The Southeast Asia point-of-sale terminal market was valued at USD 2,361.4 million in 2020 and is expected to reach USD 5,855.7 million by 2026, registering a CAGR of around 16.4% over the course of the forecast period 2021-2026.
New York, October 27, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “Southeast Asia Point of Sale Terminal Market – Growth, Trends, COVID-19 Impact and Forecast (2021 – 2026) “- https: //www.reportlinker.com/p06177374/?utm_source=GNW
The point of sale terminal market has grown significantly over the past few years, owing to its ability to provide increased return on investment and ease of access. Point of sale systems that facilitate transactions for the core component of businesses in all sectors, such as retail, hospitality, transportation, and banking, have gained prominence in small and large businesses across the country. over the years.
Point of sale terminal systems have evolved from transaction-oriented terminals / devices to systems that can integrate with corporate CRM and other financial solutions. This evolution has therefore enabled end users to have business intelligence to better manage their revenue streams and inventory. With the functional benefits offered by advanced point-of-sale systems, companies have replaced their traditional invoicing software with point-of-sale systems, securing the growth of the point-of-sale systems market.
Factors such as growing use of online payments in retail, growing middle class income, and increasing investments and partnerships of foreign players are expected to drive the growth of the point-of-care terminal market. sale. For example, in December 2020, UnionPay International (UPI) announced a partnership with Huawei and the Industrial and Commercial Bank of China in Malaysia (ICBC Malaysia) to bring Huawei Pay to Malaysia for the first time, allowing Malaysians to take advantage of a take-out payment service. After Macau, Thailand, Pakistan and Singapore in China, Malaysia was the sixth country outside of mainland China where the product was launched that year.
Additionally, the increase in financial fraud in Southeast Asian countries has prompted government regulators to secure payment transactions in recent years. As customers demand secure and reliable digital transactions, the need to use secure payment processes has grown. Regulators have therefore had a positive impact on the adoption of point-of-sale terminals. With increasing mobility trends across the globe, mobile point of sale systems are gaining ground. With the advent of cashless transaction technologies, points of sale have seen an increase in adoption rates in the region.
However, the lack of interoperability between different payment systems, low acceptance by merchants and heavy reliance on cash are limiting market growth. According to the World Bank, more than 50% of people living in Southeast Asia do not have an account with a formal financial institution. According to the Ministry of Industry and Commerce, around 80% of people residing in Vietnam prefer to use cash for their daily transactions.
The spread of the covid pandemic, which has triggered a surge in digital payments and home delivery, is expected to positively impact the growth of the point-of-sale terminal market in the near term. Additionally, many retailers are shifting their focus from preserving cash to a flexible omnichannel retail model and sustainable processing to drive sales, which can further improve adoption of point-of-sale terminals. However, supply chain disruptions are causing a shortage of swiping machines to process digital payments at point of sale, temporarily hampering growth.
Key market trends
Retail segment expected to grow significantly
The growing number of retail stores in the regions attract customers due to deep discounts and other services; however, customer loyalty is becoming the main challenge they face in the market. This competition increases the need to reinvent their business models to steer clear of the price competition and find the balance between investing in new technologies and incomes. ?
Sales, inventory and financial management reports, as well as customer analysis functionality, provided by point-of-sale terminals, help retailers overcome customer retention issues. Therefore, the need for customer loyalty and the growth of industry competition is driving the growth of point of sale terminals. ?
In addition, the digital economy in Southeast Asia is set to grow rapidly. Google and Temasek predict that by 2023, online consumer spending in the top 6 economies will reach around a quarter of a trillion dollars.
The growth of e-commerce is on the rise in Southeast Asia, and the expansion is fueled by factors such as increased disposable income, improved logistics networks, increased internet / mobile usage and alternative payment methods. According to the Hong Kong Trade Development Council study, e-commerce in Southeast Asia has increased due to the pandemic. Indonesia has a huge appetite for the online market, followed by the Philippines and Malaysia. The report states that Southeast Asia has a significantly higher e-commerce prevalence than mature economies, with Indonesia representing the highest e-commerce adoption in the world (at 87% in 2020). Malaysia and Thailand followed closely behind, with 83% and 84% of their respective internet users purchasing items online.
Major players are locating their retail locations and capturing market share in the ASEAN Big Six, Indonesia, Thailand, Malaysia, Singapore, Philippines and Vietnam. Local players in the point of sale terminal market are capturing the growing demand by adopting partnerships to develop their network and increase customer acquisition.
Digitization in the payments industry and increasing investments in point-of-sale are expected to drive the market
The digitization of payment as a common mode of transaction, from cash to digital modes, is driving the growth of the market studied. Southeast Asian countries can be identified with heavy use of card payments, including debit and credit cards. The increase in demand for contactless card payments is also an important driver for the market. Contactless payments have been around for some time, even before the pandemic. The COVID-19 pandemic has just pushed the trend forward.
For example, according to Visa’s Consumer Payments Attitudes Study, the COVID-19 pandemic has created new digital payment habits among its Singaporean customers. The study reports that contactless card payment has become the preferred payment method in the country, with 31% of Singaporeans choosing it. The study also highlighted that 15% of Singaporean consumers prefer to use cash, highlighting the rise of the digitization of payment methods. In addition, according to the UOB Asean Consumer Sentiment Study from United Overseas Bank, at least six in ten Malaysians rely on various forms of contactless payment. The preference for contactless payment can be attributed to the COVID-19 pandemic.
With an increasing concentration of businesses and an increasing frequency of customers making digital or mobile payments, governments in the Southeast Asian regions are taking various initiatives to encourage non-cash payment methods. For example, in May 2021, Singapore and Thailand established the world’s first real-time payment system link, enabling faster and cheaper cross-border payments. Users of the two payment systems – PayNow in Singapore and PromptPay in Thailand – will be able to regularly send money from Singapore to Thailand, or vice versa, thanks to the collaboration between the Monetary Authority of Singapore (MAS) and the Bank of Thailand (BOT).
In addition, the market is driven by financing and expansion in Southeast Asian countries. For example, in July 2020, QASHIER, a provider of intelligent point-of-sale (POS) terminals, secured SGD 1.2 million in funding as part of a seed funding round led by the company from Singapore-based venture capital (VC) Cocoon Capital and Hardware Club – a San Francisco-based venture capital firm. The company plans to use the funds to expand further into Southeast Asia, grow its team and invest more in product development.
In addition, there is significant funding for innovations in the cards used for payment. As the pandemic has boosted the growth of contactless payment, biometric cards are slowly entering the payments market. For example, in July 2021, ICPS partnered with Zwipe to introduce biometric payment cards in Asia. The Zwipe Pay One card incorporates a fingerprint sensor, which allows contactless payment at the point of sale terminal without the use of a PIN code.
The POS terminal market in Southeast Asia is moderately fragmented due to the presence of local and international players. Market players are investing to invent new ways to attract and retain customers. The subscription pricing model in the software segment provides flexibility to customers but increases competition in the market.
June 2021 – Toshiba, in partnership with Worldline, announced the launch of the Pro-X hybrid kiosk, which accepts payments using the Worldline LANE / 3000 terminal and enables retailers to reinvent their store design while increasing processing capacity.
June 2021 – Samsung Electronics announced the expansion of its all-inclusive kiosk, which offers customers contactless payment and ordering capabilities. It features a protective coating, easy-to-understand installation options, and is powered by Samsung Knox technology for three-layer security protection.
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