2021/10/05 20:23:40

POS Terminals (Global Market)

Content

What is a POS system
- Tablet-based POS systems
POS terminals in Russia
2020: Growth in the volume of shipments of payment solutions in the world 7.9% to 135 million units
2019
2018: Trends in the development of POS systems
See also

What is a POS system

A POS- or Point of Sale-system is a software and hardware complex that automates the daily business operations of cashiers and helps business owners track important sales data, such as inventory of goods and their value, sales growth, income, employee time accounting, etc. Simply put, POS is a central component of any business that involves paying for goods or services.

Tablet-based POS systems

Compared to stationary POS systems, they have a number of advantages:

ease of maintenance: the device can be repaired or replaced at no particular cost;
wireless connection of the device avoids visible wires, and the cashier's workplace looks tidy;
the well-known brand and attractive design of the device increase confidence in the entrepreneur in the eyes of the buyer.

POS terminals in Russia

Online data exchange between retail outlets and the tax service of the Russian Federation

2020: Growth in the volume of shipments of payment solutions in the world 7.9% to 135 million units

The analytical agency and the publication The Nilson Report published a study on the supply of POS terminals and other payment solutions for 2020. According to the report, the volume of shipments of retail terminals in 2020 increased by 7.9% compared to 2019 and reached 135 million units.

The study analyzed the supply of equipment of 52 large manufacturing companies in 6 regions: Asia-Pacific,, Latin America, To Europe countries MEA (,), and Middle East. Africa USA To Canada This is what the regional coverage of payment solutions looks like in 2020:

68% = 92.1 million units - Asia-Pacific
14% = 18.9 million units - Latin America
7% = 9.9 million units - Europe
6% = 7.5 million units - Middle East, Africa
4% = 5.9 million units - USA
<1% = 0,5 млн шт. – Канада

For the first time, a category of biometric terminals appears in the sales structure of payment solutions. This is confirmed by the fact that biometrics is far from just a modern trend, but a really working payment tool, which, most likely, will only gain momentum.

68% = 91.6 million units - traditional POS
29% = 39.3 million units - mPOS terminals
2% = 2.7 million units - devices for receiving payments through QR codes
1% = 1 million units - terminals for self-service machines
<1% = 0,5 млн шт. – biometric terminals

For key players, the most significant event affecting the balance of leading forces is the purchase by Ingenico French the developer of payment services.

This is what the TOP-10 of world suppliers of payment equipment looks like at the end of 2020:

1st place - Wordline: 10.3% and 13.9 million units.
2nd place - New POS: 8.6% and 11.6 million units.
3rd place - MoreFun: 8.5% and 11.5 million units.
4th place - Tianyu: 8.4% and 11.4 million units.
5th place - Pax: 8.1% and 10.9 million units.
6th place - Newland: 6.7% and 9.1 million units.
7th place - Verifone: 6.6% and 8.9 million units.
8th place - Centern: 5.4% and 7.3 million units.
9th place - Vanstone: 4.4% and 5.9 million units.
10th place - Xinguodu: 4.3% and 5.7 million units.

At the same time, the European market, which includes Russia, remained concentrated (67%) in the hands of 4 companies:

1st place - Wordline: 33% and 3.3 million units.
2nd place - Verifone: 17% and 1.6 million units.
3rd place - Datecs: 10% and 1 million units.
4th place - PAX: 7% and 0.7 million units.

In Russia, INPAS is the official supplier of equipment from PAX and Verifone.

2019

24% Global POS Terminal Market Growth

The analytical agency and the publication The Nilson Report published a study on the supply of POS terminals and other payment solutions for 2019. According to the report, the volume of shipments of trading terminals in 2019 increased by 24% compared to 2018 and reached 128.2 million units. This was announced on September 22, 2020 by INPAS.

The study analyzed the equipment supplies of 41 large manufacturing companies in 6 regions: Asia-Pacific, Latin America, Europe, MEA countries (Middle East, Africa), USA and Canada. This is what the regional coverage of payment solutions looks like in 2019:

67% = 86.2 million units - Asia-Pacific
15% = 18.9 million units - Latin America
7% = 9.5 million units - Europe
6% = 7.1 million units - USA and Canada
5% = 6.5 million units - Middle East, Africa

Among the traditional world leaders - Ingenico, Pax, Verifone and Newland - came the Chinese company Tianyu, which ranked 2nd in the world with sales of 13,198,910 pieces of equipment. At the same time, Ingenico and Tianyu gained positions due to a high share of sales in the Asia-Pacific region: from 47.5% and 99.2%, respectively. Tianyu made a breakthrough in 2019, shipping 217% more equipment than in 2018.

TOP-10 global payment equipment suppliers:

1st place - Ingenico: 10.7% and 13.8 million units.
2nd place - Tianyu: 10.3% and 13.2 million units.
3rd place - Pax: 8.6% and 11.02 million units.
4th place - Verifone: 6.9% and 8.9 million units.
5th place - Newland: 6.7% and 8.7 million units.
6th place - New POS: 6.7% and 8.6 million units.
7th place - Xinguodu: 6.3% and 8.1 million units.
8th place - MoreFun: 5.9% and 7.6 million units.
9th place - Shenzhou Anfu: 4.7% and 6.08 million units.
10th place - Itron: 4.4% and 5.6 million units.

The European market, which includes Russia, is concentrated (73%) in the hands of 4 companies:

1st place - Ingenico: 34.8% and 3.22 million units.
2nd place - Verifone: 17.5% and 1.62 million units.
3rd place - Datecs: 12.7% and 1.17 million units.
4th place - PAX: 8% and 0.75 million units.

In Russia, INPAS is the official supplier of equipment from PAX and Verifone.

According to the study, it may seem that in just one year there was a rotation of leaders with the emergence of unfamiliar companies in the international payment solutions market. However, with closer attention, it becomes clear that, in particular, Tianyu equipment is sold exclusively in the Chinese market and is not certified for international sales. At the same time, mPOSs make up more than 70% of their sales structure. As for Ingenico, it should be borne in mind that equipment in the Asia-Pacific region is sold under a local brand that was not included in the study as an independent market participant. Of course, this affected Ingenico's final position in the world ranking. It should be noted that the product portfolio of our Verifone and PAX vendors consists of more universal models, which makes them in demand in all 6 regions. It is these criteria that we present to our potential partners when we decide on cooperation and expansion of the line of payment equipment, - commented Ilya Korobov, General Director of INPAS.

Sales of POS terminals with NFC support - 47.8 million units

The volume of the global market for POS terminals with NFC technology support in 2019 reached 47.8 million units, according to the research company Berg Insight. Analysts did not specify the dynamics regarding 2018, but said that sales of such equipment are on the rise, especially in Europe and North America.

In these two regions, about 94% of all POS terminals delivered per year supported the NFC standard. The technology has also become popular in markets such as Brazil, Turkey and China. If we take deliveries of POS terminals around the world, then the share of NFC solutions in 2019 was 70%.

Sales of POS terminals with NFC support for the year reached 47.8 million units

Despite the increasing penetration of such equipment, in some cases contactless technology has not been activated. According to analysts, by the end of 2019, about 70 million POS devices around the world accepted contactless payments through Visa payWave, [[Mastercard[[PayPass or [[UnionPay| PayPass or UnionPay Quickpass technologies.

The study notes that the key growth driver for the market in question is mobile terminals (mPOS). Their deliveries in 2019 reached 38.3 million units, taking 64% of the total volume of shipments.

In the mPOS segment, the share of NFC-enabled systems in 2019 was 64%, and sales of such equipment amounted to 24.7 million units.

The mPOS terminal market is growing faster than the traditional POS terminal segment, and now there are more than 70 suppliers in the global market, "said Johan Fagerberg, lead analyst at Berg Insight, summing up 2019.

NFC-Enabled POS Terminal Market Developments, Berg Insight Data

The demand for mobile POS terminals is growing rapidly in developed countries due to such advantages as cheapness and ease of use. In addition, such equipment provides omnichannel support in cases where you need to organize purchases via the Internet, pickup in stores and home delivery. All this contributes to the sales of mPOS solutions, which in 2019 globally reached $25.1 billion (data from Grand View Research).

In addition to mobile cash registers, the rise of the entire POS terminal market stimulates a number of other factors, including an increase in demand for customer relationship management (CRM) systems, payment processing and reporting technologies. Also, sales are facilitated by an understanding of shopping habits and widespread digitalization.

Another positive factor is the change in needs in terms of payments and the emergence of new payment methods and methods of payments.

According to the calculations of Grand View Research analysts, the volume of the global POS terminal market in 2019 amounted to $125.9 billion. The following companies were named the largest manufacturers of this equipment:

Experts believe that the global market for payment terminals is developing towards biometrics, it will be possible to identify a person when making purchases based on his biological characteristics. At the same time , there is no difference in demand depending on business sectors.

Global POS Technology-Enabled Terminal Market Size NFC 2019 reached 47.8 million units, calculated in the research company Berg Insight

POS terminals are needed wherever there are sales and payments are needed, regardless of industry or business. We see great demand from segmental markets, more retail and private organizations, usually small and medium-sized businesses, the researchers note.

In terms of regions, Asia-Pacific showed the highest growth rates in 2019 largely due to a surge in demand for POS terminals in Chinese stores. Japan also made a considerable contribution.

POS software sales reach $1.1 billion

According to the research company Juniper Research, the volume of the global software market for POS terminals in 2019 reached $1.1 billion. The dynamics relative to 2018 is not specified.

Analysts only say that sales of such software are growing and will increase due to the fact that the integration of applications like Shopify and QuickBooks is becoming more and more accessible. The vendor is expanding its business and looking for new opportunities in cooperation and mergers and acquisitions transactions.

Software costs for POS terminals in the regions, Juniper Research forecast for 2024

According to experts, by attracting partners, software manufacturers for POS terminals can connect their products to third-party platforms to increase the user base.

At the same time, experts also recommend that vendors integrate e-commerce platforms with cloud services so that retailers can take advantage of omnichannel solutions - even closer integration of traditional non-digital and new digital service channels.

The researchers believe that larger software vendors for POS terminals will seek to acquire niche developers of innovative technologies in the market in order to integrate their attractive services into their solutions.

At the end of 2019, China became the world's largest software market for payment card accepting devices. It is expected that the country will strengthen its leadership, and by 2024 it will account for 40% of the market under consideration, the volume of which on a global scale by this time will be measured at $1.7 billion.

Chinese retail innovation is traditionally about an online channel rather than conventional physical stores, the study said. Software POS solutions are expected to reverse this trend by integrating e-commerce and traditional commerce into highly efficient omnichannel environments.^[1]

China provides software providers for POS terminals with a crucial opportunity to attract smaller enterprises, but vendors must quickly look for effective partnerships in the country to gain market share, otherwise they risk being left behind by local POS equipment manufacturers, says Juniper Research analyst Susanna Hampton.

The study shows that software tools can become an important tool for small retailers, since such solutions can open up access to management tools that only large companies could previously use. It is predicted that by 2024, approximately 81% of all programs for POS terminals will be used in retail.

According to experts, the issue of monetization will become the main problem for software manufacturers, since many payment systems operators offer a number of tools for free transaction processing. Manufacturers need to make sure their products are well adapted to be attractive enough to users, Juniper Research said.

Programs for the POS system, according to analysts, perform the following main functions:

Payment for purchase
Cancel Payment Made
Payment preauthorization
Carry out any banking operations on the customer's account (replenishment, balance request, cash issue)
Cashless tips
Loyalty Program Support
Print Summary of Payment Type, Number, and Amount
Print complete information on financial transactions
Mini statement of financial transactions of the customer
Receipt of control and reporting documents

The market for such software is divided into segments, which are listed in the illustration above.

2018: Trends in the development of POS systems

Mobility

Among the latest trends in the development of POS systems can be distinguished by mobility. A mobile Point of Sale system or mPOS is a tablet or smartphone that acts as a traditional cash register or stationary POS system. Typically, mPOS software is partially or completely deployed in the cloud and runs on mobile operating systems such as iOS, Android, etc. Compared to traditional stationary POS devices, mPOS systems are more budget, compact and easy to use.

While traditional POS systems are mainly aimed at larger enterprises, mPOS is suitable for any business model from a startup to a wholesale company. In addition, mPOS systems will be a particularly profitable solution for representatives of small and medium-sized businesses, providing a low entry barrier for starting sales. The advantages of mobile POS systems and entrepreneurs with several outlets will be appreciated: portable mPOS devices are easy to transfer and use for settlement operations anywhere.

If we talk about security, then the mPOS systems are better than traditional POS transactions, since all mobile transactions are carefully encoded using point-to-point encryption technology. By supplementing the mPOS system with a cloud solution, you can be sure that if your device is lost, stolen or broken, your data will be safe.

Integrating POS with New Payment Types

The modern pace of life requires the purchase and sale operation to be as simple as possible, quickly and provide for several payment methods. With the advent of many convenient, fast and secure payment methods, it is not enough to simply accept payments with cash or bank cards. Together with existing and known payment types, the modern POS system should support the following payment methods:

payment in cash;
payment by bank cards with magnetic stripe and EMV standard (Europay, MasterCard, Visa);
payment without the presence of a bank card (card-not-present, CNP);
payment by gift certificate;
contactless payment using Apple Pay, Android Pay, Samsung Wallet (formerly Samsung Pay), etc.

Mobile payment apps allow customers to safely use credit and debit cards digitally with a mobile phone without having to carry them around at all times. If the POS system supports mobile payment, all a customer needs to do is simply attach a phone with an NFC device or press the payment button on the phone.

For entrepreneurs, the mobile payment method is convenient in that it helps increase the speed of customer service, integrate loyalty programs into mobile payment applications and track important sales data.

Integration of POS systems with devices and services

A modern POS system cannot be imagined without integration with data collection devices such as a printer, magnetic card reader, pin code input device, cash register along with a cash box, barcode scanner and other peripheral devices.

Each POS solution can also be integrated with different third-party services. Services such as payment system, shipping and delivery, gift certificates, sale of goods, discount program for regular customers, accounting system and much more are popular. These features can improve the efficiency of your POS system by turning it into a multifunctional solution.

POS in various industries

Since each industry has its own characteristics, POS systems are developed taking into account the needs of each individual business. In general, POS systems will be particularly useful in the retail, medical, hospitality and entertainment industries. The capabilities of modern POS solutions will help improve both customer and business experience^[2].