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Southeast Asia POS Terminal - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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  • 120 Pages
  • February 2024
  • Region: Asia Pacific
  • Mordor Intelligence
  • ID: 5239632
The Southeast Asia POS Terminal Market size is expected to grow from USD 4.3 billion in 2024 to USD 8.9 billion in five years, registering a CAGR of 15.73% during the forecast period.

As a result of its ability to deliver an improved return on investment and accessibility, POS terminals have been rapidly adopted over the last few years. Over the years, the importance of point-of-sale systems in small and large enterprises has increased, facilitating transactions from the central par from the central part of the enterprise in sectors such as retail, hospitality, transport, and banking.

Key Highlights

  • POS terminals have evolved from transaction-oriented terminals to systems integrated with the company's CRM and other financial solutions. As a result, end users with business intelligence have better managed their revenue streams and inventory. Companies have replaced their traditional billing software with point-of-sale systems due to the functional benefits of advanced point-of-sale systems to ensure the growth of point-of-sale systems.
  • Over the past few years, rising cases of financial crime in Southeast Asia have influenced government regulatory bodies to improve security for payment transactions. The need to use secure payment procedures is becoming increasingly essential to meet consumers' demands for safety and reliability with their digital transactions. These Regulatory Authorities have positively affected the adoption of POS terminals. Mobile POS systems have taken off as a result of rising mobility trends around the world. In the region, POS adoption rates have increased due to the introduction of cashless transaction technologies.
  • The growth in terminals and face-to-face outlets is expected to be hampered by the growing e-commerce and online shopping trends and brick-and-mortar retail practices. With the possibility of cash on delivery offered by significant e-commerce platforms, a sudden surge in the adoption of mobile POS terminals was noticed.
  • Due to growing customer demand for quick and easy payments, card fraud has become increasingly sophisticated. Hackers may be identified targeting the POS system's firmware to steal credit and other payment data. Point-of-sale fraud is largely caused by merchants' failure to leverage point-to-point encryption (P2PE) solutions to safeguard POS data.
  • Furthermore, the COVID-19 pandemic affected how people shop, affecting various market segments. The pandemic had a significant impact on the retail industry. Increasingly, consumers are using a variety of sales channels, such as curbside pick-up, virtual consultations, contactless payments, social commerce, and online shopping. According to retail experts and consumer surveys, this new behavior will likely continue during the forecast period. The demand for point-of-sale terminals is expected to increase due to changes in consumer behavior associated with the Pandemic.

Southeast Asia POS Terminal Market Trends

The Retail Segment is Expected to Grow Significantly

  • With the rapid pace of changing consumer preferences, the Southeast Asian market is increasingly dynamic. Regarding the seamless experience they desire in their favored retailers, TechSavvy and Nontech Savvy customers also demand the same.
  • In addition, retailers are assisted in overcoming the difficulty of retaining customers thanks to a wide range of inventory, sales reports, finance management, and customer analysis features offered by point-of-sale terminals. Therefore, the development of POS terminals is supported by a requirement to maintain customer loyalty and reinforce competition within this sector.
  • With large discounts and other services, many outlets across regions attract customers, but their retention becomes an important problem for them to continue on the market. To avoid competition for prices while balancing investments in new technology and revenues, the competitive environment makes it all the more important that their business models are rethought.
  • In addition, Southeast Asia is in for a rapid expansion of the Digital Economy. According to Google and Temasek, online consumer spending in the top six economies in the coming year is expected to reach approximately USD 250 billion, driving the market because of the growing demand for POS terminals.
  • Top players in the ASEAN big six, Indonesia, Thailand, Malaysia, Singapore, Philippines, and Vietnam, are consolidating their retail outlets to take up a greater market share. Local players in the POS terminals market are taking advantage of rising demand by adopting partnerships to grow their networks and increase customer acquisition.

Singapore Anticipated to be the Fastest-growing Market

  • Singapore has been at the forefront of payment innovation for some time. One critical goal of the government's vision for a smart nation is accelerating digital payments. In this connection, Singapore has significantly invested in building a long-term infrastructure for cashless payments. According to the Monetary Authority of Singapore, which suggests that POS terminals can be used in several industry sectors within this country, card payment transactions are growing at an increased rate.
  • The use of digital wallets is on the rise. High use of mobile phones leads to uptake, which currently amounts to 18% of transactions. By 2023, digital wallets will have a market share of around 26%. PayPal is the most recognized brand for DigitalWallets, having a market share of between 5% and 10%. It is also popular to use Apple Pay, Samsung Pay, Visa Checkout, and Masterpass.
  • In addition, given the e-commerce boom triggered by the epidemic, Digital Wallets will pass credit cards as Singapore's favorite online payment method next year. Digital wallets also capture more consumer loyalty to in-store purchases as consumers shift away from cash at point-of-sales terminals. They are projected to represent 20% of the POS market by next year, according to Worldpay, Inc.
  • The increasing concentration of businesses and an increase in the frequency of Digital or Mobile Payments between customers are creating a variety of efforts by governments across Southeast Asia to promote alternative payment methods.

Southeast Asia POS Terminal Industry Overview

The Southeast Asian point-of-sale terminal market is moderately fragmented due to the presence of local and international players. Players in the market are developing new strategies to attract and retain customers. In software, the subscription-based pricing model provides customers flexibility while increasing competitive pressures on the market.

Shopify Inc. launched POS Go, a handheld tool with a built-in barcode scanner, card reader, and inventory tracker, in September 2022. Previously, merchants could download desktop, laptop, or mobile application applications to use Shopify's POS system. The POS Go is portable and does not require a mobile phone or computer connection at the checkpoint, shop floor, or curb. The company's new tool comes as more customers return to the habit of shopping in person rather than online.

Samsung Electronics and master card have announced that the collaboration will launch payment cards with built-in fingerprint sensors in August 2022. Both companies aim to provide more secure payment services while reducing physical contact with payment terminal

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Growing Investments in POS is Expected to Boost the Market Growth
5.1.2 Increasing Digitalization in the Payment Industry
5.2 Market Restraints
5.2.1 Security Concerns Related to Cyber Attacks and Data Breaches
6.1 By Component
6.1.1 Hardware
6.1.2 Software and Services
6.2 By Type
6.2.1 Fixed Point-of-Sale Terminals
6.2.2 Mobile/Portable Point-of-Sale Terminals
6.3 By End-user Industries
6.3.1 Entertainment
6.3.2 Hospitality
6.3.3 Healthcare
6.3.4 Retail
6.3.5 Other End-user Industries
6.4 By Country
6.4.1 Singapore
6.4.2 Indonesia
6.4.3 Vietnam
6.4.4 Malaysia
6.4.5 Other Southeast Asian Countries
7.1 Company Profiles*
7.1.1 Xilnex
7.1.2 Auto Count Sdn Bhd
7.1.3 iMetrics Pte. Ltd
7.1.4 AZ Digital Pte. Ltd
7.1.5 Samsung Electronics Co. Ltd
7.1.6 NCR Corporation
7.1.7 Toshiba Tec Corp.
7.1.8 HP Development Company LP
7.1.9 Bindo Labs Inc.
7.1.10 Shopify Inc.
7.1.11 Qashier Pte Ltd
7.1.12 StoreHub Sdn Bhd

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Xilnex
  • Auto Count Sdn Bhd
  • iMetrics Pte. Ltd
  • AZ Digital Pte. Ltd
  • Samsung Electronics Co. Ltd
  • NCR Corporation
  • Toshiba Tec Corp.
  • HP Development Company LP
  • Bindo Labs Inc.
  • Shopify Inc.
  • Qashier Pte Ltd
  • StoreHub Sdn Bhd