Point of Sale (POS) Software Market to Expand by USD 6.1 Billion by 2028 Amid Rising Demand for Contactless Payments

The point of sale software market is projected to grow by USD 6.1 billion between 2023 and 2028, registering a CAGR of 10.7%. The market's expansion is fueled by the increasing demand for contactless payment options, the rise of e-commerce platforms, and the digital transformation of the retail industry. However, data security concerns remain a significant challenge, prompting businesses to invest in advanced encryption and security technologies.

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Market Segmentation

By Deployment

• On-Premise
• Cloud

By End-User

• Retail
• Hospitality

By Geography

• APAC
  • China
  • India
  • Japan
  • South Korea
  • Singapore
• North America
  • Canada
  • US
• Europe
  • Germany
  • UK
  • France
• South America
• Middle East and Africa

By Deployment Insights

The on-premise segment is expected to witness significant growth during the forecast period. Businesses across retail chains, restaurants, hotels, drug stores, and auto shops continue to prefer on-premise POS solutions due to their enhanced security and customization capabilities. These systems, installed locally on business hardware, reduce data breach risks while offering features such as inventory tracking, sales monitoring, customer data management, and real-time reporting.

Additionally, cloud-based POS systems, mobile POS (mPOS), and web-based POS solutions are gaining traction due to their flexibility, multi-channel capabilities, and integration with digital payments and AI-driven analytics.

Regional Market Trends

APAC – Contributing 42% of Global Market Growth

• China

• India

• Japan

• South Korea

• Singapore

The Asia-Pacific (APAC) region is experiencing rapid POS software adoption due to technological advancements and the expansion of digital payments. The retail sector in China, India, and Japan is investing in POS modernization projects, reducing Total Cost of Ownership (TCO) and improving transaction efficiency. Businesses are increasingly adopting POS solutions for benefits such as paperless transactions, space optimization, and streamlined sales management.

Retailers in APAC are also leveraging real-time analytics, digital payment integrations, and mobile wallet compatibility to enhance customer experiences and optimize operations.

Market Dynamics

Key Market Drivers

• Growing Demand for Contactless Payment Options
  • POS systems are becoming essential for industries such as retail, hospitality, and automotive services, enabling cashless transactions and improving sales tracking, inventory management, and digital payment processing.
  • Businesses are implementing cloud-based mPOS and AI-driven POS solutions to enhance security, fraud detection, and authentication measures.
  • The adoption of mobile wallets, e-commerce channels, and automated payment processing is further driving POS software demand.

Market Trends

• Rising Penetration of E-Commerce Platforms
  • The shift to digital payments and mobile wallets is accelerating POS software adoption across industries.
  • Businesses are focusing on integrated POS solutions that enable seamless online and offline sales management.
  • AI-enhanced POS technology offers automated inventory tracking, real-time data insights, and personalized shopping experiences.

Market Challenges

• Data Security Concerns
  • The increasing reliance on POS software for payment processing raises concerns about data privacy and cybersecurity.
  • Businesses need to invest in robust encryption measures, fraud detection technologies, and secure cloud-based POS solutions to mitigate risks.
  • Third-party system integrations pose additional security risks, requiring enhanced authentication and compliance measures.

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Key Players in the Market

• Agilysys Inc.
• Block Inc.
• Cavius International Ltd.
• COMBASE AG
• Epos Now UK Ltd.
• Fiserv Inc.
• GOFRUGAL
• H and L Australia Pty Ltd.
• Idealpos Solutions Pty Ltd.
• Intuit Inc.
• Lightspeed Management Co. LLC
• MindSpark LLC.
• MSL Solutions Pty Ltd.
• NCR Voyix Corp.
• Oracle Corp.
• SHIFT4 PAYMENTS, INC.
• Tillpoint Enterprise Ltd.
• Toast Inc.
• Web Masters Technologies Pte. Ltd.
• Worldline SA

Future Market Insights

The POS software market is set to expand with increasing adoption of digital payment solutions, AI-driven security features, and cloud-based POS systems. The demand for multi-channel retail solutions and real-time sales analytics will continue to drive industry growth, particularly in APAC, North America, and Europe. However, data security challenges will necessitate ongoing investments in encryption technologies and fraud detection solutions.