Market Trends of Southeast Asia POS Terminal Industry
The Retail Segment is Expected to Grow Significantly
- With the rapid pace of changing consumer preferences, the Southeast Asian market is increasingly dynamic. Regarding the seamless experience they desire in their favored retailers, TechSavvy and Nontech Savvy customers also demand the same.
- In addition, retailers are assisted in overcoming the difficulty of retaining customers thanks to a wide range of inventory, sales reports, finance management, and customer analysis features offered by point-of-sale terminals. Therefore, the development of POS terminals is supported by a requirement to maintain customer loyalty and reinforce competition within this sector.
- With large discounts and other services, many outlets across regions attract customers, but their retention becomes an important problem for them to continue on the market. To avoid competition for prices while balancing investments in new technology and revenues, the competitive environment makes it all the more important that their business models are rethought.
- In addition, Southeast Asia is in for a rapid expansion of the Digital Economy. According to Google and Temasek, online consumer spending in the top six economies in the coming year is expected to reach approximately USD 250 billion, driving the market because of the growing demand for POS terminals.
- Top players in the ASEAN big six, Indonesia, Thailand, Malaysia, Singapore, Philippines, and Vietnam, are consolidating their retail outlets to take up a greater market share. Local players in the POS terminals market are taking advantage of rising demand by adopting partnerships to grow their networks and increase customer acquisition.
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Singapore Anticipated to be the Fastest-growing Market
- Singapore has been at the forefront of payment innovation for some time. One critical goal of the government's vision for a smart nation is accelerating digital payments. In this connection, Singapore has significantly invested in building a long-term infrastructure for cashless payments. According to the Monetary Authority of Singapore, which suggests that POS terminals can be used in several industry sectors within this country, card payment transactions are growing at an increased rate.
- The use of digital wallets is on the rise. High use of mobile phones leads to uptake, which currently amounts to 18% of transactions. By 2023, digital wallets will have a market share of around 26%. PayPal is the most recognized brand for DigitalWallets, having a market share of between 5% and 10%. It is also popular to use Apple Pay, Samsung Pay, Visa Checkout, and Masterpass.
- In addition, given the e-commerce boom triggered by the epidemic, Digital Wallets will pass credit cards as Singapore's favorite online payment method next year. Digital wallets also capture more consumer loyalty to in-store purchases as consumers shift away from cash at point-of-sales terminals. They are projected to represent 20% of the POS market by next year, according to Worldpay, Inc.
- The increasing concentration of businesses and an increase in the frequency of Digital or Mobile Payments between customers are creating a variety of efforts by governments across Southeast Asia to promote alternative payment methods.
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