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Powering the Point-of-Sale: How Providers Are Building Cost-Effective Omnichannel Solutions

  • POS infrastructure providers are scrambling to align their offerings
  • mPOS providers are trying to balance demands from upmarket sellers and micromerchants
  • Payment gateways must double down on omnichannel to woo customers

As the landscape of market leaders shifts, we forecast that the US point-of-sale (POS) terminal installed base will grow from 17.3 million this year to 20.2 million in 2026, largely due to providers upgrading technology. 

The Point-Of-Sale

Insider Intelligence

Consumer and merchant demands for all-in-one solutions are blurring the lines between POS hardware and software as the desire for simple, affordable, single-integration offerings increases. With terminal installation growth slowing due to digital payment acceptance approaching ubiquity, two types of technology—near-field communication-based and biometric terminals—are at the forefront of upgrades for POS in 2023. However, looming in the not-so-distant future is autonomous checkout, which poses a huge threat to traditional checkout methods as merchant interest and consumer readiness peak. 

Another strong contender to keep an eye on is mobile POS (mPOS). These solutions offer businesses a portable and affordable turnkey alternative that can turn smartphones into payment terminals. We project that the US mPOS market will grow at a 14.1% three-year compound annual growth rate through 2026, making up 47.2% of the US terminal market that year. Two groups are expected to drive the mPOS share growth: small and medium-sized businesses (SMBs), which are looking for digital payment acceptance solutions; and enterprise businesses, which are supplementing their countertop hardware and kiosks with portable mPOS terminals. 

According to an October 2022 Paysafe study, 70% of SMBs cited a desire to simplify payments technology and partnerships. As a result, providers are more focused than ever to create a one-stop shop that meets business needs beyond payments. With this mounting demand, there is a resounding focus on cash flow, next-generation omnichannel, and fraud prevention and detection. Providers need to make quick changes to innovate or risk losing out on their customer base to new players like Amazon and Walmart, which are building their own POS software. 

Innovation is at the forefront of POS as the merchant and consumer needs for all-in-one solutions mount. Curious to learn more about powering the point-of-sale? Click here to purchase this report directly from Insider Intelligence. Want more data? Click here to purchase The Payments Ecosystem collection.

Read the original article on Business Insider
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