Canada POS Terminal Market Size

Canada POS Terminal Market Analysis

The Canada POS Terminal Market is expected to register a CAGR of 6.5 % during the forecast period. The COVID-19 pandemic has acutely affected point-of-sale transactions leading to declining overall payments due to the nationwide lockdown. However, the pandemic has also highlighted the importance of contactless payments across industries, creating demand for POS terminals in the forecast period.

• The POS terminal market has grown considerably over the past few years due to an increased return on investment and ease of access observed. POS systems have gained importance in companies of all sizes over the years, facilitating transactions from the central component of businesses across industries, like retail, hospitality, transportation, and banking.
• POS terminal systems have evolved significantly, from transaction-oriented terminals/devices to systems that integrate with the company's CRM and other financial solutions. This developed ecosystem has empowered the end-user industries with business intelligence to manage their revenue streams and inventory better. The deployment of POS systems has brought many advantages, like lower maintenance costs, real-time inventory, and accurate transactions. Given the practical benefits that the advanced POS systems offer, companies have replaced their traditional billing software with POS systems, thus, ensuring the maturation of the POS system market.
• Compared to other payment channels, the low cost of ownership of POS systems has bolstered the growth considerably in Canada. The enhanced POS systems provide higher durability and reliability, leading to a lower cost of ownership, thus raising the demand for POS solutions in both medium and small-sized businesses compared to the traditional system.
• One of the challenges to the market's growth is the cybersecurity concerns because of the use of sensitive information, making the systems susceptible to attacks to gain access and misuse, similar to any other connected machine. The terminals' communication with the rest of the network implies attackers could access unencrypted card data, including Track2 and PIN information, providing all the necessary information to steal and clone payment cards.
• Further, the COVID-19 pandemic has significantly transformed how consumers shop, affecting several market verticals. The retail sector witnessed a drastic change through the pandemic. Canadian consumers have also increased their use of various sales methods, including virtual consultations, curbside pickup, contactless payment, and social commerce, i.e., shopping through social media. The new consumer behavior is expected to continue over the forecast period, affecting the demand for POS terminals across the country.