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53 Impressive POS Statistics: 2020 Market Share & Data Analysis

Category: B2B News

POS software is indispensable to retail, ecommerce, and restaurants of today. For entrepreneurs and business owners, you must have a firm grasp of the current key trends in POS software. These will help you make smarter purchasing decisions and gain a competitive edge in your market.

This is why, in this article, we’ve gathered 53 essential POS statistics to help you avoid spending too much time on research. In addition, we tackled some of the emerging POS usage trends that will likely make a significant impact in the years to come.

key pos statistics

1. General POS Statistics

Point-of-sale systems are crucial to the day-to-day operations of retail businesses. So, it doesn’t come as a surprise that the market for POS terminals and software solutions is continually expanding. The only question now is, how do modern retailers intend to improve their POS efforts in the coming years? To give you an idea, take a look at the statistics on current POS priorities and purchasing plans we’ve listed below:

  • The global market for POS terminals reached $62.34 billion in 2018. Experts predict that it will grow at a CAGR of 7.8% from 2019 to 2025. [1]
  • Hardware is the largest segment of the POS market, and it is estimated to hit $66.30 billion before the end of 2025. [1]
  • The top POS priorities among retailers in 2019 are adding capabilities to their current POS system (53%), complying with payment security standards (45%), and implementing omnichannel integrations (43%). These are followed by creating a unified commerce platform (41%), updating systems (40%), upgrading hardware (36%), and rolling out mobile POS solutions (30%). [2]
  • The leading POS purchasing plans for 2019 include researching new POS solutions (51%), adding new modules to current systems (46%), and deploying POS for mobile devices (39%). [3]
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Top POS Priorities for 2019

Top POS Priorities for 2019
Adding capabilities to current POS system: 53

Adding capabilities to current POS system

%
Top POS Priorities for 2019
Payment security compliance: 45

Payment security compliance

%
Top POS Priorities for 2019
Omnichannel integration: 43

Omnichannel integration

%
Top POS Priorities for 2019
Unified commerce implementation: 41

Unified commerce implementation

%
Top POS Priorities for 2019
System updates: 40

System updates

%
Top POS Priorities for 2019
Hardware upgrades: 36

Hardware upgrades

%
Top POS Priorities for 2019
Mobile POS solution implementation: 30

Mobile POS solution implementation

%

Source: 2019 BRP POS/Customer Engagement Survey

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2. POS User Personalization Statistics

Personalization is the way towards perfect customer experience. One of the best ways to build a personalized shopping experience is by creating a seamless and unified approach to service. Although marketing promotions and incentives are still valued by customers, you’ll see that modern shoppers give more importance to convenience, consistency, and valueThus, a business is expected to accompany each customer across all available channels as he or she journeys toward making a purchase. This way, you can make their experience more convenient than ever.

  • 91% of consumers tend to shop with businesses who are aware, can recall, and give offers and suggestions that are relevant to them. [4]
  • 83% are likely to share their information to allow for a personalized experience. [4]
  • 81% of businesses are predicted to employ a unified commerce approach before the end of 2020. [5]
  •  Only 7% of consumers shopped online. 20% prefer shopping in-store, while 73% leverage multiple channels when they shop. [6]
  • 79% of consumers said personalized service is a top factor in choosing where they shop. [2]
  • 56% of shoppers say they prefer doing business with brands that will let them have a shared cart across channels. [2]

3. Mobile POS Payment Statistics

It’s time to face the truth: retail businesses must embrace a mobile-first POS strategy to give what customers want. The latest POS payment figures show that the shopping landscape has gradually changed in recent years. For starters, cash is getting dethroned from its long-held rule as the preferred method of payment worldwide. This means it is crucial now more than ever for businesses to adopt digital tech to facilitate transactions. 

  • $745,796 million – 2019 mobile POS transaction value [7]
  • 40.2% – the year-on-year growth rate of mobile POS transaction value [7]
  • 30.1% – CAGR of mobile payment transaction values from 2019–2023 [7]
  • 8 of 10 customers worldwide use a tablet, smartphone, a computer, or some form of digital technology within the store as they shop. [8]
  • 73% of consumers use less cash than in the past. [9]
  • 82% of consumers say they first refer to their mobile gadgets to know more about any purchase they’re about to make in a store. [8]
  • 46% of retailers today don’t use mobile POS. [2]
  • 23% of mobile POS users still can’t accept payment using the tool. [2]
  • Experts predict that the transaction value of mobile POS payments will reach $2,137,510 by 2023. [7]
  • 1,133,3 million – mobile POS payment users in 2019 [7]
  • The number of mobile POS payment users is expected to hit 1,657.5m in the next four years. [7]
  • 16.2% – the year-on-year growth rate of mobile POS payment users [7]
  • On average, the transaction value of mobile payments per user is $658.1 in 2019. [7]
  • 35% of consumers who utilize mobile POS are between 25 and 34 years old. [7]
  • In 2017, 54% of mobile POS payments users were male, and 46% were female [7]

Mobile POS Payment Transaction Value from 2017–2023

  • 2017 – $368,614 [7]
  • 2018 – $532,106 (transaction value growth: 44.4%) [7]
  • 2019 – $745,796 (transaction value growth: 40.2%) [7]
  • 2020 – $1,017,982 (transaction value growth: 36.5%) [7]
  • 2021 – $1,350,575 (transaction value growth: 32.7%) [7]
  • 2022 – $1,729,893 (transaction value growth: 28.1%) [7]
  • 2023 – $2,137,510 (transaction value growth: 23.6) [7]

Mobile POS Payment Users by Age

  • 18–24 years – 20.06% [7]
  • 25–34 years – 34.99% [7]
  • 35–44 years – 24.42% [7]
  • 45–54 years – 16.43% [7]
  • 55–64 years –   4.10% [7]

Mobile POS Payment Users by Income

  • 40.4% – high income [7]
  • 32.2% – medium income [7]
  • 27.4% – low income [7]

Mobile POS Customer Preferences (2019)

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Source: Hubspot

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The immensely-wired, technology-filled world of today has greatly affected consumer expectations and behavior. In fact, it seems this digital thrust is in the process of completely removing two traditional pillars of retail—cash registers and cash itself. As a result, business owners should try to bring the checkout procedure closer to consumers. To do this, you might want to check out our top 12 mobile POS systems here.

4. POS Report & Analytics Statistics

Success will come if you know your customers well. However, customer demands are fickle, so businesses must be agile in making adjustments to meet their requirements. That said, traditional business strategies that were effective years ago may now be partially or totally irrelevant, as can be seen in the following studies:

  • A POS/customer engagement survey revealed that 62% of businesses view customer identification as their top customer engagement priority. [5]
  • 83% will make suggestive selling based on a three-year customer purchase history. [5]
  • A survey of small businesses shows that 50% of companies believe business reports are an important basis to sustain their use of their POS systems.[10]
  • Around 75% of businesses are inclined to add to their budget for in-store mobile tools in the next 12 months.[10]
  • 61% of merchants believe that a top factor influencing POS upgrades is the ability to use data to understand consumer preferences. [3]

Small business owners must not only know how to use tech, such as POS efficiently. They should also have instant access to rich consumer data and robust analytics to carry out more intelligent business decisions in a timely manner. Furthermore, they need to know who their individual customers are, as this is the only way for them to provide a personalized shopping experience. [11]

The continuing advancement of POS technology ensures that businesses will get access to more valuable data and analytics features. This way, they can better serve their customers. If you’re running an online or physical store (or both), you can check out our list of top 15 POS tools for retailers

5. Cloud-based POS Statistics

Cloud POS will dominate the future. This trend indicates a continuing shift from legacy (on-premise) systems to cloud-hosted solutions. After all, who wants to purchase expensive platforms when they can opt for more affordable and flexible systems?

If you have yet to invest in this technology, you might want to check out the 12 popular POS systems we’ve reviewed in another post.

  • Cloud POS systems have gained considerable penetration into the market. In fact, it has surpassed the critical 20% level in all categories except for cafeterias. [12]
  • Experts predict a 50% cloud POS adoption rate in all restaurant categories before the end of 2021. [12]
  • The total purchases of POS systems for the past year indicate that over 60% of the new systems were cloud systems. This is the first time that legacy POS platforms were overtaken by cloud-based solutions. [13]
  • The overall global cloud POS market size is expected to almost triple, from $1.34 billion in 2018 to $3.73 billion by 2023. [14]
  • Majority of merchants (61%) want their next POS to be cloud-based. (POS Software Trends Report[15], 2018)

Cloud POS Market Penetration By Category

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Source: ReformingRetail (2018)

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Most Popular Point-of-Sale Software

  1. Toast POS. A tablet-based restaurant management solution offering POS tools, customer management features, and team management options to streamline operations. Learn more about this product in this in-depth Toast POS review.
  2. Vend. A POS system and retail management software that supports customer management, order processing, payment processing, as well as inventory management. Check out this Vend review to see its complete feature set.
  3. Square A powerful POS system that can prepare invoices, track inventory, manage customer profiles, and record sales data. For more details, check out our Square review.
  4. TouchBistro. An iPad-based POS system built for the foodservice industry that provides table management, order management, inventory tracking, and staff management. View our TouchBistro review for more information.
  5. Oracle Food and Beverage. A point-of-sale platform for different establishments offering inventory management, front-of-house management, as well as real-time reporting and analytics. To learn more, see our Oracle Food and Beverage review.

 

6. AI-Powered POS Statistics

Artificial intelligence (AI) appears to have the biggest impact on POS. It has paved the way for technologies such as machine learning, automatic language translation, predictive text, and speech recognition, to name a few. As a result, it has leveled up the POS experience to unprecedented heights. Check out the following statistics that indicate the continuing rise of AI in POS systems: 

  • Experts predict that AI-enabled services will grow further, with 15% of businesses already deploying it in their POS systems. [16]
  • 31% of businesses are already planning to implement AI within a year [16]
  • Aside from completely transforming how making a purchase in physical stores is done, AI is also expected by 40% of today’s young consumers to level further up existing technologies, such as introducing a totally new shopping experience that removes checkout inconveniences 

POS systems are among the top users of AI[17]. As a result, these solutions can now perform other functions such as fulfilling orders, replenishing inventory, or recording customer behavior. Moreover, these allow businesses to improve customer behavior by determining new product trends and giving recommendations on which customers should be re-engaged.

Leverage these statistics when buying POS software

POS systems are evolving fast. They now offer businesses increased control over their operations and more flexibility to adapt to change. In some cases, they can even generate robust market insights. As a result, more and more businesses are shifting from  old-school cash registers and traditional credit card readers to high-tech on-premise, cloud, or mobile POS systems

Also, modern POS systems empower businesses to make more efficient, evidence-based business decisions, all in a single, convenient location. You can learn more about the benefits of POS systems here.

With POS systems’ continuing advancements, you can look forward to seeing more exciting developments like greater integration of AI into POS and other business applications. For instance, AI has been helping businesses streamline processes and better learn a consumer’s buying journey using rich data and digital customer touchpoints.

As POS systems continue to reach higher ground, become cheaper, smarter, and be more integrated into the very core of your business, remember these key POS facts and trends when the time comes for you to buy a new system or upgrade your existing one. Once you are ready to make a purchase, consider reading our guide on the 20 best POS systems for sales for 2020. It will help you fast track your research and identify the right set of features for your business.

 


References:

  1. ^POS Terminal Market Size Worth $125.9 Billion By 2027 | CAGR: 7.5%
  2. ^2019 POS Customer Engagement Survey
  3. ^POS of the Future Predictions & Insights
  4. ^Personalization Pulse Check | Accenture
  5. ^2018 POS Survey
  6. ^A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works
  7. ^Mobile POS Payments
  8. ^POS of the future
  9. ^Survey Examines Shift Towards Cashless Society – Americans Use Less Cash Today Than 10 Years Ago
  10. ^2018 SHOPKEEP SMALL BUSINESS PULSE | REPORT
  11. ^14 Retail Customer Experience Stats That Just Might Blow Your Mind
  12. ^Have We Reached Peak Legacy POS?
  13. ^Market Trends Point to Cloud POS as the Future
  14. ^Cloud POS Market by Component, Organization Size, Application Area, and Region – Global Forecast to 2023
  15. ^2018 POS SOFTWARE TRENDS REPORT
  16. ^Study Finds Investments In Customer Experience Are Paying Off
  17. ^4 reasons to embrace AI’s impact on the point of sale
Jenny Chang

By Jenny Chang

Senior writer at FinancesOnline who writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore, keeping tabs on edge tech like 3D printed health monitoring tattoos and SpaceX’s exploration plans.

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