Asia Pacific POS Terminals Market value was USD 20 billion in 2019 and is expected to grow at a CAGR of 14% from 2020 to 2026.
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Several countries in Asia Pacific including India, China, and South Korea are witnessing the growing adoption of cloud computing technology over recent years. The adoption will boost the demand for cloud-based POS systems that streamline operations by storing data securely at a unified location. Cloud technology also eliminates the hassle of establishing on-premise hardware for data storage. As small and medium-scale businesses face budgetary and space constraints, cloud technology facilitates efficient data storage without the need to construct and expand on-premise servers. The growing implementation of cloud-based POS systems by restaurant owners and retailers in Asia Pacific will drive the market growth.
The ongoing coronavirus pandemic will fuel the demand for contactless POS terminals. There is a growing adoption of non-contact payment techniques in the region to avoid the spread of the virus through cash handling. According to a Mastercard survey, most consumers in the Southeast Asian market reported a significant decrease in cash usage that includes 67% in Singapore, 64% in Malaysia & the Philippines, and 59% in Thailand since the beginning of the COVID-19 outbreak. A rise in the adoption of digital payment technologies due to health concerns associated with the spread of the virus through banknotes will fuel the Asia Pacific POS terminals market growth.
Compactness and easy use facilitated by mobile POS terminals will surge their demand among small restaurants, retail outlets, and warehouses. Portable POS terminals ensure fast transaction speeds, increased sales, and improved customer satisfaction. These devices enable retailers to carry the terminals to customers, avoiding waiting at the counters for payment. Increasing competition amongst retailers to provide enhanced customer services will support the adoption of mobile POS terminals. Restaurant owners also use mobile terminals to streamline operations during peak business hours to ensure fast payments and busting long queues at cash counters.
There will be a high demand for robust mobile POS hardware that can be deployed efficiently in all business environments. The sturdiness of these machines is crucial for efficient functioning in harsh environments in warehouses and distribution centers. The integration of advanced technologies into the POS hardware will further propel their adoption across several industry verticals. For instance, in November 2019, Ingenico Group partnered with Fintech Pundi X to enable crypto transactions globally. Through this collaboration, merchants using Ingenico’s portable POS solution that runs on Android can accept several cryptocurrencies as payment options and provide consumers with a seamless & secure transactions experience.
The expanding hospitality industry in several countries in Asia Pacific including South Korea, India, and Singapore will propel the demand for high-performance POS terminals. Government organizations in these countries are focusing on improving the hospitality industry to boost economic growth by attracting international visitors. This trend will propel the demand for robust POS terminals as large hotels and restaurants adopt advanced payment acceptance solutions to ensure customer satisfaction. As customer convenience forms a crucial aspect in the hospitality industry, the Asia Pacific market will witness high growth.
Key players operating in the Asia Pacific industry include NCR Corporation, AURES Group, PAR Technology, Inc., Ingenico Group, Micros Retail Systems, Inc., Hewlett Packard Enterprise, Verifone Systems, Inc., and Square, Inc. Players are focusing on introducing new solutions to expand their product portfolio. For instance, in January 2019, Oracle Corporation launched a Retail Xstore office cloud service that enables retailers to move back-office store operations to the cloud. The new cloud service helped retailers to update their POS systems more quickly, enabling them to lower their total cost of ownership through centralized services and store operations. The growing competition amongst companies to launch innovative solutions will boost the Asia Pacific market growth.