Executive Summary

The POS Terminal Market size was projected to be US$ 101.9 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$ 110.3 billion. During the forecast period, the global market for POS Terminal is expected to garner a 8.2% CAGR and reach a size US$ 242.5 billion by 2034.

The retail, restaurant, healthcare, and hospitality sectors' increasing adoption of point-of-sale (POS) terminals is propelling the market for POS terminals. As the SME sector expands, mobile card swipe machines and contactless payments acquire traction in developing economies. During the forecast period, the market is anticipated to be bolstered by a rise in the number of fully-automated, cash counter-free supermarkets and an increase in the demand for convenient purchasing experiences. A rise in the number of micro-merchants and credit & card users, as well as widespread smartphone and internet usage, are anticipated to positively influence the future of the point-of-sale (POS) terminal market. Prominent entities in the industry are introducing sophisticated point-of-sale (POS) swipe devices that feature robust security protocols in order to improve the in-store digital payment experience.

Point-of-sale (POS) terminal market has witnessed significant growth and transformation in recent years, driven by advancements in technology, changing consumer preferences, and the evolving retail landscape. POS terminals serve as crucial tools for retailers and businesses to process transactions efficiently, manage inventory, and provide a seamless shopping experience to customers. With the rise of e-commerce and omnichannel retailing, POS terminals have become integral components of modern retail operations, facilitating in-store and online transactions, as well as click-and-collect services.

Moreover, the market has seen a shift towards more sophisticated and feature-rich POS solutions, including cloud-based systems, mobile POS devices, and integrated payment solutions. These innovations offer retailers greater flexibility, scalability, and data analytics capabilities, enabling them to adapt to changing market dynamics and consumer behavior. Additionally, the increasing adoption of contactless and NFC-enabled payment technologies has accelerated the demand for POS terminals capable of supporting these functionalities, particularly in response to the COVID-19 pandemic and the growing emphasis on hygiene and safety in retail environments.

Furthermore, the POS terminal market is characterized by intense competition among key players, including hardware manufacturers, software developers, and payment service providers. Additionally, partnerships and collaborations between POS providers and financial institutions, technology firms, and retail giants continue to drive innovation and market expansion, as stakeholders work together to develop integrated, end-to-end solutions that enhance the efficiency and effectiveness of retail operations.

As the retail landscape continues to evolve, fueled by digital transformation and changing consumer expectations, the POS terminal market is expected to witness sustained growth and innovation, presenting opportunities for stakeholders to capitalize on emerging trends and technologies to meet the evolving needs of retailers and consumers alike.

Definition

The POS (Point of Sale) terminal market refers to the industry involved in the production, distribution, and utilization of electronic devices used to process transactions at the point of sale in retail and hospitality establishments. POS terminals facilitate secure payment transactions by capturing and processing customer payment information, including credit or debit card details, through various payment methods such as chip and PIN, contactless, or mobile payments. These terminals typically consist of hardware components such as a display screen, card reader, and keypad, as well as software applications that manage inventory, generate receipts, and track sales data. The POS terminal market plays a crucial role in enabling businesses to streamline their operations, enhance customer service, and improve overall efficiency in processing transactions, contributing to the seamless functioning of retail and hospitality industries worldwide.

Trend

Rising use of contactless payments to boost the market growth

POS terminal market is the rising adoption of contactless payments, fueled by changing consumer preferences and advancements in payment technology. Contactless payments allow customers to make transactions quickly and conveniently by simply tapping their payment cards, mobile devices, or wearables on a POS terminal equipped with near-field communication (NFC) technology.

This method of payment offers numerous benefits, including increased speed of transactions, enhanced convenience, and improved hygiene, particularly in light of the COVID-19 pandemic. Consumers are increasingly embracing contactless payments as they seek safer and more hygienic ways to complete transactions, both in-store and online.

As a result, businesses across various industries are upgrading their POS terminals to support contactless payments, driving demand for NFC-enabled devices and software solutions. Moreover, regulatory initiatives and industry standards promoting the adoption of contactless payments further contribute to market growth. With contactless payments becoming increasingly mainstream, the POS terminal market is expected to experience significant expansion as businesses strive to meet the evolving needs and preferences of consumers for fast, secure, and convenient payment methods.

Drivers

Rising Demand of mPoS Amongst Population Projected to Drive Market

One of the primary benefits associated with mPoS (mobile point-of-sale) solutions is that they empower retailers to streamline the sales process across various settings. Within a retail setting, merchandise is sold to consumers by dealers in a variety of locations. The mPoS solution enables numerous businesses that frequently conduct sales at physical locations such as food trucks, farmers' markets, or customers' residences to securely process a wide range of card payments.

The enhanced usability of mPoS empowers merchants to deliver a heightened level of personalization to their clientele. Cross-sectional marketing and sales are more probable due to the fact that sales managers will target customers in aisles as opposed to in purchasing lines. For instance, a sales associate assisting a customer in putting on complementary accessories while positioned in the aisles. This increases sales opportunities, contributes to the development of a more comprehensive view of the market, and substantially enhances the consumer experience.

In the United States, the migration to Europay, Mastercard, and Visa (EMV) is also in progress; consequently, numerous retailers require dependable payment solutions that enable EMV card acceptance. Affordably, mPoS technologies enable merchants to prepare for EMVs. With the introduction of EMV, these programs are considerably easier to implement, and retailers are no longer culpable for fees resulting from unauthorized card purchases. These elements are contributing to the expansion of the market.

Restraints

Rise in Cyber-Attacks and Bank Frauds Are Primary Restraints for Market Growth

Technology experts assert that vulnerabilities in mPoS could potentially enable malevolent traders to defraud consumers and assailants to steal payment card information. In the United States and Europe, Square, iZettle, SumUp, and PayPal, among others, discovered vulnerabilities in their mPOS systems. By establishing a Bluetooth connection with a mobile application and transmitting data to the server of a payment processor, devices function. It is possible to generate profits from the valuation of magstripe transactions by intercepting the trade.

Without providing any information, a deceitful businessman can gain access to traffic, alter the amount displayed to the customer on the card reader, and coerce the customer into authorizing an entirely different amount. EMV technology is utilized in only 58.5% of debit and credit card transfers and 41% of purchases processed in the United States. This percentage represents a substantial vulnerability to magstripe attacks.

Additionally, instances of remote code execution attacks have been launched against specific mPOS software. Because of this flaw, the reader's entire operating system could be compromised. If random instructions are distributed to other readers, that readership may be influenced. In order to induce additional purchases, dishonest merchants may, for instance, coerce customers into using a less secure payment method (such as magstripe) or assert that a payment has been deducted.

Opportunities

Rise in the digitization of service spaces, malls, specialty stores, create multiple Opportunity

POS terminal market stems from the rise in the digitization of service spaces, malls, and specialty stores. As businesses across various industries increasingly embrace digital transformation to enhance customer experiences and streamline operations, there is a growing demand for advanced POS solutions capable of supporting these evolving needs. Service spaces such as restaurants, hotels, and entertainment venues are integrating digital technologies to improve service efficiency, offer personalized experiences, and enable contactless transactions.

Similarly, malls and specialty stores are leveraging digital signage, interactive displays, and mobile POS devices to engage shoppers, drive foot traffic, and facilitate seamless transactions. This trend towards digitization presents a myriad of opportunities for POS terminal providers to innovate and tailor solutions that meet the unique requirements of different sectors and business environments. By offering scalable, cloud-based POS systems, integrated with analytics, inventory management, and loyalty programs, providers can empower businesses to optimize their operations, gain valuable insights, and deliver exceptional customer experiences.

Moreover, as the demand for omnichannel retailing and integrated payment solutions continues to rise, POS terminal providers have the opportunity to collaborate with retailers and technology partners to develop interoperable platforms that enable seamless transactions across online and offline channels. Overall, the digitization of service spaces, malls, and specialty stores presents a fertile ground for innovation and growth in the POS terminal market, offering providers ample opportunities to capitalize on emerging trends and deliver value-added solutions to businesses seeking to thrive in an increasingly digital and connected world.

Challenges

Consumer worry about data breaches

POS terminal market is consumer concern about data breaches and cybersecurity threats. With the increasing digitization of payment transactions and the growing reliance on POS systems for processing sensitive financial information, consumers are becoming increasingly wary of the potential risks associated with data breaches, identity theft, and fraudulent activities. High-profile security incidents, such as malware attacks targeting POS terminals and data breaches at major retailers, have heightened consumer apprehensions and eroded trust in the security of payment systems.

As a result, businesses and POS terminal providers face mounting pressure to implement robust security measures, including encryption, tokenization, and multi-factor authentication, to safeguard customer data and prevent unauthorized access. Moreover, compliance with stringent data protection regulations, such as the Payment Card Industry Data Security Standard (PCI DSS), further adds complexity and costs to POS terminal deployments. Addressing consumer concerns about data breaches requires a concerted effort from stakeholders across the POS terminal ecosystem to prioritize cybersecurity, invest in advanced security technologies, and educate consumers about the measures in place to protect their personal and financial information. Failure to address these challenges adequately may undermine consumer confidence, hinder adoption of POS solutions, and impede market growth in the long term.

Impact of COVID-19

The COVID-19 pandemic has had a profound impact on the POS terminal market, reshaping consumer behavior, accelerating digital transformation, and driving changes in the retail landscape. With social distancing measures and lockdowns imposed to curb the spread of the virus, businesses faced unprecedented challenges in maintaining operations and serving customers. As a result, there was a significant shift towards contactless and cashless transactions to minimize physical contact and reduce the risk of virus transmission. This surge in demand for contactless payment solutions, including NFC-enabled POS terminals and mobile payment apps, propelled market growth and innovation in the POS terminal industry. Moreover, the pandemic accelerated the adoption of omnichannel retailing and e-commerce as consumers increasingly turned to online shopping for their convenience and safety. Retailers and businesses scrambled to adapt to these shifting consumer preferences, leading to increased investments in POS systems capable of supporting omnichannel sales and providing seamless integration between online and offline channels. Additionally, the COVID-19 pandemic underscored the importance of data security and compliance in payment processing, driving demand for POS solutions with robust security features and adherence to regulatory standards. Overall, while the pandemic posed significant challenges to the POS terminal market, it also served as a catalyst for digital transformation and innovation, accelerating the adoption of advanced payment technologies and reshaping the future of retail.

Segmentations:

By Type:

POS terminal market is segmented by type into fixed POS and portable/mobile POS systems, each catering to distinct business needs and environments. Fixed POS systems are typically stationary terminals installed at checkout counters or service points in retail stores, restaurants, and hospitality establishments. These systems feature a dedicated hardware setup, including a monitor, keyboard, barcode scanner, and card reader, and are ideal for high-volume transactions and businesses with static sales locations.

On the other hand, portable/mobile POS solutions enable businesses to process transactions on-the-go using handheld devices such as smartphones, tablets, or wireless terminals. These lightweight and compact devices offer flexibility and mobility, allowing businesses to accept payments anywhere within their premises or at off-site locations, such as pop-up stores, events, or outdoor markets.

Portable/mobile POS systems are particularly popular among small businesses, food trucks, and service providers seeking to enhance customer convenience, reduce checkout wait times, and expand sales opportunities beyond traditional brick-and-mortar locations. As businesses increasingly embrace omnichannel retailing and seek to meet the evolving expectations of consumers for seamless and flexible payment experiences, both fixed and portable/mobile POS solutions play integral roles in enabling efficient and effective transaction processing across diverse business environments.

• Fixed POS
• Portable/Mobile POS

By Component:

POS (Point of Sale) terminal market encompasses a diverse array of components, primarily categorized into hardware, software, and services. Hardware constitutes a significant portion of the market, encompassing the physical devices used for transactions such as card readers, cash registers, barcode scanners, and receipt printers. These components are essential for facilitating smooth and secure transactions between merchants and customers.

In parallel, software solutions play a crucial role in POS systems, providing the interface through which transactions are processed, inventory is managed, and data is analyzed. This includes POS software suites that manage sales, inventory, and customer relationship management (CRM) functionalities. Additionally, software components include payment processing software, which ensures the secure transmission of payment data between the terminal and financial institutions.

Moreover, services form an integral part of the POS terminal market, encompassing installation, maintenance, and support services offered by vendors and third-party providers. These services ensure the proper functioning and upkeep of POS systems, addressing technical issues and providing necessary updates to software and hardware components.

• Hardware
• Software
• Services

By Deployment:

POS (Point of Sale) terminal market is characterized by diverse deployment options, with two primary categories: cloud-based and on-premise solutions. Cloud deployment has gained significant traction due to its flexibility, scalability, and cost-effectiveness. Cloud-based POS systems offer merchants the advantage of accessing their data and applications remotely from any internet-enabled device, facilitating real-time inventory management, sales tracking, and analytics. Moreover, cloud-based solutions require minimal upfront investment in hardware infrastructure and offer automatic software updates, reducing maintenance overhead for businesses. On the other hand, on-premise deployment involves hosting POS software and data locally within the merchant's infrastructure. While providing greater control and customization options, on-premise solutions typically require higher initial investments in hardware and ongoing maintenance. Both deployment options cater to different business needs, with cloud-based solutions increasingly preferred for their agility and accessibility, while on-premise solutions remain favored for specific security and compliance requirements.

• Cloud
• On-Premise

By End Use:

POS (Point of Sale) terminal market serves a wide range of end-use industries, each with specific requirements and demands. Restaurants represent a significant sector within the market, relying heavily on POS systems to manage orders, track inventory, and process payments efficiently. Similarly, the hospitality industry, including hotels and resorts, utilizes POS terminals for guest services, room charges, and restaurant transactions. In healthcare settings, POS systems streamline patient billing, pharmacy transactions, and inventory management. Retail establishments heavily rely on POS terminals for sales transactions, inventory tracking, and customer relationship management. Warehouse and distribution centers use POS systems for inventory control, order fulfillment, and shipping processes. Entertainment venues, such as cinemas and amusement parks, deploy POS terminals for ticket sales, concessions, and merchandise transactions. Additionally, POS solutions cater to various other industries, including education, transportation, and government services, providing tailored functionalities to meet specific business needs. The versatility of POS terminals across multiple sectors underscores their integral role in modern business operations, driving efficiency, accuracy, and customer satisfaction.

• Restaurants
• Hospitality
• Healthcare
• Retail
• Warehouse / Distribution
• Entertainment
• Others

Geography Chapter

Asia Pacific Set to Dominate Point-of-Sale Terminals Market

Asia Pacific is poised to emerge as a dominant force in the global point-of-sale (POS) terminals market, driven by factors such as rapid urbanization, increasing disposable incomes, and a burgeoning retail sector. The region's dynamic economies, including China, India, Japan, South Korea, and Southeast Asian countries, are witnessing robust growth in retail infrastructure, fueled by the expanding middle-class population and growing consumer spending. Moreover, the proliferation of smartphones and internet penetration has accelerated the adoption of digital payment solutions, spurring demand for POS terminals capable of supporting a wide range of payment methods, including contactless, mobile, and QR code payments.

With substantial development, Asia-Pacific is anticipated to emerge as a highly competitive market. As a result of wage increases and improved living standards, the retail sector has flourished in emerging nations like India and China, which has increased the demand for retail point-of-sale devices. To promote a cashless economy, government policies in this sector are expected to increase demand for POS terminals. During the forecast period, mobile point-of-sale (POS) terminal demand and low penetration are anticipated to generate lucrative growth opportunities in emerging Asia-Pacific economies including Thailand, Singapore, the Philippines, India, Vietnam, and Vietnam.

Furthermore, government initiatives promoting financial inclusion and digital payments, coupled with supportive regulatory frameworks, are driving the expansion of the POS terminal market in Asia Pacific. Additionally, the region's diverse retail landscape, spanning traditional brick-and-mortar stores, e-commerce platforms, and mobile commerce channels, presents ample opportunities for POS terminal providers to cater to the evolving needs and preferences of retailers and consumers. As a result, Asia Pacific is poised to dominate the global POS terminal market in the coming years, offering lucrative growth prospects for manufacturers, software developers, and service providers looking to capitalize on the region's burgeoning retail and payments ecosystem.

North America was the world's second-largest income contributor.

North America has historically been a significant contributor to the global POS terminal market, serving as a key hub for technological innovation, economic development, and consumer spending. As the world's second-largest income contributor, North America boasts a mature retail sector, characterized by a high adoption of advanced payment technologies and a strong emphasis on customer experience. The region's affluent population, coupled with a robust digital infrastructure and widespread acceptance of cashless payments, has driven demand for POS terminals capable of supporting a wide range of payment methods, including credit and debit cards, mobile wallets, and contactless transactions.

Contactless and NFC payment systems, among others, have contributed to the growth of the economies in North America. Demand for point-of-sale (POS) terminals has increased due to regulatory requirements such as the Europay, MasterCard, and Visa (EMV) legislation, which have enhanced security. The POS economy's expansion in retail and other service sectors has been impeded by a sluggish buildup.

Moreover, the COVID-19 pandemic has further accelerated the shift towards digital payments and omnichannel retailing in North America, as consumers increasingly prioritize convenience, safety, and efficiency in their shopping experiences. Additionally, the region's vibrant ecosystem of POS terminal providers, software developers, and payment processors continues to drive innovation and competition in the market, offering retailers and businesses a diverse array of solutions to meet their specific needs and preferences. Overall, North America's position as a leading income contributor underscores its significance in shaping the trajectory of the global POS terminal market, with continued growth and innovation expected in the years to come.

Company Landscape

The company landscape within the POS terminal market is characterized by a diverse array of players ranging from established multinational corporations to innovative startups, each vying for a share of the expanding market. Leading players such as Verifone Systems Inc., Ingenico Group, and Square, Inc. dominate the market with their comprehensive portfolio of POS hardware, software, and payment processing solutions tailored to the needs of various industries and business sizes. These industry giants leverage their extensive global presence, technological expertise, and strategic partnerships to maintain their competitive edge and drive market innovation. Additionally, the market landscape features a multitude of niche players and emerging startups specializing in niche segments such as mobile POS, cloud-based solutions, and specialized industry verticals. These players contribute to market dynamism and innovation, introducing disruptive technologies and business models that challenge incumbents and drive market evolution.

Moreover, partnerships and collaborations between POS providers, financial institutions, technology firms, and retail giants continue to reshape the competitive landscape, fostering innovation and driving market expansion. As the POS terminal market continues to evolve in response to changing consumer preferences, regulatory developments, and technological advancements, the company landscape is expected to witness further consolidation, competition, and collaboration, with opportunities for both established players and new entrants to carve out their niche and thrive in this rapidly evolving industry.

Some of the prominent developments by the important companies in this domain are

• Boyne Resorts deployed Agilysys point-of-sale and cloud technology for contactless food and beverage orders on March 16, 2021.
• The Indian National Payments Corporation of India (NPCI) and SBI Payments jointly proclaimed the launch of 'RuPay SoftPoS' on March 5, 2021, catering to millions of Indian merchants. Utilizing this innovative method, retailers can transform NFC-enabled handsets into point-of-sale terminals.
• Bank AlJazira and JCB International Co., Ltd. partnered in March 2022 to integrate JCB card acceptance capabilities into the Kingdom of Saudi Arabia's (KSA) network of point-of-sale (POS) and automated teller machine (ATM) terminals.

Company Profile

Cisco Systems, Inc. is a global technology leader renowned for its networking hardware, software, and telecommunications equipment. Founded in 1984 by Leonard Bosack and Sandy Lerner, Cisco has since grown into one of the world's largest and most influential technology companies. With its headquarters in San Jose, California, Cisco operates in over 100 countries and serves a diverse range of customers spanning enterprises, service providers, governments, and small businesses. Cisco's extensive product portfolio includes routers, switches, security solutions, collaboration tools, and cloud-based services, among others, enabling customers to build and manage secure, scalable, and intelligent networks to connect people, devices, and applications seamlessly. Furthermore, Cisco is recognized for its commitment to innovation and investment in research and development, with a strong focus on driving digital transformation, enabling connectivity, and advancing technologies such as the Internet of Things (IoT), 5G, and artificial intelligence (AI). As a trusted technology partner, Cisco continues to shape the future of networking and empower organizations worldwide to thrive in an increasingly connected and digital world.

Conclusion:

In conclusion, the POS terminal market stands at the forefront of technological innovation and transformation, playing a pivotal role in shaping the future of retail, hospitality, and various other industries. With the widespread adoption of digital payments, the demand for POS terminals continues to grow rapidly, driven by factors such as changing consumer preferences, technological advancements, and evolving regulatory landscapes.

Looking ahead, the POS terminal market is poised for significant expansion, fueled by emerging trends such as contactless payments, mobile point-of-sale (mPOS) solutions, and cloud-based POS systems. The increasing prevalence of contactless transactions, accelerated by the COVID-19 pandemic, is reshaping the way businesses and consumers interact at the point of sale, driving the adoption of NFC-enabled terminals and mobile payment technologies.

Moreover, the rise of omnichannel retailing and e-commerce is driving demand for POS solutions that seamlessly integrate online and offline sales channels, enabling retailers to deliver personalized shopping experiences and streamline their operations. Additionally, advancements in AI, machine learning, and data analytics present opportunities for POS providers to enhance the capabilities of their systems, offering retailers actionable insights into consumer behavior, inventory management, and pricing strategies.

Furthermore, partnerships and collaborations between POS providers, financial institutions, and technology firms are expected to drive market innovation and foster interoperability, enabling businesses to leverage the full potential of POS technology to drive growth and improve customer experiences.

Overall, as businesses continue to adapt to changing consumer preferences and market dynamics, the POS terminal market is poised to play a central role in enabling secure, efficient, and seamless transactions, driving the digital transformation of industries worldwide and shaping the future of commerce in the digital age.