Market Trends of Latin America POS Terminal Industry
This section covers the major market trends shaping the Latin America POS Terminal Market according to our research experts:
Mobile/Portable Point-of-Sale Terminals Expected to Witness Significant Market Share
- An mPOS is a smarter alternative to the traditional POS which connects to smartphones via Bluetooth. A mobile point of sale system allows users to accept payments via tablets, smartphones, and other handheld devices without being tied to a POS register in a single location. The transactions can include credit card magstripe reader payments and wireless transactions. It utilizes a mobile phone's data connection to process transactions.
- Mobile POS systems are gaining traction as they allow sales and service industries to conduct the transaction at the customer's location, adding flexibility to the whole process and improving customer experience.
- The growth in e-commerce and the entangling of the brick-and-mortar and online retail practices are also expected to affect the future growth of the terminals. In fact, with the option of cash on delivery, provided by major e-commerce platforms, a sudden surge in the adoption of mobile POS terminal has been recognized.
- Data protection is paramount as mPOS devices may not have security protocols as robust as their POS counterparts, especially if you're using commercial-off-the-shelf (COTS) devices such as Apple or Android smartphones and tablets.
- Towards the end of the forecast period, the segment is expected to multiply in market presence as vends increase their relevant offerings in response to the increased demand for contactless ease-of-use payment methods. As mPOS solutions are specially designed for tablets instead of desktop computers, the trend of smaller and more portable devices will augment the growth of the market.
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Brazil Expected to Witness Significant Market Share
- The growth of digital payments is fueling the growth of the market in Brazil. Various financial services organizations are partnering with regional companies to accelerate digital payments using POS terminals.
- Further, in August 2021, Fiserv, a prominent global provider of financial services technology solutions, announced that it has entered into an exclusive agreement with Caixa Cartoes a subsidiary of Caixa Economia Federal, which enables businesses throughout Brazil to have access to acquiring services through Caixa-branded point-of-sale (POS) terminals.
- The aim of the partnership is to push digital payments in the Latin America region. The Caixa-branded terminals allow businesses to accept payments via debit or credit card or voucher and proximity payments via card or QR code, such as those made using the Caixa Tem app. Following the first transaction completed using a Caixa terminal in July 2021, the terminals were made available through a pilot at 174 Caixa branches throughout Brazil.
- Furthermore, according to a 2021 study by Fiserv, Credit cards and Debit cards are preferred payment methods by the Brazilians (28%), followed by PIX (22%), digital wallets (11%), payments by barcode (9%), and cash (6%). The strong dependence on credit and debit cards for payments creates new opportunities for the market in Brazil.
- However, there have been efforts to replace the POS terminals which is expected to affect the growth of the hardware-based POS terminals in the region. In March 2021, Magiccube, a prominent player in Software Defined Trust (SDT) announced the availability of i-Accept, a complete software-based replacement for acceptance terminals in Brazil.
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