The number of Smart POS terminals, where analytics and loyalty can be integrated to the terminal, will grow from 13.7 million in 2021, to 35 million units in 2026, Juniper Research said.
As digital payments accelerate and QR codes provide intense competition, particularly in North America, POS terminals need to offer more features than before.
POS manufacturers need to focus on high-value features, such as inventory management, loyalty scheme automation and store synchronisation, in order to maximise the appeal of their offerings in a highly competitive hardware market.
The report said 57 percent of all payments at POS by value will be contactless globally by 2026 against to just under 25 percent in 2021. This growth, supported in large part by increasing contactless payment limits, represents a steep change in how consumers pay.
POS suppliers need to focus on new capabilities, such as smart POS and greater device mobility within stores, to sustain current POS hardware shipment levels as contactless enablement is now the default for POS manufacturers in their products.
The research identified that soft POS, the ability to use NFC on mobile devices to accept contactless payments, will accelerate. Soft POS provides a cheaper route into card acceptance than ever for the smallest businesses, meaning that it is compelling for this particular niche.
The global number of smartphones being used for soft POS payments will increase from 3.2 million in 2021, to almost 24 million in 2026. However, the research emphasised that soft POS not being an immediately recognisable POS terminal will limit consumer confidence around security; restricting growth.