POS know-how has impacted the retail business far and large ever since its debut within the Seventies. Earlier than the trendy POS system, transactions had been guide, cash-based, and tangible. Nonetheless, with the appearance of know-how, the POS has modified how retailers do enterprise and the way customers do their purchasing.
Although the primary POS was centered on processing money funds in a clear, trackable method, it shortly advanced to facilitate credit score and debit card transactions. And now? POS methods can do an entire lot extra than simply course of funds. They’ve became mini enterprise administration command facilities!
So, what are the newest traits in POS methods? Beneath, I break down the POS retail traits of 2024 which are impacting the business now and into the longer term.
Cloud POS
Enterprise has transitioned to largely cloud-based options — and that features the POS. Cloud POS methods are more and more changing into the norm, changing the old-school conventional point-of-sale terminal that makes knowledge troublesome to entry and handle.
Based on Straits Analysis, the worldwide cloud POS market dimension was price $3,987 million in 2022 and is forecasted to be greater than $30,205 million by 2031 — that’s a compound annual progress price (CAGR) of 24.7%.
The cloud POS is a big level of sale innovation as a result of it has made knowledge, agility, and mobility accessible to companies of all sizes. Particularly in a world the place retail is not single-channel, cloud POS know-how permits companies to sync knowledge and guarantee operations run easily no matter their enterprise dimension or location(s).
A retailer with 100 bodily areas, its personal web site, and a thriving Amazon presence can profit from the cloud POS similar to the small mom-and-pop store that’s managing a single retail location plus on-line channels.
With cloud POS know-how, you’re not tethered to a particular place or a hardwire connection. You’ll be able to entry your small business know-how from anyplace, at any time.
AI and automation
AI and automation are additionally altering just about each side of the enterprise panorama. I wager there are methods you already use these applied sciences that you simply don’t even notice!
The development can be impacting the POS — and in a great way. 100% of retail enterprise homeowners surveyed by Sq. Way forward for Retail report say automation has improved their enterprise indirectly.
That very same survey discovered that monitoring is the highest space of automation for 43% of companies, and the most important profit is an improved buyer expertise for 47% of companies. One other 45% have seen improved worker retention and profitability due to automation.
What function does AI play in fashionable POS methods?
On the subject of POS know-how, AI and automation occur in a ton of potential use circumstances:
- Automated reordering for stock
- Fraud detection and prevention
- AI-powered pricing changes
- Loyalty and rewards packages
- E-mail advertising
Customers from Sq.’s report say they’d help retailers automating:
- Checkout: 31%
- Product search: 22%
- AI-generated product descriptions: 22%
- Dynamic pricing: 21%
- Product suggestions: 18%
- Product evaluations: 15%
Seemingly, the chances are really countless. I’m excited to see this development play out and develop every year with revolutionary point-of-sale methods.
Fee choices
At present’s customers like comfort and choices. And that is true for funds made on the POS terminal. I bear in mind when it was only a money or credit score world—now, prospects can select to pay for his or her purchases in some ways.
Based on Sq., right here’s the way it breaks down by way of the cost strategies retailers settle for:
- Money: 58%
- Cellular pockets apps like Apple Pay or Google Pay: 57%
- QR code funds: 52%
- Conventional card funds: 47%
- Touchless card funds: 44%
- Purchase-now, pay-later (BNPL) choices like Clearpay: 43%
POS know-how is advancing in a method that accommodates these ever-changing cost preferences. Actually, fashionable POS traits present that the platforms have included new options and performance to course of totally different cost strategies and supply choices like subscriptions, cryptocurrency, saved funds, invoice splitting, and reward playing cards.
Cellular POS
Cellular POS, or mPOS, is one other sizzling development. The worldwide mPOS market is estimated to be price round $3.78 trillion, in keeping with Statista. Greater than 2 billion mPOS customers are anticipated by 2028. And practically 1 / 4 of buyers wish to use cellular checkout choices.
So why is that this trending? Identical to customers are extra cellular, so are associates. Now, associates can meet buyers the place they’re on the gross sales flooring and course of the transaction on the spot. Prospects don’t have to attend in line on the POS terminal — they’ll try wherever they’re at.
However this extends previous transactions, too. An mPOS makes it simpler for retail employees to carry out varied duties, equivalent to barcode scanning, stock counts, and many others.
Buyer self-serve
Self-checkout is one other development in retail, and whereas it initially made its mark in grocery shops, different verticals are exploring the development, too. That is largely consumer-driven — with Sq. Way forward for Retail reporting that two-thirds of buyers want to do duties independently, like testing or seeing if a product is in inventory.
Customers are more and more feeling empowered to do issues independently, influencing the way forward for POS.
When requested what duties they’d wish to carry out on their very own with the assistance of know-how versus with a stay employees member, right here’s what the respondents stated:
- Checking product stock: 29%
- Ordering out-of-stock merchandise: 26%
- Gathering details about a product: 26%
- Choosing up an merchandise ordered on-line: 24%
- Utilizing cellular checkout or in-store terminals: 24%
- Arranging house supply: 23%
Why? They love the effectivity and comfort of having the ability to do issues themselves. “Prospects are searching for velocity,” writes Bob Phibbs, The Retail Physician. Self-checkout can present that effectivity.
These client preferences proceed to influence point-of-sale market traits.
Biometric safety
Safety ought to be a high concern for companies — to guard each themselves and their prospects. POS know-how typically comes outfitted with safety to safeguard all events concerned. PCI compliance, knowledge encryption, and two-factor authentication are just some examples.
Nonetheless, one safety development that can influence POS know-how in 2025 and past is biometric safety features. This consists of issues like fingerprint identification and facial recognition.
Biometric funds are experiencing a surge in progress, with Juniper Analysis forecasting a CAGR of 113.6% from 2024 by way of 2028. Some even count on it to develop into the norm throughout the subsequent decade.
Companies are more and more implementing these safety measures on their POS methods. This may be for workers or admins who log in to the POS system and authentication for buyer funds.
And never solely does biometric authentication assist enhance safety, however it additionally makes login and connection extra environment friendly. And bear in mind, buyers love effectivity and comfort.
7 finest POS methods to strive in 2025
These are our picks for the finest POS methods accessible to small companies seeking to faucet into these traits:
- Finest general small enterprise level of sale system: Sq.
- Finest POS for retail and e-commerce: Shopify
- Finest restaurant POS: Toast
- Finest for desktop compatibility: Lightspeed Retail
- Finest iPad restaurant POS: TouchBistro
- Finest for common cost processor compatibility: Clover
- Finest for high-risk companies: KORONA POS
