Point of Sale Terminals Market size to exceed $140bn by 2025
Published Date: October 22, 2019 Authors: Preeti Wadhwani, Saloni Gankar
Point of Sale Terminals Market size is set to surpass USD 140 billion by 2025; according to a new research report by Global Market Insights, Inc.
Technological advancements and adoption of advanced payment solutions are forcing several industrial sectors to adopt modern solutions in their services to simplify customer engagement operations and sales tasks. These systems provide users with the capability to track & record transactions along with customer’s purchase histories and necessary information required for business growth and increased profit. Such systems are being widely adopted in small restaurants due to the high budget range of these outlets. They are increasingly adopting these payment options to streamline and speed up their logistical and payment processes, driving the point of sale terminals market demand.
Increasing awareness and implementation of government regulations for secure payment solutions
Increasing awareness regarding the benefits of point-of-sale terminals among various industry segments coupled with the rise in government initiatives toward a cashless economy will be witnessed in the coming years. For instance, the Indian government’s initiative of demonetization has resulted in increased adoption of alternate payment modes among businesses. Similarly, several developing countries are adopting EMV chip card technologies. Moreover, several government administrations and international organizations are implementing regulations and security standards for improving the security in payment systems. Payment Card Industry (PCI) Security Standards Council is encouraging vendors to develop advanced security features for processing payments, thereby impacting the operations & sales of players.
Rising adoption of mobile POS terminals to manage inventory/stock, capture signatures, and send/receive invoices
Mobile POS terminals are expected to witness high adoption in the POS terminals market owing to their low cost, easy migration to EMV, reduced installation costs, enhanced customer experience, flexible payment processing, automated settlements, and increased sales opportunities. These advantages are encouraging industries to shift from traditional payment solutions to mobile terminals. In addition, these devices can integrate with screen terminals & barcode scanners and provide backup and data restore features. Moreover, software developers are introducing these devices with functionalities of cloud data backup, managing, & reporting of consumer data, inventory management, and sales transaction control.
Benefits of better functionality and user interface compared to on-premise solutions
Software solutions are witnessing rapid adoption in the point of sale terminals market owing to innovations in cloud computing and increased requirement of such solutions for enhancing hardware compatibility and accessibility of different components integrated into the system. These software solutions offer flexibility for real-time viewing of productivity reports and simplify various business functions such as order & customer management, stock reporting, and staff engagement, resulting in increased adoption. Moreover, manufacturers are developing advanced software solutions to help businesses perform multiple tasks with the incorporation of a single POS system.
Increasing demand for managing data flow, improving security, and overcoming data security concerns
The traditional point of sale terminals market accounted for majority of the industry share compared to biometric POS terminals. These devices allow businesses to store data in a local server and run applications on a closed internal network. They offer higher-end functionalities, such as Customer Relationship Management (CRM), data analytics, and inventory management, driving the adoption of these terminals in several industry sectors. The retail industry is mainly adopting these devices due to increasing incidents of hacking in mPOS terminals, leading to increasing cost in terms of payment security and brand image. Moreover, less battery life to support payment transactions in mPOS terminal is limiting its adoption among various industries.
Browse key industry insights spread across 340 pages with 491 market data tables and 39 figures & charts from the report, “POS Terminals Market Size By Product (Mobile, Fixed), By Component (Hardware, Software, Service), By Technology (Biometric, Traditional), By Operating System (Windows, Linux, MAC), By Application (Restaurants, Hospitality, Healthcare, Retail, Warehouse/Distribution, Entertainment), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2025,” in detail along with the table of contents:
Ongoing developments and upgrades in the OS to meet industry demands
Linux OS-based payment solution will witness wide adoption owing to its strong stability, low price, and open-source code version for programmers. OS developers are focusing on upgrading the software for helping small businesses in managing work, sales, and inventory. For instance, in May 2018, a new version of operating system Linux Point of Sale (POS) Reader Solution was released, which enables industries to quickly build a Linux-based smart card reader and address EMV requirements for PIN entry. The software will support contact chip card reader, NFC reader, and Magnetic Stripe Reader (MSR) platform for embedded development.
Increasing demand from healthcare applications to simplify payment transactions and secure patient’s information
The increasing demand for collecting & securing patient information and advancement in payment practices is driving the healthcare point of sale terminals market. The growth in healthcare infrastructures, such as hospitals, clinics, and diagnostic labs, is expected to transform the industry landscape over the forecast period. The healthcare industry is focusing on providing convenient, secure, and user-friendly payment options to patients by using advanced EMV-enabled and PCI-certified payment. Service providers are developing POS solutions for providing seamless and simplified patient collections options to hospitals.
Technological advancements and adoption of advanced payment systems in North America
The North America point of sale terminals market is expected to witness high demand owing to the significant growth of retail outlets, casinos, restaurants, and the booming tourism sector. The adoption of advanced payment systems is increasing in several industrial verticals across the region. Manufacturers are focusing on offering innovative solutions for the retail industry, which is the fastest growing application segment in the region. Additionally, the high availability of advanced technology is predicted to drive industry growth. Several companies are collaborating with payment service providers for providing advanced & secure payment solutions to customers. For instance, in July 2017, Samsung Group announced its collaboration with PayPal Holdings Inc. to provide easy payment access to its users across the U.S.
Companies operating in the point of sale terminals market are focusing on expanding their business operations and product offerings to increase their customer base. Global players are introducing new products in the market through mergers & acquisitions with local players. For instance, in February 2019, NCR Corporation announced the acquisition of BEC, a POS technology provider for hospitality industries, to expand its hospitality business segment. The acquisition will enable the company to augment its exiting presence and expand its coverage within the Western U.S.
Players in the POS terminals market are experiencing intense competition due to the lack of differentiating products, encouraging them to focus on technological developments and pricing strategies to remain competitive in the market. Some of the key players are Ingenico Group, Micros Systems, Inc., Epicor Software Corporation, NCR Corporation, LS Retail, Bucher Industries AG, Cybernet, Panasonic Corporation, Bitel Co., and Cegid Group.