The global point-of-sale software market size was valued at USD 11.03 billion in 2024 and is projected to reach from USD 12.04 billion in 2025 to USD 24.35 billion by 2033, registering a CAGR of 9.2% during the forecast period (2025-2033).
Point of Sale (POS) software refers to computer programs or applications that support transactions at the point of sale in retail stores, restaurants, and other companies where customers purchase goods or services. Inventory management, sales reporting, customer relationship management (CRM), employee administration, and payment processing are all typical aspects of POS software. It allows businesses to execute transactions more efficiently, track sales and inventory in real time, manage customer data, and generate reports to get insights into their operations. POS software can be placed on specific hardware terminals or incorporated into existing computer systems, and it can be on-premises or cloud-based.
However, Security concerns may limit point-of-sale software market share. The Point-of-sale software is susceptible to software and network difficulties, device failures, phishing, and skimming. Due to these open networks, hackers can swiftly access the infrastructure and steal sensitive information such as customer credit card numbers and corporate account information. Even small firms are already utilizing POS, which is expected to grow the point-of-sale software market in the future.
Retailers worldwide are experiencing digital transformation to remain competitive in the age of e-commerce and shifting consumer preferences. As part of this change, they are expanding their investment in point-of-sale software to improve the in-store shopping experience, optimize operations, and seamlessly combine online and offline channels. Over 390,000 new POS installations were completed in 2023, including Hy-Vee and Aldi Nord rollouts.
Additionally, retailers use POS software to create personalized shopping experiences, streamline checkout operations, and provide convenient payment choices. According to a Forbes survey, 70% of retail decision-makers believe digital transformation is vital to match customer expectations. According to one study, firms that use advanced POS systems boost sales by 20%, customer satisfaction by 15%, and customer retention by 25% compared to those that do not. This shows a high need for POS software solutions that enable the seamless integration of online and offline channels, resulting in a unified shopping experience for customers.
Furthermore, POS software allows retailers to collect and analyze information about consumer preferences, purchasing history, and sales trends. A McKinsey poll discovered that data-driven firms are 23 times more likely to attract customers, six times more likely to retain customers, and 19 times more likely to be profitable. As a result of the retail sector's digital revolution, POS software use is increasing, allowing merchants to improve customer experiences, harness data-driven insights, combine omnichannel sales channels, and embrace cloud-based solutions for scalability and agility.
The growing number of cyber threats and data breaches creates substantial security challenges for POS software suppliers and customers. POS systems are excellent targets for cyber attacks because they handle sensitive financial and personal information. Malware, ransomware, and payment card skimming are all examples of security flaws in POS software that can cause economic losses, reputational damage, and regulatory noncompliance. According to Verizon's 2022 Data Breach Investigations Report, 98% of the 629 occurrences in the retail sector had a financial purpose. Unsurprisingly, many involved financial data, with one out of every four attacks compromising personal information. Cybercriminals have also concentrated on credentials, with 45% of occurrences containing such data.
In addition, in 2023, a prominent retail chain experienced a network breach that allowed unauthorized access to their point-of-sale systems. This event shows the importance of strong cybersecurity measures and network segmentation. In April 2023, ransomware targeted NCR's Aloha POS system, and the attackers demanded substantial money from Western Digital. Similarly, attackers utilized at least 70 POS malware kits to target POS systems in the Hilton data breach. Also, in November 2023, a ransomware attack struck Infosys Mccamish Systems, a Bank of America service provider, exposing thousands of clients' data.
Furthermore, payment card industry regulations, such as the Payment Card Industry Data Security Standard (PCI DSS), specify security criteria for POS systems to protect cardholder data. Noncompliance with the PCI DSS can result in fines, penalties, and reputational damage to enterprises. PCI DSS compliance requires secure setups, encryption techniques, and access restrictions to protect POS software and hardware.
The growing use of contactless payment systems, driven by convenience, security, and hygiene concerns, represents considerable potential for POS software providers. There is an increasing demand for POS solutions that accept NFC (Near Field Communication) payments, mobile wallets, and QR code payments to provide seamless and secure contactless transactions. Consumers increasingly prefer contactless payment methods because of their quickness, convenience, and lack of physical contact, especially given hygiene concerns during the COVID-19 pandemic.
Similarly, according to a Mastercard survey, 79% of respondents globally now use contactless payments, with 74% planning to continue using them after the pandemic. According to Mastercard research, 51% of US consumers use contactless cards and mobile wallets. Tap-to-pay at point of sale (POS) is becoming more popular in the United States as mobile devices and payment terminals incorporate NFC technology. Analysts expect that the value of tap-to-pay transactions will rise by more than 150% by 2028.
Furthermore, governments and industry associations encourage contactless payments to increase financial inclusion, improve payment security, and promote digitization. India and France have decided to deploy UPI in France. In the coming days, it will begin at the Eiffel Tower, allowing Indian tourists to pay in rupees. In January 2023, the Centre announced that non-resident Indians (NRIs) from ten countries can use UPI to send and receive money if their domestic bank accounts are linked to overseas phone numbers.
| Study Period | 2021-2033 | CAGR | 9.2% |
| Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
| Base Year | 2024 | Base Year Market Size | USD 11.03 billion |
| Forecast Year | 2033 | Forecast Year Market Size | USD 24.35 billion |
| Largest Market | North America | Fastest Growing Market | Asia-Pacific |
North America is the most significant global point-of-sale software market shareholder. The North American market is mainly driven by the increasing adoption of POS terminals across various industries, as well as the presence of major software vendors. The United States is leading the North American POS software market, followed by Canada and Mexico. North America was early in adopting mobile point of sale and advanced technology infrastructure. Many organizations in the region are focusing on POS systems and services. In 2023, US Bank launched an embedded, multi-channel point-of-sale lending platform that allows businesses to offer finance to customers at the checkout. Avvance, a bank-backed solution, promises a rapid application process and immediate decision for tailored loans. According to US Bank, Avvance offers buyers convenience and flexibility while providing companies with a new payment option from a reputable partner, eliminating the headache of managing payments after the transaction. In addition, increased acceptance of cashless payments and expansion in North America's retail, healthcare, restaurant, and other industries are expected to drive regional market growth.
Asia-Pacific is anticipated to exhibit a CAGR of 3.4% over the forecast period. The usage of POS terminals in the region will likely increase as the electronic payment industry grows rapidly. The desire for cashless payment in retail, restaurants, entertainment, and other businesses is driving the proliferation of POS software in developing nations such as China, India, Indonesia, and Vietnam.
Furthermore, the ever-increasing demand for advanced POS systems from quickly rising companies, such as e-commerce retail, the food service industry, and entertainment, will likely drive market expansion throughout the forecast period. For example, In May 2023, Axis Bank introduced Sarathi, a digital onboarding solution that enables retailers to utilize EDC or POS services. The technology uses real-time database checks and live video verification to speed the application process and enable paperless onboarding for retailers, allowing for quick installation of POS devices. The solutions seek to finish application processing and installation within 45 minutes.
Europe holds a significant market share. Cloud Point of Sale (POS) is in high demand in Europe due to the increased acceptance of contactless payments and a shift in consumer preferences for online payments for retail purchases. The Royal Society's Physical Sciences Research Journal reports a 15.5% annual increase in adopting cloud-based point-of-sale systems in Europe. The region's market growth is fueled by adopting PoS systems in the retail and restaurant sectors. Leading European banks are implementing digital transformation initiatives to improve payment acceptance and customer service.
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The service segment is anticipated to grow with the highest CAGR during the forecast period. POS services include payment services, along with management services, gateway services, and maintenance services. These services help business clients as well as organizations by maximizing resource usage and streamlining marketing operations. SaaS, compared to traditional POS systems, is a partnership model with no up-front payments made as in the case of a traditional POS system. The monthly fees cover software, support, backups, and future upgrades.
