While point of sale technology has been used by businesses across a variety of industries for decades now, that hasn’t curbed demand in these tools a bit. In fact, more people are expected to purchase POS solutions over the next five years, according to the latest report from Transparency Market Research.
The study anticipates POS terminal sales to grow roughly at an 11.6 percent compound annual growth rate through 2020, with the market already reaching $36.86 billion as of the end of 2013. This estimate includes the sales of POS terminals, including fixed and wireless setups, as well as the newer mobile POS solutions that have hit the market in recent years. With the recent transition to EMV, virtually all POS providers will be deploying EMV-enabled payment terminals, most via a semi-integrated, standardized integration. So, what is driving the demand for POS solutions?
New need from various sectors
“POS terminal sales will grow at an 11.6% CAGR through 2020.”
One of the top reasons POS terminal sales continue to thrive is because more businesses and industries are implementing these tools, with the move to US EMV serving as the main driver. In the past, POS technology was quite expensive, and as such, many enterprises (especially small businesses) would find workarounds such as accepting only cash or checks. However, as credit cards have become ubiquitous, more merchants have made the jump. US EMV is the ‘once in a decade’ kind of driver that will push adoption even further.
The hospitality sector is one such example, making use of POS tools for additional functions such as loyalty programs and printing bills as well. Integrated payments are no longer just for major retailers and large enterprises – any business can find a solution that will work for its specific needs and demands.
The rise of mobile POS
Mobile POS is unsurprisingly another cause of growth. Tablets and smartphones are commonplace in many modern businesses, so it only makes sense to utilize these devices for Point of Sale. Not only are mobile POS systems often less expensive than traditional terminals, they also increase the mobility of associates – the front-end no longer has to be secluded in one section of the store. This means employees can roam the aisles, engage customers and check them out right where they stand.
Traditional POS systems still account for the lion’s share of POS terminals in use, but mobile is catching on quickly. Mobile POS terminals are particularly popular among small businesses because of the lower cost of investment, but even bigger companies (such as retailers or grocers) are using mobile POS extensions as line-busting tools during busy times, such as the holidays. In that regard, mobility at the POS creates flexibility for the merchant, allowing for a better consumer experience.
For any business, large or small, POS solutions continue to play a pivotal role and as modern systems add functionality, more previously hesitant business owners will make the jump.