Market Trends of US POS Terminals Industry
The Retail Segment is Expected to Grow Significantly
- The retail industry is one of the significant users of POS terminals, and the segment is slowly picking up with the reopening of brick-and-mortar stores in different parts of the country. Tech - and non-tech-savvy customers are equally demanding and desire a seamless experience at their preferred retailers.
- The rising number of retail stores across the United States attracts customers due to significant discounts and other services; however, customer retention becomes the primary challenge to sustaining in the market. This competition increases the requirement to reinvent their business models to avoid competition concerning price and find the balance between investing in the latest technologies and revenue.
- The inventory, sales reporting, financial management, and customer analytics features that POS terminals provide assist retailers in overcoming the problems related to customer retention. Hence, the industry's requirement for customer retention and competition growth promotes the development of POS terminals. mPOS systems are poised to be significantly utilized in retail outlets to integrate core functions such as sales reporting, customer management, inventory management, and employee management under one system.
- Digital payment is also becoming the preferred mode of payment for citizens across the United States, considering the e-commerce trends. For instance, 41% of all shoppers in the country expect their smartphone or tablet to become their 'most important shopping tool.' Moreover, digital payments are millennials' preferred mode of payment, contributing to the country's rising adoption of POS systems.
Understand The Key Trends Shaping This Market
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Mobile/Portable Point-of-sale Systems to Witness Growth
- Instead of a cash register or POS terminal, mobile point of sale (mPOS) is a technology that enables merchants to process payments via their mobile device (smartphone or tablet). An mPOS (mobile point-of-sale) is a smartphone, tablet, or dedicated wireless device that performs the functions of a cash register or electronic point-of-sale terminal (POS terminal).
- An mPOS is a more innovative alternative to traditional POS, which connects 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 transactions at the customer's location, adding flexibility to the whole process and improving customer experience. The growth in e-commerce and the entangling of brick-and-mortar and online retail practices such as Walmart, Costco, The Home Depot, The Kroger Co., Walgreens Boots Alliance, and others in the United States are also expected to affect the future development of the terminals. In fact, with the option of cash on delivery provided by significant e-commerce platforms, a sudden surge in the adoption of mobile POS terminals has been recognized.
- The growing demand for mPOS systems among small and medium-sized businesses (SMBs) contributes to the market's growth in the United States. The mPOS systems offer ways to improve their efficiency and productivity.
