New York, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Southeast Asia POS Terminal Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06177374/?utm_source=GNW
The POS terminal market has grown significantly over the past few years, owing to its ability to offer an increased return on investment and ease of access. POS systems that facilitate transactions from the central component of businesses across industries, like retail, hospitality, transportation, and banking, have gained importance in companies of small and big sizes over the years.?
Key Highlights
The POS terminal systems evolved from being transaction-oriented terminals/devices to systems that can integrate with the company’s CRM and other financial solutions. This evolution, thus, empowered the end-users with business intelligence to better manage their revenue streams and inventory. With the functional benefits that the advanced POS systems offer, companies have replaced their traditional billing software with POS systems, thus, securing the growth of the POS system market.?
Factors such as the gradually rising use of online payments in retail, growing middle-class income, and increasing investments and partnerships from foreign players are expected to boost the growth of the POS terminal market. For instance, in December 2020, UnionPay International (UPI) announced a partnership with Huawei and the Industrial and Commercial Bank of China Malaysia (ICBC Malaysia) to bring Huawei Pay to Malaysia for the first time, allowing Malaysians to take advantage of seamless tap-and-go payment services. Following China’s Macao, Thailand, Pakistan, and Singapore, Malaysia was the sixth country outside Mainland China where the product was launched that year.
Moreover, the rising financial frauds across the Southeast Asian countries have influenced the government regulatory bodies to secure payment transactions over the past few years. With customers demanding safe and reliable digital transactions, the need for using secure payment processes has increased. The regulatory bodies, therefore, have impacted the adoption of POS terminals in a positive manner. With the increasing mobility trends across the world, mobile POS systems are gaining traction. With the advent of cashless transactional technologies, POS has witnessed an increase in adoption rates in the region.
However, lack of interoperability between the different payment systems, low acceptance by merchants, and high dependence on cash is restricting the market growth. According to the World Bank, over 50% of people living in Southeast Asia don’t have an account at a formal financial institution. According to the Ministry of Industry and Trade, about 80% of people residing in Vietnam prefer to use cash for their daily transactions.
The spread of the covid pandemic, which has triggered a sharp rise in digital payments and home delivery, is expected to impact the growth of the point of sale terminal market positively in the short run. Moreover, many retailers are shifting their attention from cash preservation toward a flexible omnichannel retail model and sustainable fulfillment to drive sales, which can further improve the adoption of PoS terminals. However, supply chain disruptions are causing a shortage of swipe machines to process digital payments at retail outlets, temporarily hampering the growth.
Key Market Trends
Retail Segment is Expected to Grow Significantly
The increasing number of retail stores across regions attract customers due to large discounts and other services; however, customer retention becomes the major challenge for them to sustain in the market. This competition increases the need to reinvent their business models to keep away from competition, with respect to price, and find the balance between investing in the new technologies and the revenue. ?
The sales reporting, inventory and financial management, and the customer analytics features, which POS terminals provide, assist the retailers in overcoming the issues related to customer retention. Hence, the need for customer retention and competition growth of the industry promotes the growth of POS terminals. ?
Moreover, the digital economy in Southeast Asia is set to expand rapidly. Google and Temasek predict that by the year 2023, online consumer spending across the top 6 economies will reach approximately a quarter of a trillion dollars.
The growth of e-commerce is on the rise in Southeast Asia, and the expansion is fuelled by factors such as rising disposable incomes, improved logistical networks, increased internet/mobile usage, and alternative payment methods. According to the Hong Kong Trade Development Council study, e-commerce in Southeast Asia has spiked because of the pandemic. Indonesia exhibits an enormous appetite for the online marketplace, followed by the Philippines and Malaysia. The report states that Southeast Asia has a considerably higher prevalence of e-commerce than mature economies, with Indonesia depicting the most increased e-commerce adoption globally (at 87% as of 2020). Malaysia and Thailand followed close behind, with 83% and 84% of their respective internet users purchasing things online.
The top players are localizing their retail sites and capture their slice of the market across the ASEAN big six Indonesia, Thailand, Malaysia, Singapore, Philippines, and Vietnam. The local players in the POS terminal market are capturing the growing demand by adopting partnerships to grow their network and increase customer acquisition.
Digitalization in the Payment Industry and Growing Investments in POS is Expected to Drive the Market
The digitization of payment as the common mode of transaction move, from cash to digital modes, is driving the growth of the studied market. Southeast Asian countries can be identified with heavy usage of card payments, including debit and credit cards. The rise in demand for contactless card payments is also a significant driver for the market. Contactless payments have been around for a while, even before the pandemic. The COVID-19 pandemic has just pushed the trend forward.
For instance, according to Visa’s Consumer Payment Attitudes Study, the COVID-19 pandemic formed new digital payment habits amongst its Singaporean customers. The study reports that contactless card payment became the most preferred payment method in the country, with a percentage of 31% Singaporeans opting for it. The study also outlined that 15% of Singaporean consumers prefer using cash, highlighting the rise of digitalization of payment modes. Furthermore, according to the United Overseas Bank’s UOB Asean Consumer Sentiment Study, at least six out of ten Malaysians depend on various forms of contactless payment. The preference towards contactless payment can be attributed to the COVID-19 pandemic.
With an increasing concentration of businesses and growing customer frequency for making digital or mobile payments, the governments across the Southeast Asian regions are taking various initiatives to encourage non-cash payment methods. For instance, in May 2021, Singapore and Thailand established the world’s first real-time payment system link, allowing for speedier and less expensive cross-border payments. Users of the two payment systems — PayNow in Singapore and PromptPay in Thailand — will be able to send money regularly from Singapore to Thailand, or vice versa, due to the collaboration between the Monetary Authority of Singapore (MAS) and the Bank of Thailand (BOT).
Further, the market is being driven by funding and expansion in Southeast Asian countries. For instance, in July 2020, QASHIER, a smart point-of-sale (POS) terminal provider, bagged SGD 1.2 million funding in a seed funding round led by Singapore-based venture capital (VC) firm Cocoon Capital and Hardware Club - a San Francisco-based VC firm. The company is planning to use the finances to expand further into Southeast Asia, grow its team, and invest more in product development.
Additionally, heavy financing for innovations in cards used for payment can be noted. As pandemic has bolstered the growth of contactless payment, biometric cards are slowly penetrating the payments market. For instance, in July 2021, ICPS partnered with Zwipe to introduce biometric payment cards in Asia. The Zwipe Pay One card has a fingerprint sensor integrated into it, which allows contactless payment on the POS terminal without the usage of a PIN code.
Competitive Landscape
The southeast Asia point of sale terminal market is moderately fragmented due to the presence of local and international players. The players in the market are investing in inventing new ways to attract and retain customers. The subscription-based pricing model in the software segment offers flexibility to the customers but increases the market competition.
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 allows retailers to reinvent their store design while increasing throughput capacity.
June 2021 - Samsung Electronics announced the expansion of its all-inclusive Kiosk, which offers customers contactless payment and ordering capabilities. It has a protective coating, easy-to-understand installation options, and is powered by Samsung Knox technology for three-layer security protection.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06177374/?utm_source=GNW
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