Fintech company Pine Labs is diversifying beyond its traditional point-of-sale (PoS) hardware business and plans to strengthen its digital checkout ecosystem and merchant tech stack to drive the next leg of growth.
During the Q2 FY26 earnings call, Pine Labs CEO Amrish Rau stated that the firm has secured a patent for a new online payments technology that would allow users with NFC-enabled smartphones to process card payments using the tap feature.
Dubbed “Tap to Pay Online”, the feature would enable checkout at major e-commerce, food delivery and ride-hailing platforms without the hassle of remembering CVVs or OTPs.
“One of the things which is happening when it comes to online payments, more so globally than in India, is that consumers are finding it very difficult to remember the 16 digits, the CVV, the expiry number. Also, what we are getting to see is transmitting of data just by inputting it on somebody’s webpage, instead of using a card, is generally less secure and also more costly,” Rau told analysts in the call.
However, Pine Labs did not specify the permissible transaction limit. It also said that the feature is pending regulatory approvals. Once approved, the fintech company will roll out its new online payments technology in India and international markets, Rau said, without disclosing the timeline of the launch.
The Fintech Push
While Pine Labs started as a PoS terminal provider, it has since evolved into a broader payments platform that offers merchant checkout technology, EMI and instalment payments, online and bill payment solutions and prepaid card services.
“We are a fully diverse fintech platform operating across all offline and online channels, using the digital infrastructure … In terms of revenues, we continue to be extremely diversified between merchants, banks and financial institutions, and also enterprises, corporates and brands,” Rau said during the earnings call.
Pine Labs’ financials back the founder’s claims that the company has expanded beyond a hardware-driven PoS business to a full-fledged fintech company. In Q2FY26, only 29% of the revenue came from subscriptions and rentals, the PoS side of its business. Meanwhile, 71% of the revenue came from SaaS and tech-based services.
Last month, the company secured payment aggregator licences from the Reserve Bank of India (RBI) for offline payments, online merchant payments and processing cross-border payments. With software services now accounting for the lion’s share of the revenue, the regulatory licences carry more weight.
Moving Beyond Hardware
In a shareholders’ letter, the company said that it is “deliberately” moving away from hardware-included deals to capex-light hardware deals, where the company earns primarily software and platform revenues.
“These [revenue] streams are more efficient and margin accretive but have lower absolute revenue per deployment, which naturally moderates…
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