MENU
GET LISTED
GET LISTED
SHOW ALLPOPULAR CATEGORIES
  • Home
  • Research
  • 7 POS Trends for 2020: Latest Predictions You Should Be Thinking About

7 POS Trends for 2020: Latest Predictions You Should Be Thinking About

Category: Research

POS systems have gone from merely a tool to record sales transactions to a robust platform in just a few years, one that can integrate your marketing, inventory, accounting and data analytics. And its evolution isn’t slowing down, hence, the need to keep up with POS trends. What’s in store for POS software in the months ahead into 2020?

For that, you only need to browse below the key takeaways. In this article, you’ll learn how POS is critically relevant to customer experience like bread to butter. Likewise, you’ll see how mobile is disrupting the game in payments and–where on earth is this disruption taking place the fastest? We have compiled more key insights on POS market trends, information that may prove useful to your presentation, report or anyhow you use it.

pos forecasts

The point of sale system is the very heart and soul of any business. In fact, according to a report from Grand View Research, the global point of the sale terminals market is expected to reach USD 108.46 billion by 2025.

If your business is still using the traditional cash register with a card reader and no other payment option, then you’re already behind on the times. Not accommodating your mobile paying customers is losing you your customer base. 

One of the biggest POS industry trends right now is mobile payment transactions which saw a 40.2% year on year growth. However, over 46% of retailers can’t accommodate these mobile paying customers because they don’t have the right system to help complete the transaction. 

Although retailers are incorporating these new methods of payment into their POS systems, 23% of them still can’t accept payment with the tool. 

So, the solution is clear: it is not enough to upgrade your system. Retail POS trends point to the fact that it’s also important to learn how to use it effectively. Doing so allows you to sell more products, and bring in younger and more tech-savvy customers through your door. You’ll be making your life and theirs a lot easier by joining the mobile POS trends.

Top POS Priorities for 2019

Add capabilities to current POS

%

Payment security/PCI compliance

%

Omni-channel integration

%

Unified or single commerce platform

%

System upgrade/replacement

%

Hardware upgrade

%

Mobile POS

%

Source: Grand View Research

Designed by

1. New ways to improve customer experience

One way to improve customer experience is making it easier to conduct transactions. That is why it’s also important to have a reliable billing and invoicing program together with your POS sale.

For example, in a recent survey, it’s found that 54% of consumers in the US preferred to use their debit cards to make payments. Being able to accommodate their preferred payment method will not go unnoticed. 

In an effort to continue improving the customer experience, 53% of retailers and business owners are upgrading their POS systems. Among those upgrading their systems, 45% have security as their top priority. Offering a secure payment method improves the trust your customers have with your business.

Here are some other ways on how an improved POS affects the customer experience:

  1. Faster checkout times. People always have somewhere they need to go. When they drop by your place of business and make a purchase, they want to spend as less time as possible there, especially during the checkout line. That’s why some companies adopted different POS systems. Even using mobile devices like tablets and mobile devices to make transactions faster.
  2. Available payment options. Thanks to the rise of debit and credit card payment methods, there are fewer people using cash today. According to a survey, 46% of US consumers rarely use money anymore. So, if you’re still using an old-school cash register, you are already missing out on a lot of business. 
  3. Inventory management. Managing inventory takes time and effort. But through a reliable POS system, you can easily keep track of everything in your store. It will also be a lot easier to answer customers asking about particular products in stock. 
  4. Gather customer feedback. Suggestion boxes are a great way to get a pulse on how your customers like the service provided. Now, you can get the same feedback through your POS system, making everything digital.

 

Popular Payment Methods in the U.S. (adoption rate)

Debit cards

Credit cards

Cash

Source: creditcards.com 2018

Designed by

Customer experience trend highlights

  • 45% of businesses are upgrading their system to enhance security features
  • To help improve customer experience, 53% of retailers are looking to get a newer POS system

2. More businesses are transitioning to cloud-based POS

61% of quick-service restaurants in the US have embraced cloud-based POS. In fact, 60% of new merchants are asking for cloud POS rather than legacy POS.

Cloud-based POS is currently one of the leading POS technology trends today. In fact, Forbes reported that 61% of merchants are looking into getting cloud-based POS for their business

Additionally, it’s predicted that there will be a 50% increase in cloud-based POS adoption before the end of 2021. So, now is a good a time as any to embrace the change. Merchants are liking these advantages of having a cloud-based POS are as follows: 

  1. Simplicity. Client-based POS requires time to set up and learn its ins and outs. Not to mention, it needs an IT team to help with its maintenance and when there are problems with the system. Cloud-based POS replaces all of that with a single app. Any update will come from the cloud to whatever device you are using. It makes the entire process a lot simpler, making it easier for merchants to handle.
  2. Flexibility. If budget is a concern, you can make the transition to the cloud-based system slowly. Adopt the system in stages and only pay for the methods that are currently in use.
  3. Functionality. Most cloud-based POS can integrate with the programs that your business is already using. If this is the case, then an open API POS is best suited for your needs.

pos trends

Cloud-based POS trend highlights

  • 61% of quick-serve restaurants are already using cloud-based POS in the US.
  • 61% of merchants are looking to upgrade to a cloud-based POS in the near future.

3. Asia Pacific Countries lead the world in using mobile payments.

Asia Pacific countries have fully embraced the use of mobile payment methods. eMarketer found that more than 45.2% of China’s population use mobile payment for their everyday use. 

The trend is slow to come to the US, even with the world’s highest smartphone adoption rates with 77% of the population using one.

The 2019 mobile POS transaction value is estimated to be around US $745, 796 million. However, debit and credit cards are still the most popular methods of payment in the US. That could soon change as there is a 16.2% year on year growth of mobile POS payment users.

Here are some reasons to consider taking mobile payment options for your business: 

  1. Makes transactions easier. Accepting mobile payments for your business is easy. It mostly consists of scanning codes or tapping the smartphone on the terminal and authenticating the transaction. It will require little training for your staff and they can adapt to it fast.
  2. Improves customer service. One thing nobody likes is waiting in long lines at the store. Accepting mobile payment methods allows lines to move faster and gives your customers a sense of satisfaction.
  3. Transactions are safe. Mobile payments are safe to use. A lot of these systems are EMV compatible and use the latest secure credit card processing technology to protect you and your customers.

Global Mobile Payment Usage (adoption rate)

China

Mongolia

Brazil

Russia

Myanmar

Saudi Arabia

Sweden

India

Mexico

USA

Source: merchantsavvy.co.uk 2017

Designed by

Mobile payment trend highlights

  • 45.2% of Chinese consumers prefer to use mobile payment for their transactions
  • Mobile POS transactions in 2019 is valued at US $745, 796 million.
  • The US has the largest number of smartphone users, with 77%.

4. AI Integration

Because of the added benefits of having AI integration, 15% of businesses in the US are already using AI-enabled POS for their stores.

What’s more, 30% are already planning to make the jump to AI-powered POS within the next twelve months. If you’re worried about customers after the upgrade, don’t fret.

A study found 40% of 18 to 24 year-old consumers that they would let artificial intelligence shop for them; granted that it understood their preferences. With that said, there should be no problem with customers adjusting to AI in stores considering its benefits:

  1. In-store fraud detection and prevention. Prevent fraud and ensure customer information is secure through an AI. They can detect and prevent fraud and secures the information entered is safe from the wrong hands at any time. It sends alerts for any suspicious activities. The system can even keep track of employee behavior to make sure they are doing their job.
  2. Better shopping experience. Online shopping has set the bar for the shopping experience. The convenience and intuitive suggestions it provides prove to be useful for shoppers. Through the use of an AI, you can attain the same experience in-store. The AI can personalize a customer’s behavior and offer relevant product displays based on their past purchases.
  3. Keeps track of inventory. AI lets you know your customer’s buying habits. That way, you can order more of what’s being bought, increasing profits. It also helps to reduce inventory loss, as it detects checkout errors and when a cashier forgets to scan an item.

AI integration trend highlights

  • 15% of US businesses are already using AI-integrated POS systems
  • Another 30% are looking to make the transition within the next year.
  • 40% of 18 to 24 year-old consumers are willing to let AI help with their shopping needs.

5. Better ways to collect data from your customers

Customers want to make their shopping experience as flawless as possible. That’s why according to a survey, 83% of shoppers are willing to provide their information in exchange for a personalized experience.

This trend makes it easier to collect the necessary data from customers. POS systems have a feature similar to some of the best business intelligence tools in the market. It can help you process the data from your customers to create the best experience.

According to a study, 50% of retailers are still using spreadsheets to analyze their sales data. Change may soon be coming as 81% of businesses are looking to get a unified commerce approach for their business by the end of 2020. 

Smaller businesses can take advantage of the situation by using a comprehensive POS system and utilizing all its features. Here are some other benefits of using this trend for your business

  1. See buyer habits. Get insights on what your customers are purchasing more of. This gives you an idea of what they are going to buy next based on their most recent purchase from your store.
  2. Improved marketing strategy. After gathering buyer habits, you can then create a comprehensive marketing strategy that can help promote your brand and products.
  3. Actionable data. More advanced POS systems will not only gather data for you but present it as well. It can come up and present real-time data in an easy to understand format like a graph. That way, you can quickly see what needs to be done in terms of improvement and more.

pos current trend

Data collection trend highlights

  • 83% of consumers are willing to give their information to get a more personalized shopping experience.
  • Currently, 50% of retailers still handle their customer data manually through spreadsheets
  • The trend can soon change as 81% are looking to get digital help for their data.

6. Faster payment processing

Aside from a personalized shopping experience, customers want transactions to be faster. One way of making sure that transactions are faster is by upgrading older POS units and adding features.  In 2019, the leading POS purchasing plans for merchants are new POS solutions, with 51% looking into the change.

Bigger businesses have more people coming in and making purchases, which is why 46% of store owners are looking to add new modules to keep up with the current demand.

Lastly, with the rise of mobile payment options, retailers and restaurants alike are looking to accommodate the trend. Which is why 39% of business owners wanting to get a POS for mobile devices.

With more payment options and registers open for paying customers, you can expect payment transactions to go faster over the next few months, resulting in happier customers overall. The benefits are aplenty:

  1. Contactless payment. These payment options include smartphone payment options that support RFID like Apple Pay, Samsung Pay, and Google Pay. It’s a faster way for users to pay and get on with the rest of their day.
  2. Mobile payments. Similar to contactless payment, mobile payments also offer a faster way to pay for items. But instead of waving the device over the POS terminal, customers will need cellular data to complete the transaction.
  3. Improved POS systems. A good reason to go over the POS technology trends is to discover the best POS systems available today. You can get the perfect POS software for your business and allow upgrades necessary to improve business.

Payment processing trend highlights

  • 39% of business owners want to get mobile-ready POS for their stores.
  • 46% want to add more POS modules to their stores to accommodate more customers.
  • 51% are looking to get a brand new POS system to accommodate newer technologies.

7. Mobile POS systems

35% of mobile payment users are between the ages of 25 to 34 years old. With mobile payment users on the rise, only 23% of businesses can’t accept mobile payments, even with the right tools.

A mobile POS system often consists of a tablet that accepts card, cash, and mobile payment options. Additionally, these systems can also be used as a standalone register for a self-checkout kiosk

Meanwhile, 46%  of retailers don’t use mobile POS. Mobile POS offers convenience as it takes the point of sale system to the customer, rather than the other way around. Which is why it is a popular trend especially with the restaurant industry.

Advantages of these systems are as follows:

  1. Better functionality. When used at restaurants, these serve more than just a POS. It can also serve as a digital menu, where customers can input their orders. The orders will be sent directly to the kitchen, encouraging customers to order more.
  2. A convenient way to pay. Rather than giving the card to a server and letting them run the transaction at the counter, customers can pay from the table.
  3. It also serves as a static till. For retail shops that offer self-checkouts, you can make your mobile POS into a static till. So, customers can check out as they please.

Mobile POS trend highlights

  • Mobile payment users are young, with 35% of users between the ages of 25 to 34.
  • 46% of retailers currently don’t have a mobile POS system in their stores.
  • Meanwhile, 23% of retailers who do have a mobile POS system, cannot accept mobile payments

Use POS Beyond Transactions

Having a state-of-the-art POS system for your business means you can do more than collect payment. Together with a CRM platform, you can gather and analyze customer data more efficiently and more accurately.

Trends are trends for a reason. If you don’t take these on for yourself, your competition will–and most likely, leave you in the dust. 

With a state-of-the-art POS system, you’ll be able to handle more transactions on a day-to-day basis as well as cater to younger consumers using the latest and most payment methods like mobile payments. In fact, you can even improve your business process with some of the top accounting platforms of today.

Meanwhile, transitioning to a cloud-based POS will reduce your costs and offer better management of your data. 

Once you have all the data you need, use that to help you figure out what your customers want and how you can deliver it to them. 

If you’re a restaurant, you’ll need specific POS features. You can check popular POS software for restaurants and find the one that suits your needs.

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

Related posts

Leave a comment!

Add your comment below.

Be nice. Keep it clean. Stay on topic. No spam.

TOP

Why is FinancesOnline free? Why is FinancesOnline free?

FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions.