The POS System market was valued at USD 15.64 billion in 2019 and is expected to reach USD 29.09 billion by 2025, at a CAGR of 10.9% over the forecast period 2020 - 2025. Technology affects all perspectives of the payment industry, but this is particularly true of point-of-sale systems. POS systems have developed and progressed drastically over the past decade to help deliver a better customer experience and give more tools to business owners at lower costs. The POS terminal market has evolved significantly over the past several years, owing to its capability to offer an increased return on investment and ease of access. POS systems that facilitate transactions from the central component of businesses across industries, like retail, hospitality, transportation, and banking, have gained importance in companies of small and big sizes, over the years. Security issues, like data breaching and a dearth of standardization, are supposed to restrain the growth of the POS terminal market during the forecast period.
- Rising demand for contactless payments, along with the propagation of Near Field Communication (NFC) devices in the industrial ecosystem, has led to a roll in the adoption of integrated POS terminals. Heightened investments in technologies, such as end-to-end encryption for giving secured payment solutions and assistance to customers, are anticipated to increase the demand for such terminals over the next few years. Major firms in the industry are concentrating more on software owing to the enhanced penetration of smartphones. Contactless payment is supposed to be the most advanced trend in POS.
- Cloud-based POS systems are on the surge, as compared to the on-premise systems, due to the functional benefits that they offer, like the software accessible from the internet, which provides greater control over the business and also minimizes downtime (due to system maintenance). In addition, cloud-based POS opens up greater possibilities for integration, as it has the potential to manage more areas of business from different locations.
- The growing financial frauds across the world have influenced the government regulatory bodies to secure the payment transactions, over the past few years. With customers demanding safe and reliable digital transactions, the need for using secure payment processes have progressed. These regulatory bodies, therefore, have impacted the adoption of POS terminals in a positive manner. With the increasing mobility trends across the world, mobile POS systems are gaining traction. With the advent of cashless transactional technologies, POS has witnessed an increase in adoption rates.
Scope of the Report
POS stands for point of sale. A point-of-sale (POS) transaction is what takes place between a dealer and a customer when a commodity or service is purchased, usually using a point of sale system to complete the transaction. Merchants typically use a POS system to perform a sales transaction. In its most fundamental definition, a POS system is a blend of POS hardware and POS software to build a POS machine for concocting a transaction and payment
Key Market Trends
mPOS Segment Have the Ability to Create New Channels for Revenue growth
- Mobility in POS is significant, but it takes on various forms, and the retailer requires to determine the best ROI. Handheld devices, like the Apple iTouch, as well as tablet computers are being fastened to shopping carts. Mobile devices not only allow firms to promote and sell products, but they also are promoting mobile commerce — the capability to utilize the smart device to electronically pay for orders, using multiple payment systems, such as Apple Pay.
- Ever-changing customer expectations, a growing number of debit/credit card transactions, and advanced data analytics are projected to feed demand for these devices. Paper-free receipt services, enhanced security, available floor space, and decreased customer wait time are other determinants driving the segment growth. Mobile applications have the strength to create new channels for revenue growth; thus, merchants are adopting various marketing channels to leverage their technologies to fight in the market. The advent and arrival of affordable wireless communication technologies have led to enhanced consumer acceptance for these systems. Moreover, the flexibility of having a smartphone - or tablet-based POS, due to low installation charges, has dragged SMBs to invest in this technology.
- With the security issues brought on by adding wireless access and devices, a retail store must be greatly careful during implementation and ensure that proper safeguards are performed regularly. Once the security concerns are lightened, the biggest challenge for retailers is forming a strategy that will provide the biggest return on investment. To build a successful mobile POS strategy, retailers need to include; handheld solutions for store associates that permit them to interact with the shopper throughout the entire shopping journey, and secure access that enables shoppers to utilize their own personal customer devices to command the physical and virtual shopping experience.
Europe Estimated to Play a Dominant Role in POS System Market
- European Association for Secure Transactions (EAST) estimated that, as of 31 December 2018, the number of POS terminals deployed in Europe, reached a staggering amount of 13,972,336. In 2018, the survey of collecting data for the POS terminal numbers in Europe was conducted for the first time, by EAST. It was observed that the POS (point of sale) terminals were the most widely deployed, in terminal type.
- According to EAST, a decline in the number of ATMs has been noticed in the European region. EAST has estimated that there were 406,532 ATMs in Europe, a 2% decrease from the 2017 total. In many European countries, ATM numbers are declining as non-cash payments are preferred as a better mode of payment than its alternative, cash payments. This has contributed significantly to the POS Terminal market.
- With the decline in the number of ATMs in the Europe region, a substantial boost in the adoption of POS Terminal is noticed as the preferred alternative. According to the European Central Bank, the total number of POS Terminals in the European Union has noticed a steady growth, recording 13,549.4 (in thousand) in 2017, in comparison to 12,330.6 (in thousand) in 2016.
- The growing popularity of contactless cards suggests that European residents are striving for contactless payments, such as wearable payment technologies (mobile phones, watches, wristbands, stickers, etc.). New research from MasterCard supports the rise of contactless usage across Europe, with a 97% increase in contactless transactions, year-to-date. The recent data also shows that the European countries are dramatically shifting their consumer behavior to embrace contactless technology with some countries, such as Poland, where contactless transactions are over 80% year-to-date.
The pos system market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. The market studied is fragmented, and comprises POS hardware and accessory providers (such as Epson, Ingenico, VeriFone, etc.,) and cloud-based POS solution providers (such as ShopKeep, Vend, etc.). Technology majors, such as HP, Honeywell, Dell, etc., are offering POS hardware, software, service, and support, in one integrated system.
- January 2018 - Epson America Inc., a subsidiary of Seiko Epson, launched a multi-function thermal receipt printer, OmniLink TM-H6000V. The printer is designed for visitors to have an interactive transaction experience, using mobile devices. It allows users to scan and check out their items and print receipts, in real-time.
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