Market Trends of Asia Pacific POS Terminal Industry
This section covers the major market trends shaping the APAC POS Terminal Market according to our research experts:
Healthcare Segment will Significantly Contribute to the Growth of Market
- The healthcare industry is a prominent adopter of POS terminals. The segment is expected to grow due to several factors, such as government initiatives and vendor activities. The demand for securing information of patients is one of the significant drivers of POS terminals in the healthcare industry. According to MHLW (Japan), the overall number of hospitals established by medical businesses in Japan as of January 2021 was 5,686 facilities. Such a huge number of hospitals will drive the studied market for payment methods.
- With the rapid digitization of the healthcare sector in different parts of the world, the need for modern POS terminals is also increasing to process pandemic-related information, payment processes, and manage patient information. Furthermore, the region's large presence of healthcare facilities has aided the market's growth. According to the Ministry of Health, Labour, and Welfare of Japan, there were medical corporations in Japan in 2021.
- Furthermore, the Covid-19 pandemic has triggered the demand for acceptance of cashless payments at the hospitals, stimulating the demand for POS terminals in the healthcare industry. In September 2021, Mswipe went live with e-RUPI for all its 675 thousand POS and 1.1 million QR merchants to boost digital payment acceptance by MSMEs across India. Mswipehas powered hospitals and healthcare facilities to accept digital vouchers from beneficiaries, thereby increasing the vaccination drive against COVID-19.
- Also, in July 2021, the Commercial Bank of Ceylon deployed all-in-one, Android-powered Point-of-Sale terminals to DurdansHospital in Colombo to enable customers to make convenient and secure tap-and-go and scan-and-pay payments. With these new devices, DurdansHospital can adopt QR-based wallet payments under LANKAQR and secure Near Field Communication (NFC) technology at its premises in a single device to offer safety to its customers in terms of minimizing touch points through contactless-payment options.
- Furthermore, with the rise in the number of patients across the hospitals, hospital food service management companies are working to overcome their reputation of having in-room dining options. Modernization of hospital POS has come to the forefront in the region, as the light continues to shed on quality food service in hospitals as essential to the health and healing process.
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Cashless Payment is Driving the Market Growth
- Asia Pacific is a region that is at the forefront of technology adoption, which is influencing the growth of the market for POS terminals as well. The prominence of cashless payments in different countries is also a factor that is creating new opportunities for the market.
- According to Worldpay, with almost 40% of payments in 2021, digital or mobile wallets held the biggest share of point-of-sale payment methods in the Asia-Pacific region. In contrast, 16% of point-of-sale transactions in the Asia-Pacific area in 2021 used cash payments.
- According to the South China Morning Post report published in February 2022, China has taken two steps closer to a fully cashless economy after two small private Chinese banks announced last month that they would end services related to banknotes and coins. Beijing-based ZhongguancunBank will end cash services, including over-the-counter deposits and withdrawals and cash services on ATMs, in April 2022, while NewUpBank of Liaoning will end its cash services in March 2022.
- Further, government bodies in the region are taking the initiative to enhance the digital payment solution. Moreover, according to Worldpay, In Asia-Pacific, digital or mobile wallets accounted for the biggest percentage of point-of-sale payment methods in 2021, with over 40% of transactions. Comparatively, in the Asia-Pacific area in 2021, 16% of point-of-sale payments were made in cash.
- Due to the spread of the COVID-19 pandemic, the government introduced the Movement Control order (MCO), accelerating Malaysia's cashless push. For instance, GrabPayMalaysia's cashless transactions have grown by about 1.7 times. Maybank, the top Malaysian bank, has registered twice as many users as usual for its MAE e-wallet.
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