Zoho is making a bold move into the payments hardware space by unveiling a suite of POS (point-of-sale) devices, QR terminals with soundboxes, and expanded payment services. This signals a deeper commitment from the SaaS unicorn to build an integrated fintech ecosystem that spans both software and hardware.
In parallel, Zoho plans to integrate Zoho Pay with its messaging app Arattai, enabling users to make payments directly within chats. With features like virtual accounts, marketplace settlements, and automated payouts, Zoho is aiming to simplify both collections and disbursements for businesses.
In this post, we’ll explore the details of Zoho’s POS device launch, the fintech strategy behind it, and what this means for businesses in India. We’ll also cover key advantages, challenges, and future directions.
1. Zoho’s Fintech Journey So Far
1.1 From SaaS to Payments
Zoho has built a strong reputation with its suite of business software—CRM, Books, Invoice, Payroll, etc. To date, many of its offerings have focused on managing operations, finances, and workflow. Expanding into payments is a natural next step, allowing Zoho to own more of the transaction flow.
In 2024, Zoho received final approval for a payment aggregator licence from the Reserve Bank of India and launched Zoho Payments, integrating it into Zoho Books, Zoho Invoice, and other finance tools. (Enterprise Times)
Zoho’s early payments infrastructure was built on a partnership with NPCI’s Bharat Bill Payment platform (rebranded as Bharat Connect). (Enterprise Times)
1.2 Why Hardware Matters
Digital payments are only one side of the coin. Many Indian businesses—especially small shops, kirana stores, cafés—still rely on in-person transactions. By launching physical POS devices, Zoho can extend its reach from the online world into the physical retail realm.
Hardware allows Zoho to tightly integrate payments with billing, inventory, accounting, and reconciliation in one ecosystem. It gives them control over the customer experience, compliance (PCI, RBI), and device management.
2. What Zoho Launched: Devices & Payment Tools
Zoho’s new hardware and software offerings were unveiled during Global Fintech Fest 2025 in Mumbai. (Inc Business)
Here’s a breakdown:
2.1 POS Device Suite
Zoho’s POS lineup includes:
- All-in-one POS device: A unified Android terminal that handles billing, card & UPI payments, receipt printing—all in one form factor. (Moneycontrol)
- Smart POS: Supports dynamic QR codes and cards; includes a built-in soundbox for instant audio confirmation of payments. (Zoho)
- Static QR with Soundbox: For simpler setups, a static QR terminal that plays a confirmation tone upon successful scan. (Zoho)
These devices support UPI, cards (EMV), contactless payments, and integrate with Zoho’s backend for billing, inventory, and accounting. (Moneycontrol)
All devices are PCI-DSS certified and RBI compliant, and they offer connectivity via Wi-Fi, 4G, and Bluetooth. (Moneycontrol)
2.2 Expanded Payment Features
Beyond the hardware, Zoho introduced several new capabilities around payments:
- Payouts / Salary Disbursement: Zoho Payments now supports automated disbursement of salaries via Zoho Payroll. Businesses can initiate payouts from any linked bank account and track status. (Inc42 Media)
- Virtual Accounts for Collections: Businesses can generate dedicated virtual accounts per invoice, branch, or customer. Payments via NEFT/RTGS/IMPS into those accounts get auto-reconciled. (Zoho)
- Marketplace Settlements: Zoho enables split settlements for marketplace platforms, so when a customer pays, the correct share gets routed to individual sellers automatically. (Zoho)
- On-demand / Faster Settlements: Zoho offers settlement cycles with T+1 (next-day) settlement, giving merchants quicker access to funds. (Zoho)
- UPI Autopay / Recurring Payments: For subscriptions and recurring billing, Zoho supports UPI e-mandates (AutoPay) tied to Zoho Books / Billing. (Zoho)
Meanwhile, Zoho is working to integrate Zoho Pay into its messaging app Arattai, so users can send and receive money within chats—mirroring the success of WhatsApp Pay. (Inc42 Media)
3. Why This Move Matters: Strategic Rationale & Benefits
3.1 Unified Ecosystem & Upselling
Zoho can now offer a full-stack solution: business software + payments hardware + financial operations. That allows them to upsell payment features to existing customers (Books, Invoice, Payroll) at lower acquisition cost. (The Times of India)
For merchants, having billing, inventory, payments, reconciliation, and back-office all under one roof reduces friction, errors, and complexity.
3.2 Deepening Penetration in SMB / Retail
Small and medium businesses are often underserved by fragmented payment stacks. Zoho’s POS devices make it easier for brick-and-mortar stores to adopt digital payments. With soundboxes and QR terminals, even small kiosks and shops can onboard quickly.
3.3 Competitive Positioning
Zoho enters direct competition with other Indian fintech / payments players like Razorpay, PayTM, Pine Labs, and others. But Zoho’s advantage lies in its existing footprint in enterprise and SME software. (The Times of India)
3.4 Strengthening Digital Sovereignty & “Made in India” Push
This move resonates with current pushes in India to prioritize indigenous tech stacks. Zoho’s hardware push comes amid a broader theme of supporting India-made products. (Inc42 Media)
3.5 Monetization & Margins
Hardware gives Zoho new revenue streams (device sales, maintenance, after-sales). The fintech side—transaction fees, settlement fees, subscription models—can create recurring revenue that complements its SaaS business.
4. Challenges & Risks Ahead
4.1 Hardware Manufacturing & Supply Chain
Zoho currently imports many of its POS devices. Eventually, to cut costs and maintain control, it may need to build local manufacturing capabilities. (Business Standard)
Scaling device manufacturing, handling repair, warranty, logistics—all require significant investment.
4.2 Competition & Market Saturation
The Indian payments and POS space is already crowded. To stand out, Zoho must deliver superior integration, pricing, reliability, and support.
4.3 Regulatory & Compliance Pressure
Payments is a heavily regulated domain. Zoho must maintain compliance with RBI, PCI, data privacy norms, and ensure robust security. Missteps in payments tend to have higher consequences than in pure software.
4.4 Merchant Adoption & Trust
Merchants will evaluate reliability, uptime, support, and cost. Zoho will need aggressive merchant education, incentives, and support to drive adoption.
4.5 Integration & Legacy Systems
Many small retailers already use disparate billing, accounting, or legacy systems. Zoho must ensure smooth integration or migration paths rather than forcing a rigid stack.
5. What This Means for Businesses (Use Cases & Impact)
5.1 Small Retailers & Kirana Stores
These shops can deploy static QR soundbox or smart POS to accept digital payments easily. The soundbox helps confirm successful transactions audibly—helpful in noisy shops.
5.2 Restaurants & Cafés
All-in-one POS devices can manage billing, table orders, payments, and print receipts—all on one device. This streamlines operations and reduces hardware footprint.
5.3 Marketplaces & E-commerce Platforms
Zoho’s marketplace settlement feature simplifies split payments—platform gets paid and distributes to multiple sellers seamlessly. This removes manual accounting headaches.
5.4 Service Providers & Subscription Businesses
With UPI Autopay and recurring payment support, businesses like gyms, studios, SaaS firms, and utilities can automate periodic billing.
5.5 Medium & Large Enterprises
Zoho’s payout capabilities let enterprises disburse salaries, vendor payments, rebates, and insurance claims directly through Zoho’s interface.
6. Technical & Integration Highlights
- Devices integrate with Zoho’s ecosystem—Books, Invoice, Billing, Inventory—allowing real-time sync. (Zoho)
- Connectivity options: Wi-Fi, 4G, Bluetooth—offers flexibility in diverse environments. (Moneycontrol)
- Soundbox integration ensures audio confirmation, reducing confusion in busy retail contexts. (Inc42 Media)
- Support for UPI, EMV cards, contactless payments, dynamic and static QR codes. (Moneycontrol)
- Virtual accounts allow reconciliation by linking payments to specific invoices or accounts. (Zoho)
- Faster settlement (T+1) improves merchant cash flow. (Zoho)
7. Roadmap & Future Outlook
- Zoho plans to build or localise manufacturing for POS devices to reduce costs and improve control. (Business Standard)
- Deepening integration between Arattai and Zoho Pay: chat-based payments could become mainstream. (Inc42 Media)
- Interoperability ethos: Arattai is expected to adopt open messaging standards (similar to UPI for payments) and enable communication across platforms. (The Economic Times)
- Expansion into finance beyond payments—credit, lending, working capital tools layered onto Zoho’s platform.
- More AI & analytics within payment data—fraud detection, spend forecasting, insights—leveraging Zoho’s AI investments.
- Further expansion into rural, underserved segments using affordable QR / soundbox devices.
9. Frequently Asked Questions (FAQs)
Q1. What kinds of POS devices did Zoho launch?
Zoho launched three main device types: an all-in-one POS terminal, a smart POS with dynamic QR and soundbox, and a static QR terminal with soundbox.
Q2. How does Zoho’s soundbox feature work?
The soundbox emits an audible confirmation tone when a payment is successful, giving merchants and customers immediate feedback, especially useful in noisy or crowded settings.
Q3. What new payment features accompany these devices?
Zoho also launched payout capabilities (for salary disbursement), virtual accounts for collections, marketplace settlement flows, UPI Autopay for recurring billing, and faster settlement (T+1).
Q4. Can existing Zoho customers use these new devices?
Yes—Zoho’s strength is in offering tight integration with its existing finance and operations apps (Books, Invoice, Billing). So customers already using those can adopt POS to unify their stack.
Q5. How is Zoho partnering with NPCI / Bharat Connect?
Zoho collaborates with NPCI’s Bharat Bill Payment / Bharat Connect arm to leverage unified payments infrastructure and standardization across billing and settlement. (Zoho)
Q6. What are the main challenges Zoho faces?
Key challenges include scaling hardware manufacturing, ensuring competitive differentiation, maintaining regulatory compliance, gaining merchant adoption, and competing in a crowded payments landscape.
Conclusion
Zoho’s launch of POS devices, QR terminals with soundboxes, and expanded payments infrastructure is a bold step beyond its traditional SaaS roots. By bridging hardware and software, Zoho is positioning itself as a comprehensive fintech enabler for Indian businesses—from the smallest kiosk to enterprise marketplaces.
If Zoho delivers on integration, reliability, and support, it could accelerate digital payments adoption in retail and reduce friction in collections and disbursements. The next key phases to watch are how fast merchants adopt devices, how Arattai’s payments integration evolves, and how Zoho scales its hardware and operations.
