Zoho Deepens 'Swadeshi' Push with POS Devices, Plans Payments Integration for Messaging App Arattai
Chennai: October 7, 2025 - Indian software major Zoho Corporation has significantly expanded its footprint in the fintech and consumer technology sectors with the launch of its own range of Point-of-Sale (POS) devices under the Zoho Payments division. The announcement, made by Zoho founder Sridhar Vembu, is a strategic move that comes amid a strong national push for 'Swadeshi' (indigenous) technology and a recent surge in popularity for the company’s homegrown messaging platform, Arattai.
The Launch and the 'Why'
How it Started: The launch of the physical POS hardware is a natural progression following Zoho's previous foray into fintech. The company had already secured a crucial Payment Aggregator license from the Reserve Bank of India (RBI) and introduced its software-based Zoho Payments gateway last year. This new step into hardware marks a concerted effort to build a comprehensive, full-stack financial ecosystem for businesses.
The Strategic Rationale and 'Swadeshi' Push: Zoho's decision is deeply rooted in its philosophy of building an integrated, end-to-end suite of business tools and aligns perfectly with India's Atmanirbhar Bharat (Self-reliant India) agenda, or the 'Swadeshi' movement in the technology space.
Eliminating Silos with Deep Integration: The core differentiator of the Zoho POS devices is their tight, native integration with the company's existing financial and operations applications, such as Zoho Books, Zoho Invoice, and Zoho Inventory. This integration allows businesses—especially Small and Medium Businesses (SMBs) and B2B merchants—to manage billing, payments, real-time transaction tracking, and back-office reconciliation all from a single, unified dashboard, drastically reducing manual errors and saving time.
Boosting the Digital Ecosystem: The company has partnered with NPCI Bharat BillPay Ltd (NBBL), a subsidiary of the National Payments Corporation of India (NPCI), to strengthen India's digital payments infrastructure. This partnership, especially through the Bharat Bill Payment System (BBPS), helps standardize B2B invoice presentment and payments.
Capitalizing on National Sentiment: The launch comes at a time when Zoho is enjoying significant political and public endorsement. Following Union IT Minister Ashwini Vaishnaw and Commerce Minister Piyush Goyal publicly migrating to Zoho's productivity and messaging tools, the company's platform, including the Arattai app, has witnessed a phenomenal spike in adoption, underscoring the success of the 'Made in India' appeal.
Hardware Expansion: The new POS lineup includes a variety of solutions for in-person payments, catering to different merchant needs:
All-in-one POS Device: A unified Android terminal for billing and digital payments.
Smart POS: Supports dynamic QR and card payments with an integrated sound box.
Static QR Codes: With sound box support, primarily for smaller merchants. The terminals are designed for universal acceptance, supporting EMV chip cards, UPI QR codes, and contactless transactions, and are PCI DSS and RBI-compliant. Zoho has also hinted at the long-term possibility of exploring local manufacturing of these devices in India.
Vembu's Vision: Payments in the Chat Ecosystem
A highlight of the announcement was the vision for the future of Zoho's consumer-facing products. Founder Sridhar Vembu confirmed: "Our messaging platform Arattai will soon integrate with Zoho Pay."
This integration is critical, as experts believe layering payments and commerce on top of the viral messaging platform is essential for its long-term survival and scale.
Enabling Conversational Commerce: The merging of Arattai and Zoho Pay will empower businesses to engage in conversational commerce. Merchants could potentially chat with customers on Arattai, send instant payment requests, and facilitate immediate payments directly within the chat interface, streamlining sales and improving customer experience.
Interoperability Push: Vembu has consistently championed an open and non-monopolistic approach to digital platforms. He has reiterated his goal for Arattai to be interoperable, much like UPI or email, allowing users to communicate seamlessly with other messaging platforms. This is a clear distinction from rivals like WhatsApp, which is a closed system.
Current Revenue Model Components
Zoho is a multi-product global Software-as-a-Service (SaaS) company. The newly launched POS devices and the integration with Arattai will contribute to its multifaceted revenue structure, which traditionally relies on subscriptions for its enterprise suite.
| Product/Service | Revenue Component | Description |
| Zoho Payments (Online & POS) | Transaction Fees | A percentage fee charged on every successful payment processed through the online gateway and the new POS devices (card, UPI, etc.). |
| POS Hardware | Device Sale/Rental | Revenue generated from the outright sale or monthly rental/lease of the All-in-one POS, Smart POS, and soundbox devices to merchants. |
| Zoho Business Software Suite | Subscription Fees (SaaS) | Monthly or annual subscription fees for its 50+ applications (Zoho Books, Zoho CRM, Zoho Mail, etc.). This is Zoho’s primary and largest revenue source. |
| Zoho Payments Solutions | Value-Added Service Fees | Fees for specialized services like automated salary disbursements via Zoho Payroll, virtual accounts for collections, and marketplace settlement tools. |
| Arattai Messaging App | Future Monetization | Currently free, future revenue could be generated through opt-in, non-intrusive business communication tools, contextual ads, or a subscription-based model for premium business features. |
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This latest push into payment hardware and the planned integration with its consumer application solidifies Zoho's strategic pivot towards becoming an indispensable, integrated indigenous technology provider for businesses across all segments in India and globally.