Point of sale is the location where an individual pays the business for the goods or services bought from them. Initially, most point-of-sales (POS) were the cash registers at stores but they have advanced today to include online options such as cards and payments via smartphone applications and more. The POS system also maintains a record of all the transactions, which helps in forming strategies to help the business grow further.
COVID-19 Impact on the Global Point of Sale Software Market
The pandemic had an extensive effect on multiple countries as well as industries all over the world. With the virus spreading uncontrollably, countries decided to shut down their borders and ban travel for several months. Though some organizations had to endure negative results, the global point of sale software market noticed a steady increase in its growth. This was primarily due to the need to manage cash transactions in a safe manner even amidst a pandemic. New and more advanced POS solutions were developed to ensure that any orders made online which required online payments would be as per the customers’ requirements. This upgrade was also made keeping in mind any changes that could occur in the market or for lockdown situations of a similar kind. Also, due to the guidelines given my several medical professionals, people were avoiding any cash payments and had shifted to cashless payments in order to prevent the spread of the virus.
Key Developments in the Industry
Multiple organizations have been taking initiatives to establish themselves in the market while also taking part in research. The companies have also been using innovative methods to create high quality products to ensure customer satisfaction.
For instance, in January 2021, Mastercard, a global leader in providing financial services announced the launch of one of the first live Cloud Tap on Phone pilot. This technology was created in partnership with NMI, a renowned payment facilitator and Global Payments Inc., an expert in the field of payment technology. This Tap on Phone method has ensured that the point-of-sale technology is able convert any smartphone or similar device into a payment receiver.
Similarly, in June 2021, Wix, a popular SaaS website that allows creation of content of various forms launched Wix POS solution. This technology allows business owners on the Wix platform to collect the payments for their goods and services in person as well as online but directly via the POS solution. The service ensures a combined channel which unites the online and offline domains via the Wix platform.
Forecast Analysis of the Global Point of Sale Software Market
As per the latest report published by Research Dive, the global point of sale software market garnered a revenue of $4,536.3 million in 2020 and is predicted to rise to over $10,294.9 million by 2028 at a stable CAGR of 11.1% from 2021-2028. The Asia-Pacific region is expected to dominate the market owing to the rising number of small businesses as well as retailers setting up more stores in the region. This has led to an increase in them implementing point of sale software to help supplement the growth of the market.
Off late, most of the people prefer to make a cashless transaction which also helps them manage their finances better while also providing the required flexibility. Today, individuals can use both their cards as well as smartphones to make instant payments of any value. To add further, an individual with access to the QuickBooks POS is also able to keep a track of sales as well as the inventory all products within a single application and device. These factors have ensured the rapid growth of the global point of sale software market.
On the contrary, the easy availability of sensitive information such as bank details and more on the various applications leaves it vulnerable to security threats. The POS software could also be subjected to network issues along with skimming and phishing. Moreover, unstable networks could also give hackers access into the web infrastructure that can further leave a lot of customers data exposed. These issues are some of the prominent limiting factors for the market growth.
But, the POS systems are known for their various benefits as well. Several business owners are able to save crucial time spent on the management of their business as the POS system works to make multiple processes easier. The software provided them with an in-depth glimpse into the stores profits along with keeping the inventory easily accessible. Also, they’re also able to have a more focused approach due to the systematic arrangement of data with the help of the software. This provides an opportunity for the market to grow even further.
To add further, many experts and pioneers of the market have put in plenty of efforts to make payments simpler and more organized. Some of them are-
- NCR Corporation
- Revel Systems
- Agilysys Inc.
- Clover Network Inc.
- Diebold Nixdorf Incorporated
- Epicor Software Corporation
- Ingenico Group
- Intuit Inc.
- SAP SE