Pine Labs shifts POS strategy, anticipates Apple Pay boosting credit card use

Indian fintech firm Pine Labs is undergoing a strategic shift in its point-of-sale (PoS) business model. The company is moving away from leasing card swipe machines to merchants and is now requiring them to pay for the hardware upfront. This change aims to lighten the company's balance sheet by reducing depreciation costs and improving merchant retention.

During the Q1 FY27 earnings call, Pine Labs CEO Amrish Rau stated that approximately 25-30% of PoS terminal deployments now involve upfront merchant payments for the devices. Internationally, Pine Labs focuses on software and transaction processing without investing in hardware, as seen with its deployment for GCash in the Philippines.

The company anticipates that Apple Pay's imminent launch in India will boost credit card transactions. Rau believes that the integration of credit card payments alongside UPI will increase the overall volume of card-based transactions, benefiting Pine Labs' diversified payment stack.

Furthermore, Pine Labs' issuing platform, which encompasses gift cards, prepaid cards, and forex cards, has grown into a significant business generating around ₹100 crore annually. The company plans to expand this offering with meal, fuel, and expense cards, aiming to provide tax benefits to customers.

Pine Labs is also expanding its distribution channels for gift cards, partnering with quick commerce platforms like Blinkit and Zepto. The company sees substantial growth potential in the gaming sector, particularly for in-app purchases facilitated by gift cards for platforms like Roblox. In its online business segment, agentic payments are a key revenue driver, with recent integrations including IRCTC.