POS Terminals Market Size, Share, Growth, and Industry Analysis, By Type (Fixed POS Terminals, Wireless POS Terminals and Mobile POS and etc.), By Application (Financial Institutions and Third-Party Payment Institutions), and Regional Insight and Forecast to 2032

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POS TERMINALS MARKET OVERVIEW

The global POS terminals market size was USD 57.56 billion was 2024 and will touch USD 282.5 billion by 2032, exhibiting a CAGR of 22% during the forecast period.

The expansion of the Point of Sale (POS) terminals market has largely been caused by the consequence of increasing demand for speed and security in payments, vital across many industries. POS terminals are electronic devices that process card payments that allow businesses to conduct transactions that improve customer experiences through simplicity. As digital payments and mobile wallets evolve, so does the POS terminal market, powered by the latest technologies such as contactless payments and cloud solutions—an AI analytical engine. The rapid adoption of POS systems by retail, hospitality, and several other sectors is further aided by the need to process payments better and improve data.

COVID-19 IMPACT

The pandemic caused uncertainty, leading to negative growth in the POS terminals market

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Earlier last year, the initial stages of the pandemic sunk the POS terminals market into negativity. There was no spending among consumers because of the widespread lockdowns and other restrictions. As a consequence, demand for POS systems in most industries associated with retail, hospitality, and travel shrank substantially. Most businesses encountered a financial crunch that drove them to postpone or cancel investments for implementing new POS technology. There was broadly too much uncertainty in the economy, which also forced companies to resort to cost cuts and directly affected the growth of the POS terminals market in the pandemic.

LATEST TREND

Market growth is driven by contactless payments, mobile wallets, and AI

Trendy features of modern  POS Terminals Market Shape are the instantaneous acceptance of contactless payments, the assimilation of mobile wallets, and the adoption of cloud systems. Contactless payment is one such trend growing rapidly, driven primarily by the consumer demand for quick, safe transactions, especially in the aftereffects of the pandemic. As a consequence, the demand for NFC-enabled terminals has increased as they grant the facility to make seamless transactions with virtually no contact. AI and data analytics developments also make POS systems more efficient, imparting useful insights to businesses about consumer behavior and sales trends.

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POS TERMINALS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Fixed POS Terminals, Wireless POS Terminals and Mobile POS and etc.

• Fixed POS Terminal: Fixed POS terminals are nothing new; they are old-school, traditional, stationary devices used in retail to process payments. It generally connects wiredly to the point of sale system, as it should, to ensure, in plain background terms, secure and stable transactions. They have more functions, such as receipt printing, barcode scanning, and inventory management. High amounts of transactions in consistently set physical retail spaces have kept these machines presently popular, even with the present innovations of mobile and wireless DSAs.

• Wireless POS Terminals: Without being tied down to a specific point for processing payments, wireless POS terminals make such payments portable. Many of these devices build connections to payment gateways through Wi-Fi or even cellular networks for their operation. They are perfect for mobility businesses, for example, food trucks and pop-up stores. These can conduct transactions with a contactless chip or magnetic stripe card reader, making transaction processes faster and an added feature of convenience. Wireless terminals will continuously grow because mobile and on-the-go paying customers are on the rise.

• Mobile POS and etc.: Mobile POS (mPOS) terminals are mostly portable devices that allow businesses to undertake payment transactions using smartphones or tablets and mostly with a fixed or attached card reader. They are increasingly used by small businesses, freelancers, and service providers who would like some flexibility in their payment mechanisms. The mPOS devices can be connected to the internet via Bluetooth, Wi-Fi, or even cellular networks, thus allowing payments to be done anywhere. Growth in the adoption of mobile POS has further been stimulated by increased trends of digital wallets and contactless payments.

By Application

Based on application, the global market can be categorized into Financial Institutions and Third-Party Payment Institutions

• Financial Institutions: Most POS terminals come from financial institutions. Despite this, they provide fairly secure and efficient payment solutions for customers. They use POS systems to facilitate card transactions both in person and online. Most of the time, a security feature like encryption and fraud detection is incorporated into the systems to avoid malicious contacts during transactions. Further, the presence of financial institutions in the POS terminals market is generated by the growing shift of people from cash payments to digital banking.

• Third-Party Payment Institutions: Third-party payment institutions collect processing fees for payments assisted via POS terminals without holding the actual funds but acting as facilitators for transactions between businesses and banks. For processing payments, third-party payment institutions provide POS systems for businesses with access to different modes of payment, from credit and debit cards to mobile wallets. Most of the time, their services add value in the form of transaction reporting, analytics, and customer loyalty programs. With e-commerce ever-growing and the need for different kinds of payment options increasing, the reliance on third-party payment institutions continues to expand for POS solutions.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increased Usage of Contactless Payment Adoption

Particularly, the increasing adoption of contactless payment methods is an important factor thrusting the growth of the market in the POS terminals segment. Consumers, nowadays, prefer faster and safer transactions, which can be achieved with contactless cards or mobile payments. POS terminals have Near Field Communication (NFC) technology, which enables the user to make payments simply by tapping their card or smartphone. Notably, this has made it possible to a great extent post-pandemic, considering how people are trying to touch less. The growing number of retailers and financial institutions that now accept NFC technology keeps pushing up the demand for upgraded POS systems.

Growing E-business and Digitized Transactions

The fast growth of e-commerce and digital transactions has undertaken another growth driver for the POS terminals market. Since users have been making a great switch to online shopping and digital payment methods, companies are investing widely in state-of-the-art POS systems to be fully prepared for those changes. E-commerce trading that basically depends on payment can sometimes be handled through POS terminals for the purpose of managing online payment and also store transaction methods. Such can explain the demand for sophisticated payment solutions that truly can tie a customer's experience from physical sales with online purchases. This trend will continue in the view that digital transactions become a common customer behavior.

Restraining Factor

High upfront costs and ongoing expenses hinder POS terminal market growth

The high upfront installation cost is one of the major restraining factors that limit the overall POS terminal market in terms of adoption by the businesses, especially small and medium enterprises. Paid hardware and software and installation are expensive and thus cost-effective to be adopted for organizations with tight caps. Besides, ongoing maintenance, software updates, and transaction fees further inflate the total cost that deters companies from upgrading or adopting new technologies. Thereby, this monetary burden sets a few businesses up with outdated systems, impacting the growth of the POS terminal market.

Opportunity

Market growth is driven by mobile payment integration in POS systems

The next big opportunity for expansion is mobile payment solutions above  POS Terminals Market Growth. Thus, creating a heightening demand from customers who increasingly use smartphones to transact for POS systems that will be able to integrate with mobile wallets and digital payment applications. Major growth areas are POS terminals that offer integration, such as with Apple Pay, Google Pay, and other mobile wallets, considered convenient and secure, valued by consumers and businesses alike. This trend will certainly witness more widespread adoption of state-of-the-art, mobile-capable POS systems.

Challenge

POS terminal market growth faces challenges from security and fraud risks

Certainly, one of the critical challenges that the POS terminal industry faces is mounting concern regarding security and fraud risks. With the rapid digitization of payment data, POS systems are increasingly susceptible to cyberattacks and data breaches, exposing them to losses and reputational damage due to payment fraud. Advanced encryption and security protocols notwithstanding, cyber threats continue to evolve into more sophisticated forms. It is, however, an ongoing challenge to ensure compliance of the POS terminals with very strict required security standards such as PCI DSS. This increased incidence translates to frequent expenditure by businesses in upgraded systems and constant monitoring of the protection of customer data.

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POS TERMINALS MARKET REGIONAL INSIGHTS

• North America

North America's advanced technology and innovation drive POS terminal market growth

Over the years, North America has almost single-handedly dominated the POS terminals market because of its sound, advanced technological infrastructure as well as high adoption of digital payment solutions across industries. It demanded strong contactless payments, along with cloud-based POS systems, while also benefiting from the presence of leading payment technology providers. The United States  POS Terminals Market plays a significant role in this, as it has contributed much based on mobile and contactless payments. Moreover, the rapid propagation of e-commerce and retail business in the United States of America eventually boosts market growth. Continuous innovations in payment processing and security systems support this trend as well.

• Europe

Europe's market growth in POS terminals is driven by cashless payments

Europe will make a significant contribution to the  POS Terminals Market Share with this focus on the adoption of digital payments and state-of-the-art technological infrastructure. The region is quickly becoming cash-strapped as customers accept contactless payments and mobile wallets, promoting cashless transactions. Thus, most European countries are placed within Scandinavia, where they are most favorable to cashless payments, enhancing the demand for POS terminals. Furthermore, regulations such as the GDPR and the PSD2 have also facilitated the establishment of innovative, safer POS solutions. Europe will thus remain a vital player in the global expansion of the POS terminals market.

• Asia

Asia drives POS terminal market growth with digital payment innovations

The POS terminals market has a contribution from Asia because of the fast-growing economies and converting the requirements into digital payments in the region. The entry of mobile payment solutions is a driving cause for the growth in demand for advanced POS systems supporting contactless and mobile transactions in China, India, and many other countries. Besides, the rising retail and e-commerce sectors in Asia also sharpen their needs for efficient and secure yet simple payment solutions. Governments of some countries have launched initiatives that encourage cashless transactions, which modernize the entire national infrastructure in finance and help boost market growth. Thus, it emerges that Asia creates the design and space for much innovation and growth within the global POS terminals market.

KEY INDUSTRY PLAYERS

Key industry players drive market growth with innovative, secure POS solutions

The developing key industry players are contributing significantly to the POS terminals market by bringing forth new innovations, bettering payment solutions, and extending the market reach. Major companies such as Verifone, Ingenico, and Square have been creating advanced POS systems that incorporate leading-edge technologies, including contactless, mobile wallet-enabled, and cloud-based services. The continuous research and development efforts of these companies ensure that future POS terminals will meet the demands of consumers for more secure and efficient transactions. Furthering the connections established with financial institutions, retailers, and e-commerce platforms creates further opportunities for the adoption of these particular solutions worldwide. Taking account of changing market trends and regulatory requirements only makes this impact more significant in the POS terminals market.

List of Top Pos Terminals Companies

• Ingenico (FRANCE)
• Verifone (U.S)
• PAX (CHINA)
• Newland Payment (CHINA)
• LIANDI (U.S)

KEY INDUSTRY DEVELOPMENT

October 2023: A recent industrial development in the POS terminals market occurred in October 2023 when Verifone launched its Verifone Engage series of POS terminals. These terminals are designed to provide enhanced payment security, fast transaction processing, and support for emerging payment methods such as NFC and mobile wallets. The new series integrates advanced features like biometric authentication and AI-powered analytics to provide businesses with valuable insights into customer behavior. This development aligns with the growing demand for secure, multi-functional, and efficient payment solutions in a rapidly evolving digital payment landscape.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably