Zoho forays into hardware; to launch PoS, QR devices and sound boxes

The firm in 2024, had introduced Zoho Payments. Additionally the firm is now also expanding its payout capabilities, virtual accounts for collections and marketplace settlement

Software solutions and products firm Zoho announced its foray into the hardware segment as it launched Zoho Payments POS device, QR devices and sound boxes. With this, the company is also strengthening its presence in the payments segment. 

 

The firm had introduced Zoho Payments in 2024. Additionally, the firm is now also expanding its payout capabilities, virtual accounts for collections and marketplace settlement.

 

“We got into payments last year. We were supporting online payments without any devices. As a strategy… we may start in one area but keep on expanding. This is a natural expansion for us,” said Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies, and global head of finance and operations, BU, Zoho.

 

 

Iswaran also pointed out that at present, all these devices are imported to India and in future, Zoho would like to support manufacturing of these devices in the country. 

 

“Getting into manufacturing is also a possibility for us, but not at this point. Manufacturing will also mean R&D investment,” he added. 

 

With this Zoho is also expanding its financial services offerings. At present there are four pillars of Zoho’s financial offerings -- payments, business software, connected banking and Bharat Connect. The finance and operations platform is seeing a growth rate of 32%  y-o-y in India.

 

Within the payments segment the firm has presence in both collections and payouts. 

 

When asked if Zoho has been a tad late to enter into the payments segment, Iswaran disagreed. “If you look at business software, we have been at it for close to two decades. In banking too, we have a decent exposure with relations to seven to eight banks in India and a few in international markets. It is the payments segment where we may look as if we are late. But there is a lot of scope in payments,” he added. 

 

While Iswaran did not share any targets that the company is eyeing with its payments offering, he said the opportunity is huge. “Look at the valuation of some of the payments company across the globe, that is the opportunity for us as well,” he added. 

 

The fact that Zoho has created a separate business unit for payments shows how significant an opportunity it is for the firm, added Iswaran. 

 

According to a PwC India report, digital payments in India continue to surge, with a year-on-year (Y-o-Y) transactional volume growth of 42 per cent in FY24, which is poised to grow three times in FY29. 

 

The infrastructure for merchant acquiring, both online and offline, has been expanding not only in metros and Tier-1 cities, but also in Tier-2, -3, and -4 cities. The Y-o-Y growth of QR codes is nearly over 30 per cent and 17 per cent respectively in FY24. Innovations in this space, like soundbox, cross-sells to merchants and innovative activation strategies, have also promoted the use of digital payments by merchants, said the report.