Digital Lifescapes

The traditional point-of-sale (POS) terminal has traveled a remarkable journey since IBM's first mainframe-connected models emerged in the 1970s. What began as clunky screen interfaces tethered to distant computers has evolved into a diverse ecosystem of payment solutions. Today, we stand at the precipice of the most significant transformation yet: the rise of soft POS technology that promises to democratize digital payments for businesses of all sizes. At its core, this evolution reflects a broader shift from hardware dependency to software flexibility. Global POS Market Development With their dedicated terminals, fixed installations, and substantial upfront costs, traditional POS systems have long served as gatekeepers to in-store or mobile payment acceptance. Small businesses, micro-enterprises, and mobile retailers often found themselves locked out of the digital economy, forced to rely on cash transactions or make significant capital investments in POS hardware. Soft POS techn...

Societal shifts have affected how retail customers shop. The move toward a 'cashless' society was accelerated during the COVID-19 pandemic, leading to more eCommerce transactions and online spending. Meanwhile, in-store retail Point of Sale (POS) terminals transformed. Traditional hardware-based POS systems evolved into specialized solutions, which provide compact mobile terminals. However, the arrival of software-based 'Soft POS' solutions will disrupt this market. Soft POS Market Development All POS systems process payment transactions by forming a connection between a buyer’s and a seller’s respective bank accounts for the transaction to occur, and actioning the exchange of funds. According to the latest worldwide market study by Juniper Research, the global transaction value processed via Soft POS solutions will reach $11.8 billion by 2028, which is up from $1 billion in 2023. New growth will be driven by Apple’s launch of 'Tap to Pay', coupled with the Soft...

Forward-thinking retailers now have a bright future. In contrast, those that failed to enhance their business model via digital transformation have struggled, declined, and their assets were eventually liquidated. The key difference between these two business outcomes is applied strategic foresight. Even as the world continues to emerge from a global pandemic, retail is growing at levels not seen in the last two decades. Retail sales grew by 7 percent in 2020 and by over 14 percent in 2021, which is in stark contrast to the 3.7 percent annual growth between 2010 and 2019. The increased demand for retail has put a strain on supply chains and retail operations worldwide. As a result, retailers and stakeholders are turning to automation solutions such as mobile robotics for operational ease. Retail Transformation Market Development According to the latest market study by ABI Research, worldwide commercial robot revenue in retail stores will have a Compounded Annual Growth Rate (CAGR) of o...

The way shoppers pay for products has evolved due to the rise of eCommerce during the pandemic. Online retail transactions have grown rapidly, and in many parts of the world, in-person cash transactions are now a smaller percentage of retail payments. These changes have a significant implication for retail point-of-sale (POS) terminal vendors, as consumers choose to shop less at local in-store retailers and more online, or the vendor may lack the functional capabilities to process contactless payments. The evolution of payment interactions has driven an in-store retailer transformation. With COVID-19 pandemic-related government control measures and the ongoing public wariness in many nations, non-contact forms of payment are becoming even more popular. POS Terminal Market Development According to the latest worldwide market study by Juniper Research , the total value of transactions processed by POS terminals will exceed $17.3 trillion in 2026 -- that's up from $14.8 trillion in 20...

The application of new technology is an opportunity for traditional retailers to enhance customer engagement via digital transformation. Many of these established retailers are confronted by disruptive competition from eCommerce. Savvy retailers are evolving their business model into an omnichannel offering, where they combine the best of their offline experience and supplement it with an online shopping experience. Therefore, retailers that intend to maintain a physical in-store presence must operate more effectively. There are several technologies being combined to enhance the way retail store operations function -- including self-checkout apps, beacons, RFID tags, robotics, and artificial intelligence (AI). That said, the current global economic environment requires retailers to become more agile and decisive. Retailer Technology Market Development According to the latest worldwide market study by Juniper Research, the value of transactions processed by smart checkout technologies, ...

The retail industry has undergone a revolution as a result of eCommerce and its associated technologies. To a large degree, this transformation has negatively impacted physical stores that have tried to compete with less expensive and more convenient online retailers. Meanwhile, many of the major traditional retailers have expanded their online offerings but frequently struggled to compete against the leading pure-play eCommerce innovators. eCommerce Market Development However, there have been several recent technological developments that are both re-imagining the in-store retail experience -- as a service -- and re-tooling it to offer similar features to eCommerce. According to the latest worldwide market study by Juniper Research, retail spending at new frictionless payment stores -- such as Amazon Go -- will increase from an estimated $253 million in 2018 to over $45 billion by 2023. Juniper analysts forecast that most of these consumer transactions to be wi...

After two years of collecting data from payment networks, payment processors, financial institutions, digital wallet providers and retailers worldwide, 451 Research has launched its Global Unified Commerce Forecast. Here's a summary of their findings. "The confluence of new technologies, new entrants and new consumer demands has catapulted retail into a state of flux," said Jordan McKee, research director at 451 Research . "These market shifts are influencing not only the way in which shoppers choose to obtain their desired goods and services, but also how and where they spend their money." Digital Commerce Market Development Their new research report provides quantitative guidance on these shifts in purchase activity in developed and emerging markets around the world. Among many findings, the latest 451 Research market study found several unique trends that will transform the retail sector in the years ahead. One out of every ten dollars spent global...

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards. While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017. This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million). Contactless Payment Market Development Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions. Furthermore...

Savvy CIOs and CTOs in the the retail sector have embraced new technologies that enable them to evolve their business models -- both in-store and online. In particular, automation applications that improve productivity are likely to receive significant IT investment. Artificial Intelligence (AI), computer vision and robotics will ultimately enable retailers across the globe to provide improved customer experiences, streamline legacy business processes, and increase diminishing profit margins. Smart Retail Tech Market Development Brick and mortar retailers can, therefore, improve their chances of remaining competitive if they employ these technologies correctly, prioritizing long-term investment over short-sighted strategies, according to the latest worldwide market study by ABI Research. "The high-cost barrier associated with AI, computer vision and robotics will ultimately be overcome by the potential for these technologies to offset the inherent disadvantages facing phy...

The outlook for retailers have changed dramatically over the last few decades. This sector of the economy has shifted from a cash-driven, supply-driven industry to one that is very digitally-focused. The Internet has transformed retail. Where competition is most intense, innovation and market disruption are ongoing. Retail markets are now potentially unlimited, where previously they may have been very locally focused. Meanwhile, consumer expectations have altered in response to online and mobile retail. Customer service is now a key consideration before a purchase, now that it's easy to find the desired product at the lowest possible price. Retail Technology Market Development Meanwhile, in-store technology applications continues to evolve. According to the latest market study by Juniper Research, retailers will connect 12.5 billion business assets, such as products, digital signs and Bluetooth beacons, to Internet of Things (IoT) platforms by 2021. This figure is expected to...

Retailers across the globe continue to invest in new payment technologies, as the growing use of mobile devices, associated software applications and cloud-based financial services enter the mainstream marketplace. ABI Research forecasts the point of sale (POS) hardware market will increase to more than $4.5 billion in 2021, with revenues generated from a combination of traditional POS and mPOS -- which employs a smartphone or media tablet as the cash register. Merchants looking to enhance convenience and foster new experiences and transaction choices at the point of sale will propel POS hardware development over the next five years. POS Technology Market Development "Arguably, despite hype, mPOS did not yet eat into the traditional POS market as many industry experts initially hoped," said Phil Sealy, senior analyst at ABI Research . This is reinforced by the vendor emphasis on competitive pricing strategies on hardware devices, used in a bid to gain market share a...

Retail in-store payment capabilities are evolving with near-field communication (NFC) for point-of-sale (POS) terminals. NFC is a secure wireless technology that enables two devices in close proximity to exchange data. It's used for a variety of applications, including contactless payments. The market for NFC-ready POS terminals continued to show momentum in 2016 with annual shipments anticipated to reach an estimated 16.1 million units, according to the latest worldwide market study by Berg Insight. Retail Payments Market Development The attach rate for NFC was highest in EU28+2 and the North America regions, where 93 percent and 92 percent respectively of the POS terminals shipped featured NFC. NFC was also a popular feature in many other major markets worldwide -- including Brazil, Turkey and China. On a global basis, almost three out of every five POS terminals shipped in 2016 included NFC. Berg Insight projects the global installed base of NFC-ready POS terminals wil...

Retailers are adopting a new wave of wireless technologies that could transform the shopping experience in numerous ways. Wireless in-store beacons are a key component of this strategy. These tiny beacon devices broadcast small pieces of information to nearby shoppers via their smartphones, which are enabled to receive the message via a retailer's software app. What's in these messages? Personalized advertising promotions that are targeted at consumers. ABI Research now forecasts that dedicated Bluetooth low energy (BLE) beacon advertising networks will be worth over $2 billion in revenue by 2020. ABI has been studying the use of BLE beacons, audio/ultrasound and LED/VLC for advertising purposes across large third-party networks, Out of Home (OOH) and in-store brand advertising. "What is clear is that BLE beacons are not enough, and already many of the most successful advertising networks are using audio/ultrasound technologies," said Patrick Connolly, principal...

Retailers are investing more on in-store digital technology that has the potential to improve the shopping experience. The ABI Research quarterly indoor location database has forecast well over one million indoor location retail deployments by 2020, with Bluetooth Low Energy (BLE) beacons now established as the key building block for indoor location. "What is really interesting is how rapidly beacons are spreading into all 11 retail or venue verticals covered in the database, in particular quick service restaurants (CAGR 84.4 percent) and convenience stores (CAGR 47.1 percent) are two of the fastest growing verticals over the forecast period" said Patrick Connolly, principal analyst at ABI Research . ABI has forecast some major chain-wide technology deployments over the next 12 months, and there will also be significant new growth in key retail verticals -- such as Grocery, Big Box, and Malls. Total BLE beacon shipments are now expected to approach 200 million by 2020 a...

Major retailers can no longer solely rely upon their in-store point-of-sale (POS) terminals for transactions. They must quickly evolve their POS strategy to offer both online and mobile payment options to customers, that's according to the findings from the latest market study by Informa Telecoms & Media. Retailers that offer multiple payment options -- including a mobile checkout facility -- will be able to serve more customers and reduce loss of sales due to the busy shopper's reluctance to wait in line, especially during the holiday season. The use of mobile POS terminals can help retailers to serve more customers during busy times and issue paperless receipts to customer e-mail addresses, rather than making customers wait in long lines to pay at fixed POS terminals. During the 2012 Christmas holidays, lifestyle brand Alex and Ani implemented mobile checkout technology in several of their U.S. stores and witnessed an impressive 318 percent increase in sales just fr...

The European mobile retail audience grew by 43 percent over the past year, with 20 percent of smartphone users accessing online retail sites and apps using their device, according to the latest market study by comScore . The study included mobile phone usage characteristics across the five leading EU markets -- France, Germany, Italy, Spain and the United Kingdom. Mobile online retail adoption is on the upswing -- 1 in 7 European smartphone users reported having completed a retail transaction on their mobile phone in a month. In the three month average ending August 2013, 20.4 percent of the EU5 smartphone audience accessed online retail sites, displaying an increase of 2.8 percentage points in the past year. Spain was the fastest growing market with a growth rate of 66.5 percent to almost 3.3 million smartphone users accessing retail sites on their mobile. Italy ranked second with a growth rate of 61.3 percent to almost 5.6 million smartphone users accessing those sites on th...

eMarketer reports that online retailer sales are growing fast, but the vast majority of consumer spending still takes place offline in local stores. Are retailers prepared to re-design their online presence, optimized for mobile device interaction, to capitalize on their customer's evolving shopping behavior? A large portion of those in-store sales are influenced by online research, most of which is conducted at a consumer's home. But increasingly, consumers are taking advantage of the just-in-time access to information via smartphones -- to perform more of this online research while in a store, or while in transit between stores. "While online sales are measured in billions of dollars, the store sales influenced by web research are worth trillions of dollars," said Jeffrey Grau, eMarketer principal analyst. The desktop has been the prevalent place for cross-channel shoppers to do online research, but there are signs that a significant share of this activity...