Cloud POS Market worth over $9 Bn by 2026
Published Date: January 5, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Cloud POS Market size is set to exceed USD 9 billion by 2026, according to a new research report by Global Market Insights, Inc.
The increasing adoption of NFC-enabled smartphones and popularity of mobile wallet among consumers will positively impact the cloud POS industry. NFC technology enables contactless data transmission on mobile devices, laptops, tablets, and personal computers. It allows users to connect their devices with a payment terminal, providing faster and secure transactions. This has encouraged businesses to replace their legacy payment terminals with NFC-enabled cloud POS systems capable of communicating with an NFC-enabled device. The integration of this technology into payment systems allows customers to use their mobile wallet for online payment services.
The companies operating in the cloud POS market are increasingly introducing cloud-based POS apps to fulfill the growing need and demand of customers. Market players, such as ERPLY, Shopify, and ShopKeep, have developed advanced systems that can be deployed on several hardware platforms. For instance, GOFRUGAL Technologies Pvt. Ltd. is offering ServQuick iPad point-of-sale system that helps restaurants, cafes, and bars to efficiently operate their day-to-day operations. The software provides flexibility to owners for managing and operating multiple locations easily. The iPad app on cloud allows business to expand their market presence horizontally by adding more registers or vertically by adding more locations.
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Rise in data security concerns associated with cloud POS systems is resulting in increased requirement of maintenance & support services in the market
The rise in demand for maintenance & support services to optimize and maintain software will drive the cloud POS market revenue. The software needs to be reliable, efficient, and secure for running business at maximum efficiency and optimal performance. The payment systems are highly prone to malicious attacks, such as Black PoS malware and island hopping, that scrapes customers’ credit and debit card information. Cloud POS software requires to be updated and kept free of errors and bugs to keep it running without any delays. Real-time support & maintenance services safeguard the software from potential viruses and bugs that could lead to unnecessary downtime and temporary shutdown of the POS system.
Browse key industry insights spread across 250 pages with 217 market data tables and 28 figures & charts from the report, “Cloud POS Market Size By Component (Software, Service [Maintenance & Support, Consulting & Training]), By Organization Size (SMEs, Large Enterprises), By Application (Retail & E-Commerce, Restaurant, Hospitality, Transportation & Logistics, Entertainment & Media, Healthcare), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Flexibility and convenience of managing overall business processes from a centralized location are driving the adoption of cloud POS across large enterprises
The large enterprises segment in the cloud POS market is anticipated to register significant gains through 2026. The segmental growth is attributed to increasing number of daily transactions in large businesses that require understanding the sales performance to better manage inventory and attract most customers. Large businesses operate multiple stores and have separate sales & customer management units that require proper management of employees and inventory from one business unit. Large enterprises are incorporating effective payment solutions to connect all operations and business departments in a single platform. Cloud POS solutions allow these enterprises to access and update overall business data such as sales performance, customer statistics, and financial accounts from a central server.
Growing adoption of cloud POS solutions in the hospitality sector to enhance customer services experience and increase business sales
Cloud POS solutions allow businesses to enhance guest experience and provide them a convenient way to process payment transactions. The integration of features such as visual reports, on-demand reporting, mobile/handheld capabilities, tracking sales, and creating customized packages, has resulted in increased adoption of cloud POS systems in the hospitality industry. Cloud POS market leaders are offering the software for small and mid-sized hotels, allowing them to manage inventory and stock. For instance, Bepoz America LLC. is offering POS software for hotels and resorts, helping them to improve guest experience through fast, reliable, instant, and accurate payments process.
Rise in industrialization and increasing number of digital transactions in Asia Pacific
The Asia Pacific cloud POS market will expand at around 30% CAGR through 2026 due to rapid industrialization in several countries including China, India, Australia, Singapore, and Japan. The region is expected to observe an increase in the adoption of automated technologies in various industrial sectors to improve the efficiency and performance of business processes.
The retail & e-commerce industry is witnessing a high adoption of cloud-based POS systems propelled by changing customer preferences toward payment methods. In May 2020, Google Pay had 75 million users while PhonePe had 60 million and Paytm had 30 million users in India. The rising adoption of mobile payment has encouraged businesses to adopt advanced software and hardware tools to accept all types of transactions.
Industry players are collaborating with companies to remain competitive in the market
The key players operating in the cloud POS market are TouchBistro Inc., Square, Inc., Touchsuite, Toast, Inc., Upserve, Inc., Revel Systems, Inc., Shopify, Lightspeed POS Inc., Clover Network, Inc., Vend Limited, PAR Technology, NCR Corporation, and EPOS Now. The market is highly competitive in nature owing to the presence of various market participants, who are actively engaged in expanding their business operations and product offerings through mergers & acquisitions with local players.
For instance, in June 2019, EPOSNow announced its integration with Shopify, a cloud-based multi-channel commerce platform. The integration helped the company to simplify management of inventory, offline & online products, customer data, and transactions for retailers.