According to a recent study from market research firm Global Market Insights, Rising demand for cashless transactions to simplify payments is expected to offer impetus to retail POS terminals market share growth. Enhancing the penetration of smartphones has been pushing the retail sector to implement advanced payment systems for developing business operations and decreasing expenses.
Retailers have been changing their POS terminals to mobile devices due to accelerating smartphone adoption and the need to offer enhanced shopping experiences to customers. Mobile POS terminals provide flexibility, improved user experience, mobility, and easy accessibility. According to the latest research report by Global Market Insights Inc., the retail POS terminals industry size will reach $40 billion by 2024.
NFC-enabled mobile applications have been experiencing a high rate of adoption in the U.S. as observed in the retail POS terminals industry forecast report. Augmenting adoption of contactless payment applications including PayPal, Android Pay, and Apple Pay has been witnessed in various application areas. In the year 2017, it was predicted that almost 50% of retail locations are likely to adopt Apple Pay. The growing adoption of such mobile applications is forecast to fuel the U.S. retail POS terminals market trends over 2017-2024.
Mobile POS terminals will witness strong growth over the forecast time period owing to their portability as well as ease of use. The terminals further provide benefits like free floor space, reduced overall customer shopping time, paper-free receipting services, and easy accessibility, which is fostering their adoption further.
Additionally, the flexibility provided by a smartphone or tablets-based POS terminals also decreases the cost of SMBs. The rising popularity of wireless technology and reducing the cost of mobile phones have resulted in the increasing adoption of mPOS terminals amongst high-end stores.
In terms of application, the demand for point of sale terminals from convenience stores, to offer customers an effective checkout process, automate & track fluctuating prices, streamline inventory management, is being observed. It is noted that convenience stores typically opt for mPOS devices owing to their flexibility, low cost, and convenience in carrying out payment transactions.
Moreover, the increasing need to effectively enhance customer engagement and streamline operations has further encouraged various store owners to adopt advanced payment devices. For example, 7-Eleven, a U.S.-based convenience store chain deployed mPOS terminals of NEC Corporation across approximately 8,600 stores in Canada and the U.S., in January 2017.
Increasing adoption of contactless payment technologies like Google Pay and Apple Pay is likely to drive the retail POS terminals market. With the rising adoption of such payment technologies, several countries are passing regulations that streamline and support the adoption of these technologies.
In fact, in 2019, the Ministry of Urban Development in India launched the national common mobility card (NCMC), an innovative open-loop payment card that can be used to pay for all local travel needs across the country, the card contains a regular debit card that can be used at any ATM to withdraw cash and a local wallet that can be used to make contactless payments. Such initiatives are likely to lay the groundwork for retail POS terminals market growth.
On the geographical front, Asia-Pacific retail POS terminals market is likely to exhibit substantial growth over the forthcoming time period owing to the presence of a widespread customer base in countries like Malaysia, Indonesia, China, and India. This has further encouraged international retail operators to expand their presence in the region through strategic means such as the acquisition of local industry players. Citing an instance, Walmart, Inc, a renowned retail company, in May 2018, reportedly acquired Flipkart, one of the leading e-commerce companies in India for approximately $16 billion. The acquisition effectively helped the firm to expand its presence in the fast-growing retail market in India.
Key Companies covered in Retail POS Terminals Market are AURES Technologies SA, BBPOS Limited, Cisco Systems Inc., Hewlett Packard Enterprise Company, Ingenico Group, Micros Systems, Inc., NCR Corporation, NEC Corporation, New POS Technology Limited, Newland Payment Technology, Panasonic Corporation, Pax Technology Inc., Posiflex Technology, Inc., Samsung Electronics Co. Ltd., Toshiba Corporation, Touch Dynamic, VeriFone Holdings, Inc., Squirrel Systems.