The rise of the modern drive-thru is one of the prominent factors influencing the growth of POS terminals.
The point of sale terminal market is estimated to gain significant momentum in the future years. Market Research Future (MRFR) expects the global point of sale terminal market to garner USD 125.31 billion by 2030, growing at 8.1% CAGR throughout the assessment period (2022-2030).
POS terminal or POS system has emerged as one of the most crucial aspects of retail, allowing managing transactions efficiently. Other advantages that POS systems offer retail businesses include an optimized checkout process by providing more payment options and discount & loyalty programs, eliminating human errors & reduce monitory losses, and efficient employee management.
Retail sectors worldwide are undergoing rapid digitalization as they look to enhance the customer experience in brick & mortar environments and scale up their e-commerce and digital presence. Global and domestic retail chains are deploying innovative technologies that offer frictionless checkout with self-serve options and paperless receipts.
Besides, new business models like subscriptions, products as a service, and sustainable shopping are rapidly evolving in retail. However, there are some key gaps in experiences provided by traditional systems, as they are not poised to support such future business models. Resultantly, POS technology providers are increasingly investing in building their intellectual property that can provide insights that retailers are looking for.
Especially for small businesses, POS terminals can make payment methods easier. Small businesses can download required apps and turn their android device into a POS terminal, making everything a small business operator needs, including contactless payments, issuing digital receipts, and generating transaction history. As a result, POS technology providers help small enterprises to manage and grow their businesses, providing them with disruptive digital solutions.
Key Industry Trends
The outbreak of the COVID 19 pandemic boosted the POS terminal adoption in various businesses, mandating contactless payments. In addition, COVID 19-induced disruptions have deeply impacted the retail sector, forcing companies to take leaps to digitize operations to better manage their business and customer expectations.
Rapid advances in finance technologies allowed the market to garner substantial traction. Today’s point of sale platforms upgraded with state-of-the-art technology are designed for high performance & reliability and scale-up. In addition, with such futuristic technology, businesses can benefit from more granular components based on targeting customer experience.
Many companies are now catching on to the POS terminal to accept account-to-account payments. Moreover, on the backdrop of e-commerce, which remains a significant and fast-growing area, and the shift back to physical movement post the pandemic crises subside, retailers are looking to improve sales offline.
Also, the demand for a more direct payment method is rising among merchants and consumers. POS terminals being more natural and cheaper, allow users to make better margins on transactions. It also gives tough competition to traditional players in the payments ecosystem, another key growth driver for the point of sale terminal market.
North America is a Major Player in POS Terminal Space
The region witnesses vast R&D investments to advance financial solutions and automation technologies in the banking sector. Besides, the large presence of POS terminal providers and the development of banking solutions boost the market size. The US, Canada, and Mexico account for sizable shares in the regional market, witnessing the faster adoption of fintech technologies needing POS platforms.
Industry Players’ Strategies to Follow
POS terminal providers strive to provide hardware-based solutions and extend their expertise in deploying critical business solutions worldwide with high availability, scalability, etc. In addition, they work with businesses and merchants of all sizes to develop solutions that allow them to accept payments via a POS solution through which they can receive in-store card payments.
Notable Industry Updates
On Mar.17, 2022, XTM, Inc., a FinTech company, announced the rollout of Apple Pay and Google Pay to the US Today program users. XTM is a leader in the global neo-banking space, providing mobile banking and payment solutions. Apple Pay and Google Pay allow Today Cardholders to use their Apple or Android devices to make payments at the POS by holding their enabled device near the merchant’s payment terminal/reader. The payment is securely completed using NFC technology.
XTM has been diligently working to roll out more than 100K mobile wallets. Adding Apple Pay and Google pay to the Today program will enhance the offering with convenience. In addition, it will enable XTM to increase its interchange revenue percentage when calculating the percentage of gross dollar value loads (GDV), promoting POS spending.