Point of Sale Software Market

Point of sale software is used by brick and mortar retailers to conduct sales. POS terminals serve as a cash register where cashiers input the products, tally cost, and conduct the financial transaction. A customer executes the payment for goods or services at a POS terminal. POS terminals and systems in a physical store are used to process card payments or a virtual sales point, such as a computer or mobile electronic device. A POS is custom-built according to the need of the retailer.

The software communicates with the inventory to check the balance and other data. Smart cloud-based POS systems are rapidly replacing traditional POS systems, as small retailers are heavily investing in upgrading their infrastructures. This has bolstered the popularity of POS systems in recent years. The POS software is often compatible with most POS hardware and can be accessed through the internet. There is a huge demand for cloud-based POS systems due to their low cost and convenience.

With the growing digitalization, automation, and virtualization, the demand for cloud-based software has increased manifold. Cloud-based POS links easily to a small brick and mortar store, e-commerce store, and occasional trade show or flea market and adjusts the inventory automatically.

Impact of COVID-19

The COVID-19 pandemic has had a drastic impact on the global SME’s, specifically the retail sector, in terms of profitability, liquidity, inefficiencies, and visibility. It has strongly disrupted the sophisticated and automated digital backbone of the industry. Therefore, key vendors are allocating funds to restore the digital back-end of all core functions, such as billing, banking, accounting, tax, payments, expenses, and cash management, by the use of POS software.

The pandemic has reshaped business dynamics to a significant extent, introducing new complexities. Small business is dealing with much larger product categories, different types of customers, and platforms than before. Managing all these without a single app is challenging. Hence, companies are shifting toward efficient POS to conduct the new hassle-free retails business.

Most of the android-based POS terminals are manufactured in China, which has significantly been impacted due to the pandemic. The shortage of swipe machines to process at retail outlets, as coronavirus can be transmitted via payment terminal buttons, is hampering the market growth. Par Tech Technology Corporation is advising restaurant owners to keep POS terminals clean to protect customers and employees from the coronavirus outbreak.

Market Dynamics

Shifting Consumer Preferences Towards Cloud POS 

There is a growing demand for robust and cost-effective POS solutions with advanced functionality to handle complex business operation scenarios, such as managing inventory, customers, payment, billing, and employees. Easy installation, either on desktop, laptop, or tablet, is bolstering the market growth. Furthermore, the growing adoption of cloud-based solutions, such as mPOS software and web-based POS solution, is gaining traction among small and medium businesses. Affordability and integration with CRM and other financial solutions are expected to boost market growth over the forecast period.

Digital Payment Security Benefits to Drive the Adoption of POS

There is growing consumer demand for a secure payment process due to the rising financial frauds in digital transactions. Increasing mobility trends, mobile POS systems, the advent of cashless transactional technologies, and growth in e-commerce, brick-and-mortar, and online retail practices have increased the adoption rates of POS software. Investors suggest that the smart POS terminals with advanced software infrastructure can reshape the future and provide the major e-commerce platforms with a boost in digital payment processes.

An efficient POS program speeds up payments and is easy to adapt according to the company’s needs. It can be easily tailored to suit the unique needs of each business. POS systems can be synchronized so that detailed reports can be generated for best-selling products at a store. It enables hassle-free reporting and can be connected with horizontal business process areas, such as sales, marketing, and finance. This has tremendously increased their efficiency, attracting more buyers.  

Uncertainties Regarding Cloud-Based Offerings and Lack of Awareness to Hamper the Market Growth

A POS terminal infrastructure is complex to install, and there is a growing frequency of cyber-attacks as well. Therefore, many organizations are not willing to invest a hefty amount in the overall infrastructure, doubting the competence of cloud-based offerings regarding security challenges. Umpteen companies have become comfortable with the on-premises or legacy systems and are reluctant to move to cloud-based POS, as they fear the loss of ownership and control. Lack of skilled workers amid COVID-19 and limited awareness about potential risks, such as cloud security and threat, despite the heavy adoption of POS terminals in some countries, is restricting the market growth

Growth in Cognitive Data Analysis to Drive the Market Growth

POS software can capture and analyze complex sales, purchases, and customer information. Even a simple transaction generates payment terms, modes, product list sold and purchase, customer experience ratings, and agent sales data, which will increment the need to deploy more automated systems to handle data in the near future.

The gathered data can help experts in cognitive data analysis and help businesses to improve product line, customer segment, and their behavior pattern, which is beneficial in the long term in terms of profitability. The point of sale system helps to transform massive customer relationship management (CRM) and customer engagement.

Effective Management of Assets Is Crucial for Companies in the Long Run

POS software is capable of removing the inefficiencies, such as the way of doing business, the labor, and the customer handling process. Implementation of a POS eliminates employee dependency on managing business data and helps in making an informed and quick decision. There is a rising demand for POS terminals to help identify extra, unnecessary, under-utilized, and aged resources and manage them ideally. This leads to greater productivity and a strengthened workforce and helps to boost long-term revenue for a company.

Market Segmentation

Service Segment to Grow with the Highest CAGR During the Forecast Period

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.

Regional Outlook

Growing Adoption of POS Terminals across Various Industries in North America to Drive the Market Growth

North America’s market is largely driven by the growing adoption of POS terminals across various industries and the presence of giant software vendors. ​The U.S. is emerging as a prime segment in the North American POS software market, followed by Canada and Mexico. North America is an early adopter of mPOS and advanced technological infrastructure. Many companies across the region are focusing on providing POS solutions and services.

Global Payments, a global electronic payment (e-payment) processing company, launched Ingenico iCT250 contactless point-of-sale (POS) terminal built on Ingenico’s Telium2 platform. The iCT250 will help in processing cardholder’s payment transactions. It is built-in contactless processing, a vivid color screen, and backlit buttons that offer high visibility. The region is coveted for its consumer spending power, investment in cloud-based apps, and hybrid multi-function configurable POS systems and is anticipated to grow exponentially during the forecast period.

Key Players

• GK Software SE​
• Agilysys Inc.​
• Aptos Inc.​
• PCMS Group Ltd.​
• Infor Inc.
• NCR Corporation
• Cow Hills Retail BV​
• Ingenico SA
• VeriFone System Inc.
• Panasonic Corporation​
• PAX Technology
• Casio Computer Co. Ltd​.
• PCMS Group Ltd.​
• Toshiba Tec Corporation​

Global Point of Sale Software Market: Segmentation

By Component

• Hardware
• Software
• Service

By Type

• Fixed Point of Sale Terminals
• Mobile Point of Sale Terminals

By End-User Industry

• Entertainment
• Hospitality
• Healthcare
• Retail

By Region

• North America
• Europe
• Asia-Pacific
• SAMEA