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Mobile POS systems set to dominate, says IHL Group

Mobile POS systems set to dominate, says IHL Group 

A POS is where the customer pays the merchant for the product or service. At a POS, you will see a cash register, but these registers are generally connected to a computer system which tracks the purchase and links to the inventory. The IHL Group, a global retail research and consultant organization, recently published a study showing that mobile POS systems are quickly replacing traditional versions.

The research shows that the installation of mobile POS units are expected to grow by 110 percent this year. By 2018, they will grow by over 325 percent.

Where are these mobile POS systems going? IHL’s research shows that 60 percent of current mobile POS installs are in specialty stores and hospitality establishments. The study also predicts that mobile POS systems will have the greatest impact on specialty stores. IHL Group researchers expect to see a 25 percent drop in this sector’s purchase of traditional POS systems.

According to the study, Epicor is the market leader in mobile POS systems amongst enterprise retailers. Manhattan Associates/Global Bay, Oracle/MICROS, NCR, Toshiba Global Commerce and Starmount also possess significant segments of this market.

Square leads the small business market. Other companies with large shares of the market include Revel, ShopKeep, Lightspeed, Ingenico, GroupOn, VeriFone and Payware.

“This is a market that is exploding on all levels but is very different at the smaller retailer level and at the enterprise,” said Greg Buzek, president, IHL Group, in a press release. “The market really took off for small merchants when Square released their first dongle. It has migrated to more sophisticated POS on tablets with inventory tracking and CRM functions and has been growing strong for 3 years. On the other hand, the enterprise market requires a much more sophisticated Mobile POS application fully tied to inventory, omnichannel and analytical systems of retailers. Slower to start, the volumes are greatly increasing.”

“Right now at the enterprise level retailers are adding devices not replacing POS,” added Buzek. “Where they once might have had 2 registers, now they will have 5 devices in a store to complete a sale. Over time, however, many of those traditional POS devices will be replaced once the mobile POS platforms are proven.”

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