The point of Sale (POS) software implements functions associated with acceptance, processing, storage and transmission of sensitive card data. This industry is anticipated to show rapid growth over the forecast period owing to the ease of payment process, fast remittance, and extensive use of cards (credit & debit) for transactions.
One of the key factors contributing to the market growth is the increased adoption of credit and debit cards. Debit cards have overtaken cash, particularly among the highly desirable, younger generation consumers. However, businesses still need to address the most sophisticated processing and security challenges posed by credit cards, as well as the growth of mobile payment options.
Advancement in cloud-based POS solutions is expected to showcase significant opportunities in coming years. New opportunities focused on the needs of the business are being introduced by start-ups. Cloud computing POS solutions have various advantages over traditional solutions such as access to a service on demand, lower CapEx, reducing internal IT infrastructure, and others.
Advancement in POS software integrates functions, like pricing, inventory and even systems such as digital signage and security will offer to new opportunities in the market. Choices are being offered in mobile and stationary POS solutions by understanding new mobile payment options and putting in place the right security and compliance.
By verticals, the market is segmented into retail, grocery/supermarket, hospitality, healthcare, field service, logistics, warehouse/distribution, government, and education.
Consumer preference has shifted from traditional payment methods to online payment methods. Investments in hardware and software have risen gradually alongside corporate profit, driving sales in wholesale, retail, and hospitality service industry. Small and medium enterprises are consolidating their business to expand into niche markets, which has increased profit margins. Revenue is anticipated to grow in the next seven years, as growth in downstream markets and technological improvements, including cloud computing, continue to propel the demand.
The introduction of new technology, for instance, NFC (Near Field Communications) is paving the way for electronics wallets through mobile phones. Companies are therefore encouraging mobile payments and NFC technology. It has pushed POS system to migrate towards mobile acceptance, hence demanding POS software that is flexible and incorporates new requirements.
The high cost and complexity associated with up-gradation of POS software hinder the growth of this market. However, the up-gradation of the point of sale systems by the retailers is expected to drive the market. To steal credit/debit card data cyber crime gangs organize various operations, and then they sell these data in underground marketplaces. The data is sold to the criminals who use the stolen data from a card’s magnetic strip to create clones.
North America is considered as the critical region for this industry owing to the established network infrastructure, the presence of major POS software providers, extensive usage of cards for payment and adoption of mobile payment system. Europe is also considered as critical region after North America; European countries has the presence of the large retail stores, which use point of sale terminals for payments; cards have overtaken cash payments and extensive use of electronic wallet payment.
Asia Pacific is expected to show rapid growth in this industry owing to adoption in mobile payments options and increase the use of Near Field Communication (NFC) payment option. Countries in Asia Pacific such as India, China, and Japan are observing revolutions in the sector such as retail, hospitability, and healthcare. These verticals are extensively adopting POS software which will have a positive impact on the revenue collection.
Key players in this region are Square, Shopify, iPaymentPOS, PayPal, uAccept, Bingo, Clover Station, TouchSuite, GotMerchant, and Harbourtouch.
Companies in the market have adopted various strategic initiatives such as new product development, merger and acquisition, and partnerships and collaboration to have a competitive advantage and high market share.
In July 2015, PayPal acquired Xoom Corporation a digital money transfer provider. This acquisition will help PayPal to expand into international money transfer and remittance, and enhance its customer base globally.
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