POS expertise has impacted the retail trade far and huge ever since its debut within the Nineteen Seventies. Earlier than the trendy POS system, transactions had been guide, cash-based, and tangible. Nonetheless, with the arrival of expertise, the POS has modified how retailers do enterprise and the way shoppers do their buying.
Although the primary POS was centered on processing money funds in a clear, trackable means, it rapidly developed to facilitate credit score and debit card transactions. And now? POS techniques can do an entire lot extra than simply course of funds. They’ve was mini enterprise administration command facilities!
So, what are the most recent tendencies in POS techniques? Under, I break down the POS retail tendencies of 2024 which can be impacting the trade now and into the long run.
Cloud POS
Enterprise has transitioned to largely cloud-based options — and that features the POS. Cloud POS techniques are more and more turning into the norm, changing the old-school conventional point-of-sale terminal that makes information troublesome to entry and handle.
In line with Straits Analysis, the worldwide cloud POS market dimension was value $3,987 million in 2022 and is forecasted to be greater than $30,205 million by 2031 — that’s a compound annual development charge (CAGR) of 24.7%.
The cloud POS is a major level of sale innovation as a result of it has made information, agility, and mobility accessible to companies of all sizes. Particularly in a world the place retail is not single-channel, cloud POS expertise permits companies to sync information and guarantee operations run easily no matter their enterprise dimension or location(s).
A retailer with 100 bodily places, its personal web site, and a thriving Amazon presence can profit from the cloud POS identical to the small mom-and-pop store that’s managing a single retail location plus on-line channels.
With cloud POS expertise, you’re not tethered to a particular place or a hardwire connection. You possibly can entry your enterprise expertise from wherever, at any time.
AI and automation
AI and automation are additionally altering just about each side of the enterprise panorama. I guess there are methods you already use these applied sciences that you just don’t even understand!
The pattern 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 in a roundabout way.
That very same survey discovered that monitoring is the highest space of automation for 43% of companies, and the largest profit is an improved buyer expertise for 47% of companies. One other 45% have seen improved worker retention and profitability because of automation.
What position does AI play in trendy POS techniques?
With regards to POS expertise, AI and automation occur in a ton of potential use instances:
- Automated reordering for stock
- Fraud detection and prevention
- AI-powered pricing changes
- Loyalty and rewards packages
- Electronic mail advertising and marketing
Consumers from Sq.’s report say they’d assist retailers automating:
- Checkout: 31%
- Product search: 22%
- AI-generated product descriptions: 22%
- Dynamic pricing: 21%
- Product suggestions: 18%
- Product critiques: 15%
Seemingly, the probabilities are really infinite. I’m excited to see this pattern play out and develop annually with modern point-of-sale techniques.
Cost choices
At the moment’s shoppers like comfort and choices. And that is true for funds made on the POS terminal. I keep 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.
In line with Sq., right here’s the way it breaks down when it comes to 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 expertise is advancing in a means that accommodates these ever-changing cost preferences. Actually, trendy POS tendencies present that the platforms have integrated new options and performance to course of totally different cost strategies and provide choices like subscriptions, cryptocurrency, saved funds, invoice splitting, and present playing cards.
Cellular POS
Cellular POS, or mPOS, is one other sizzling pattern. The worldwide mPOS market is estimated to be value round $3.78 trillion, based on Statista. Greater than 2 billion mPOS customers are anticipated by 2028. And almost 1 / 4 of consumers wish to use cellular checkout choices.
So why is that this trending? Identical to shoppers are extra cellular, so are associates. Now, associates can meet consumers the place they’re on the gross sales ground and course of the transaction on the spot. Prospects don’t have to attend in line on the POS terminal — they will try wherever they’re at.
However this extends previous transactions, too. An mPOS makes it simpler for retail workers to carry out numerous duties, equivalent to barcode scanning, stock counts, and so on.
Buyer self-serve
Self-checkout is one other pattern in retail, and whereas it initially made its mark in grocery shops, different verticals are exploring the pattern, too. That is largely consumer-driven — with Sq. Way forward for Retail reporting that two-thirds of consumers favor to do duties independently, like trying out 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 expertise versus with a stay workers 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 with the ability to do issues themselves. “Prospects are in search of pace,” writes Bob Phibbs, The Retail Physician. Self-checkout can present that effectivity.
These shopper preferences proceed to affect point-of-sale market tendencies.
Biometric safety
Safety must be a prime concern for companies — to guard each themselves and their prospects. POS expertise usually comes outfitted with safety to safeguard all events concerned. PCI compliance, information encryption, and two-factor authentication are just some examples.
Nonetheless, one safety pattern that may affect POS expertise 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 development, with Juniper Analysis forecasting a CAGR of 113.6% from 2024 by 2028. Some even count on it to turn into the norm inside the subsequent decade.
Companies are more and more implementing these safety measures on their POS techniques. 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, but it surely additionally makes login and connection extra environment friendly. And keep in mind, consumers love effectivity and comfort.
7 greatest POS techniques to strive in 2025
These are our picks for the greatest POS techniques accessible to small companies trying to faucet into these tendencies:
- 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
