Technavio’s latest report on the global PoS software market reveals
the top four emerging trends influencing the global PoS software market.
Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Technavio announces top four emerging trends impacting the global PoS software market from 2015-2019.
A point of sale (PoS) terminal is an electronic payment system or a combination of systems that transfer funds electronically with the use of payment modes like credit and debit cards. A POS system enables easy and faster checkout for customers at various retail outlets.
The global POS software market is expected to reach USD 853 million during the forecast period due to two major factors, namely migration to Europay, MasterCard, and Visa (EMV) and compliance with Payment Card Industry Data Security Standard (PCI DSS).
The top four emerging trends influencing the global PoS software market according to Technavio’s ICT research analysts are:
Demand for industry-specific software solutions
Most of the integrated solutions cater to the general requirements of the merchants. However, currently the demand is for solutions that cater to industry-specific requirements. For instance, the functionalities carried out by the POS software in the retail environment are entirely different from those in the hospitality environment.
In a restaurant, the integrated POS software should include the entire supply chain, which includes ordering, inventory, and billing. In the retail environment, however, major focus is on inventory management, accounting, and the revenue generated from each customer. However, the customer information, for instance, the volume of the purchase and the choice of products/services is necessary in both sectors.
Therefore, development of customized software, which includes industry-specific customizations, is likely to attract merchants, thus, fueling market growth.
2. Addition of new features by vendors
In order to increase their customer base, many vendors in the market are adding new features to their POS software package to facilitate the merchant and the customers.
For instance, Aireus introduced POS software that combines Apple iOS and cloud architecture. The company also provides a platform that could integrate data from a POS terminal, gift card, and CRM. Softtouch introduced pay-at-the-table using its tabletop ordering system, which takes care of the entire supply chain in a restaurant. Squirrel Systems built a platform that is an open Microsoft SQL database, enabling the merchant to easily access the POS data from anywhere.
3. Merchants’ focus on enhancing value proposition
Merchants are focusing on enhancing the value proposition to their customers due to the intense competition. In order to do this, merchants need to track customer choices and segregate the customers according to their spending capabilities. Merchants also provide loyalty programs to retail customers. All these functions need a strong database and easily accessible information that can be used to take operation-related decisions. Merchants are willing to increase their IT spending to improve their service and attract more customers.
4. Increasing number of retail establishments
Retail establishments in developed and emerging economies have witnessed unprecedented growth. Owing to the increasing foreign direct investment (FDI) and increasing per capita spending in emerging economies, retail establishments have witnessed strong growth in the recent past.
In addition to organized retailers, unorganized retail establishments, too will become the key contributors to the demand for POS terminals and POS software. In countries like India and China, where the unorganized retail sector is more dominant, the addressable market for POS software is very high. Therefore, the increasing number of retail establishments is one of the key trends that will propel demand in the global POS software market.
Some of the top vendors in the global PoS software market, as researched by Technavio analysts are:
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