A recent study by Juniper Research has extrapolated that the value of global POS (Point-of-Sale) terminal transactions should hit USD $17 trillion by the year's end and grow by 25% towards USD $21.1 trillion by 2028. Surprisingly, this forecasted surge in the POS market follows recent system outages experienced by some global retail chains, which led to brief store shutdowns and exposed significant financial and security risks.
These can be attributed to the continued use of legacy POS systems, indicating an urgent need to replace them with forward-looking smart POS terminals. Among the issues plaguing the retail industry is the chronic lack of preparation to tackle systematic failures in old POS systems, such as terminal outages in brick-and-mortar stores. The study further identified intelligent, Internet of Things (IoT) powered systems as the primary solution to mitigate these persisting problems and ensure continuous connectivity with other retail systems.
Modern, advanced POS systems also offer cloud storage for customer data, adding a robust extra layer of protection against potential hacking attempts and malware. The report highlighted that the prevention of system failures from legacy frameworks should currently be of paramount importance to retailers considering upgrading their POS technology. The objective would be to target maximum processing efficiency and optimum customer satisfaction.
Substantiating this, current POS terminal providers are rapidly expanding their range of services to offer capabilities that go beyond mere payments. Known as Smart POS terminals, these enhanced systems offer advanced features such as staff management, loyalty card processing, inventory management and shop synchronisation with other outlets in the same retail umbrella.
The research author, Daniel Bedford, stated, "Despite the higher cost of implementation in comparison to traditional POS, embracing Smart POS will secure a return on investment for retailers, preventing system failures alongside enhanced business integrations."
The comprehensive new research suite provides a deep-dive analysis and forecasts a whopping 46,000 data points, covering 60 markets over the next five years. The study also includes two Competitor Leaderboards and delves into both current and upcoming market opportunities.
Having offered market intelligence and advisory services to the global financial sector for two decades, Juniper Research is retained by many of the world's leading banks, intermediaries and providers.
Juniper Research forecasts a significant increase in global POS terminal transactions, highlighting the need for retailers to transition to smart POS systems. These advanced systems offer enhanced security, efficiency, and additional features beyond traditional payment processing. Despite higher implementation costs, the long-term benefits promise retailers a substantial return on investment. Juniper Research's comprehensive analysis provides valuable insights into market trends, guiding retailers towards successful adaptation in an evolving retail landscape.