The Hamburg-based market intelligence firm yStats.com recently published a new report, “Global POS Payment Methods and Trends 2023”, that summarizes the emerging trends and developments within the POS payment market. Some important highlights of the report include forecasts of proximity payment market size, number, and value of proximity mobile payment users across regions. The report also gives in-depth information on the changing attitudes and behaviors of shoppers related to in-store purchases and payments, preferred POS payment methods, with a varying regional growth trajectory, and preferred mobile payment apps among users.
Contactless POS payment methods, such as digital wallets, are gaining popularity amid the declining use of cash
Globally, consumers are reducing their dependence on cash and are shifting towards digital payment methods, including contactless credit and debit cards, tap-to-pay, and QR code payments. Businesses are also transitioning from traditional POS terminals to smart and soft POS systems. The volume of soft POS transactions is forecasted to surpass 400 billion by 2027, as revealed by the new yStats.com report. Most shoppers worldwide prefer advanced in-person shopping technologies like scan-and-go and self-checkout, enabling them to make contactless payments. Nearly half of the surveyed respondents find the ability to use self-checkout and scan-and-go technology appealing aspects of in-store shopping as of 2022. In terms of changing consumer habits, more than 50% express a desire to use less cash, while over one-third prefer contactless payment methods and digital wallets at the point of sale (POS).
Alternative POS payment methods, such as mobile payments and contactless payments, are experiencing growth across North America, Europe, and the Asia-Pacific region
The share of shoppers using smartphones for payments at retail stores exceeded 50% in the U.S. as of April 2023, while more than 60% of consumers in the UK indicated they use the retailer’s mobile app to pay via Apple Pay and Google Pay at the POS as of February 2023. In Germany, on the other hand, contactless physical cards accounted for the highest share of all payment transactions carried out at the POS in 2022. While more than three-quarters of mobile phone users in China made use of mobile payments at the POS, the share of consumers using bank cards and biometric payment technology also surpassed the 50% mark as of 2022.
Buyers are increasingly leaning towards paying with loyalty programs at the POS, especially in the U.S.
As competition intensifies, merchants and businesses are seeking different ways to maintain consumer loyalty, offering discounts, loyalty programs, and more that can be used for payment of goods and services. Consumers redeeming loyalty points at checkout and using them for payment no longer need to rely on cards or cash during times of price instability. For merchants, loyalty programs track the purchase history and buying preferences of consumers, allowing them to provide better-suited customized offers, according to the new yStats.com report. The use of loyalty points at the POS shows varying growth patterns across regions, with nearly one-third of surveyed respondents in the U.S. indicating a preference for paying with points at the POS as of August 2022.
