A point of sale terminal is an electronic device used to process payments at the retail locations. It involves maintaining and tracking the customer orders, processing debit and credit card payments. It is a computerized replacement for a cash register. With the rising popularity of e-commerce, the recent years have witnessed an exponential increase in the number of online shoppers. The growing need to maintain competition, to penetrate unfamiliar markets, meeting the increasing demand from customers, and responding to changing customer needs have compelled vendors to focus on having an online sales sector for their business. Few vendors are also focusing on completely replacing their physical stores with digital sales channels. This preference for e-commerce has led to the rapid increase in e-commerce transactions, which will, in turn, have a positive impact on the growth of the point of sales systems market.
Further, POS terminals also allow the cardholder to have real time online access to funds and information in a bank account through debit or cash cards. The POS systems also help in the management of the inventory by recording the markdowns. Instead of going through the mountain of receipts at the end of the day, the point of sale system calculates the markdowns automatically as sales occur. Likewise, POS systems also make the promotion of the product easy. Promotions, discounts, and coupons can be tracked and the effect of these promotions recorded daily. Tracking the effect of promotions of products is almost impossible without point of sales inventory management systems.
Apart from the inventory management, these terminals also provide a wide range of applications including printing bills, payments, carrying out loyalty programs, thus leading to their increased adoption across various end-use verticals.
The POS terminal market is expected to reach around USD 120 million by the end of 2024 registering a CAGR of 19.8% between 2017 and 2024. The major drivers responsible for the growth of the market are the rising adoption of the hardware such as smartphones and tablets coupled with the rise in e-commerce transactions and the adoption of the secured technology.
Geographically, North America is the leading contributor to the global point of sales market due to the widespread establishments of retail giants and restaurants, followed by Europe and Asia Pacific. The Europe Point of Sale market is expanding due to the widespread use of VISA, MasterCard and Euro Pay payment gateways. The Asia Pacific Point of Sales (POS) terminal market is forecast to exhibit the growth at a growing CAGR of 13%. Growing preference for connectivity and portability and rising demand across application areas are key driving forces in regional segment. CLICK TO DOWNLOAD FREE SAMPLE REPORT
Our in depth analysis of the Global Point of Sale market includes the following segments
Global Point of Sales Terminal market is further classified on the basis of region as follows:
The growth of the global POS terminal market is primarily driven by the increased number of e-commerce transactions. The rising adoption of mobile devices such as smartphones, increasingly being used for the e-commerce transactions has pushed the market to the global level. Moreover, the introduction of cloud computing has fueled the growth of the POS terminal market, and therefore, POS systems can become the Software as a Service (SaaS) and are directly accessible through internet with the help of the browser. Further, the increased adoption in hospitability, retail e-commerce and the healthcare industries have also contributed towards the growth of the market. Moreover, the technological advances in payment modes such as mobile wallets have also led to the growth of the market. The need for reducing the fraud has enabled the retailers to adopt the highly secured technology such as EMV (Europay, Mastercard and Visa), thus propelling the growth of the global point of sale market. Technological advances coupled with hardware such as smartphones and tablets, has resulted in the industry transitioning from payment-only terminals to solutions that allow merchants to operate their business such as order management software for restaurants and practice management software for medical providers.
The increased competition in the market has enabled the manufacturers to develop innovative and differentiated strategy to provide solutions to the industry verticals. However, the increased adoption rate of the technology has also posed threat to the security concern. Moreover, the POS systems deal with the critical information and are often exposed to the data threats and security concerns. The POS system needs external network for their efficient functioning, but the networks lies on the end of the retailer. The small business connects to the POS systems through cellular data while the larger ones connect through the internal network. Thus, operating through internal networks makes them prone to the security threats. Therefore, there remain technical and operational challenges that act as the restraints to the market growth. Moreover, the growth of the mobile POS terminals has also led to the growth of the global POS terminal market. The mobile POS terminals will provide the cost effective solutions enabling smaller businesses to setup POS terminals and perform tasks without having to invest in electric register or support software. Implementing POS terminals will also lead to the improved customer experience as the increased benefits will enable the retailers to update their checkout systems, thus leading to better operational efficiency and enhanced customer experience. The hardware segment is likely to continue its dominance in Point of Sales market in the future with a projected share of 84.5%. Software segment is likely to witness growth in the hospitality and the retail sector.
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