POS Systems: Redefining Digital Space and Businesses

Introduction

Infographics by GO-Globe E-Commerce

Understanding POS Systems

Benefits for Businesses

Enhanced Customer Experience

Efficient Inventory Management

Sales and Reporting Insights

Point-of-Sale Systems: Facts, Figures and Latest Trends

2023 Latest Statistics

• The global POS software market is expected to generate $13.49 billion in 2023
• Global POS terminals market is expected to grow from $103.8 billion in 2023 to $181.5 billion by 2030, showcasing a CAGR of 8.3%.
• Only 28% of retailers are using POS software they’ve adopted within the past two years. That number for POS hardware is slightly higher—at 32%
• With a value of just over $36 billion in 2022, the global mobile POS (mPOS) terminals market is poised for growth.
• Its value is expected to hit $40.8 billion in 2023 and $85.1 billion by 2030.
• The total transaction value for mPOS payments will reach $3.3 trillion globally in 2023. This is projected to grow at a 14% CAGR, reaching $5.58 trillion by 2027.
• Average mobile transaction value is expected to increase 40% by 2027
• More than 40% of restaurant businesses are planning to make mPOS implementation a priority for 2023.
• By 2026, digital and mobile wallet payments are expected to make up 43% of global payments (up from 32% in 2022).
• In 2022, only 13% of Retail Consulting Partners survey respondents felt they had successfully integrated their POS and OMS, but said it needed improvement, and another 30% planned an integration within three years.
• Data from POS transactions make up 51% of retailers’ most valuable data.

General POS Statistics

• In 2020, the market size value of POS software reached $9.3 billion. It is forecasted to hit $18.1 billion by 2027.
• The top POS priorities among North American retailers for 2020 are as follows:

1. Omnichannel capabilities integration - 59%
2. Improve existing POS - 52%
3. Unified ecommerce platform - 44%
4. Mobile POS - 44%,
5. POS upgrade or replacement - 41%,
6. Hardware upgrade - 30%

• The largest POS market segment is POS hardware, which is predicted to reach $66.30 billion by 2025.
• 59% of retailers made focusing on omnichannel capabilities their top POS priority in 2020. Meanwhile, 52% of retailers wanted to enhance their POS systems in the same year.
• Compliance (7%) and considering a unified payment platform (7%) are the least of retailers’ priorities in 2020.

Mobile POS Systems Statistics

• For 2020, the total mobile POS transaction value was $1,017,982 million and is projected to reach $2,489,471 million in 2021. (Statista, 2020)
• 16.9% – the expected annual growth of mobile POS value from 2021 to 2025.
• By 2025, the value of mobile POS market value is expected to reach $4,650,556 million.
• There are 1,490.5 million users of mobile POS payments worldwide as of 2021.
• 54% of businesses have used mobile POS for processing transactions.
• 79% of stores that use POS systems are small and mid-sized brands, while 21% are large enterprises.
• 23% of mobile POS users still can’t accept payment using the tool.
• Today, 46% of retailers don’t utilize mobile POS to process their transactions.
• As of 2020, 50.6% of mobile POS users are male and 49.4% are female.
• Among consumers, 28.6% of mobile POS users are between 25 and 34 years old, which is also the age group with the largest number of users.
• The year-on-year growth rate of mobile POS payment users is +10.1%.
• In 2019, the average transaction value of mobile POS payments per user is expected to reach $7,960.5 in 2021.
• Total number of mobile POS payment users is expected to reach 85.6m by 2025.
• Experts predict that the transaction value of mobile POS payments will reach $1,006,220 million by 2025.

Mobile POS Payment Users Based on Income

• 30.8% belong to the low-income bracket.
• 30.5% are medium-income earners.
• 38.6% are high-income earners.

Mobile POS Payment Users based on Age Groups

• 21.1% = 18–24 years
• 26.8% = 25–34 years
• 26.2% = 35–44 years
• 16.3% = 45–54 years
• 7.8% = 55–64 years

Mobile POS Payment Transaction Value (2017–2025)

• $4,165.8 in 2017
• $5,114.45 in 2018
• $6,063.1 in 2019
• $7,011.80 in 2020
• $$7,960.5 in 2021
• $8,909.14 in 2022
• $9,857.8 in 2023
• $10,806.5 in 2024
• $11,755.2 in 2025

Restaurant POS Statistics

• The global market for restaurant POS terminals is expected to jump from $20 billion in 2022 to $38 billion by 2030, which This represents a CAGR of 8%.
• The self-service kiosk subsegment of the market is projected to grow the fastest, with a CAGR of 9.5%.
• Purchasing a POS system costs restaurants an average of US$9,300 upfront. This is down from more than US$13,000 in 2017. However, monthly costs have risen since 2017, from about US$140 to some $380 in 2022.
• 57% of restaurants worldwide aim to introduce new payment options.
• 30% of restaurants are motivated to upgrade their POS for the “tight integration” needed to execute omnichannel shopping experiences.
• More than 70% of businesses use POS data for digital engagement, menu optimization, and streamlining payments.
• More than 60% of restaurants use one or more handheld POS terminals, compared to just under 30% in 2017.

POS User Personalization Statistics

• 34% of retailers use mobile website or applications to retrieve customer information they can use to create a more personalized experience.
• 78% retailers plan to use mobile apps to help with identifying the customers in their stores.
• 56% of retailers can retrieve buyers’ contact information during checkout; 22% of retailers can do so before checkout and 7% can get a buyer’s contact details after checkout.
• 35% of retailers are already offering personalized rewards based on customer loyalty. Meanwhile, 23% of retailers plan to offer personalized rewards within 12 months, and another 23% plans to do the same within 1-3 years.
• 41% of retailers plan to add “suggested selling based on previous purchases” within 1-3 years as part of creating a more personalized experience for the buyer. This is already being offered by 22% of retailers and another 22% also plan to implement the same personalization approach within 12 months.
• 23% of retailers are exploring NFC & Beacons and 15% uses media listening as alternative customer identification technologies.
• 91% of shoppers are more likely to buy in stores that can provide more personalized and relevant suggestions.
• 83% of consumers are willing to divulge personal information in exchange for a personalized shopping experience.
• More than 86% of the total software spending in the retail industry is dedicated to the concept of “unified commerce.”
• For 79% of shoppers, a key consideration when looking for stores to shop is personalized service.
• 56% of consumers opt for businesses with brands that allow shoppers to use a shared cart across different channels.

Cloud-Based POS Statistics

• It is estimated that a CAGR of nearly 25% will be generated for the global cloud POS market, from a value of US$3.6 billion in 2021 to US$26.4 billion by 2030.
• On-premise deployment is by far the leading deployment method for restaurant POS systems (75% of revenue in 2022), however, cloud-based deployment is the fastest-growing method, with a CAGR of 9.2% through 2030.
• Only 7% of retailers are currently using cloud-based POS, but 28% claim that they plan to adopt cloud-based POS in the future.
• 52% of corporate organizations have fully transitioned to cloud-based POS; 40% more are planning to migrate to cloud-based POS.
• Only 7% of retailers are currently using cloud-based POS, but 28% claim that they plan to adopt cloud-based POS in the future.
• Cloud POS systems have gone beyond the 20% critical level in market penetration. This covers all retail categories except for cafeteria businesses.
• More than 60% of recent POS system purchases were cloud platforms, setting a new milestone when cloud platforms first surpassed legacy systems.

AI-Powered POS Statistics

• 15% of businesses in the United States have used POS with AI capabilities.
• 40% of US-based businesses are planning to use AI-enabled POS within the next 12 months.
• 40% of customers in the 18-24 age group are happy with the AI-integration in stores that meet their expectations and preferences.
• Experts predict that AI-enabled services will grow further, with 15% of businesses already deploying it in their POS systems.
• Estimated market value by 2026 is expected to reach US$10.9 billion, with a CAGR of 35% from 2021-2026.

POS Report & Analytics Statistics

• 78% of retailers are not capable of identifying their customers until checkout.
• 22% of retailers do not have the capability at all to identify their customers.
• 22% of retailers use their customers’ purchase history to suggest new products or services.
• A survey of small businesses shows that 50% of small businesses believe that the various reports that they generate are crucial in helping sustain their POS usage.
• 75% of companies are planning to allocate in-store mobile tools in their budgets within the next year.
• 61% of merchants prefer buying POS systems with analytics for understanding customer preferences.

POS Data & Security Statistics

• 49.3% of retailers agree that fraudulent activities occur the most during in-store-only purchases.
• Multichannel purchases (bought online and picked up in-store) are also vulnerable to fraudulent activities according to 18.8% of retailers.
• The use of POS exception-based CCTV interface as part of security measures has increased by more than 16% since 2019, rounding up the businesses utilizing this technology to 49.3%.
• 72.5% of businesses use POS data mining as part of their loss prevention system.
• In 2019, 65.1% of US-based retailers turned to POS data to power their loss prevention efforts, registering a 7.9% increase from the previous year.
• Over 56% of retailers in the US have already deployed POS analytics to combat fraud.
• New POS systems-based technologies, such as fingerprint ID, are emerging, with 5.8% of retailers already using the technology, 2.9% in the testing phase, and 2.9% planning to implement in 2021.
• In 2013, retail giant Target became the victim of one of the biggest POS data breaches of all time, where its POS systems were infected by a trojan to steal the credit card information of over 70 million customers.
• In 2014, Home Depot was attacked using a POS malware, affecting as much as 2,200 branches and 56 million customers.

Sources: fitsmallbusiness.com/point-of-sale-statistics and financesonline.com/pos-statistics

Conclusion