Asia Pacific POS Terminal Market Size

APAC POS Terminal Market Analysis

The Asia Pacific POS Terminal Market is anticipated to grow with a CAGR of 8.4 % during the forecast period (2022 - 2027). Lower maintenance costs, accurate transactions, and real-time inventory are key advantages of POS terminals.

• The rising financial frauds worldwide 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. Therefore, these regulatory bodies have positively impacted the adoption of POS terminals. With the increasing mobility trends worldwide, mobile POS terminals are gaining traction. With the advent of cashless transactional technologies, POS has witnessed an increase in adoption rates.
• The growth in e-commerce in the Asia Pacific region is also a factor that presents new opportunities for the POS terminals market. According to a study by Google conducted in the first half of 2021, in the region, regular 'a few times a month' online shoppers are now outpacing their offline counterparts by 42% vs. 31%, and those who shop online 'once every few months' leapfrog offline shoppers by 66%. Also, according to the study, the region has leapfrogged as much as five times, already meeting projections for 2025 (n=13,000).
• Card fraud is evolving heavily, driven by increased customer demands for fast and easy payments. The coronavirus pandemic is also fueling explosive growth in card fraud activity. Point-of-Sale fraud is largely caused by merchants failing to leverage point-to-point encryption (P2PE) solutions to safeguard POS data. Several merchants depend on transmission-level encryption for POS transactions, where card data is encrypted while moving from the POS terminal to the payment processor. The lack of encryption of the card data drives security concerns and adds a risk factor in transactions.
• Various businesses have deployed contactless payment options to offer customers touch-free alternatives in response to social distancing requirements and consumer preference for not using cash. As customers are becoming more used to using these payment options, they expect more firms to provide them with these options.
• In March 2021, the National Payments Corporation of India (NPCI) partnered with SBI Payments to launch a RuPay SoftPoSsolution for Indian merchants. The solution turns NFC-enabled smartphones into PoSterminals for retailers. With the solution, merchants can accept contactless payments of up to INR 5000 through simple tap and pay mechanisms on smartphones. Such efforts by the government are also pushing the growth of contactless payment.
• Also, in August 2021, BharatPe formed a strategic partnership with Axis Bank, under which the private lender will act as the acquiring bank for BharatPe's point of sale (PoS) business BharatSwipe. This partnership will help BharatPe enhance the merchant experience by leveraging the advanced technology platform Axis Bank offers.