Point of Sale (POS) Market Trends

Growth Drivers

• Rising adoption of contactless and mobile payments: According to the UK Finance Limited, in the UK, there were 2.15 million debit and credit card transactions in April, which was 4.6% more than in April 2024. The rise of contactless payments enabled by NFC technology and mobile wallets has significantly boosted the POS market. Customers are moving towards fast, hygienic, and convenient forms of payment. Businesses have begun utilizing point-of-sale (POS) systems that allow customers the ability to make contactless payments and shorten transaction times. Markets for contactless payment are expected to grow, and as regulators and banks encourage this adoption, the market for devices that can accept contactless payments is also growing around the world.
• Shift towards cloud-based POS Systems: The cloud-based revolution has disrupted the technology for POS systems by providing accessible, scalable, and cost-effective solutions. Cloud POS systems can minimize on-premises computational and storage technology requirements. When cloud POS systems can integrate and pair with CRM and inventory management software options, users can work seamlessly and have rigorous real-time data analytics capabilities. For example, in July 2025, SAP introduced SAP Customer Checkout that offers existing customers an elegant, efficient, and future-scalable POS experience. This innovation creates new pathways and is allowing businesses to remain strategic and competitive in an environment that is moving quickly as the entirety of the POS market along with the SAP product portfolio, moves to the cloud.
• Integration of AI and advanced analytics:  Retailers today leverage the vastly superior transaction data analysis of AI to detect trends and better manage inventory levels, waste, and ultimately profitability. In addition, fraud prevention mechanisms contained within modern cloud-based POS software enhance security. These intelligent capabilities are now driving the rapid adoption of next-gen POS solutions. In July 2025, Razorpay POS launched AI-only self-healing devices to evaluate and rectify up to 60% of problems, preventing payment checkout disruptions in a seamless, stable manner for merchants who accept payments offline nationwide.

Challenges

• Non-tariff barriers & bureaucratic delays: These obstacles create friction in the supply chain, increase the cost of operations, and lead to longer time-to-market. Non-tariff barriers and bureaucratic inefficiencies raise the cost of entry into markets, delay product deliveries and terminal roll-outs, and restrict access to regions with high growth potential. For the POS space, non-tariff barriers and inefficiencies increase the time to innovation, deter international investment, and limit the development of POS systems in underserved markets.
• Infrastructure & cybersecurity readiness: Infrastructure and cybersecurity readiness will have a direct impact on how adoption activities occur with POS systems. In these environments, poor connectivity, high compliance costs, and limited professionally skilled support contribute to a higher total cost of ownership (TCO) for POS systems. This affects smaller players more. While POS systems are a huge IT service opportunity for retailers, restaurants, service providers, etc, many don't get to realize the full impact of these systems due to a lack of investment and increasing concerns around compliance and cybersecurity risks.