A point of sale (POS) terminal is a computerized alternative for a conventional cash register. Modern POS terminals mostly have a computer peripheral with software running to trade goods or services. The peripheral devices such as receipt printer, barcode scanner and card reader are integrated through tailor-made software to make POS terminal
a complete all-in-one POS device.
They can also store sales data, manage staff in multi-store environment, plan sales strategy, manage customer loyalty and sales promotion programmes. A POS system
can track and record orders, process credit and debit card payments, network with other systems, and also manage inventory. All these applications are driven by specific software developed to meet the needs of a particular business.
For instance, POS terminals for eatery business should have all the menu items and sales details stored in database which can be recalled and checked for various purposes. POS terminals are used in industries that have point-of-sale counters such as in retail showrooms, restaurants, museums, lodging, parlors, kiosks, or entertainment places.
According to a survey, the global POS terminals industry was stood at US$41 billion in 2014 and expected to grow at an 11.6 per cent CAGR during 2015 to 2020. In 2013, the retail market was the major driving force POS terminals, accounting for around 34 per cent of the overall POS terminals market.
India too is catching up its western counterparts in terms of adopting POS terminals. Though according to a Frost & Sullivan report, India was ranked 13th largest non-cash payment market in 2013, with US and Brazil occupying the top two spots respectively, the POS terminal shipment volumes are growing at a CAGR of staggering 17.2 per cent year-on-year, and in 2015 alone India added an additional 1.1 million POS units to its retail sector.
According to a new study by Grand View Research, several factors are aiding the growth of POS terminal market in India with the prominent among them being - Affinity towards using near-field communication (NFC) technology for payments combined with cloud computing application, user-friendly software and hardware, better return on investment (ROI) and high demand for mobile POS
On the basis of application, the POS terminal industry has been categorized into healthcare, restaurant, retail, hospitality, entertainment, warehouse/distribution, and others such as government, field service, and transportation.
Among all, it is estimated that the healthcare industry will show a great momentum to push POS terminals market during 2015 to 2020 with CAGR of 16.1%.
North America, Asia Pacific and Europe are the regional markets for POS terminals with North America being the leader in propelling the global growth of POS terminal market.
Also, the growing economies such as India, Japan, Hong Kong, China and Australia are going to be the major stake-holder for the global POS terminal market growth in the next five years.