Retail giants are fast-tracking the adoption of Smart POS solutions in response to recent widespread system outages, Juniper Research said in its report.
The value of Point-of-Sale (POS) terminal transactions is projected to hit $17 trillion by the end of 2024, with a further 25 percent growth anticipated through 2028.
Transactions processed via soft POS will surge to $11.8 billion by 2028, a significant leap from $1 billion in 2023. This growth will primarily be fueled by the introduction of Apple’s Tap to Pay and the attractive cost of acceptance associated with Soft POS, driving widespread adoption among small businesses.
Projections indicate a staggering increase in the number of smartphones utilizing soft POS, expected to reach 61 million globally by 2028, marking a 683 percent growth from 2023.
Apple’s rollout of Tap to Pay, particularly in markets with a high concentration of smaller merchants like Brazil, France, and the UK, is credited for this surge. Payment companies are advised to bundle soft POS solutions with complementary small business tools such as cashflow management to optimize success, the report on retail technology investment said.
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Despite recent global POS outages leading to temporary store closures in some retail chains, the demand for smart POS terminals continues to rise. These outages exposed significant financial and security risks, underscoring the necessity for modern POS solutions to replace outdated legacy systems.
Many retailers find themselves ill-equipped to handle issues like terminal outages with their legacy POS systems. However, smart POS technologies are identified as pivotal in mitigating such challenges. This includes leveraging IoT-powered systems to ensure consistency and robust connectivity with other retail systems, alongside cloud storage for customer data to enhance security. Upgrading POS technology to smart systems is now imperative for retailers aiming to maximize processing efficiency and customer satisfaction while minimizing the risk of system failures.
Embracing Smart POS
POS terminal providers are expanding their offerings to deliver capabilities beyond payments. Smart POS presents a gamut of enhanced functionalities compared to traditional POS systems, including staff management, loyalty card processing, inventory management, and inter-store synchronization within the same chain.
Daniel Bedford, research author at Juniper Research, emphasized the value of embracing Smart POS despite its higher implementation costs. He noted that such a move ensures a return on investment for retailers by averting system failures while integrating seamlessly with business operations.
Top Five Emerging POS Trends
Biometric POS: Particularly relevant for markets aiming for cashless societies or with a large population lacking access to traditional banking or smartphones.
Contactless Spending: Projected to hit $10 trillion by 2027, spurring greater demand for POS terminals as more payments shift to electronic forms. Mobile retailers are increasingly adopting contactless payment methods, presenting opportunities for vendors offering mobile POS solutions.
Enhanced Capabilities of Smart POS Terminals: By bundling terminals with solutions offering features like inventory and employee management, retailers can alleviate financial burdens while expanding their offerings beyond payment processing.
Rise of POS Software: Industries like Quick Service Restaurants (QSRs) are embracing POS software for centralized management of sales, inventory, and customer data, streamlining operations and reducing errors.
Focus on Unattended POS Terminals and Display Systems: Manufacturers are prioritizing solutions like unattended POS terminals, customer-facing displays, and kitchen display systems to enhance customer satisfaction and operational efficiency.
In conclusion, the shift towards Smart POS solutions is gaining momentum as retailers seek to enhance operational efficiency, mitigate risks, and meet evolving customer demands amidst a rapidly changing retail landscape.
Baburajan Kizhakedath
