Point-of-sale (POS) terminals market has gained significant momentum in recent years due to the ease of use and improved return on investment being offered by these systems. The global point of sale terminals market’s revenue is estimated to reach US$51.4 bn by the end of 2016, and rise to US$79.7 bn by 2020.
Healthcare Industry Set to Register Rapid Growth in Demand for Digital POS Terminals
By application, the retail sector took up the dominant share in the global POS terminals market in 2013. However, though the retail sector will remain a key contributor to the market in the coming years, healthcare is likely to become a vital application area for the POS terminals market. This is because the use of digital POS terminals has made it much easier for the healthcare sector to streamline its operations and organize patient data in an easily accessible way. Other major applications of point of sale terminals are restaurants, warehouse and distribution, entertainment, and the hospitality sector.
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By product type, fixed POS terminals were the leading revenue generators in 2013, with more than 80% of the market’s total revenue coming from fixed POS terminals. Nevertheless, the increasing adoption of mobile and wireless POS terminals is likely to be a notable feature of the global market in the forecast period.
Geographically, North America is the leading contributor to the global point of sale terminals market due to the widespread establishment of retail giants, restaurants, and casinos. The annual revenue of the North America market for point of sale terminals is expected to reach US$15.9 bn in 2016. The Europe market is another key regional segment due to the widespread use of VISA, MasterCard, and EuroPay payment gateways.
Lower Ownership Costs Driving Adoption of Point of Sale Terminals
One of the key drivers for the global point of sale terminals market is the decrease in the cost of operating payment gateways. Conventional payment channels require manual supervision as well as more elaborate construction than point of sale terminals. Large-scale utilization of point of sale terminals can thus result in significant cost savings for the vendor. This is an important point for small vendors, who can gain a lot by avoiding installing conventional points of sale.
Customers also support the use of POS terminals, since they can themselves operate the terminal quite easily and, in the case of mobile POS terminals, without having to wait in lines. While there remains some risk of data breaches through the payment software, the risk isn’t any higher for mobile POS terminals than it is for any other digital payment gateways.
The convenience of mobile POS terminals is set to result in a steady increase in their demand in the coming years. Mobile POS terminals are simply electronic devices such as smartphones and tablets that have been equipped with a software program that allows payments through cashless transactions and links the individual transactions to the store’s main financial register. Regular smartphones and tablets can be used as mobile point of sale terminals by installing apps. Mobile POS terminals can either be used as standalone systems, each connected through an app, or as a part of a larger system operating from a server.
The global point of sale (POS) terminals market is dominated by players such as Ingenico S.A., PAX Technology, Ltd., Toshiba Corporation, and VeriFone Systems, Inc. Due to the relatively recent emergence of point of sale terminals and the supporting infrastructure they require, the market is still fragmented and exhibits intense competition. Over the coming years, steady technological development and the increasing use of point of sale terminals will see the market settle into a firmer competitive hierarchy, says Transparency Market Research in a new report.
Other leading players in the global point of sale terminals market are NEC Corporation, MICROS Systems, Inc., HP, Cisco Systems, Inc., Samsung Electronics Co. Ltd., and Panasonic Corporation.