INTRODUCTION
With digital transactions picking up preference as the future of payments, POS machines market is undergoing a significant change in recent times. Over the years, the transformation of e-commerce and rising governmental initiatives towards promoting digitization have essentially brought down the risks associated with the traditional modes of payments like cash. Experts theorize this disruptive mix of consumer behavior and preference changes and government initiatives to provide a rather competitive spur to the overall POS machines market.
The point of sale (POS) is the time and place where a retail transaction is completed. A digital retail point sake system typically includes a POS terminal that can read debit/credit cards and enable payments through a simple scan/ swipe or tap.
Fig 1. Diagram explaining the working of POS
POS INDUSTRY GLOBALLY
POS Terminals Market Size Worth $125.9 Billion By 2027 | CAGR 7.5%
The global POS terminals market size is expected to reach USD $127.9 billion by 2027 expanding at a CAGR of 7.5%, according to a new report by Grand View Research, Inc. The market is anticipated to witness substantial growth over the forecast period. Rising demand for POS terminal with multiple features, such as inventory management, CRM, employee scheduling and reporting, in addition to payment processing will help boost market. Advancement in POS terminals is providing large. As well as small-scale, businesses with greater flexibility, control, and intelligence than before.
The market for fixed POS terminal has been affected by the introduction of mobile POS systems. The mobile segment is anticipated to expand at the fastest CAGR over the forecast period and is projected to reach over USD 68.3 billion by 2027. The demand for mobile POS terminal is rising rapidly in developed countries owing to its user-friendly, cost-effective, and convenience features. Moreover, they allow omnichannel assistance for scenarios, such as Buy Online, Pick-up in Store (BOPIS), online purchase, and home deliveries from the store, which is expected to boost market growth over the forecast period.
Further key findings from the study suggest:
• The global POS terminals market accounted for USD 69.0 billion in 2019 and is expected to register a CAGR of 7.5% from 2020 to 2027
• Hardware emerged as the largest segment in 2019 and is estimated to reach USD 66.30 billion by 2027
• Mobile product segment was valued at USD 25.1 million in 2019 and is anticipated to register the fastest CAGR of 12.8% from 2020 to 2027
• Healthcare segment will witness the fastest CAGR of 9.8% during the forecast period
• Growing retail and foodservice sectors and wide usage of mobile POS application for creating new payment platforms and marketing channels will also drive market.
• Some of the key companies include Ingenico Group; The NCR Corp.; VeriFone Systems, Inc.; PAX Technology, Inc.; Fujian Newland Payment Technology Co. Ltd.; Revel System, Inc.; Oracle Corp.; and ShopKeep
Grand View Research has segmented the global Point-of-Sale (POS) terminals market on the basis of product, component, deployment, application, and region:
POS Terminal on the basis of:
• Product: Fixed and Mobile
• Component:
Hardware, Software and Services
• Deployment
On-Premise and Cloud
• Application
Restaurant, Hospitality, Healthcare, Retail, Warehouse, Entertainment and Others
PAYMENT OUTLOOK IN GCC
• The Gulf Cooperation Council (GCC), an intergovernmental political and economic union consisting of the Arab states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, is undergoing significant change. New, disruptive technologies are entering the payments market and putting pressure on traditional banking practices. Also increasing the use of Fintechs platforms and services
• Research by Visa Consulting and Analytics showed millennials account for 40% of Saudi Arabia’s population with smartphone penetration levels reaching nearly 74 % overall. There is also a willing to try new solutions with 80% of respondents stating that they have performed a contactless transaction and were open to do so again.
• These markets also host largely banked populations that increasingly expect a digital banking experience. The growth of the digital economy further pushes for integration of payments into the digital economy.
• The anticipated increase in the use of Digital Payment apps may be attributed to the Coronavirus (COVID-19) outbreak, which has created economic challenges due to lockdowns being enforced globally.
OBJECTIVES OF STUDY
Founded in 1970, Evolute Systems Pvt Ltd is an electronic device manufactures. The company has 4 verticals FinTech, CleanTech, GovTech and Industrial Electronics tech. Working as a Business Development Intern during the internship program, I’ve been working with Fintech vertical of the company.
The main objective of the study is to understand the mobile POS (mPOS) market and find out the potential parts where the company can expand its business. Along with this, the training program was designed to analyse various data. The objectives of the study are:
Need to initiate a research project majorly focussing on GCC markets.
1. Study of POS market in GCC region
2. Android POS acceptance in all the countries
3. Competitor trade partners and Channel management
4. Drawing out a holistic strategy on GCC with the research findings.
6. Solutions widely used in those regions with respect to terminals.