Global Retail Point of Sale Market

Retail Point of Sale Market: Insights

The growing adoption of solutions for non-cash transactions and the rise of convenient, on-the-go mobile payments are expected to positively influence the market of retail point of sale significantly. The global market will register a maximum growth rate and is expected to follow the trend between the projected time frame.

A retail point of sale (POS) is a system where a customer pays for his purchases and services enjoyed by him. It contains software and a hardware part. It manages the financial transaction records, assesses sale data, manages inventory turnover, fill-in orders, GMROI, calculates the sell-through rates, stores customer data and therefore based on that improves the customer experience, does employee management, manages different loyalty and gift card programs, generates customized reports, alerts for saved issues and more.

The availability of different mobile payment gateways such as, Google Pay, Apple Pay, Samsung Pay, different mobile wallets is enabling more and more customers to opt for it, which requires the stores to have POS systems. The preference of the consumers is also changing towards non-cash transactions, which is expected to significantly increase the demand for POS systems in various stores.

With increasing implementations and public policies taken by several national governments to stimulate the non-cash transaction system, especially in developing countries like India, Indonesia, China, etc. is boosting the market demand.

However, the emergence of the pandemic in 2020 has significantly affected the market. On one hand, the contactless-payment became more popular, on the other many stores were closed and were restricted. However, banking server issues and failure of payments are hampering the market demand.

Retail Point of Sale Market: By Product

Based on the products, the retail point of sale market is segmented into two divisions, fixed and mobile. Between these two, the fixed point of sale system is estimated to acquire the largest market share. The rising demand from several types of business owners is the basic factor that is driving this market. Characteristics like, management solutions that include, inventory management, employee management, record management of different programs and gift cards and cash drawers, etc. are the factors that influence the merchants to demand the fixed point of sale system.

However, the mobile point of sale is expected to witness the fastest growth in the forecasting period mainly because of the increase in usage of smartphones and tablets, and the system’s ability to be portable and easy to use. Also because of the emergence of the ongoing pandemic the small retailers and businessmen have shifted to tablets from the traditional point of sale system which is expected to affect the mobile point of sale market.

Retail Point of Sale Market: By Component

Based on the components, this market is segmented into three parts, hardware, software, and services. Among these, the software is estimated to attain maximum share and estimated to generate huge revenue between 2021-2026.

The use of retail point of sale mainly cloud-based ones is growing rapidly around the world, of which the software part is essential. The software is also affordable and it also can give the merchants access to the data of the customers just with the help of a stable internet connection. The rising technological advancement is enabling the software to integrate with touchless and EMV and making it compatible with mobile payments, which is boosting the market demand rapidly.

Retail Point of Sale Market: By End-User

Based on the end-users, the market is divided into supermarkets, discount stores, hypermarkets, gas stations, grocery stores, convenience stores, and specialty stores, among others. Among these, the convenience store segment is will expand at a peak growth rate between 2021-2026.

As the point of sale systems in these stores are enabling the owners to achieve the automation of the manual tasks like the updation of latest prices, data entry, management of cash counters and billing, etc. It decreases the chances of errors made by humans and improves the customer satisfaction level and also manages the complaints.

Apart from that, the supermarkets or hypermarkets segment is also growing rapidly. The rising numbers of multinational supermarket chains such as 7 Eleven, Big C, Costco, E-Mart, etc, and their rising numbers of outlets all over the world along with their adaptation of smart payment, E-payment, and modern management systems is making a huge shift in the demand of retail POS.

Retail Point of Sale Market: By Region

Regionally, the North American region is expected to hold the largest share of the market demand during the foreseen period. The use of advanced technologies in daily life like non-cash transactions, improved service delivery, increased visibility of data are estimated to be the main drivers of the market in this region.

However, the region of Asia-Pacific is also estimated to grow at a significant rate. The main factors influencing this market of this region are expected to be the widening population which results in a wide customer base especially in the countries like India, Indonesia, China, and Malaysia. These countries are shifting from traditional systems to modern advanced technology. Also, the various policies and implementation are taken by the governments to secure a non-cash transactions system and the emergence of global retail operators in this region with their online billing systems are significantly influencing this market in this region.

Retail Point of Sale Market: Share & Competitor Analysis

Diebold Nixdorf, Zebra Technologies, Ingenico, Vend, Intuit, Revel System, NCR Corporation, Centerm, SAP, Verifone, Posiflex Technology, PAX Technology, Cegid Group, Square, HP, Shopify, New POS Technology, NEC Corporation, Newland Payment Technology, Toshiba Tec Corporation, Castels Technology, Epicor, Lightspeed Elavon, and Cloverare are the key players involved in developing retail point of sale software.

Please note: This is not an exhaustive list of companies profiled in the report.

In November 2019, to capture the market of local restaurants the company named NCR Corporation paired with POS solutions, which was initially the leading player in the market of sales solutions for restaurants in Texas.