The manner in which businesses accept payment has seen many changes in the past ten years. What started off as a simple cash register has evolved to include an intelligent and connected system that is fully equipped to manage payment, stock, and analytics, all in real-time. This has been made possible by innovations in the Point of Sales terminal industry, which keeps growing along with the adoption of digital payment.

This article gives a detailed report about the POS terminal market and its market size, share, driving and trending factors, challenges, and the platform created by the market through 2030.

Market Size and Growth Outlook

The global Point of Sales (POS) terminal market was valued at approximately USD 113.38 billion in 2024 and is expected to reach USD 186.41 billion by 2030, growing at a CAGR of around 8.64% between 2025 and 2030.

This steady growth reflects the widespread adoption of digital payment systems, expanding e-commerce activity, improved internet penetration, and government-led initiatives promoting cashless economies. POS terminals are no longer limited to retail checkouts—they are now embedded across banking, healthcare, hospitality, transportation, and even small street-level businesses.

Among all regions, Asia-Pacific currently leads the market, driven by its massive consumer base, rapid digitalization, and strong government support for electronic payments.

Key Factors Driving Market Expansion

Growth of E-commerce and Digital Payments: One of the strongest forces behind POS terminal adoption is the explosive growth of e-commerce and omnichannel retail. Social media influence, celebrity endorsements, and fast-fashion trends have significantly reshaped consumer buying behavior—particularly among millennials and Gen Z.

Large e-commerce platforms such as Amazon, Shopify, Myntra, and Flipkart have expanded aggressively across regions, doubling customer volumes in some markets within a year. This growth has pushed merchants to adopt POS systems that can seamlessly integrate online and offline transactions, manage real-time inventory, and support multiple payment modes.

Expansion of Fintech and Cloud-Based Payments: Advancements in fintech—including digital wallets, contactless payments, and cross-border payment solutions—have increased the need for flexible and scalable POS terminals. Payment partners such as PayPal, Google Pay, Alipay, and PhonePe now require POS systems that support cloud connectivity, real-time authorization, and global interoperability.

Cloud-based POS platforms have become especially attractive for businesses operating across multiple locations, as they allow centralized data access, faster updates, and improved operational efficiency.

Key Market Driver: Rising Adoption of EMV Technology

EMV as a Global Security Standard one of the major: The major driving factor for the POS terminal market is the adoption of EMV (Europay, Mastercard, and Visa) chip cards. The EMV card uses an encrypted code for each transaction, thus the chances of card cloning and hence fraud are minimal.

With the increasing cyber attacks across the globe, owing to the increasing digital presence and financial motivations for cybercriminals, there is a growing need for secure payment systems. The governments and financial regulatory bodies in various parts of the world, such as the US, the EU, and India, have made it compulsory to shift from magnetic stripe to EMV cards.

Impact on POS Terminal Demand as the number of EMV transactions demand interoperable POS terminals. Consequently, many business sectors, such as retail, healthcare, hotel, and transport, are upgrading or replacing their legacy infrastructure in order to comply with the regulations. This directly triggers the adoption of POS terminals.

Market Opportunities: Government Support for Cashless Economies

Governments play a critical role in shaping the POS terminal market. Many countries are actively promoting secure, traceable digital payments to improve financial inclusion, enhance tax compliance, and reduce reliance on cash.

Examples include:

• The EU’s revised Payment Services Directive (PSD2), which strengthens payment security.
• The US Payments Forum, which issued updated guidelines for EMV implementation and merchant training.
• India’s BHIM-UPI incentive scheme, which provides transaction-based incentives to small merchants and includes significant government funding.

Such initiatives lower adoption barriers for businesses and create long-term growth opportunities for POS terminal providers, particularly in emerging markets.

Key Market Challenge: High Integration Costs and Complexity

Despite strong growth prospects, the POS terminal market faces notable challenges—especially for small and medium-sized enterprises (SMEs).

Integrating modern POS systems with existing hardware, payment gateways, and enterprise software can be complex. Incompatibility issues, inventory synchronization failures, or system downtime can disrupt operations and directly impact revenue.

Advanced POS solutions often require:

• High upfront hardware costs
• Ongoing software upgrades
• Maintenance expenses
• Workforce training

For startups and small retailers with limited budgets, these costs can delay or limit adoption, particularly in price-sensitive markets.

Market Trend: AI and Machine Learning in POS Terminals

One of the most transformative trends in the POS terminal market is the integration of artificial intelligence (AI) and machine learning (ML). Modern POS systems are no longer passive transaction tools—they actively analyze customer behavior, sales patterns, and inventory data.

AI-powered POS terminals help businesses:

• Predict demand and prevent stockouts
• Optimize pricing and promotions
• Detect suspicious transactions and reduce fraud
• Personalize customer offers in real time

Real-World Adoption: Large retailers such as Walmart, Tesco, and Kroger have already adopted AI-enabled POS systems to improve staff planning, inventory control, and customer engagement. This trend is expected to accelerate as AI tools become more affordable and accessible to mid-sized businesses.

Segmentation Analysis

By Deployment Type

On-Premises POS Terminals: On-premises systems currently account for around 63% of the market share. Many businesses prefer this model due to greater control over data, lower long-term operating costs, and reduced dependency on internet connectivity.

These systems are especially popular among small enterprises and regions with limited IT infrastructure, as they integrate easily with existing hardware and allow customized security measures.

Cloud-Based POS Terminals: While still trailing on-premises systems in market share, cloud-based POS terminals are growing rapidly due to scalability, remote access, and lower upfront costs.

By End User

The retail segment dominates the market with approximately 44% share. Growth in fast fashion, luxury retail expansion, and omnichannel shopping has significantly increased POS terminal demand.

Major global brands—including Levi’s, Skechers, and Tim Hortons—have expanded aggressively across Asia and the Middle East, further driving POS installations in physical stores.

Regional Analysis

Asia-Pacific holds over 41% of the global POS terminal market, driven by:

• Massive population base
• Rapid adoption of digital payments
• Government-backed cashless initiatives
• Expansion of e-commerce and food delivery platforms

Countries such as China, India, and Japan account for billions of digital transactions annually, requiring reliable and scalable POS infrastructure.

Government programs like Digital India, China’s cashless initiatives, and Japan’s cashless vision continue to strengthen the regional market. Leading manufacturers have responded by launching upgraded Android-based POS terminals to meet growing demand.

Competitive Landscape and Recent Developments

The POS terminal market is highly competitive, with major players focusing on partnerships, acquisitions, and cloud innovation. Key companies include:

• NCR Voyix
• Verifone
• Ingenico
• Oracle
• Square
• Toast
• Toshiba Global Commerce Solutions
• Advantech Aures

Recent developments include strategic partnerships to expand cloud-based POS services and acquisitions aimed at strengthening global presence and product portfolios.

Conclusion

The Point of Sales (POS) terminal market is undergoing a fundamental transformation, driven by digital payments, regulatory mandates, and intelligent technologies like AI and cloud computing. While challenges such as integration complexity and cost remain, ongoing innovation and government support continue to unlock new growth opportunities.