box: Perfect for small-scale merchants requiring payment confirmations
Advanced Payment Capabilities
The new POS terminals offer businesses comprehensive payment acceptance with:
- EMV chip card support
- UPI QR code processing
- Contactless payment transactions
- Built-in billing and receipt printing
- 4G, Wi-Fi, and Bluetooth connectivity
Integration with Zoho Ecosystem
Seamless Business Operations
The hardware devices integrate natively with Zoho’s popular business applications:
- Zoho Books for accounting
- Zoho Invoice for billing management
- Zoho Inventory for stock control
- Real-time transaction tracking and automated reconciliation
PCI DSS Certification and Compliance
All devices are PCI DSS certified and RBI-compliant, ensuring advanced security standards for businesses. The systems also offer remote maintenance capabilities and unified financial integration within Zoho’s broader ecosystem.
Arattai’s Explosive Growth
Record-Breaking User Adoption
Zoho’s homegrown messaging app Arattai has experienced unprecedented growth:
- 100x traffic surge in just 3 days
- Daily sign-ups skyrocketed from 3,000 to 350,000
- Total downloads crossed 7.5 million as of October 3, 2025
- Available on both Google Play Store and Apple App Store
Upcoming Payment Integration
Founder Sridhar Vembu confirmed that Arattai will soon integrate with Zoho Pay, enabling users to make payments directly through the messaging platform, similar to WhatsApp Pay but with broader functionality.
Strategic Partnerships and Infrastructure
NPCI Collaboration
Zoho has partnered with NPCI’s NBBL (NPCI Bharat BillPay Ltd) to strengthen India’s digital payments infrastructure and address real-world business challenges. This partnership leverages the Bharat Bill Payment System for enhanced payment processing.
Infrastructure Scaling
To handle Arattai’s explosive growth, Zoho is rapidly expanding its infrastructure on an emergency basis, preparing for another potential 100x surge in user activity.
Competitive Advantages
End-to-End Business Solution
Unlike standalone payment providers, Zoho offers:
- Integrated business ecosystem connecting payments with operations
- Native software integration reducing manual errors
- Unified dashboard for comprehensive business management
- Real-time visibility across all financial transactions
Made-in-India Focus
The launch aligns with India’s digital sovereignty push, with Zoho’s tools hosted on domestic data centers and operating without user tracking or advertising, supporting the government’s self-reliant digital infrastructure vision.
Market Impact and Future Plans
Expanding Fintech Footprint
Following its 2024 approval as an RBI-authorized payment aggregator, Zoho is now moving beyond software into hardware, creating a complete payments ecosystem for India’s growing B2B and SME sector.
Manufacturing Ambitions
Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies, indicated that the company may consider local manufacturing of these devices in India, though this would require significant R&D investment.
Zoho’s entry into payment hardware, combined with Arattai’s viral growth, positions the company as a formidable challenger to established digital payment giants, offering businesses an integrated alternative that connects payments directly with operational tools.
