Global Point of Sale (POS) Industry
The global point of sale (POS) software industry is expected to reach $3.2 billion in 2014, according to TechNavio. The market is driven by retailers upgrading their point of sale systems. Upgrades are necessary to deal with multi channel shopping, which calls for evolving POS software design. Obstacles to market growth include the cost of software upgrades.
Point of sale systems involve hardware and software used by retailers to accept payment transactions from their customers. Retailers are the end users of POS systems, but the industry involves many other players. Companies linked to the industry include large distributors generating multi-million profits and mid-sized software developers. These outfits supply POS wares to local resellers, who vary in size from small-to-moderate operations.
The world POS hardware industry is expected to reach almost $31.5 billion in 2014, reports TechNavio. The market is driven by businesses adopting hardware interface standards. More recent market developmental trends include the incorporation of witnessing wireless POS hardware to accommodate a world where mobility is of increasing importance. High standards concerning data accuracy and the need for optimal compatibility present obstacles to market growth.
Key Market Segments
The world self-checkout (SCO) terminal market is expected to exceed 579 thousand units by 2017, according to Global Industry Analysts. The market is driven by retailer efforts to improve customer service and cut costs. Other advantages of SCO terminals include greater checkout process speed and control, and improved privacy. Rolling out the technology beyond developed Western nations to regions such as Latin America and Asia-Pacific can present market challenges.
The world wireless POS terminal industry is expected to reach $4.5 billion in 2014, reports TechNavio. The market is driven by falling wireless POS costs, but market growth is challenged by unstable wireless connections. Major players operating in the market include Verifone, Cybernet and Hypercom.
Global Industry Analysts forecasts the global electric funds transfer (EFTPOS) terminal market will reach close to 10 million units in yearly volume sales by 2015. The market is driven by widespread compliance with EMV (visa) standards and increasing frequency of non-cash transactions. POS systems are more open, accepting a wide range of hardware and software, as opposed to the more traditional single platform systems. Market growth is driven by demand for POS system security to combat fraudulent payments, which has retailers abiding by major car issuer guidelines and adopting end-to-end data encryption. With retailers eager to ensure secure payment transactions, the amount of EFTPOS payments made worldwide have been climbing steadily, bolstering demand for terminals.
Chinese Regional Market
Research in China estimates close to 2.20 million merchants made up the interbank payment network in China in 2010, a near 40% year-on-year increase. Bank card payment demand in China is being driven by climbing consumption levels and greater consumer awareness. In 2010, there were close to 3.5 million networked POS machines in operation in China. Major players in the Chinese financial POS machine market include Shenzhen Xinguodu Technology, PAX Global Technology, LANDI Commercial Equipment and VeriFone.