At 93% of total US 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.
Javelin Strategy & Research’s annual POS 2013-2018 Forecast, evaluates the actual and forecast changes in the retail POS market, tracking payments mix data and identifying key drivers of market change.
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,” comments 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 totalled $3.98 trillion in 2012 and is expected to reach $4.2 trillion 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.