Market Trends of China POS Terminals Industry
This section covers the major market trends shaping the China POS Terminals Market according to our research experts:
Healthcare Segment will Significantly Contribute Growth to the 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 patient information is one of the significant drivers of POS terminals in the healthcare industry. According to the National Bureau of Statistics of China, Healthcare expenditure will grow by USD 1116.80 million in the previous year. Such increasing investments in the healthcare sector 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 significant presence of healthcare facilities aided the market's growth.
- Advanced technologies such as 5G and blockchain technology will be implemented in the POS terminals market for contactless payments to ensure data security throughout the transaction. This deployment of innovative technologies will bring new opportunities to the market. Furthermore, the Covid-19 pandemic triggered the demand for cashless payment acceptance at hospitals, stimulating the demand for POS terminals in the healthcare industry.
- Furthermore, with the rise in the number of patients across hospitals, hospital food service management companies are working to overcome their reputation of having in-room dining options. Modernization of hospital POS came to the forefront in the region as the light continues to be shed on hospital-quality food service as essential to health and healing.
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Cashless Payment is Driving the Market Growth
- China is the fastest-growing region in technology adoption, influencing the POS terminals' growth. Cashless payment's prominence in different countries also creates new market opportunities. For Instance, Sovcombank in Russia signed an agreement with China's UnionPay International (UPI), whose services payment provider system is global and offers alternatives to US cards such as Mastercard and Visa. UnionPay cards also support the contactless QuickPass payment method, allowing customers to quickly and securely pay for purchases.
- According to the South China Morning Post report published in February last year, China took two steps closer to an entirely cashless economy after two small private Chinese banks announced they would end services related to banknotes and coins the previous month. Beijing-based ZhongguancunBank ended cash services, including over-the-counter deposits and withdrawals and cash services on ATMs, in April last year, while NewUpBank of Liaoning ended its cash services in March last year.
- 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 most significant 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.
- According to CNNIC, the number of online payment users in China will grow by 904.44 million in the last year. The increasing number of online payment users will significantly expect to drive the contactless/cashless payment market.
