POS System Automates the Shopping Experience in Brick and Morter Stores

12 October 2020

The usage of debit and credit cards is facilitated through POS terminals and ATMs present at various outlets such as retail, drugstores, gas stations, restaurants, and hospitals. Payment cards play an important role in stimulating economic growth across the world. They provide customers with secure access and convenience to their funds, which in turn, reduces the physical cash requirement. This results in the expansion of the pool of customers due to ease of payment. Futuristic invention in the payment and transaction technology and growth in the complementary security technologies are likely to boost investors’ confidence in the POS terminal market during the forecast period.

New start-ups would launch innovative mPOS terminals with advanced features while existing vendors will continue developing their product portfolio with upgrades. mPOS terminals are gaining immense traction among end-users worldwide. The penetration of these devices is increasing rapidly in the overall market across the world. As the global POS terminal market presents a lucrative revenue growth potential, many vendors are expected to enter the market by making it highly consolidated over the next few years. The retail outlook in South Korea plays a vital role in the maximization of POS terminals in the country. The retail impression of the country suggests that the market has significant potential for adopting POS terminals. The South Korean economy is steadily adopting cashless transactions to promote e-payment solutions. The global POS terminal market is expected to reach over USD 17 billion, growing at a CAGR of around 8% by 2025.

Key Insights included in the POS Terminal Market Include:

  1. Aided by the growing demand in APAC countries, the global mPOS terminal market is expected to post a CAGR of over 9% in terms of revenue during 2019−2025.
  2. The retail sector offers vast absolute growth opportunities of more than $2,900 million in terms of revenue during 2019-2025.
  3. APAC has emerged as the largest market holding over 60% share of the global POS Terminal market in 2019.

Read: Point of Sale Terminal Market Global Outlook and Forecast 2020-2025

Introduction of Cloud-Based POS System

A cloud-based POS system can be directly accessed from the web through the internet and is compatible with the hardware of the POS system such as printers and cash register drawers. The vendor has accessibility to the customer’s data from any geographical location through a Wi-Fi connection. The low start-up cost of a cloud-based POS system is due to the centralization of information, independence from operating systems, and virtual accessibility of data. The retail industry is one of the largest users of cloud-based POS systems. Retailers with a chain of outlets across varied regions can access the integrated database for the customer’s profile. The cloud-based system helps in merging data across tablets and smartphone interfaces, offline and online shopping, and e-payments. Square and PayPal are the major cloud-based POS solution providers and Lightspeed, Microsoft Dynamics RMS, Vend POS, ShopKeep, and Retail Pro have also entered the cloud-based POS market.

Competitive Landscape of the POS Terminal Market

The competitive scenario in the global POS terminal market is currently intensifying. The rapidly changing technological environment could adversely affect vendors since continual innovations and upgrades are major characteristics of this market. The present scenario is driving vendors to change and refine their unique value proposition to achieve a strong market presence. Although the market is characterized by the presence of diversified international and regional vendors, the international players would increase their footprint in the market. The regional vendors will find it increasingly difficult to compete with them, especially in terms of features such as quality, technology, and price. The competitive environment in this market is expected to intensify further with an increase in product/service extensions, technological innovations, and M&As.

The global market is dominated by vendors who have an international presence. Many global players are expected to expand their presence worldwide during the forecast period, especially in the fast-developing countries of APAC and Latin America to gain market share. The adoption rate of POS terminals among business owners worldwide has been impressive. As a result of higher demand, the market has witnessed the entry of several new vendors. The competition among these companies has intensified, leading to the introduction of many innovative and advanced solutions in the market. Players are developing high functionalities and continuing to upgrade their products to keep pace with the latest technological developments, failing which they might lose relevance in the market.

Read: Sous Vide Machine Market Global Outlook and Forecast 2020-2025

FAQs about the POS Terminal Market:

Q. What is the market size of the POS terminal?

A. The POS terminal market size will reach revenue USD 17 billion by 2025.

Q. What is the market growth of POS terminal?

A. The POS terminal market is projected to grow at a CAGR of over 8% during the forecast period.

Q. What is the global market segmentation of the POS terminal?

A. The POS terminal market is segmented by product type, NFC technology, application, end-users, compliance, and geography.

Q. What is the market insight of the POS terminal?

A. The presence of strong transaction security features in EMV cards is increasing and witnessing significant boom in recent times.

Q. What are the major regions in the global POS terminal market?

A. The leading regions in the POS terminal include North America, Europe, APAC, Latin America, and Middle East & Africa.

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