Handheld POS Transactions in US Retail Stores to Teach $5.4 Billion in 2018
Published on: 10th Apr 2013
Note -- this news article is more than a year old.
At 93% of total U.S. retail dollar volume, the point of sale (POS) retail market towers above the online market and will continue to do so for years to come. But the growing popularity of the digital realm has fundamentally altered the nature of the POS, as brick and mortar retailers have had to embrace elements of mobile and online channels in order to remain competitive.
Although mobile POS proximity payments made up just 0.01% of total retail POS volume in 2012, mobile devices (i.e., smartphones and tablets) have forever altered the in-store shopping experience, acting as both a payment option and a channel for purchasing.
Over the next six years, an industry-wide push for mobile technology will help propel mobile payments to astonishing growth and will allow mobile POS proximity payments to reach $5.4 billion by 2018.
"The retail POS market is evolving at a remarkable rate with the increased popularity of the e-commerce and mobile payments markets," said Aleia Van Dyke, Industry Analyst at Javelin Strategy & Research. "Today's consumers are demanding more digitized payment options to enhance their in-store shopping experience. The advanced features of non-traditional payment options like mobile and prepaid cards have encouraged adoption with today's tech-savvy shoppers."
- Retail POS purchases totaled $3.98 trillion in 2012 and is expected to reach $4.2T in 2018
- Mobile payments will have the highest compound annual growth rate over all other forms of payments methods over next five years.
- Prepaid card volume at the POS will surpass that of gift card by 2015.
- Debit cards have overtaken cash to become the preferred payment option for Gen Y consumers