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62 POS Statistics You Must Learn: 2020 Data Analysis & Market Share

Category: B2B News

Every modern-day store, big and small, won’t be complete without a POS software. More than anything, this compilation of POS statistics shows how this powerful piece of technology has made the lives of grocers, retail store owners, and other entrepreneurs easier and more productive. In fact, POS software is now regarded as the heart of any business, evolving from the lowly cash register into a comprehensive suite of business solutions.

And because it pays to be updated about the latest business information, we’ve gathered the latest POS statistics you must learn today. This way, you can readily make informed decisions to your company’s advantage.

POS statistics

1. General POS Statistics

From simply processing customer orders, POS systems have advanced so fast that they’ve become multi-functional hubs for businesses across industries. Today’s fast-evolving POS platforms now offer a wide range of features and functionalities, such as menu creation, tableside ordering, employee management, CRM, inventory management, etc. This is why the POS market is among the most dynamic in the world today, as evidenced by these key statistics:

  • In 2019, the global POS system market was at $15.64 billion. By 2025, it is expected to reach $29.09 billion. [1]
  • The top POS priorities among North American retailers for 2020 are omnichannel capabilities integration (59%), improve existing POS (52%), unified ecommerce platform (44%), mobile POS (44%), POS upgrade or replacement (41%), and hardware upgrade (30%). [2]
  • The largest POS market segment is POS hardware, which is predicted to reach $66.30 billion by 2025. [3]
  • The top POS purchasing plans for 2019 are searching the market for new POS platforms (51%), integrating new functions to existing systems (46%), and utilizing mobile-based POS (39%). [4]

Source: Boston Retail Partners, 2019

2. Mobile POS Payment Statistics

Mobile payment systems have been enjoying high consumer adoption and conversion rates, mainly due to their usability. Aside from providing considerable convenience, mobile POS systems offer unparalleled access to a vast array of consumer information that can be transformed into actionable insights using AI and analytics.

  • For 2020, the total mobile POS transaction value was $1,017,982 million. [5]
  • 30.1% – CAGR of mobile payment transaction values from 2019–2023. [5]
  • 40.2% – the year-on-year growth rate of mobile POS transaction value. [5]
  • When shopping, 8 of 10 customers worldwide use a smartphone, tablet, or some type of digital technology within the store. [6]
  • 82% of consumers report that they first consult their mobile devices for more information about the item they’re about to buy. [6]
  • 73% of consumers use less cash than in the past. [7]
  • 23% of mobile POS users still can’t accept payment using the tool. [2]
  • Today, 46% of retailers don’t utilize mobile POS to process their transactions. [2]
  • In 2017, 54% of mobile POS payments users were male, and 46% were female [5]
  • Among consumers, 35% of mobile POS users are between 25 and 34 years old. [5]
  • The year-on-year growth rate of mobile POS payment users is 16.2%. [5]
  • In the next four years, the volume of mobile POS payment users is predicted to reach 1,657.5 million. [5]
  • In 2019, the average transaction value of mobile payments per user was $658.1. [5]
  • Total number of mobile POS payment users in 2019 is 1,133.30 million [5]
  • Experts predict that the transaction value of mobile POS payments will reach $2,137,510 by 2023. [5]

Mobile POS Payment Users Based on Income

  • 27.4% belong to the low-income bracket. [5]
  • 32.2% are medium-income earners. [5]
  • 40.4% are high-income earners. [5]

Mobile POS Payment Users based on Age Groups

  • 20.06% = 18–24 years [5]
  • 34.99% = 25–34 years [5]
  • 24.42% = 35–44 years [5]
  • 16.43% = 45–54 years [5]
  • 4.10% = 55–64 years [5]

Mobile POS Payment Transaction Value (2017–2023)

  • $368,614 for 2017 [5]
  • $532,106 for 2018 (44.4% transaction value growth) [5]
  • $745,796 for 2019 (40.2% transaction value growth) [5]
  • $1,017,982 for 2020 (36.5% estimated transaction value growth) [5]
  • $1,350,575 for 2021 (32.7% est. transaction value growth) [5]
  • $1,729,893 for 2022 (28.1% est. transaction value growth) [5]
  • $2,137,510 for 2023 (23.6 est. transaction value growth) [5]

consumer use of mobile devices

3. POS User Personalization Statistics

Nowadays, the best way to provide what most people want is through personalization. And to complete the seamless customer experience, such service should be omnichannel, secure, and provided in real-time. This is why top global brands must assume a holistic strategy to shape the customer journey and to better adapt to essential POS trends.

  • 91% of shoppers are more likely to buy in stores that can provide more personalized and relevant suggestions. [8]
  • 83% of consumers are willing to divulge personal information in exchange for a personalized shopping experience. [8]
  • Before 2021, 81% of businesses are expected to use a unified commerce approach. [9]
  • Among retail businesses in North America, the number of unified commerce users had increased from 9% in 2017 to 28% in 2018. [9]
  • 73% of consumers leverage various channels when they shop, 20% still favor in-store, while only 7% prefer online shopping over other channels. [10]
  • For 79% of shoppers, a key consideration when looking for stores to shop is personalized service. [2]
  • 56% of consumers opt for businesses with brands that allow shoppers to use a shared cart across different channels. [2]
  • 59% of shoppers say that personalization experience tends to have a significant impact on their purchasing decisions. [6]
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Products that Most People Buy Online than Offline

Products that Most People Buy Online than Offline
Games, music, movies, and books: 43

Games, music, movies, and books

%
Products that Most People Buy Online than Offline
Clothing: 37

Clothing

%
Products that Most People Buy Online than Offline
Consumer electronics: 33

Consumer electronics

%
Products that Most People Buy Online than Offline
Shoes: 30

Shoes

%
Products that Most People Buy Online than Offline
Body care & cosmetics: 20

Body care & cosmetics

%
Products that Most People Buy Online than Offline
Bags & accessories: 17

Bags & accessories

%
Products that Most People Buy Online than Offline
Baby products and toys: 16

Baby products and toys

%
Products that Most People Buy Online than Offline
Household appliances: 14

Household appliances

%

Source: Statista Global Consumer Survey 2019

Designed by

4. Cloud-Based POS Statistics

In the past, the best on-premise POS systems dominated the market, heralding a major evolution in how business transactions are done. Then came cloud-based POS solutions, which offered far more advantages compared to legacy systems. However, on-premise POS platforms still have some specific uses and contexts that some retailers prefer, although the trend indicates a continuing shift to cloud-based solutions.

  • Cloud POS systems have gone beyond the 20% critical level in market penetration. This covers all retail categories except for cafeteria businesses. [11]
  • More than 60% of recent POS system purchases were cloud platforms, setting a new milestone when cloud platforms first surpassed legacy systems. [12]
  • Before 2022 begins, a 50% cloud POS adoption rate is expected to be reached in all restaurant categories. [12]
  • The total cloud POS market size worldwide is predicted to increase from $1.34 billion in 2018 to $3.73 billion in 2023. [13]
  • 61% of sellers plan to have a cloud-based POS when they change their current platforms. [14]

cloud POS systems have surpassed legacy systems

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.

5. AI-Powered POS Statistics

If there’s one cutting-edge technology that’s influencing POS systems the most, it’s artificial intelligence (AI). An AI-powered POS solution can readily go beyond its common functions to provide advanced features, including speech recognition and machine learning. Here are a few significant POS + AI statistics:

  • Experts predict that AI-enabled services will grow further, with 15% of businesses already deploying it in their POS systems. [15]
  • 31% of businesses are already planning to implement AI within a year [15]
  • 40% of young consumers nowadays expect AI to transform the traditional in-store purchasing process as well as provide unprecedented benefits to shoppers.[16]

Businesses Deploying AI-Powered POS Systems

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Source: CMO/Adobe 8th Annual Digital Trends (2018)

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Among all technology providers using AI, POS vendors are some of the top users. [16] Because of this, more and more businesses can benefit from AI-powered features in their POS systems. These include the capability to use POS data to track and learn from customer behavior as well as for deploying smart inventory replenishment and automated orders fulfillment.

6. POS Report & Analytics Statistics

Enhanced reporting and analytics capabilities are some of the most significant advancements in the current crop of POS systems. Access to this robust functionality empowers POS system users to leverage their deeper knowledge of customer behavior and purchasing habits to their advantage. Here are some relevant statistics on this:

  • 62% of businesses consider identifying who their customers are as their main priority in customer engagement. [9]
  • 83% of sellers nowadays offer suggestive selling generated from a customer’s purchase history over the last three years. [9]
  • A survey of small businesses shows that 50% of small businesses believe that the various reports that they generate are crucial in helping sustain their POS usage.[17]
  • 75% of companies are planning to allocate in-store mobile tools in their budgets within the next year.[17]
  • 61% of merchants believe that a top factor influencing POS upgrades is the ability to use data to understand consumer preferences. [3]

merchants prefer POS with analytics

Small business owners are now in an advantageous position to leverage the constantly increasing capabilities of POS systems. The rich consumer insights that POS solutions bring offer SMBs a streamlined approach to help them provide their customers with a personalized shopping experience. [18]

7. POS Data & Security Statistics

POS technology has become a reliable tool to combat retail losses in recent years. While other loss prevention methods rely on various video monitoring techniques, POS uses its robust analytics capabilities to identify and prevent losses. Loss prevention providers already include POS data analytics in the services they provide.

  • In 2019, 65.1% of US-based retailers turned to POS data to power their loss prevention efforts, registering a 7.9% increase from the previous year. [19]
  • Increases in the number of retail fraud occurred in in-store sales (42.9%), online sales (30.2%), and multi-channel sales (22.2%). [19]
  • Over 6 in 10 retailers in the US have already deployed POS analytics to combat fraud.[19]
  • New POS systems-based technologies, such as fingerprint ID, are emerging, with 11.1% of retailers already using the technology, 6.4% in the testing phase, and 4.8% in the planning stage.[19]
  • In 2013, retail giant Target became the victim of one of the biggest POS data breaches of all time, where its POS systems were infected by a trojan to steal the credit card information of over 70 million customers. [20]
  • In 2014, Home Depot was attacked using a POS malware, affecting as much as 2,200 branches and 56 million customers. [20]
  • Hackers stole the credit card data of Wendy’s customers in 2016. Involving over a thousand branches, the data breach led to multiple lawsuits against the fast-food giant. [20]

Source: National Retail Federation & University of Florida

Let These Statistics Help You Find the Right POS Software

Today’s POS systems have truly become the heart of any business operation. They have come a long way from their initial functions to process and register customer orders to now help customers keep on coming to your stores. Thanks to AI and other innovations, these solutions have truly become an indispensable tool for the modern enterprise.

But the story doesn’t stop there as POS vendors are likely to come up with new and exciting features in the near future. And as we wait for that next big thing in POS technology, it’s very worthwhile to consider these POS statistics, especially if you are planning for an upgrade or a new system for your business.

And in case you’re already in the market for a POS system, it’s best to read more about the best POS systems for sales for 2020. The more informed you are, the better will you be able to make the right choice. Besides, being the core of your operations, your choice of a POS system will be a make-or-break decision.


References:

  1. ^POS System Market – Growth, Trends, and Forecast (2020-2025)
  2. ^2020 POS/Customer Engagement Survey Report
  3. ^POS Terminal Market Size Worth $125.9 Billion By 2027 | CAGR: 7.5%
  4. ^2019 POS/Customer Engagement Survey
  5. ^Mobile POS Payments
  6. ^POS of the future
  7. ^Survey Examines Shift Towards Cashless Society–Americans Use Less Cash Today Than 10 Years Ago
  8. ^Personalization Pulse Check | Accenture
  9. ^2018 POS Survey
  10. ^A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works
  11. ^Have We Reached Peak Legacy POS?
  12. ^Market Trends Point to Cloud POS as the Future
  13. ^Cloud POS Market by Component, Organization Size, Application Area, and Region – Global Forecast to 2023
  14. ^2018 POS Software Trends Report
  15. ^Study Finds Investments In Customer Experience Are Paying Off
  16. ^4 reasons to embrace AI’s impact on the point of sale
  17. ^14 Retail Customer Experience Stats That Just Might Blow Your Mind
  18. ^2018 ShopKeep Small Business Pulse Report
  19. ^2019 National Retail Security Survey
  20. ^What is POS Security? Protecting Data in POS Environments
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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