POS Terminal Shipments Reach New Heights in 2016

Point of sale (POS) terminals have come a long way since their introduction in the 1970s. With the rise of e-commerce and the increasing demand for secure, easy-to-use payment solutions, it’s no surprise that POS terminal shipments reached new heights in 2016.

According to a recent report by the International Data Corporation (IDC), more than 100 million POS terminals were shipped globally in 2016, representing a 10% increase from the previous year. This growth is expected to continue in the coming years, driven by the growing adoption of mobile payments and the increasing popularity of contactless transactions.

But what exactly is driving the growth of POS terminals? Let’s take a closer look at some of the key factors:

1. The Rise of Mobile Payments

Mobile payments have been on the rise in recent years, with more and more consumers using their smartphones to make purchases. This trend is expected to continue, and the use of mobile payments is projected to surpass credit and debit card transactions in the near future. As a result, many businesses are investing in mobile POS terminals to meet the changing needs of their customers.

2. Increasing Demand for Contactless Transactions

Contactless transactions, which use near-field communication (NFC) technology to enable payments, have gained popularity in recent years. Contactless cards and mobile wallets like Apple Pay and Google Wallet have made it easier than ever to make quick transactions without the need for physical contact. As a result, more and more businesses are adopting contactless POS terminals to take advantage of this trend.

3. Growing Security Concerns

With the increasing threat of cyber attacks and data breaches, businesses are more concerned than ever about the security of their payment systems. Many businesses are turning to POS terminals as a way to increase security and protect their customers’ data. Newer POS terminals are equipped with advanced security features like encryption and tokenization, making them more secure than ever before.

4. The Need for Better Analytics

In addition to processing payments, POS terminals can provide valuable insights into customer behavior and sales trends. Many businesses are using POS data to optimize their operations and make better data-driven decisions. As a result, the demand for advanced POS systems with analytics capabilities is on the rise.

Despite the many benefits of POS terminals, there are still challenges that need to be addressed. One of the main challenges is the need for interoperability – different POS systems don’t always communicate with each other, making it difficult for businesses to adapt to changing customer needs. However, industry experts are working to address this challenge and are making progress towards more interoperable POS systems.

In conclusion, POS terminal shipments reached new heights in 2016 and are expected to continue to grow in the coming years. The rise of mobile payments, increasing demand for contactless transactions, growing security concerns, and the need for better analytics are all driving the growth of POS terminals. While there are still challenges to address, the future looks bright for this important technology.