The Rise of Point-of-sale (POS) Terminals: A History, Overview

The number of POS terminals reached almost 161 million in 2019, which is truly remarkable. It's exciting to think about how much this number will grow by 2023.

The use of ?? electronic forms of payment, such as payment cards and mobile phone payments, is steadily replacing traditional coin and paper-based payments like cash and cheques. This shift has led to the widespread use of POS terminals across the world, with the global installed base reaching nearly 161 million units in 2019. The growth in the market is mainly driven by the increasing adoption of electronic payments in emerging markets, whereas developed markets have already reached saturation in terms of POS terminal adoption.

The development of point-of-sale (POS) terminal can be traced back to the 19th century

The history of point of sale (POS) systems dates back to the 19th century when James Ritty invented the first mechanical cash register in 1879 to prevent employee theft. The register used metal taps to record sales and a bell ?? to alert the owner. In 1884, John H. Patterson founded NCR after buying the patent for the cash register from Ritty, and he improved it by adding a paper roll, cash drawer, and bell.

Later, in 1906, Charles F. Kettering, an inventor at NCR, created the first cash register with an electric motor.

The evolution of the computer industry led to the development of advanced POS systems by pioneers such as IBM, NCR, Micros Systems, and Verifone.

?So, what is the POS payment terminal?

Basically, a POS machine is a device that captures payment card details and processes transactions by transferring funds to a merchant's bank account. But did you know that there are different types of POS machines?

"Who is the owner of the Point of Sale (POS)?"        

The first type is Acquirer-owned, where the acquiring bank or entity provides the merchant with the POS machine and any other related services. On the other hand, the second type is Retailer-owned, where the merchant purchases the POS machine from the market and links it to an acquiring bank.

Some merchants want to provide a specific customer experience in POS, and this allows them to deal with different Acquirer banks.

POS terminal services         

Now, let's talk about the services that POS machines can offer. An Integrated POS machine can handle more than just payments, including customer loyalty programs, inventory management, and tag scanning. How cool is that?

POS connectivity         

Furthermore, POS machines can differ in connectivity, too. Some POS machines use wireless and can be used within a certain radius of a base station. Meanwhile, Internet-based POS machines direct the customer to a secure link where they can enter their payment information.

Offline transaction         

And if you're in a rural area with no network connectivity, offline POS machines accept payments and transmit them at the end of the day.

?M-POS        

Lastly, have you heard of mobile POS machines? They have a SIM card and can accept various types of payments, including debit cards, credit cards, QR codes, and UPI.

POS Terminals Market Overview:

• Sales of payment terminals are forecasted to reach USD 190 billion between 2023 and 2032; here are the growth drivers. - Advancements in payment technologies: The market is driven by the positive inclination toward EMVs and other payment methods that enhance security and convenience, especially in North America. ??????- Expanding hospitality sector in APAC: The market is benefitting from the increasing awareness regarding POS terminals among hotels, restaurants, and casinos in countries such as China, Singapore, Australia, and Japan.- Government efforts to transition into a cashless economy: The market is supported by the initiatives and policies of various governments to promote digital payments and reduce cash transactions. ??????- Rapid adoption of advanced payment systems in North America: The market is stimulated by the significant growth of retail outlets, casinos, and restaurants, as well as the booming tourism sector, especially in the U.S. and Canada.

In conclusion, POS terminals, or point-of-sale terminals, are electronic devices that facilitate payments and offer various benefits to merchants and customers.

These terminals have undergone continuous innovation and evolution and are widely used across different sectors and regions.

?? The global market for POS payment terminals is expected to grow significantly in the next decade, as more people adopt digital payments and new technologies emerge. POS terminals not only provide a means of payment but also serve as a tool to enhance customer experience, loyalty, and satisfaction. ????