Global POS Payment Methods 2023

Global POS Payment Methods 2023

With shoppers leaning towards digital payments at POS, the transaction value of the proximity payment in the U.S. is set to go beyond EUR 900 billion by 2026: new yStats.com report

The declining use of cash has led to the emergence of innovative POS payment methods such as tap to pay, scan & go, and self-checkout, among others

Globally, consumers are reducing their dependence on cash and leaning towards digital payment methods, including contactless credit and debit cards, tap to pay, and QR code payments. Merchants are also shifting towards advanced models of smart and soft POS systems. According to a new report by yStats.com, the volume of soft POS transactions is predicted to surpass 400 billion by 2027. A majority of buyers worldwide have shown a preference for advanced in-store shopping technologies like scan and go and self-checkout, enabling them to pay in a contactless manner. Nearly half of the surveyed respondents in 2022 found the ability to use self-checkout and scan and go technology to be appealing attributes of in-store shopping. As consumer habits evolve, more than 50% expressed a desire to use less cash, while over one-third favored contactless payment methods and digital wallets at the point of sale (POS).

The POS payment landscape is expected to be dominated by mobile payments and contactless card payments, especially in the U.S., Germany, and China

In April 2023, the share of U.S. shoppers paying with a smartphone at a retail store exceeded 50%. In the UK, more than half of the surveyed consumers claimed to use the retailer's mobile app to pay via Apple Pay and Google Pay at the POS as of February 2023. In Germany, there was a growing use of contactless physical cards at the POS, followed by contact-based physical cards as of 2022. In China, over 75% of mobile phone users used mobile payment methods at the POS, with bank cards and biometric payment technologies also dominating the POS payment landscape as of 2022.

With the changing POS payment landscape, several shoppers have turned to using loyalty points for payment

As competition intensifies, retailers are exploring various possibilities to retain consumer loyalty, including rewards, loyalty programs, and discounts. Loyalty programs benefit consumers by providing protection against inflation and reducing the need for cash during times of unstable prices. For sellers, loyalty programs help track purchase history and buying preferences, enabling them to offer better-suited customized offers to customers. The use of loyalty points at the POS has shown varied growth patterns across regions, with nearly one-third of surveyed respondents in the U.S. using points for payment as of August 2022, according to the new yStats.com report.