SoftPOS Market Trends

Growth Drivers

• Increasing Usage of Wearable Payment Bands - Internationally, smartwatches and other wearable devices are becoming more popular, with some devices potentially changing the world's use of them. In 2022, an estimated 30.72 million smartwatches were shipped into the nation, up from 4.95 million at the end of 2021. In the pandemic era, changing customer preferences and fintech developments accelerated the demand for wearables. Contactless wearables are the way to go because millennials, Gen X, and Gen Z consumers want safe, quick, and convenient transactions. People use contactless payments to make clothing, accessories, and gadgets that are wearable. The most prevalent types include rings, belts, jackets, fitness trackers, and smartwatches. To connect the device to the consumer's bank account, they use services like Apple Pay, Samsung Pay, and Google Pay.

• Advancement in Fintech Across the World - The sector prospered even better in 2021, due to a financial system flooded with liquidity and a pandemic-caused increase in digitization. The amount of money raised spiked by 177 percent from the previous year's USD 92.3 billion to the same amount as the number of deals. Additionally, retail customers on the planet now have the same level of confidence in fintechs as they do in traditional banks. The fintech sector is constantly evolving as a result of consumer behavior and technological advancements. In 2023, there will be significant trends in open banking and API integration, blockchain, digital banking and mobile payments, and cybersecurity. 

• Increasing Obsession on Smart Wearables in the Young Generation - As more healthcare providers become comfortable using them, the wearable technology is likely to reach nearly 440 million units by 2024. These include medical-grade wearables, which are frequently prescribed by healthcare professionals but are increasingly available off the shelf, as well as smartwatches, which are targeted and purchased by consumers. A wide range of devices, from smartwatches to augmented reality glasses, are included in the rapidly expanding field of wearable technology.

Challenges

• Supported Only on the Android-Based Devices - The only platforms currently supported by software POS systems are tablets and smartphones powered by Android. Only equipment that is Android-compatible is required to accept payments made using SoftPOS technology. This is a welcome development because many Android-based devices have recently appeared on the market. The software for Sunmi, which was developed for Android-based terminals, can be used as a SoftPOS program. In this situation, it is possible to use a smartphone as a payment system. SoftPOS could be a powerful force in developing nations as it strives to reduce the use of cash and increase financial inclusion. However, a few most recent significant events demonstrate that the technology's history is very recent. A pilot-scale user base is still represented by the transaction volumes.

• Lack of the Ability to Become A “One-Fits-All” Solution
• Lack of Endurance and Brawn