POS Statistics

In today’s fast-paced, digital-first world, point-of-sale systems, or POS, are at the heart of every transaction for businesses and consumers. From processing payment methods to managing inventory and customer data, POS systems are indispensable tools that enable companies to operate smoothly and efficiently. As the global market for POS software and hardware expands, understanding key trends and statistics around POS technology is essential for businesses looking to stay competitive and optimize their operations.

In this article, we’ll dive into the latest point-of-sale statistics, offering insights into market growth, adoption trends, and the future of POS systems. Whether you’re a small business owner or a large enterprise, these statistics will show how POS systems transform how businesses manage sales, customer interactions, and fraud prevention.

History of the POS System

The history of point-of-sale, or POS, systems is rooted in innovation that began long ago. The journey started in 1879 with the innovation of the cash register, which was aimed at improving transaction accuracy and preventing theft. This pioneer laid the groundwork for the evolution of the modern POS technology.

By the 1950s and 60s, electronic calculators had gained widespread use, and this era of rapid technological growth set the stage for electronic cash registers in the 1970s. The evolution of POS systems continued alongside advancements in computing. In 1985, IBM launched the first computer-based POS system, bringing greater efficiency and functionality to retail operations. A year later, introducing the first touchscreen POS system represented another major milestone.

Traditional POS systems initially relied on dedicated hardware and software, but innovation tools took a turn in 2002 when a UK-based company introduced the first cloud-based POS system. This allowed businesses to access POS solutions via tablets and smartphones.

In 2010, Square, then known as Squareup, revolutionized small business transactions by launching the Square Reader, which enabled users to accept credit card payments through their smartphones. This opened doors for entrepreneurs and small business owners to operate with minimal setup costs.

Fast forward to 2021, mobile payments became a dominant force in the retail sector, accounting for 30% of all in-store POS transactions. Credit cards followed at 24%, debit cards at 23%, and cash transactions dropped to 18%. This shift highlights the growing preference for convenience and contactless payment technologies in today’s marketplace.

General POS Statistics

POS systems serve as multi-functional hubs that empower businesses across various industries. Modern POS platforms offer multiple features, including menu creation, tableside ordering, employee management, customer relationship management (CRM), and inventory tracking.

• In 2020, the POS software market value was $9.3 billion and is projected to nearly double by 2027 to reach $18.1 billion.
• The top POS priorities include integrating omnichannel capabilities, enhancing existing systems, unifying e-commerce platforms, implementing mobile POS solutions, upgrading or replacing existing POS systems, and improving hardware among North American retailers in 2020.
• Compliance initiatives and adopting unified payment platforms ranked lowest on retailers’ priority lists in 2020.
• Omnichannel integration topped the list of POS priorities for 59% of retailers in 2020, while 52% focused on improving their current systems during the same forecast period.
• POS hardware represents the largest market segment, with predictions indicating it will reach $66.30 billion by 2025.

Retail POS Statistics

POS systems are playing a pivotal role in shaping modern business strategies. Beyond streamlining transactions, these systems are becoming essential tools for managing operations, enhancing customer experiences, and driving data-driven decisions.

• The global retail POS market is projected to grow significantly, from $15.8 billion in 2020 to $34.4 billion by 2026, reflecting an annual growth rate of 13.9%.
• Retailers are enhancing omnichannel capabilities, such as improving online shopping, picking up in-store, and curbside pickup, as well as strengthening order management systems.
• Point-of-sale checkouts are considered the most valuable data source for retailers.

Restaurant POS Statistics

The restaurant industry increasingly relies on point-of-sale (POS) systems to streamline operations, enhance customer experiences, and drive profitability. As technology advances, these systems are evolving to meet the unique needs of restaurants, from self-service kiosks and handheld devices to data analytics and omnichannel capabilities. The following statistics highlight the latest trends and priorities shaping the restaurant POS market:

• Global Restaurant POS Market Reached $22.26 Billion in 2023: With an expected compound annual growth rate of 8% through 2030, the market shows no signs of slowing. Self-service kiosks are leading the growth, projected to expand at an annual growth rate of 9.5%, reflecting the increasing preference for streamlined, customer-driven solutions.
• 46% of Restaurants Seeks POS Upgrades for Omnichannel Service: Enhancements in data collection, expanded payment options, and self-service capabilities are among the key players and motivators for this shift, ensuring a seamless and versatile customer journey.
• Handheld POS Terminals Are on the Rise: In 2022, 61% of restaurants reported using these devices, a significant jump from just under 30% in 2017. This trend reflects the growing need for mobility and efficiency in order-taking and payment processing.
• Menu and Recipe Costing is the Most Desired POS Feature: 40% cite this as their top missing feature in 2022. Other sought-after features include employee scheduling, inventory management, and menu engineering. In contrast, features like reservations management, video order management, and digital signage integration are among the least utilized despite their availability in many systems.

What does the economy look like for restaurants that use POS?

These statistics provide a broader view of key trends in the restaurant industry, offering insights into consumer behavior, industry growth, spending patterns, and operational challenges:

• 45% of diners eat out multiple times a week, while 20% do so weekly.
• The Restaurant Performance Index (RPI) was 101.6 in May 2016, signaling industry growth.
• 1/3 of Americans start their careers in restaurants, and 6 in 10 have worked in one.
• 52% of restaurant professionals cite rising food and operating costs as a significant issue.
• Annual restaurant sales account for 4% of the U.S. gross domestic product (GDP), showcasing their economic impact.
• In 1955, 25% of the family food dollar went to restaurants; by 2019, it rose to 51%.
• Americans spend 12.6% of their income on food, along with housing and transportation costs.

What do sales look like for restaurants that use POS?

These insights reveal key trends in restaurant sales, how owners track performance, and overall profit expectations in the industry:

• In response to minimum wage increases, 65% of restaurants have raised their menu prices to offset costs.
• 68% of restaurant professionals regularly review sales reports, 45% focus on labor reports, and 32% examine menu performance. However, 17% admitted they don’t consistently review these metrics.
• If given additional financial resources, 47% of restaurant operators would prioritize repairing or upgrading their equipment.
• A significant 91% of restaurant owners anticipated profit increases in 2019.

Cloud POS Statistics

Cloud-based POS systems are transforming businesses’ operations, offering enhanced functionality, cost efficiency, and integration with modern technologies. These are some key insights highlighting the rapid adoption and benefits of cloud POS systems:

• The global cloud POS market is forecasted to surpass $30 billion by 2031, growing at nearly 25% since 2022.
• While on-premise systems still dominate restaurant POS deployments, cloud-based solutions are the fastest-growing segment, with a compound annual growth rate (CAGR) of 9.2% through 2030.
• 71% of restaurants prioritize cloud-based functionality and integration when purchasing POS systems, reflecting their need for advanced and flexible features.
• Over 60% of recent POS purchases were cloud-based, marking a significant shift as cloud platforms surpass traditional systems.
• Cloud adoption leads in key areas like workforce management (67%), inventory management (63%), and customer relationship management (55%), showcasing its versatility in enhancing operations.

Mobile POS Statistics

Mobile POS systems are rapidly revolutionizing how businesses process payments, with significant growth in transaction values, user adoption, and market penetration. Here are the key insights into this industry:

• The total transaction value of mobile POS payments is projected to reach $5.63 trillion by 2027.
• Worldwide, the average transaction value per user is $2,100 annually. In the U.S., this figure is forecasted to grow to $12,700 by 2026.
• Apple Pay, Google Pay, and Samsung Wallet dominate the global mobile POS market and are the top providers.
• Nearly 1 in 4 people globally will use mobile POS payments, totaling 1.9 billion users.
• Consumers aged 25 to 34 make up nearly 30% of mobile POS users, representing the most significant demographic for implementing these systems.
• The mobile POS terminal market is expected to grow to $49.01 billion by 2025.

POS Data & Security Statistics

POS systems have become both a critical tool for retailers and a target for fraud. Here’s a look at key trends and measures being adopted to enhance data security and combat fraud:

• Over 72.5% of businesses use POS data mining as part of their fraud prevention strategies, while 56% have deployed POS analytics to combat fraud.
• Nearly half (49.3%) of retailers report that in-store-only purchases are the most vulnerable to fraudulent activities.
• POS exception-based CCTV interfaces have surged, now implemented by 49.3% of businesses, making it a 17% increase since 2019.
• New POS tools like fingerprint ID are gaining traction, with 5.8% of retailers using the technology and others in the testing or planning phases.

POS Software Market Statistics

The global POS software market is experiencing remarkable growth, driven by increasing industry adoption. Here’s a snapshot of its upward trajectory:

• Exponential Momentum: Growth continues with $37.0 billion in 2027, $49.0 billion in 2029, and $64.9 billion by 2031.
• Consistent Expansion: The market is growing at a compound annual growth rate of 15.1%, rising from $18.3 billion in 2022 to an estimated $74.7 billion by 2032.
• Year-by-Year Growth: Projected market sizes include $21.1 billion in 2023, $24.2 billion in 2024, and $27.9 billion in 2025.

What is the current state of the POS market?

Here’s a look into the rapidly changing POS industry, with software and hardware markets growing steadily while adoption trends highlight modernization challenges:

• Outdated Technology: Over 70% of retailers still use POS software and hardware that is more than two years old, with 40% relying on systems over five years old.
• POS Terminals Surge: The global POS hardware market is also on the rise, projected to expand from $100 billion in 2024 to $151.97 billion by 2029, with a compound annual growth rate of 8.68%.
• Square Leads the Market: Square dominates the POS market with a 27% share, followed by Toast (24%) and other competitors like Lightspeed and Clover.
• Global POS Software Growth: The POS software market was valued at $13.74 billion in 2023 and is expected to nearly double, reaching $30 billion by 2032, growing at a 9.02% compound annual growth rate.

Bottom Line

POS systems have become a critical component for businesses across the globe, driving the shift towards digital payments and improving the methodology for operational efficiency. With the POS software market expected to grow significantly in the coming years—reaching nearly $75 billion by 2032-–businesses are increasingly adopting POS solutions to streamline transactions, enhance customer experience, and boost revenue.

Whether you’re running a small business or a large enterprise, integrating a modern POS system can significantly improve transaction accuracy, security, and customer engagement. As the POS market continues to evolve with technologies like fingerprint ID and POS analytics, it’s clear that these systems are no longer just tools for processing payments—they are essential for future-proofing your business in today’s digital economy.

If you’re looking for the best POS system for your business, check out our guides for both retail pos and restaurant pos systems to help you find the right solution to meet your specific needs.

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