The latest POS industry trends that you need to know
The POS market has experienced strong growth over the past decade, driven by notable advances in payment technology. Several factors at once, from the ease of use to the growing prevalence of point-of-sale (POS) technology, have caused a surge in the adoption of these systems in various industries.
The COVID-19 pandemic also has brought about significant changes in almost all industries, which has significantly accelerated the adoption of digital technologies. In addition, there has been an increase in consumer propensity to shop online due to travel restrictions and a shift in consumer behaviour towards cashless payments, given serious health and safety concerns.
The global POS market growth was $4936.4 million and is predicted to grow with a CAGR of 10.9%, by generating revenue of $ 13645.2 million by 2031.
Cashless payments also help keep detailed records of transactions, make it easier to do business, and prevent cash-related crime. They help curb black money, improve the user experience in shopping and online transactions, and provide greater transparency in commerce and business operations, thus reducing the incidence of tax evasion and money laundering. Let’s take a look at POS trends shaping the future.
Cards are becoming more and more favoured as a payment method for shopping. In addition, the disclosure of payment gateways like Apple Pay and Google Pay encourages more shoppers to go cashless. It is also forecasted that the value of POS transactions will reach $4 million by 2024. A handful of POS software already provides features that can assist you in setting up cashless transactions, and more will follow suit.
Here are some predictions about the future of pos systems:
- Transaction value in the Mobile POS Payments segment is projected to reach US$2.88tn in 2022.
- Transaction value is anticipated to show an annual growth rate (CAGR 2022-2026) of 15.60% resulting in a projected total amount of US$5.14tn by 2026.
- In the Mobile POS Payments segment, the number of users is anticipated to amount to 1,857.4m by 2026.
- The average transaction value per user in the Mobile POS Payments segment is anticipated to amount to US$1.92k in 2022.
- From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$1,554.00bn in 2022).
- Mobile POS users worldwide from 2017 to 2014 (in Millions).
Retail POS trends
eCommerce stores have been around for years and show no signs of slowing down. With the growing Internet users, businesses are more likely to build virtual stores to serve this ever-increasing market. Online stores supply a fast and appropriate shopping experience for customers. POS software can assist you in streamlining online sales with multiple simultaneous transactions.
Check our case study of developing the pos in-flight retail solution.
Point-of-sale software is critical for brick-and-mortar and eCommerce stores to help with their sales process. And in recent times, the industry has seen numerous changes in how sales operation takes place – the emergence in popularity of cashless payment, mobile payments, online stores, and more. These existing and up-and-coming tendencies pose a challenge for developers that will continuously shape how they make their POS software. POS systems are becoming more interactive, especially in the hospitality industry, allowing customers to place orders, reserve seats, and pay bills electronically.
Next, we’ll look at eleven POS technology trends and how they impact businesses in the 21st century.
1. Alternative Payment Methods
Cash is slowly losing its dominance as the preferred payment method, as 73 per cent of Mastercard survey respondents say they use less money today than they did a decade ago. The positive experience of using contactless payments has strongly stimulated the penetration of POS terminals during the pandemic. Subsequently, greater consumer familiarity and preference for contactless payments will likely pave the way for the growth of the POS terminal market worldwide in the coming years.
2. The Age of Self-service
Nowadays, self-service is the future of pos. Dining establishments have started placing self-service kiosks instead of servers and waitpeople. These machines are all-in-one kiosks that can take orders, relay the same to kitchen workers, and receive payment. Mostly in busy hours, this can assist in streamlining the lines. Likewise, it can reduce order errors, as it puts the accuracy of the order with the customer.
3. Virtual cafes
Ghost (or virtual) restaurants are germinating in food delivery service areas, where food is made ready only upon ordering. Depending on an outlet’s success, installing their own POS systems for direct orders (independent of food delivery companies) may be in the works.
4. Mobile ordering
Your POS software must have an online ordering feature to compete in the competitive market. According to research by Retail Consulting Partners, order management system features or integration is a main for 67% of retail business.
Pickup orders generally mean calling the cafe in advance to order, but payment and invoicing still happen onsite, consuming time. A mobile POS can assist in reducing turnover by processing payments while the customer is in transit.
Many clients like to order products online and then pick them up at the shop. And the online ordering feature is a significant benefit for retailers because it reduces client wait times and raises sales.
5. POS Data Analytics
Electronic software POS systems streamline retail operations by automating the transaction process and tracking critical sales data. Depending on the software’s features, retailers can track pricing accuracy, inventory changes, gross revenue, and sales patterns. Using integrated technology to track data helps retailers identify discrepancies in prices or cash flows that could lead to lost profits or disrupted sales. Expect to see more data. The data is expected to occur quickly in a way that is easy to use so that you can make comparisons and relate observations to real business problems.
Moreover, data-driven insights can help retailers make critical strategic decisions. For example, if a retailer notices that sales of specific products are declining on particular days of the week, it may be wise to adjust business and marketing strategies accordingly. By tracking data over time, companies can identify patterns and make informed decisions fast and efficiently.
6. Cloud-based Software
Cloud POS systems are becoming more and more popular among merchants. Cloud POS systems are one of the points of sale trends that are increasingly being used, especially by large online stores, to track and process multiple purchases. Cloud systems can significantly reduce the initial cost of implementing a POS system for many businesses. Cloud computing and business-as-a-service models have created ideal conditions for lowering the cost barrier to access technologies that were available only to large enterprises only a few years ago.
7. Omni-Channel Shopping Experiences
Providing a seamless shopping experience across multiple channels is another future POS trend in the retail industry. With digital POS displays, vendors can deliver in-store experiences and strategic messages even with online and offline marketing tactics.
The more a business knows about its customer, the more it can personalize its buying experience. An omnichannel experience means integrating offline, online, mobile, and social media sales with a standard view of customer relationships across any channel. Post-COVID-19, 46% of retail executives plan to invest more in omnichannel retail than their pre-pandemic sales strategy.
A brick-and-mortar retailer that’s involved both online and offline and finds a way to integrate online with in-store shopping mediums ideally will be able not only to interact with customers in a 360-degree way but also to create a strong, engaging social media presence that, in turn, will drive in-store sales.
8. Personalized marketing
Point of sale (POS) is an essential focus for marketers. POS systems that track inventory and purchase trends can help retailers avoid customer service issues such as out-of-stock sales and tailor purchasing and marketing to consumer behaviour. However, consumers don’t want a one-size-fits-all approach: 63% of shoppers say they are highly annoyed by brands that consistently spread overly generic advertising messages. In 2022, they want the most personalized marketing communication possible.
9. Loyalty Programs
Loyalty programs are an important way to attract and retain customers. You will find many integrations and loyalty tools for eCommerce platforms that make this process easy. E-commerce stores don’t even need to issue physical loyalty cards to their customers—the whole process can remain virtual.
Staff can actively promote products and guide consumers in purchasing decisions rather than just processing transactions. For example, the Amazon Go store, which uses technology to allow shoppers to enter, pick up and leave without going through the checkout, could revolutionize POS systems. It will enable you to combine POS, loyalty and payments into a single customer-centric experience.
10. Artificial intelligence
Artificial intelligence has been playing a significant role in marketing for many years. For example, have you ever received an email from an online store that said, “Looks like you left some items in your cart”. If so, the AI is actively running in the background. Expect to see more AI in business applications to help companies automate tasks and explore the customer journey through data and digital touchpoints.
11. Finance and Insurance Integration
One of the main point-of-sale trends is finance and insurance integration to provide streamlined transactions for clients. This is why the two industries are closely connected, and with a seamless connection, it can be easier for clients to complete their dealings.
A suitable finance and insurance integration should enable clients to view their account balances, track their expenses, and see available discounts. Also, it should allow merchants to automatically input insurance rates into the software to generate customer quotes.
12. Inventory Management
The ability to handle an inventory is essential for any POS software. An inventory management feature can make your life as a multi-channel retailer much more accessible by ensuring you always have the goods in stock.
Also, inventory management will help you track what you have in stock, how much per product is left, and what orders are pending. This information can assist you in deciding which products to stock and when to order more.
Benefits of innovative POS software for your retail business
Electronic software POS systems streamline retail operations by automating the transaction process and tracking critical sales data. Basic techniques include an electronic cash register and software for coordinating data collected from daily purchases. Nevertheless, is it time for you to shift toward a POS system in the future? The rule of thumb says it’s never wrong to make life a bit easier, and no business person would disagree with it.
So, let’s see exactly what a good POS system in future can do for you:
Dealing with numbers, multiple customers and products simultaneously can hardly pass without human error, if that’s even possible. Instead of cross-checking each client’s order, you can use the POS system to manage inventory and better analyze sales patterns. You get to save a lot of money.
Having data displayed comprehensively wouldn’t be reasonable without a robust analytics and reporting system, where that data can be closely examined to reveal tendencies and solutions. Accompanied with full real-time reporting, the analytic features of POS systems can trigger your most potent and thoughtful business decisions.
Networking to other terminals
How about managing sales and reserves from one web application platform? With POS systems, this idea is achievable, as the system can be matched to different terminals and expanded with handheld devices for tracking data from any location.
In all likelihood, the most well-defined advantage of POS compared to other sales software as these systems provide powerful SKU reporting and follow periods, promotions and orders, and pay particular attention to the performance of each employee.
Despite all those excellent characteristics, POS software doesn’t belong to sky-high sales software categories. Depending on your requirements, you can probably opt for a free plan and be entirely satisfied with its offers.
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With the path to purchase now heavily digital, many POS systems as they exist today restrict retailers from providing a seamless experience to all customer touchpoints.
Older POS systems tend to be difficult to upgrade or improve, discouraging agile innovation. In 2022, retailers will need to embrace new technologies and existing POS terminals to ensure maximum visibility into inventory, orders, customers, and products.
The driving force for change is not only technology but also demand. Entrepreneurs and small business owners need fast access to data and analytics to help them make smarter, data-driven decisions about their businesses. In the ShopKeep Small Business survey, 50% of respondents cited access to reports as a critical factor in continuing to use their POS.
As customers demand a more personal shopping experience, in the future points of sale solution, we can see more features that track customers more accurately with enhanced data and real-time reporting.
Check our case study of developing the in-flight retail solution ✔️ Practical example of developing POS software for ordering services on a plane ➡️ Check it now!
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