Pine Labs payment gateway will become a $5 billion POS business in 2 years


Pine Labs, the leader in SBI-backed payment solutions, expects its Plural payment gateway to grow into a $5 billion payment processing company over the next two years.

Talk to activity area, Kush Mehra, Chief Commercial Officer of Pine Labs, said, “I think Plural’s growth journey is very important. Over the past 18 months, we have valued around $300-400 million on a monthly transaction basis in terms of dollars processed on Plural. We have over 200 major merchants who have linked up with us and our pipeline continues to be very strong. In the POS (point of sale) space, it took us 6-7 years to become a $5 billion annualized payment volume company. Plural will achieve this in less than two years, so it’s a big scale.

He added that the history of accepting online payments is proving to be much faster due to multiple tailwinds and the market is much more conducive. Launched in 1998 as a point-of-sale provider, Pine Labs forayed into the payment gateway space in 2021 and competes with Razorpay and PayU in the segment.

Aggregated company

Commenting on the competition, Mehra said, “We realized that India as a market is really huge which needs to be solved by not just two but at least five major online payment gateway companies. Pluriel has the same capabilities that PineLabs offers in the offline world. We actually replicated them on our Plural payment gateway product and on day one we enabled over 100 odd types of payment transactions.

Moreover, speaking of aggregate business, Mehra noted that the company records net revenues of over $200 million this fiscal year and is profitable. Pine Labs said it will continue to grow at a growth rate of around 45-50% at the aggregate level and will operate at close to around 70% of gross margins and gross profit.

In the large merchant chain segment, Pine Labs has a 75-80% market share at point of sale. Pine Labs said it has nearly 900,000 to 1 million merchant touchpoints and the market has 6 million merchants with POS touchpoints – so the company currently has around 18-20% share. Steps.

Going forward, Pine Labs is focused on increasing its share in the smaller merchant categories. Mehra noted that two years ago, about 20% of Pine Labs’ monthly merchant additions came from the small merchant category. Today, nearly 70% of Pine Labs’ supply has begun to come from the small merchant category. “Currently we are onboarding 30,000 new merchant touchpoints every month and in the next few months we want to increase that to 40,000-45,000 merchants,” he added.

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Elaine R. Knight