The POS sales are exploding worldwide, with the market for POS software set to grow 63% over the next five years, driven by vendor app integrations.
The total global annual spending on POS software by retail and restaurant businesses will grow to $1.7 billion in 2024 from $1.1 billion in 2019, according to data from Juniper Research.
Big- and medium-sized stores are already obligated users of these applications. Increasingly, small-time store owners are everywhere shifting to its use.
Driving the surge is the increasing availability of app integrations, such as Shopify and QuickBooks, as vendors expand and seek to augment their capabilities through partnerships and consolidation.
Chinese market commands the lion share
China will be a key market for software vendors by 2024, accounting for 40% of global revenue.
Chinese retail innovation has traditionally occurred in the online area, rather than in traditional ‘bricks and mortar’ retail, a trend which POS software is expected to alter, by offering ecommerce integrations, enabling a highly effective omnichannel experience.
A level playing field
The new study points out that POS software can be an important enabler for smaller retailers, by granting access to management tools previously only available to large businesses.
By 2024, 81% of all POS software will be used in retail. Monetisation will be a crucial issue for vendors, as many payments companies offer some tools free with payments processing.
Road map for vendors
Vendors must ensure that their propositions are highly tailored, to ensure sufficient user appeal, the study recommend.
The report identified that forging partnerships will enable connections with third-party platforms; allowing vendors to grow their user base.
The research also urges vendors to leverage cloud-based systems to integrate with eCommerce platforms; enabling retailers to offer seamless omnichannel experiences. It further forecasts that larger POS software vendors will seek to acquire niche POS software innovators to integrate their disruptive services into their portfolios.