Latin America POS Terminal Market Size

Latin America POS Terminal Market Analysis

The Latin America POS Terminal Market is expected to register a CAGR of 6.2 % during the forecast period (2022-2027). The pandemic has led to an increase in the adoption of digital payments which is creating opportunities for contactless terminals in the region. According to a December 2020 survey by Mexican Central Bank, 93% of the target population (representing 66.9 million Mexicans) used cash in transactions before the Covid-19 pandemic. However, after the pandemic, 86% (equivalent to 61.9 million Mexicans) reported using less cash in payments.

• The POS terminal market has grown significantly over the past few years, owing to its ability to offer an increased return on investment and ease of access. POS systems that facilitate transactions from the central component of businesses across industries, like retail, hospitality, transportation, and banking, have gained importance in companies of small and big sizes, over the years.
• Companies operating in the market are also focusing on supporting the digital payments in Mexico with the launch of new products. In October 2020, Epos Now, a prominent payment technology company, announced the launch of its cloud POS system in Mexico. The POS solution offers Mexican small and medium-sized businesses (SMBs) the ability to open new digital revenue streams, connect to a global customer base, and cater to rapidly shifting consumer habits in the current climate.
• POS terminal systems have evolved from being transaction-oriented terminals/devices to systems that can integrate with the company's CRM and other financial solutions. This evolution has empowered the end-users with business intelligence to better manage their revenue streams and inventory. Lower maintenance costs, accurate transactions, and real-time inventory are key advantages of the POS systems. With the functional benefits that the advanced POS systems offer, companies have replaced their traditional billing software with POS systems, thus, securing the growth of the POS system market.
• One of the major drivers of the market is the low cost of ownership compared to other payments channels. The enhanced POS systems provide higher durability and reliability, which leads 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 challenge to the market's growth is the security concerns due to the usage of critical information. POS terminals are connected to the network and the internet, making them vulnerable to attacks to gain access to and manipulate it like any other insecure machine. The way the terminal communicates with the rest of the network means attackers could access unencrypted card data, including Track2 and PIN information, providing all the necessary information required to steal and clone payment cards.