Point-of-Sale Terminals: A Secure Way of Money Transactions
A point-of-sale terminal (POS) is a modern electronic system that incorporates software and hardware to enable the acceptance of card purchases at stores without using cash registers. POS terminals are computer terminals used for card collection, billing, inventory control, and loyalty programs in a wide range of vertical end uses, including hotels, healthcare, catering, shopping, warehousing/distribution, and entertainment.
The Global Point-of-Sale Terminals Market is expected to grow at a CAGR of approximately 6.2%, during the forecasted period.
The expense of building POS terminals is calculated by the nature of the organization and the supply conditions. Customers will not be forced to pay a charge to access the POS terminal facility, and small stores or suppliers will not be required to pay a lease for the use of POS devices. Continuous technical advances have culminated in the development of technologies such as smartphone POS with bar code scanners and cloud-based POS, which increase user productivity while offering a high return on investment (ROI).
Both POS Software and hardware have improved over the past years, allowing for portability and stability in transactions. End-to-end security systems for encrypted payment applications and market adaptability are expected to accelerate investment due to the dependability and demand for point-of-sale systems. The introduction of multifunctional technology into the POS architecture will allow a number of applications to ensure safe payment, customer data processing, and employee information management.
Increased R&D investment and the development of novel payment solutions by manufacturers would push up POS terminal demand. Payment companies are developing innovative solutions for novel industrial applications to increase profitability. For instance, Paytm announced in May 2018 that it will invest approximately USD 30 million in the creation and deployment of point-of-sale (POS) solutions in over one lakh retail outlets. This equipment would allow retailers to better control their inventory and business acquisitions, thereby resulting in improved sales growth.
Rising Demand of mPoS Amongst Population Projected to Drive Market
One of the key advantages of mPoS (mobile point-of-sale) solutions is that they enable merchants to facilitate sales in a number of environments. In a retail environment, dealers sell goods to customers in various areas of the store. Many businesses that often sell goods/services outside of the store, such as at a farmers' market, a food truck, or their customers' homes, can use the mPoS solution to securely accept various types of card payments.
The ease of use of mPoS enables merchants to provide a more customized experience to their clients. Since sales managers will target shoppers in aisles rather than in checkout queues, the likelihood of marketing and selling cross-sections is higher. For example, a sales associate in the aisles assisting a customer in trying other accessories that complement the customer's purchase. This significantly improves customer experience, aids in the creation of a more complete view of the market, and increases sales opportunities.
The Europay, Mastercard, and Visa (EMV) migration is also ongoing in the United States, and many retailers need dependable payment solutions that allow them to accept EMV cards. mPoS technologies allow merchants to affordably plan for EMVs. These programs are much simpler to implement, and retailers are no longer liable for charges arising from unauthorized card purchases after introducing EMV. These factors are contributing towards market growth.
Rise in Cyber-Attacks and Bank Frauds Are Primary Restraints for Market Growth
Bugs in mPoS, according to technology experts, may cause malicious traders to defraud consumers and aggressors to steal data from payment cards. Square, iZettle, SumUp, and PayPal, among others, uncovered vulnerabilities in their mPOS systems in the U.S. and Europe. Devices run by connecting to a mobile application using Bluetooth and sending data to a payment processor's server. Profiting from the valuation of magstripe trades is feasible through intercepting the trade.
A deceptive businessman can gain access to traffic, alter the amount shown to the customer on the card reader, and force the customer to approve an entirely different amount without providing any information. In the United States, just 58.5% of debit and credit card transfers use EMV technology, and only 41% of purchases are processed in this manner, which proves to be a significant threat to magstripe assaults.
Remote code execution attacks have also been used against individual mPOS software. The reader's entire operating system could be breached through this vulnerability. Other readers' behavior can be influenced if random instructions are distributed to them. Dishonest merchants, for example, may compel consumers to use a less secure payment method (such as magstripe) or claim that a payment has been deducted in order for them to make more purchases.
Surging Demand For Efficient, Accurate, and Economical Transactions
Point-of-sale solutions improve the purchasing process due to their simplicity and dependability. Members of the sales staff could be reimbursed at any time and from any place. Owing to mobile networking, the purchasing phase is now a real-time affair that can be carried out from everywhere. Unlike the manual credit card imprinter, mPOS is instantaneous. Since the orders are automated, reports can be sent to accounting systems almost immediately, and statistics and traveler interests can be saved for potential personalization.
EMV alternatives are needed for travel companies that accept credit or debit cards. Many standard POS implementations are incompatible, such as the need for PIN pads and bi-directional links. Travel companies are also using mobile POS systems to quickly and affordably accept EMV transactions while still including NFC capabilities.
The COVID-19 pandemic has had a significant influence on major sectors of the global economy, with lockdowns having the largest impact on engineering, vehicles, retail, aviation, and hospitality. As a consequence, the ever-expanding POS concept, which is strongly linked to the above industries, has been influenced. Shuttles and transport constraints, as well as reduced customer discretionary income, both have a negative influence on digital purchases (dining out, film and entertainment, and so on).
Despite the lockdowns, a variety of areas throughout the PoS terminal are being expanded due to increased acceptance. There are also online grocery outlets, online shops, OTT platforms, EdTech, online gamers, recharges, and other utility and bill fees.
Owing to Rising Security Concerns, Biometric Segment is Projected to Dominate
Biometric POS terminals are projected to expand at a CAGR of approximately 16% over the forecast period. Account privacy and anonymity is becoming more difficult in the payments industry. In contrast to conventional payment systems, these technologies allow the scanning of personal attributes, resulting in a stable and authenticated payment protocol.
For the security of user identities, biometric POS instruments, such as fingerprint, palm printing, and facial recognition, are available with a variety of vendors. To start with, Ingenico Group provides the Move/2500 POS, which includes protection features such as chips, PINs, and fingerprint scanning. The introduction of safe and sophisticated biometric POS systems has fueled the growth of the POS terminal industry.
Customer Satisfaction and Order Management Enhancement Demand in the Restaurants Segment
Increasing demand to improve employee efficiency, order delivery, and consumer loyalty by speeding up payment delivery drives the demand for SOP solutions among restaurant owners globally. For such solutions, owners may handle a vast range of orders, shifts, menus, tables, databases, and payments. Some retailers provide these personalized solutions in combination with online shopping platforms, thereby enabling restaurants to extend their scope and reach out to new consumers.
Lightspeed offers POS devices such as Mobikon, Growzer, Chowly, City Hive, Mobi2Go, Inventivio, and BPL as supplements to numerous online shopping pages. These services provide consumers with transactions that are fast, safe, and enjoyable. These advances are fueling the market for POS terminals.
Asia Pacific Set to Dominate Point-of-Sale Terminals Market
Over the forecast period, Asia Pacific is projected to evolve as a competitive market, with the highest growth rate of over 9%. Wage increases and higher living standards have resulted in retail industry booms in emerging countries, such as India and China, thereby driving up retail POS demand. Government policies in this area are set to foster a cashless economy push POS terminal demand. Low penetration and the demand for mobile POS terminals are expected to provide lucrative growth opportunities in emerging Asia Pacific economies such as the Philippines, India, Vietnam, Thailand, and Singapore over the forecasted timeframe.
Regulations Drive PoS Demand in North America
In 2019, North America was the world's second-largest income contributor. The proliferation of payment systems, such as NFCs and contactless payments, has helped the expansion of North American economies. Improved protection has boosted demand for POS terminals as a result of regulatory criteria such as the Europay, MasterCard, and Visa (EMV) legislation. Slow development has hampered the overall growth of the POS economy in retail and other service sectors.
China Showcases the Most Accelerated Market Growth Projectile
In 2018, Chinese banks released around 7 billion cards, a 13% increase from the previous year. Concurrently, the number of credit cards issued increased by almost 100 million, from 588 million in 2017 to 686 million in 2018. Emerging payments such as online payment, mobile payment, and fixed-line telephone payment have stifled e-payment in conventional consumption sectors while having no impact on POS terminal e-payment.
The Chinese POS procurement climate has changed over the years of expansion. Each POS end-user in 2018 equated to 246 bank cards, with up to 24.6 POS terminals per 1,000 citizens. According to POS terminal coverage, China has far smaller per capita ownership than other countries. With a large domestic user demand, modern technologies, such as smart POS terminals and MPOS terminals, are entering the industry. Terminal payment is unlikely to reverse in the short term after being affected by QR code payment, and the POS terminal finance industry tends to grow at a fast pace.
The POS terminal industry has considerable entry hurdles and a relatively high concentration of companies due to its rigorous qualification structure. PAX Global, LANDI Commercial Equipment, New POS Technology, Xinguodu, VeriFone, Justtide, and Newland are the top POS terminal brands in China.
Key players in the global point-of-sale terminals market consist of Cisco Systems, Inc., Equinox Payments, LLC, Ingenico S.A., iVeri Payment Technologies (Pty) Ltd, Micros Systems, Inc, Miura Systems Ltd., NCR Corporation, Panasonic Corporation, Samsung Electronics Co., Ltd, Toshiba Corporation, Vectron Systems SA, and Yoco Technologies (Pty) Ltd, among others.
The bulk of main players are interested in the deployment of point-of-sale terminals. In order to be competitive, companies are looking for a new solution. Market leaders also combine together and cooperate to build technologies and hardware to ensure the smooth operation of point-of-sale terminal systems. There is much less rivalry among industry leaders as a consequence of small business players all over the world.
Point-of-Sale Terminals Market: Segmentation
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