Point of Sale Systems, POS Industry: Market Research Reports, Statistics and Analysis

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.

Industry Leaders

Key players operating in the POS market are: VeriFone, Wincor Nixdorf, Ingenico, Oracle, JDA Software, Hypercom, First Data, Motorola, Epicor, Olivetti Tecnost, Thyron Systems, Fujitsu, Radiant Systems, Cybernet, Hypercom, Micros Systems, Atos Worldline, Keycorp, Gemalto and International Business Machines.

Market Outlook

The global POS industry is expected to continue expanding over the coming years, driven by the rising frequency of non-cash payment transactions. EFTPOS terminals are being chosen by merchants to manage customer dealings, and to break down consumer purchasing choices in order to build customer profiles, a useful tool for marketing and improving consumer relations. EFTPOS terminals will also continue to prove popular thanks to their versatile functions, such as options to manage loyalty programs and gift cards.

Leading Industry Associations

• Association for Retail Technology Standards www.nrf-arts.org
• National Retail Association www.nrf.com
• Retail Advertising and Marketing Association www.rama-nrf.org
• Global Association for Marketing at Retail http://popai.com
• Retail Solution Providers Association www.gorspa.org