SoftPoS Market size is expected to reach USD 1 Billion by the end of 2036, growing at a CAGR of 20% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of SoftPoS was USD 250 Million. The rising adoption of SoftPOS solutions by small and medium enterprises will propel the expansion of the market by the end of 2036. By 2027, a rise of 475 percent from 6 million in 2022, will the total number of merchants implementing software-only point of sale (softbox) solutions be, because of the growing utilization of contactless payments. The onboarding technique is DIY-like, and merchants can sign up for SoftPOS in a few minutes, making it simple and intuitive for the merchant to download. Thus, opening the formal payments ecosystem to many retailers quickly. The app assists MSMEs in keeping transaction records and outstanding dues the same way it does traditional diaries.
Another reason behind the massive growth of the market is the increasing prevalence of information technology across the world. Today, there are significantly more people online than there were at the start of the millennium. In terms of broadband access, only half of Americans had home broadband access in 2000. That percentage is higher than 90% as of right now. Some of the most popular technologies today include things like blockchain/cryptocurrency, 5G networks, edge computing, big data, augmented reality, and virtual reality, to name a few. Technology was no longer a recreational item and the new normal had abruptly changed. Many tech companies are still investing in disease and treatment research, but many have also been focusing on healthcare delivery. In recent years, Telehealth has grown in popularity, with many promising young tech companies launching new virtual health options. Chatbots and virtual visits are being used to provide healthcare to people, especially during COVID-19.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
∼20% |
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Base Year Market Size (2023) |
~USD 250 Million |
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Forecast Year Market Size (2036) |
~USD 1 Billion |
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Regional Scope |
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Enterprise Size (Micro & Small Business, Medium & Large Business)
The organic material segment will grow the most by the forecast period and will hold almost 63% of the softPOS market because of the rising adoption of softPOS solutions by micro and small businesses globally owing to its multiple advantages. The standards to grow and test a SoftPOS solution are given in the Payment Card Industry Contactless Payments which is on the COTS (CPoC) Program protection and test needs documents. A group that will benefit from softPOS is micro-merchants and small businesses that currently can't accept contactless payments. SoftPOS eliminates barriers to contactless payment consent, providing merchants with a convenient and cost-efficient manner to give clients with the payment experiences they want. SoftPOS is an insurgent latest technology that enables merchants to approve card payments straight on their financially off-the-shelf (COTS) device without the requirement for any extra hardware. Thus, this segment will have the biggest share of the softPOS market.
Operating System (Android, iOS)
The Android segment will have superior growth during the forecast period and will hold around 70% of the revenue share of the softPOS market owing to the rapid use of Android across the world. For instance, a detailed guide for Tap-to-Phone solution developers, including tap-on-Phone PCI standards, certification step details, and other content-related information, has been released by Mastercard. Additionally, a new QIB SoftPOS app accepting any transaction made using contactless methods was just released by Mastercard and Qatar Islamic Bank. The promotion from renowned credit card manufacturers will make the software POS market much more advantageous, and there will be more acquiring companies in 2023. Ingenico, acquired Phos, a provider of software-only point-of-sale solutions. Ingenico's acquisition confirms that the payment industry is more interested in Software POS. Thus, this segment will have the biggest share in the market.
Our in-depth analysis of the global SoftPOS market includes the following segments:
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Enterprise Size |
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Operating System |
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End-Use Industry |
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North American Market Statistics
The softPOS market in the North America region will have the biggest growth during the forecast period with a revenue share of around 80%. This growth will be noticed owing to the rising adoption of contactless payment systems in this region. According to Mastercard Contactless Consumer Polling, more than half (51%) of Americans currently use some form of contactless payment, including mobile wallets like Apple Pay and tap-to-go credit cards. This is in response to the pandemic's initial impact, which has resulted in 51% of Americans saying they have used cash less frequently or not at all. Restaurants, gas stations, and grocery stores are the main US-based merchants adopting contactless payments. Between 2020 and 2023, these sectors have experienced increased contactless usage, accounting for the majority of US contactless transactions.
APAC Market Analysis
The softPOS market in the APAC region will also encounter huge growth during the forecast period and will hold the second position owing to the increasing use of smartphones in the growing economies. In China, there were almost 1 billion smartphone users in 2022. By 2026, the user population was projected to reach around 1.18 billion, according to the forecast. Smartphone and social media use are closely related in these 11 emerging economies: a median of 81% of social media users claim to own or share a smartphone, while a median of 91% of those same countries also use social media or messaging apps.
Author Credits: Abhishek Verma, Hetal Singh
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