This may be a bold statement, but cash has almost become obsolete. Almost. So it’s about time businesses equip themselves for the inevitable prevalent digital economy.
If you’re dancing it up at an outdoor festival, out shopping for new clothes, or even having a cup of coffee at the corner shop, you might not be paying with physical cash already. This trend has a lot to do with advanced smart point of sale (POS) solutions that allow customers to pay contactless and wirelessly through cards, or e-wallets via mobile devices.
The future of POS is looking bright
The global POS market is projected to increase from $25.24 billion in 2022 to $70.75 billion by 2029. As smart POS solutions evolve to meet the growing customer expectations around speed and convenience, merchants need to adapt accordingly.
Here’s a quick look at the driving trends businesses should know to prepare themselves for the cashless future.
- End of cash on the horizon in Southeast Asia
The future of retail lies in digital payments. According to Juniper Research, global digital payments will reach $4 trillion by 2027 — up from $2 trillion today. By 2023, Juniper predicts that half of all transactions will be made using digital wallets, or similar devices, like smart watches or wearable tech.
In addition, the study found that the total number of digital wallet users will exceed 4.4 billion globally by 2025, up from 2.6 billion in 2020.
Furthermore, the presence of ‘super apps’ will drive digital wallet use in developing countries that are currently considered cash-heavy.
Southeast Asia is a crucial market for the e-wallet industry, with many countries in the region seeing high growth rates. With the fastest-growing population in the world, the region has seen a shift to smart device adoption, with mobile traffic accounting for more than half of all internet usage.
The number of mobile wallets in use will grow 311% from 2020 to almost 440 million by 2025 across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, reflecting an e-commerce boom, according to a global study on the industry. The Southeast Asian country with the highest number of mobile wallet users was Indonesia, with 74.9 million users.
As more people turn toward digital payments, businesses should adopt smart POS solutions that allow customers to pay using their e-wallets.
- App usage in Southeast Asia increases
As reported by Google, Southeast Asia continues to see a higher number of mobile users who use their mobile apps for many daily purchases, from hailing a cab, to ordering food, and making payments in retail stores.
With contactless cards and apps like PayNow making mobile payments more accessible, more people are using their smartphones for transactions instead of pulling out a credit or debit card. According to one study, over half of millennials use their phones for purchases at least once a week, while one in four millennials say they order food delivery using their phone at least once per week.
The growth of smart POS terminals is also seen as one of the critical factors for the growth of e-wallets in Southeast Asia. Advanced smart POS terminals such as the QashierPay, QashierX1 and QashierXL feature integrated payments including contactless and e-wallet payments – increasing the convenience for customers who want to use their mobile apps to pay.
The trend reports that the Southeast Asian POS terminal market is targeted to achieve close to $7 million by 2027, registering a growth rate of approximately 16.56% from 2022 through 2027.
Simply put – the increase in online searches for the keywords “smart POS” over the past five years, suggests that more people are becoming aware of new technology which can help them improve their business operations.
- Rising popularity of QR code payment in Southeast Asia
According to a survey from 2020, around 34 per cent of respondents in Southeast Asia used Quick Response (QR) payments. Among the respondents, approximately 50 per cent of respondents in Malaysia used QR payments.
This growth is because merchants increasingly use QR codes to improve operational efficiency. QR codes have multiple uses. With smart POS terminals that generate QR codes, customers can scan the barcode using mobile phones to pay.
Using QR codes to order can significantly improve business efficiency in restaurants where staff hiring is challenging. Using dynamic QR codes offer more accurate transactions, making sure businesses get paid what they are owed.
Additionally, merchants can use QR codes to connect with customers on social media or feedback pages.
Moreover, the growth of QR codes as a payment method has a lot to do with government policies in Southeast Asia.
Such as in Thailand, where a nationwide push by the Central Bank to use QR codes for payment means an increase in the number of merchants accepting payments through QR codes in addition to other e-wallet methods Alipay and WeChat Pay and QR codes. And the recent news is that Malaysia, Thailand, the Philippines and Singapore are looking to link their payment systems together shortly so consumers in the region can pay using QR codes. This will further emphasise the usage of these codes.
Ultimately, this means that merchants need to choose a terminal that supports QR code generation when shopping for a POS solution.
- Loyalty programs growing amongst SEA merchants
Loyalty programs have become a staple of the Southeast Asian retail landscape. According to a recent report, loyalty programs enticed about 86% to 92% of respondents to shop in Southeast Asia. As a result, retail loyalty programs have grown significantly in the region in recent years and play a substantial role in influencing consumers’ choices.
Retailers are capitalising on this trend by launching new schemes that offer greater customer flexibility and value. These include cashback, credit card points, and bonus points for spending over a certain amount, or spending during peak periods. There is also increased use of QR codes to deliver coupons or other loyalty rewards.
SEA merchants are also experimenting with new ways to use their loyalty programs’ benefits. For instance, some retailers offer discounts on pre-paid electricity bills through loyalty schemes. Others partner with telecom operators to provide members with free mobile data or cheaper mobile plans.
To keep up with the loyalty program trend, tap on smart POS solutions that allow businesses to implement reward points or special promotions.
- Smart POS solutions got smarter
With better technology, merchants can now use smart POS solutions from inventory management to automating loyalty program rewards. This is unlike the purely transactional value of pos systems in the past.
It has empowered the end-users to manage revenue streams and inventory. Since many retailers are available online and offline, aligning transactions across different channels to tally end-of-day sales is necessary. Smart POS solutions such as the advanced e-commerce integration features from Qashier can quickly assist with that.
Key industries such as the fast-casual dining segment have also been driving the growth of smart POS systems. This industry’s growing demand for mobile payments and digital ordering has led merchants to replace traditional billing software with smart POS systems.
Other market factors such as the use of online payments in retail, a growing base of middle-class income families, and increasing investments and partnerships are also expected to boost the growth of the POS terminal market. Ultimately, the technological advantage of adding a smart POS solution to your business has positive implications for business revenue.
How can Qashier’s smart POS solutions help you?
If you want to tap into the smart POS growth, consider Qashier’s multiple digital solutions in an all-in-one device. Or experience Qashier POS solutions right on your own device, with Qashier software-only solutions.
The smart POS system can handle different operational aspects, from QR code table ordering to table management (F&B), employee management, customer relationship management (loyalty programs), inventory management, data analytics, and cashless payments.
One Qashier POS solution comes with integrated payment processing. With just one terminal, you’ll be able to accept an array of payment types, from major credit cards, e-wallets and EFTPOS. Speak to us to see how Qashier Smart POS can meet your business needs. Schedule a meeting with us here, or reach out via email [email protected].