POS terminals in higher demand as contactless payments boom

by Arvi Marie Dacuba (Content Editor)

Source: Freepik

The road to a cashless society is on the way, especially in developed and developing countries, with Asia-Pacific as the fastest-growing regional market, and North America coming in second. Since the pandemic in 2020, payment through a smartphone (via mobile wallets like Apple Pay, Android Pay and Google Play), or a contactless credit, debit or prepaid card has become the norm. Although there aren’t enough studies done so far on how COVID-19 can be transmitted through cash, NRF notes that consumers and business owners are exercising maximum precaution by putting health and safety as a priority. Grand View Research forecasts a 6.9 percent growth rate for the POS terminal market from 2021 to 2028. Valued at US$81.86 billion in 2021, its revenue for 2028 is expected to reach US$130.91 billion. Business owners who want to tap into this high-growth market can source POS terminals directly from Global Sources verified suppliers.

Retailers’ use of POS systems through cashless payments

Digipay states that retailers are able to operate more efficiently through contactless payments since these take an average time of 12.5 seconds compared to the 33.7 seconds it takes for cash transactions. A faster-moving queue allows for more customers, which can promote customer satisfaction and loyalty. Businesses can avoid risks from theft of cash by employees or robbery and counterfeit money. Additional benefits include inventory tracking, and online & in-store sale unification. According to an NRF survey, “67 percent of the total retailer respondents accepted the use of some form of no-touch payment. Around 94 percent of retailers expressed that they anticipate the rise of contactless payments in the next 18 months.” With contactless payments on the rise, it is expected that more brick-and-mortar shops plus other industries like hospitality and healthcare will need to purchase more POS systems.

Source: Freepik

Cashless payment benefits through a consumer perspective

Mobile wallets and contactless cards offer ease of use since consumers don’t have to deal with large amounts of cash and coins both in paying and accepting change. These modes of payment are also more secure because of the mobile wallet biometric security and PIN features, and the EMV chips in cards. The flexibility to choose one’s preferred mobile wallet, and credit and debit card brand is also an added benefit. Statistics show that 51 percent of US citizens have resorted to using mobile wallets like Apple Pay and other tap-to-go credit cards. Around 58 percent are now more likely to use contactless payment methods than they were before the pandemic. As such, retailers must be ready to accept this modern form of payment.

Types of POS systems for sourcing

Thousands of Global Sources suppliers offer a vast array of these products including the traditional desktop POS systems, mobile and tablet POS systems for businesses that need portability, plus self-service kiosk POS systems that allow consumers to make purchases by themselves.