Market Trends of South Korea POS Terminals Industry
This section covers the major market trends shaping the South Korea POS Terminals Market according to our research experts:
Retail Segment is Expected to have a Significant Growth
- The adoption of contactless payment among retailers is anticipated to boost the growth of the smart mobile POS market during the projected period. Also, despite cost and security concerns, the spread of the COVID-19 pandemic has increased the use of contactless smart mobile payments.
- Contactless payment methods protect retail workers and customers. This has made the payment providers expand their services to cater to the increasing market demand for contactless payment. It has also been observed that most retailers have started accepting contactless payment owing to ease of payment and quick transactions.
- Also, the advent of smart mobile POS systems has attracted retailers as it offers features such as touch screens and email receipts. It also allows traders to track sales and inventory and set up loyalty programs that run directly through the system. As a result, this has become a more convenient and modern method of accepting payments while improving the customer experience and increasing productivity.
- Additionally, according to CITCON, the retail eCommerce and digital sales in the Asia Pacific amounted to USD 2.99 trillion in 2021. Also, Japan and Korea are the 4th and 5th largest markets for eCommerce and digital sales transactions worldwide. Also, Japan and South Korea accounted for more digital commerce than Germany, France, and India combined.
- Moreover, the increasing digital payment transaction indicated that cashless payment is becoming increasingly widespread in South Korea. Having one of the highest smartphone penetration rates in the world, more and more South Koreans are using mobile payment methods. For instance, according to NASMEDIA, in 2021, the mobile payment industry will grow rapidly, and so does the competition. While Naver Pay currently leads the mobile payment market in South Korea with 75%. Kakao Pay stands out as one of the largest fintech companies in South Korea with its fast-growing revenues and rapidly increasing user base.
Understand The Key Trends Shaping This Market
Download Sample
Affordable Wireless Communication Technologies will Propel the Demand for POS Terminals
- The rising need for low-cost wireless communication technologies has boosted the demand for POS terminals as these devices are used to accept payments for services and products. It simplifies a variety of procedures, from taxis to restaurants. POS terminals are used in the hospitality and retail industries for payment and other operational functions such as inventory management, sales monitoring, and accounting. Bars, restaurants, and foodservice providers rely heavily on POS technology to track sales, operations, items, and inventory. All this will promote growth for the POS terminal market in the long run.
- One of the major elements encouraging the proliferation of POS terminals is the advent of contemporary drive-thrus. Many businesses have begun to use POS systems to integrate their drive-thru, kitchen, and back-office operations for a more efficient order and delivery procedure. Fast-food chain companies such as Chipotle, Panera, and Starbucks have incorporated drive-thru components into some of their drive-thru sites. Furthermore, the advantages provided by modern drive-thrus have enhanced convenience and have resulted in a better consumer experience. This, in turn, is likely to generate chances for growth in the POS terminals market.
- Credit card companies in South Korea will also begin offering "mobile payment" services using near-field communication (NFC) technology. Near field communication (NFC) is a technology used in electronic devices such as laptops, smartphones, and tablets for data exchange over short distances. Customers can use this technology to make a payment without a physical card by placing their smartphone near a card reader.
- Additionally, according to Worldpay, Credit cards held a majority share in the POS terminal in South Korea. However, although the percentage has declined in the past years, it still contributes to 55% of the payment methods at the point of sale (POS) in South Korea in 2021.
- The Covid-19 pandemic has accelerated the growth of the South Korean e-commerce market, leading to the widespread use of online payment sites and cashless payment options during online shopping and transactions as users found it suitable and simple to use these payment methods.
