In the retail industry, POS is the area surrounding the cash register where customers pay money for purchasing a product or a service. The retail POS system is a computerized network, which includes a main computer connected with various checkout terminals. Systems also consist of different hardware, such as card payment terminals, barcode scanners, and receipt printers. A retail POS system enables users save time and money by restructuring monotonous tasks, up keeping business records, and decreasing human error. Even better, it allows leaders grow their retail business by providing them with useful data and marketing integrations. To better handle in-store checkout, retail POS system were created. The original POS systems were a mixture of hardware and software that retailers implemented to manage their sales operations. Since POS systems are the only source of all thorough store sales, they ultimately extended to include everything from tracking customer records and taxes reports to progressive marketing and inventory management.

Market Overview

Best retail POS system market is growing at a good pace. This growth can be attributed to the fact that retail merchants are striving to enhance consumer experience by offering flexible payment solutions with advanced payment options at the POS terminal. The increasing demand for wireless internet connectivity, reduced costs, and expanded network coverage are driving the need for portable or mobile POS devices in the retail sector. The increasing use of smartphones and tablets is anticipated to drive the demand for mobile point-of-sale solutions during the forecast period. With the emergence of new payment methods, such as Europay, MasterCard and Visa (EMV), and Near Field Communication (NFC), retailers are expected to upgrade their devices to comply with these technologies.

Additionally, the contactless payment is expected drive retail POS due to the evolution of new payment technologies, such as HCE and NFC. These technologies enable payment transactions through contactless chips embedded in payment cards, tags, key fobs, wearables, and mobile phones. These chips communicate with a contactless reader or POS that uses either Radio Frequency (RF) or NFC standards. The technology further enables machine-to-machine communication, including RFID.

The COVID-19 pandemic impact has brought forth a slowdown in the POS terminal demand. The adverse effects of COVID-19 are trickling down to major sectors of the global economy. According to the PWC Impact of the COVID-19 outbreak on the digital payments report, non-essential physical retail has taken a hit as forced closure has resulted in the loss of business. Payment companies will see a marked decline in these transactions. Digital payment volume declines are seen in airlines, tourism, hospitality, hotels, entertainment, eCommerce (non-essentials) and restaurants, among other sectors. Cross-border payments, be they B2B or C2B, have significantly declined due to the temporary shutting down of borders, resulting in restricted movement of goods. International remittances too have been affected and have been reduced.

Drivers

Growing interest in non-cash transactions amongst customers

Some of the key benefits of going cashless that are attracting more consumers include safety, growth on saved funds in accounts, better money management, and flexibility. The ability to make different types of digital payments through banking cards is enabling consumers to opt for cashless payment modes. Users can store their card information in digital payment apps or mobile wallets to mark cashless payments. With the rising concerns over the safety of handling cash transactions due to the COVID-19 pandemic, merchants, as well as consumers, are relying on contact-less payment modes to avoid the risk of getting infected.

Improved service delivery

The data captured through cloud POS provides merchants with clear customer insights and helps in improving different aspects of businesses, inclusive of decisions related to marketing, promotions, and customer services. The data collected through cloud POS is harnessed to derive useful information that helps merchants in understanding consumer behavior in a better way. Service providers are increasingly becoming conscious related to on-time performance. Analyzing the data generated from the cloud POS systems provides merchants with the opportunity to increase their revenue and better serve their customers. The increment on an average transaction value and the frequency helps in the enhanced growth of revenues.

Increased data visibility via cloud POS systems

The records on a cloud-based POS system can be accessed anywhere, from any device using an internet connection. The cloud POS software leverages an internet connection to access records through a remote server. Hence, the data stored in the system can be automatically synced and backed up. The store owners can view productivity reports, labor usage percentages, and productivity reports in real time. By using a hosted cloud service, users can seamlessly add any mobile device to their existing system to enhance the system mobility. Users do not have to worry related to backing up data or losing it in an event of a hardware malfunction or power outage as the information is stored and synched electronically and can be immediately restored.

Opportunities

Rising penetration of ecommerce platforms

Globally, eCommerce is a rapidly growing industry with no signs of decline during the forecast period. The sector has emerged as a popular choice for new businesses and venture capital investments and the consistent growth will prompt the development of new technologies and customer experiences. The growing trend among online shoppers to make purchases from overseas retailers is driving the rapid expansion of the global eCommerce industry. Retailers are increasingly integrating their POS with eCommerce to eliminate the manual data entry, offer cross-channel customer incentives and promotions, provide in-store pickups and returns, and track real-time available inventory.

Growing interest in POS solutions amongst small businesses

Small businesses are implementing POS systems to benefit from the host of benefits associated with them. Effective POS systems allow business owners to reduce time spent on business/store administration by offering relevant reports to help speed-up decision-making, in a timely fashion. The streamlined POS systems also aid in increasing store profitability through effective inventory management. Solutions also facilitate targeted and personalized marketing campaigns through customer data acquired during sales transactions. As small businesses struggle with managing capital expenses, reports produced from POS data can offer a bird’s eye view of the business operations to determine the efficiency of different departments.

Strong growth in global retail industry

The retail industry is witnessing steady growth with the rapid expansion initiatives undertaken by global retail giants, along with increased focus on enhancing eCommerce performance. Walmart, one of the largest retailers in worldwide, reported year-on-year growth of 2.8% in its retail revenue. The growth was primarily driven by the company’s emphasis on its omnichannel strategy through eCommerce. In June 2017, Amazon announced the acquisition of Whole Foods Market, one of the leading US-based natural and organic food supermarkets for USD 13.7 billion. Through the deal, Amazon entered the grocery store business with an intent to leverage its prime platform for offering discounts to customers visiting Whole Foods stores. The growth in the global retail sector will support the further innovation and adoption of POS solutions for enhancing customer experience in retail environments.

The competitive leadership mapping showcased provides information for Retail POS System. Vendor evaluations are based on two broad categories: product offering and business strategy. Each category carries various criteria, based on which vendors have been evaluated. The evaluation criteria considered under product offerings include the breadth of offering, delivery (based on industries that the vendors cater to, deployment models, and subscriptions), features/functionality, delivery, product quality and reliability, and product differentiation. The evaluation criteria considered under business strategy include geographic footprint (on the basis of geographic presence), channel strategy and fit, vision alignment, and effectiveness of growth (on the basis of innovations, partnerships, collaborations, and acquisitions).

Shopify Retail POS, Clover, and Vend have been identified as Visionary Leaders in the Retail POS system market.

SumUp, Quetzal, Cash Register, RQ, Solemate, and Tray have been identified as Dynamic Differentiators in the best Retail POS system market.

Appetize Retail POS, Bleu, Ari, Rista, Spectrum, and Infinity Retail POS have been recognized as the Innovators in the best Retail POS system market.

PRISM, MPOS, Point of Sale, SpotOn Retail POS, epaisa, and Tabby have been positioned as the Emerging Companies in the Retail POS system market.

What are the key features of Retail POS System?

Quick Keys

Quick keys are shortcuts in the POS system that enable users to click a single button for a frequently sold item.

Multiple payment methods

Businesses should look for a POS system that helps users to take mobile payments. The system should allow users to split payments in case a customer wants to extent their payment across a few gift cards, an Amex and cash.

Easy to Navigate Salesscreen

In order to guarantee a quicker checkout experience, it’s vital for businesses to look for a POS system that is user friendly and has been created for minimum clicks. Cashiers shouldn’t be required to leave the salesscreen in order to finish a transaction.

Fast Barcode Scanning

Best retail POS system should be intended for quick scanning speed while providing users with the ability to instantly recall their last search. It’s also important that the POS software can manage several barcodes per SKU.

Advanced Inventory Search

In addition to managing a higher volume of inventory and transactions retail POS system should provide smart search functions. This enables businesses and their employees to search for products with keyword, description, barcode or tag in case labels fall off or are not scannable.

Mobile Accessibility

Growing number of retailers are identifying the benefits of cloud technology and thus, cloud POS adoption is rising at a significant rate. Cloud POS software stores data in the cloud providing users the benefits of remote accessibility, cost-savings, and real-time data precision.

What are the two major categories of Retail POS System?

Based on products, the retail POS market is bifurcated into two segments: Fixed POS and Mobile POS. Best Retail POS system offered by major market players, such as Toshiba, Posiflex, Diebold Nixdorf, Ingenico, Newland Payment Technology, and Centerm, comprise a vast technological landscape offering, innovative capabilities, and expertise that empowers retailers to address the changing customer needs and market trends. Based on leveraging retail POS products, both fixed and mobile, retail operators can speed up the transaction process, track inventory efficiently, optimize the RoI, enhanced customer management, save time, reduce costs, 24/7 access to data, regular updates, and accurate reports. The demand for mobile POS is growing rapidly Post COVID-19 as these systems allow customers to make payments using contactless payment options, such as mobile payments, mobile wallets, UPI transactions, and smartwatches.

Fixed POS

Best Retail POS system assists retailers to consistently enhance customer experience and improve the overall store operational efficiency. A traditional POS system or an on-premise/legacy/stationary POS system runs on closed networks and the data is stored on local servers. The fixed retail POS systems offer a vast suite of capabilities, such as in-store hassle-free experience, increased store efficiency, low Total Cost of Ownership (TCO), and fast and accurate transactions. With the growing need for better management of retail functions and deeper insights into customer buying patterns, fixed retail POS system are assisting owners in maximizing their revenue streams while ensuring streamlined operations. A network of fixed POS hardware and software system comprising magnetic stripe reader, biometric reader, IoT devices, and touch screen display can create a centralized system that enables retailers for optimized business operations. Fixed POS systems are complex in nature, require a continuous power supply, and have high maintenance costs. However, several merchants and retail owners still prefer the fixed POS system for their business operations for data privacy and security. Toshiba, Posiflex, Panasonic Corporation, and Diebold Nixdorf are some of the key fixed POS system vendors.

Mobile POS

Mobile POS systems comprise smartphones and tablet POS systems that can process and manage payments, inventory, and customer information effectively. A mobile POS system runs on a cloud service, meaning that the data can be accessed from anywhere (Google Drive or Dropbox) using the internet. There is a myriad of advantages that the mobile POS system offers, such as maximum durability, ease of use, and simple set-up. Mobile POS systems are widely used by small retailers that do not possess a lot of inventory and capital resources. Training employees to use mobile POS is comparatively easy that ultimately lowers retailer’s operating training expenditures. The changing customer preferences for in-store contactless mobile payment options are expected to spur adoption of the mobile POS market globally. The popularity of tablets and other handheld devices and changing payment options, such as credit cards and mobile payments, have made mobile POS systems an attractive option for retailers. The emergence of new payment methods, such as Near Field Communication (NFC), Europay, MasterCard, and Visa (EMV), are urging retailers and merchants to necessarily comply with these technologies, which is expected to spur the demand for mobile POS worldwide. Major retailers, such as Gucci, Home Depot, Ikea, and Nordstorm, have added mobile POS systems alongside their fixed POS systems.

What are the key components of Retail POS System?

The components segment of the retail POS market consists of hardware, software, and services segments. The standard components in a POS system are server and power sources, all-in-one workstations, cash drawers, barcode scanners, magnetic strip readers, touch screen keyboards, portable data terminals, receipt printers, user interface, a database for analytics, and a lot more. A retail business preferably opts for a POS system based on its business needs. For example, small retail businesses, which are tight on budget, generally begin with a basic POS setup with a receipt printer. As the business grows, more POS software and hardware components can be integrated with the basic POS system. Small retail businesses strongly depend on retail POS services for easy deployment, consulting, and training related to best retail POS system. With the perfect combination of POS software and hardware devices, retailers could benefit in the form of high growth, profitability, and efficiency in business operations.

Hardware

POS hardware components are the physical input devices that allow users to carry out financial transactions in a retail outlet. A retailer’s requirement for POS hardware components varies based on the business needs. Some essential hardware components in a POS system are POS touchscreen terminals, cash drawers, barcode scanners, printers, network devices, and credit card machines, among many other hardware devices. The equipment used in retail POS system is critical as it supports the POS system to conduct efficient and effective financial transactions. Retail POS vendors globally are continuously taking efforts to make the POS hardware component capable with advanced features, such as USB, Bluetooth, and wireless connections, to meet the ever-growing needs of customers. Newland Payment Technology, Panasonic Corporation, Pax Technology, Posiflex Technology, HP, Toshiba, and Cisco are some of the prominent retail POS market vendors.

Software

Every POS system in a retail outlet consists of software components, including a user interface and a database, for advanced analytics. The software can be hosted both locally and on the cloud. An advanced cloud-based retail POS software is often clubbed with integrated payments, inventory management, and real-time reporting. Advanced technology enables the POS software system with AI and ML capabilities and generates robust and real-time reporting for enhanced sales forecasting based on the latest sales trends. Retailers are increasingly deploying POS software applications for monitoring the store remotely. The retail software provides retailers with regular and real-time updates of in-store retail operations. The retail POS market vendors are constantly upgrading their retail POS terminals software so that they are compatible with the EMV compliance requirements and NFC payments for secure and quick transactions. NCR offers a cloud-based POS software that enables access to payment information from any connected device. The wide adoption of cloud computing systems and end-to-end encryption technology is expected to stimulate the growth of POS software. Some POS software providers in the retail POS market are Quickbooks, SAP, Shopify, Helcim, Epicor, and Newland Payment Technology, among others.

What are the key services provided by Retail POS System vendors?

The services segment includes various services that are required to deploy, execute, and maintain the best retail POS system in an organization. These services are classified into sub-categories: consulting, deployment and integration, and support and maintenance. These services ensure proper requirement analysis, installations, integrations, and routine maintenance and updates for the retail operators. As the adoption of the best retail POS system increases, the demand for these services is also expected to soar. The provision of consulting and training services to eliminate technical complexities related to retail POS solutions is expected to surge the demand for retail POS services in the future.

Consulting

The aim of consulting services is to increase the awareness of retail POS advantages with professional services that comprise a highly skilled development team, R&D team, training and education, and extensive expertise to help clients leverage various retail POS system offerings, custom training workshops, and private education for enterprises. Consulting services address the specific needs of a merchandising and retail store to design a uniquely personalized retail POS solution. Service providers can help build a roadmap for the development and implementation of the best retail POS system platform. Consulting services offer end users training services and tactical support when using retail POS systems. Consulting services are important for companies because not all retail industries expertise in using retail POS systems. Consulting services assist retailers in implementing complex technologies and ensuring their staff is fully equipped to operate and manage best retail POS system easily. Consulting services also include employee training, where trainers train the employees, including managers, and the other service staff. The training process ensures the unique training demands for all retail departments are met.

Deployment and Integration

Integrations and deployment service providers offer tailored retail POS deployment and integration services for retail POS system. Integration and deployment services are provided by highly qualified industry experts, domain experts, and professionals that assist retail organizations formulate and implement best retail POS system. In system integration, the vendor’s new services are integrated with the client’s system without hampering the existing client’s system. Integration services enable the seamless consolidation of disparate applications and technology products, including legacy platforms to ensure smooth operations of all the integrated solutions. Design and integration services offer benefits, such as reduced risks and complexity. Mobility, security, compliance, and omnichannel functionality are all urging retailers to replace outdated and existing retail POS solutions with new technologically rich retail POS systems. Deployment and integration aid retail businesses with the hardware, software, and processes required to implement and integrate a functionally rich retail POS system.

Support and Maintenance

Retail POS support and maintenance services include technical support related to the implementation and usage of retail POS products. These service providers offer technical assistance, query resolution, chatbots, and Frequently Asked Questions (FAQs) for retail POS system users. These services provide 24/7 phone and email support to resolve any issues that may hamper the retail business process continuity. They also offer monthly, quarterly, and yearly maintenance services based on the subscription- and user-based delivery models. Support and maintenance services are provided by top retail POS vendors that aid with necessary technical support to clients. Maintenance services are after installation services and are used for upgrading software or resolving security issues an organization is facing and for support activities that provide consolidated security services and 24x7x365 standard support or critical business issues, real-time advice, proactive advice from professionals, and premium customized support program for unique needs of a retail organization. A support team takes educational steps to help better navigate the retail POS in the future.

Who are the typical end users of a Retail POS System?

The end user segment of the retail POS market consists of supermarkets/hypermarkets, grocery stores, specialty stores, convenience stores, gas stations, discount stores, and others (department stores and miscellaneous retailers).

Supermarkets or Hypermarkets

We live in an era of technological brilliance, businesses all around the world are reaping benefits of technological advancements. The supermarket/hypermarket sector is certainly not an exception. The emergence of POS software for supermarkets/hypermarkets has been a big game-changer. The simple transformation to technology helps enhance the audience experience, save time, bring down management expenditure, streamline the accounting process, and achieve profitability. A supermarket POS software provides real-time insights, which accelerate business growth. The software is always in sync with the supermarket sale system. As a result, a supermarket POS system automatically updates the inventory with real-time data, every time a product is scanned by barcode. The billing system is constantly updated and there are absolutely no chances of errors and omissions. Efficiency is one of the biggest USPs of a supermarket/hypermarket accounting software. There have been several instances of billing errors in the supermarket billing system. A comprehensive billing software solution integrates all complex calculations and pricing data for a frictionless billing process.

Supermarket and hypermarkets are increasingly deploying POS terminals to automate employee, inventory, and customer management. For instance, The Kroger Company, one of the largest supermarket chains in the US, partnered with OneView Commerce, a digital store platform provider, to develop a next-generation POS solution. The integration of OneView’s cloud-based technology has enabled the company to deploy sales and service functions, such as checkout, targeted discounts, and inventory checks, into a single user interface. Supermarket/hypermarket POS records customers buying history. This helps the management to have a better idea related to a customer's buying preferences to serve customers better.

Grocery Stores

Grocery stores have some tough competition and large chain supermarkets use technology to make their jobs easier. If one wants to keep up, they should know that a typical cash register system cannot handle enough tasks. A POS system helps manage the store and makes checkouts quicker. The grocery store software will help better organize the business and meet customer expectations. For instance, National Retail Solutions created the POS+ so that hard-working businesses can have the same opportunities as bigger grocery stores and it offers countless advantages. Independent stores, such as small shops, present at a single location are highly adopting retail POS terminals for providing customers with digital payment services. Customer experience is something that every store owner takes seriously. A grocery POS also helps in better customer retention by enriching customer experience. The automation helps in making the billing system prompt and quick. This allows for faster sales and reduced queues. Hypermarkets/supermarkets face intense competition from online grocery retailers. The competition for attracting more customers has encouraged brick-and-mortar grocers to adopt POS terminals. These devices help in enhancing customer shopping experience by providing a faster and easier checkout process. Several leading retail brands have deployed mobile POS terminals in their stores for providing customers a smooth shopping experience.

Specialty Stores

Independent specialty retailers require easy-to-use, yet powerful, technology to level the playing field with the competition. Running specialty retail involves countless complicated chores to be conducted daily. Specialty retailers face pressures from larger one-stop-shop merchants, who often offer convenience and low prices. Even with the unmatched product expertise, specialty retailers need to offer a better in-store experience to compete and win. Whether the specialty is a bookstore or a stationery shop or a shoe store or a chain of shops spanning several locations, specialty retail POS manages operations efficiently in a simple manner. POS Nation is an all-in-one POS system built to the specific needs of retailers, and specialty stores, such as tobacco shops, liquor stores, and specialty groceries. This POS software is an easy-to-use, powerful, and intuitive platform that enables SMEs to manage single or multi-location stores with total ease.

Convenience Stores

The convenience store POS software helps retailers automate inventory management processes, such as receiving product delivery and updating inventory levels after the sale. Retailers can track the best-performing products and their inventory levels in real time to ensure inventory levels are optimum round the clock. With real-time inventory updates, retailers can prevent spoilage by selling perishable products on a First-in, First-Out (FIFO) basis. Hence, the convenience store POS software helps retailers reduce transaction time, manage inventory and prices, and increase sales. Convenience store POS solutions automate manual tasks, such as data entry, price updates, and cash management and billing, which reduces human errors and enhances customer satisfaction. By reducing these manual efforts, retailers can focus on improving customer engagement, creating performance reports to identify problem areas, and training their employees to serve customers in a better way. It also helps them reduce human errors and manage compliance issues that arise from frequent changes in gas prices by automating the pricing process.

Gas Station

Gas station owners have unique needs for their POS systems. Gas station POS systems should be able to handle fuel pumps, retail and food items in-store, kitchen- or fresh-made items, and even car washes. A gas station POS needs to have basic POS functions, including reliable payment processing and reporting tools. The best gas station POS systems should handle all business needs from a single register without having to integrate several POS software programs. Some of the best gas station POS systems are NCR, Verifone, L S Retail Forecourt, and Petrosoft SmartPOS.

Discount Stores

A discount store is a retail store that sells products at prices lower than those asked by traditional retail outlets. Some discount stores are similar to department stores in that they offer a wide assortment of goods and some are called discount department stores. These stores carry a variety of national brands, usually purchased directly from the manufacturers while offering low prices and knowledgeable service.

Discount store operator

Walmart—had become one of the world’s largest retailers and a global leader in the 21st century. Walmart’s Retail Link is a comprehensive tool used to pull POS data. This data has several uses for retailers who sell through Walmart. The data predicts buying patterns, trends, and inventory management. It ensures supply chain reliability and provides other important information. POS data goes together with customer satisfaction and brand awareness. Professionals are dedicated to interpreting the Retail Link data because of the volume of data that it can provide its sellers.