Consumer preference is shifting towards electronic payment systems. A growing emphasis of governments across the globe towards a cashless economy will primarily drive the retail POS terminal market expansion in the forthcoming years.
Reportedly, the global non-cash transactions increased about 14% between 2018 and 2019 to reach 708.5 billion transactions. In which the volume of cashless transactions in the Asia Pacific accounted for 243.6 billion in 2019. A surging number of non-cash transactions globally will complement the high adoption of POS terminals across retail shops.
According to a Global Market Insights, Inc., analysis report, global retail POS terminals market size is estimated to surpass US$45 billion by 2026. Below mentioned are some key aspects of a cashless payment system driving its demand among customers.
Growing preference for electronic payment cards
High usage of alternative forms of physical currency such as electronic payment cards, which includes ATM, debit, and credit cards would positively influence movements of cashless economy in the Asia Pacific and Europe region. Cash-based transactions have certain disadvantages and inconveniences, mainly in terms of security, irregularity in counting, and others.
On the other hand, retail POS terminals render advantages such as swift purchase transaction, consistent pricing, high reliability & durability, and others, as compared with other traditional payment systems. On account of such benefits, POS terminals have been increasingly deployed across small and medium-sized retail stores.
mPOS terminals in out-of-store transaction
The mPOS terminal segment is expected to witness considerable growth in the upcoming years, due to its mobility and ability to provide secure transactions in out-of-store environment. The product is widely utilized in local retail shops, flea markets, events, and tradeshows to easily process a large amount of sales transactions and reduce transactional time.
The escalating security concerns pertaining to data privacy due to the rising incidences of cyberattacks will impede the retail POS terminals industry growth to some extent. Also, the high cost of deploying these systems on a large scale could slow down its adoption rate in retail shops.
Software applications in POS terminals
The software segment in the retail POS terminals industry is projected to grow significantly by 2026. The software used in POS terminals stores transactional records of consumers which further helps in monitoring their buying behavior and shopping trends.
These features further aid retailers in enhancing customer experience and escalate sales. Additionally, the integration of sophisticated technologies including the Internet of Things and advanced security software protects the crucial data of consumers.
Robust demand in supermarkets
The hypermarkets and supermarkets segment will expand exponentially in the forthcoming years owing to the presence of a well-organized retail sector across the globe. The introduction of customized POS terminals provide real-time dashboard options and detailed users’ profile. It helps in classifying their preferences and brings more value to the customers. These features also enable large-scale retailers to organize their workflow and propel sales and profits.
Growing cashless economies across APAC
The Asia Pacific retail POS terminals industry is expected to experience substantial growth trends owing to the evolving retail sector in countries like India and China. The recent economic reforms in India such as demonetization have tremendously boosted consumer preference towards cashless transactions. The regional manufacturers are emphasizing on introducing QR code-enabled devices to accept payment through other cashless mediums, which will eventually complement the regional industry landscape in the upcoming years.
PAX Technology, NCR Corporation, NEC Corporation, Ingenico SA, and VeriFone Systems, are the prominent companies functioning in the global retail POS terminals industry. The industry expansion is majorly attributed to the growing demand for technologically advanced systems offering features like gathering customer information, payroll data, and inventory management.
The integration of highly secured software and other advanced technologies in retail POS terminals and the government support to encourage the utilization of electronic payment systems will positively impact the industry growth.