United States (US) Point of Sale (POS) Terminals Market Size, Share, Growth, Analysis & Trends (2025 - 2030)

United States (US) Point of Sale (POS) Terminals Market Analysis

The United States Point of Sale Terminals Market size is estimated at USD 29.11 billion in 2025, and is expected to reach USD 44.63 billion by 2030, at a CAGR of 8.92% during the forecast period (2025-2030).

The US payment landscape is experiencing a significant transformation driven by changing consumer preferences and technological advancements. According to the US Bureau of Economic Analysis, consumer spending increased to USD 14,418.83 billion in the second quarter of 2023, reflecting growing economic activity and increased transaction volumes. The retail sector has witnessed a dramatic shift in payment behaviors, with traditional point of sale terminals evolving into comprehensive business management solutions that integrate customer relationship management, inventory control, and financial analytics. This evolution has enabled businesses to streamline operations, enhance customer experiences, and gain valuable insights into consumer behavior patterns.

The emergence of mobile POS and omnichannel retail strategies has revolutionized the POS terminal industry. Approximately 41% of US shoppers now expect their smartphone or tablet to become their primary shopping tool, highlighting the growing importance of mobile payment solutions. Major retailers like Walmart, Costco, and The Home Depot are increasingly adopting integrated retail POS systems that seamlessly connect their physical and digital operations. These systems enable features such as click-and-collect, Buy Online Pickup in Store (BOPIS), and real-time inventory management across multiple sales channels.

The industry has witnessed significant technological advancement with the integration of artificial intelligence and cloud computing capabilities. Modern POS systems now incorporate features such as object detection, motion analytics, and digital sensors to support loss prevention and enhance operational efficiency. Cloud-based POS solutions have gained prominence, offering businesses the advantages of remote data management, automatic updates, and improved scalability. These systems are particularly beneficial for multi-location businesses requiring centralized control and real-time data synchronization.

The logistics and transportation sector has emerged as a significant adopter of POS terminal solutions. According to IBIS World industry statistics, there are approximately 4,276,472 transportation and warehousing companies in the United States as of 2023, representing a 9.5% increase from the previous year. This growth has driven demand for specialized POS solutions that can handle complex pricing structures, multiple payment methods, and integration with inventory management systems. The warehouse industry particularly benefits from modern POS systems that provide real-time stock updates, automated reordering capabilities, and enhanced tracking features.

United States (US) Point of Sale (POS) Terminals Market Trends

Growing Investments in POS and Digitalization in the Payment Industry

The payment industry is witnessing unprecedented levels of investment in digital transformation and POS modernization. According to the 2022 Federal Reserve Payments Study, the value of core non-cash payments in the United States grew more rapidly from 2018 to 2021 than in any prior measurement period since 2000, reaching USD 128.51 trillion in 2021. This growth has spurred significant investments in advanced point of sale terminals that can handle diverse payment methods and provide enhanced security features.

Major industry players are actively investing in innovative POS solutions to meet evolving market demands. In February 2023, Felix, a global player in contactless cloud EMV payment technology, partnered with Elo to integrate Felix—Terminal Tap to Pay cloud-based solution with Elo's M50 Mobile Computer. Similarly, in January 2023, VMware, Inc. introduced a new solution to help global retailers modernize point of sale systems and maximize their return on investment. These investments are focused on developing solutions that offer seamless integration with existing systems while providing enhanced security and improved user experience.

Growing Demand for Contactless Payments

The adoption of contactless payments has experienced exponential growth, with approximately 79% of consumers now using contactless payment methods according to a Mastercard survey. This shift in consumer behavior has prompted businesses across the United States to invest in modernized POS terminal systems capable of accepting contactless payment terminals. Companies that previously relied on conventional card swipes are rapidly transitioning to NFC-enabled terminals to accommodate this growing preference for touchless transactions.

In June 2023, LVMH announced plans to implement Tap to Pay on iPhone across select stores in the US, offering a seamless and secure payment experience. This technology enables merchants to accept Apple Pay, contactless debit and credit cards, and various digital wallets without requiring additional hardware. Similarly, in February 2023, Stripe announced support for Tap to Pay on Android, allowing establishments to accept contactless in-person payments using compatible phones or tablets. These developments demonstrate the industry's commitment to meeting the growing demand for contactless payment solutions while simplifying the payment process for both merchants and consumers.

Increasing Demand for More Secured Payment Options

Security concerns have become paramount in the POS terminal market, driving demand for more sophisticated and secure payment solutions. Credit card payment transactions now incorporate advanced encryption technologies, with most major credit card companies participating in the PCI Security Standards Council to develop and enhance secure transaction protocols. The implementation of 3D Secure (3DS) authentication tools has added an extra security layer to card-not-present transactions, requiring two-step confirmation and personal identification verification for each transaction.

Recent industry developments reflect this focus on security. In May 2023, Lavu, a major global restaurant software and payments solution provider, partnered with Verifone to introduce a premier point-of-sale solution designed for convenience retailers, incorporating advanced security features. Additionally, in February 2023, Onfido, a global identity verification and multi-authentication company, reported a 90% year-over-year revenue increase to over USD 100 million, including 134% growth in the United States, demonstrating the strong market demand for secure payment solutions. These developments highlight the industry's commitment to providing robust security measures while maintaining transaction convenience.

Segment Analysis: By Component

Hardware Segment in US POS Terminals Market

The hardware segment continues to dominate the US POS terminals market, commanding approximately 46% market share in 2024, representing a value of $12.31 billion. This segment primarily encompasses standalone POS terminals and integrated POS systems featuring additional transactional capabilities. While legacy hardware has typically been modular, the emergence of all-in-one units has enabled the deployment of both fixed units and portable POS tablets with built-in payment terminals, scanners, and printers. The segment's dominance is further strengthened by the widespread belief in certain markets that physical attributes offer enhanced reliability for credit and debit card processing, leading to a proliferation of terminals at store counters. Security features have become increasingly important, with businesses focusing on preventing employee theft through admin windows that generate and inspect sales lists, addressing concerns about canceled receipts, refunds, and negative receipts.

Services Segment in US POS Terminals Market

The services segment is projected to experience the highest growth rate of approximately 10% during the forecast period 2024-2029. This remarkable growth is driven by the increasing adoption of Terminal-as-a-Service (TaaS), which combines cloud POS services and terminals into a comprehensive offering. The segment's expansion is further fueled by the growing demand for professional services that encompass expertise in designing, implementing, integrating, and installing customized solutions for both traditional and newly created platforms. Service providers are focusing on delivering end-to-end solutions that handle all aspects of deployment, allowing client companies to concentrate on their primary business objectives. The transition toward minimizing physical components in transactions and moving toward service-based offerings that leverage existing digital infrastructure is expected to sustain this growth momentum.

Remaining Segments in By Component

The software segment plays a crucial role in the US POS terminals market by providing the essential operating systems and applications that power these payment solutions. This segment has been transformed by the advent of cloud computing, which has enabled electronic point of sale (EPOS) systems to be deployed as software as a service. The transition from traditional Linux-oriented machines to Android POS operating systems has provided greater flexibility in client interactions. The software segment continues to evolve with the integration of advanced technologies like artificial intelligence and machine learning, enabling enhanced customer experiences and improved operational efficiencies for businesses across various sectors.

Segment Analysis: By Type

Fixed POS Systems Segment in US POS Terminals Market

Fixed point-of-sale systems continue to dominate the US POS terminals market, holding approximately 59% market share in 2024. These systems offer businesses comprehensive management solutions, encompassing robust business features, inventory management capabilities, cash drawer integration, employee timekeeping, and the ability to oversee loyalty programs and gift cards. The segment's prominence is driven by its widespread adoption in retail environments like grocery stores and mega marts, where traditional checkout lanes remain the standard setup. Countertop POS terminals provide enhanced security features, reliable transaction processing, and seamless integration with existing business infrastructure. The segment's strength is further reinforced by recent technological advancements, including cloud integration, improved user interfaces, and enhanced data analytics capabilities that help businesses optimize their operations and improve customer experience.

Mobile/Portable POS Systems Segment in US POS Terminals Market

The mobile/portable POS systems segment is experiencing rapid transformation and is projected to grow at approximately 11% CAGR from 2024 to 2029. This remarkable growth is driven by increasing demand for flexible payment solutions that enable businesses to process transactions anywhere within their premises. The segment's expansion is fueled by the rising adoption of contactless payments, the growth of e-commerce, and the need for businesses to improve their operational efficiency. Mobile POS systems are gaining particular traction among small and medium-sized businesses due to their cost-effectiveness and versatility. These systems allow sales and service industries to conduct transactions at the customer's location, adding flexibility to the process and enhancing customer experience. The integration of advanced features such as inventory management, customer relationship management, and analytics capabilities is further accelerating the segment's growth trajectory.

Segment Analysis: By End-User Industry

Retail Segment in US POS Terminals Market

The retail POS terminals segment maintains its dominant position in the US POS terminals market, commanding approximately 42% market share in 2024, while also demonstrating the strongest growth trajectory. The segment's leadership is driven by the increasing adoption of digital payment solutions across various retail formats, from small businesses to large chain stores. The rising number of retail stores across the United States continues to fuel the demand for POS terminals, as these systems help merchants manage inventory, sales reporting, financial management, and customer analytics effectively. The integration of core functions such as customer management, inventory tracking, and employee management under one unified system has made POS terminals indispensable for retail operations. Furthermore, the retail sector's emphasis on customer behavior mapping and retention strategies has accelerated POS adoption, as these systems provide valuable consumer insights and help implement effective loyalty programs. The growing preference for digital payments among millennials and the seamless integration of online and offline retail practices have also contributed significantly to the segment's dominance.

Hospitality Segment in US POS Terminals Market

The hospitality segment represents a significant growth opportunity in the US POS terminals market, driven by the increasing digitalization of restaurant and hotel operations. The segment's expansion is supported by the rising adoption of computerized systems that integrate cash registers, computers, and peripheral equipment, enabling efficient management of customer-oriented establishments. These systems are particularly valuable in restaurant POS environments, where they help optimize business processes by reducing billing time, tracking order fulfillment, and minimizing errors during peak hours. The implementation of digital menus through handheld devices has revolutionized server-customer interactions, allowing for enhanced communication and service delivery. The segment's growth is further bolstered by the recovery in tourism, with the National Travel and Tourism Office projecting significant increases in international visitors. Additionally, the integration of cloud-based solutions and advanced payment technologies has made POS systems increasingly attractive to hospitality businesses seeking to improve operational efficiency and customer experience.

Remaining Segments in End-User Industry

The healthcare and other end-user industries segments continue to play vital roles in shaping the US POS terminals market landscape. The healthcare sector's adoption of POS terminals is driven by the need for secure patient information management and streamlined payment processes, particularly in hospitals, clinics, and pharmacies. These systems help healthcare providers improve patient experience through efficient checkout processes and better engagement with patients and caregivers. Meanwhile, other end-user industries, including transportation, warehousing, and education, are leveraging POS terminals to enhance operational efficiency and customer service. The education sector, in particular, is utilizing these systems to improve student experiences in community venues, while warehousing operations benefit from real-time inventory tracking and automated order processing capabilities. The integration of artificial intelligence and advanced analytics across these segments is further enhancing the value proposition of POS terminals.