POS Terminals vs Mobile Wallets: What Indian Merchants Prefer in 2025 for Seamless and Secure Payment Solutions

POS Terminals or Mobile Wallets? What Indian Merchants Are Choosing Today

India's retail and services landscape has undoubtedly become more digital, but merchants are not all heading in the same direction. While many merchants are sticking with POS terminals, mobile wallet-based payment models are also becoming increasingly prevalent, especially among the small retailers.

Each model has its place, but the preferences are becoming clearer based on business size, location, and customer profile.

POS Terminals Still Dominate Where Structure and Scale Exist

Traditional POS terminals continue to be popular among outlets such as:

• Supermarkets and organised retail
• Apparel stores and electronics showrooms
• Hotels and restaurants with billing system

These merchants need GST compliances, printed receipts, an inventory link, and an EMI option, functions that POS terminals can do much better than a solution that is mobile first. These cater to customers who pay with cards or want to use bank linked systems for high-value items.

Mobile Wallets Offer Flexibility and Cost Savings for Small Vendors

In contrast, mobile wallets are usually preferred by:

• Kirana stores 
• Cafes, salons, and pharmacies 
• Street vendors, and informal services 

Merchants in this category look for speed, zero upfront cost, and instant payment confirmation via apps like PhonePe, Paytm, or Google Pay. Wallet-based QR systems also remove the complexity of installation, training, and monthly rental fees.

Payment Aggregators Are Now Offering Combined Options

Recognising this clear divide, payment service providers are bundling:

• POS terminals that also support wallet QR scanning
• App-based POS software that can create digital receipts
• Integrated dashboards for sales reporting, even without hardware

The intent is to offer Indian merchants a choice that works for their transaction, budget, and consumer preference, not to mandate a single format.

For detailed adoption metrics, device shipments, and merchant segmentation, visit our India POS Device Market

POS and Wallet Models Tend to Coexist, Not Compete

This is no longer about POS or wallets. Indian merchants are choosing what works best for their business, even if it is both. All that counts now is interoperability, ease of use, and visibility into transactions, regardless of involved device or app.