SoftPOS Market Size, Share & Trends Analysis Report By Enterprise Size (Micro & Small Business, Medium & Large Business), By Operating System (Android, iOS), By End-use, By Region, And Segment Forecasts, 2023 - 2030

SoftPOS Market Size & Trends

The global SoftPOS market size was estimated at USD 255.4 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 22.3% from 2023 to 2030. A software point of sales (SoftPOS) is a type of software-based payment system that enables merchants to accept debit and credit card payments using a tablet or smartphone. Increasing adoption of SoftPOS solutions by small and medium businesses and merchants owing to its benefits such as cost savings, increased flexibility, improved security, and easy integration is a major driving factor behind the growth of the market. The growing number of smartphone users across the globe and increasing government initiatives regarding digital payments are further driving the market’s growth.

The SoftPOS systems offer cost savings to merchants by eliminating the need to invest in physical hardware such as card readers and traditional POS terminals. This feature makes this system an optimal solution for small businesses and emerging merchants. These systems are highly flexible and are used on a variety of devices, including tablets and smartphones. This enables merchants to accept payments at any time, from anywhere, making it a perfect solution for merchants on-the-go or for pop-up or temporary stores. Furthermore, this system offers improved security by using tokenization and encryption to protect sensitive information and reduce the risk of fraud. This helps to ensure that both consumers and merchants are protected during transactions.

A rapid technological advancement in payment technology is further contributing to the growth of the market. The SoftPOS solution depends on Near-Field Communication (NFC) technology. By using the built-in capabilities of mobile devices, such as QR code scanning and NFC, SoftPOS securely processes transactions. This reduces the need for additional hardware, minimizing costs and streamlining the payment process for businesses. Lower costs, minimal hardware requirements, and an easy payment process are contributing to the market’s growth over the forecast period.

Increasing development of SoftPOS systems by various leading market players is further contributing to the market’s growth. In February 2023, Qatar’s leading digital bank, Qatar Islamic Bank (QIB), partnered with Mastercard, a global payment-processing corporation, to launch its new smart payment solution for merchants. The QIB SoftPOS application transforms an Android smartphone into a Point-of-Sale terminal, facilitating the secure acceptance of contactless payments through the device's embedded Near-Field Communication (NFC) functionality. With the QIB SoftPOS solution, supported by Mastercard, merchants could utilize their Android smartphones to process contactless transactions from all EMV contactless cards, as well as NFC-enabled phones equipped with digital wallets such as Google Pay and Apple Pay, and other NFC-enabled wearable devices such as Garmin Pay, Apple Watch, or Android smartwatches.

Despite the myriad advantages and promising prospects associated with the SoftPOS systems, it has specific challenges and limitations that could hamper the growth of the market. Existing SoftPOS solutions exhibit certain limitations, including exclusive compatibility with international card schemes, restricted support for cardholder verification methods, and limited use in markets with offline PIN validations. However, the increased number of contactless transactions post-COVID-19 pandemic is driving the demand for advanced payment solutions in the market. This, in turn, is propelling the market’s growth.

Enterprise Size Insights

The micro and small business segment led the market with a revenue share of more than 62.0% in 2022. An increasing adoption of SoftPOS solutions by micro and small businesses across the world owing to its several benefits is a major factor behind the segment’s growth. These benefits include low cost, ease of use, and fast payment process. For instance, the SoftPOS solution allows small businesses to process payments more quickly compared to traditional payment methods, potentially leading to higher turnover and enhanced convenience, thus driving the market’s demand amongst small businesses. In addition, the growing number of micro and small businesses across the globe is fueling the growth of the market.

The medium and large business segment is anticipated to grow at a significant CAGR during the forecast period. For medium and large businesses, the SoftPOS solution is gaining traction as a feasible alternative to using dedicated hardware. The SoftPOS solution is versatile and accessible for medium and large-sized businesses. Thus, the growing popularity of SoftPOS solutions in medium and large-sized businesses owing to its above-mentioned benefits is fueling the segment’s growth.

Operating System Insights

Based on operating system, the android segment led the market with a revenue share of more than 58.0% in 2022. Android-based tablets and smartphones are the main platforms supported by SoftPOS systems. Android is the most widely used operating system in the world. According to StatCounter, a web traffic analysis website’s latest data, the Android operating system (OS) has a 69.74% mobile operating system market share as of September 2023. Thus, the increasing number of android smartphone or mobile users across the world is a major factor driving the segment’s growth.

The iOS segment is anticipated to grow at a significant CAGR during the forecast period. Until now, one of the major challenges to the adoption of SoftPOS, was that it was not supported by iOS. However, Apple’s recent announcement in February 2022, to launch Tap to Pay on iPhone is expected to be a major factor for the market growth. The new Tap to Pay feature is expected to encourage millions of merchants across the globe, from small businesses to large businesses, to use their iPhones to securely and seamlessly accept Apple Pay, touchless or contactless debit and credit cards, and other mobile wallets through a simple tap to their iPhone capability.

End-use Insights

Based on end-use, the retail segment dominated the market with a revenue share of more than 24.0% in 2022. Rapid growth in the global economic retail industry is driving the growth of the market. According to the National Retail Federation, the world's largest retail trade association, retail sales during 2023 are expected to grow between 4% - 6% as compared to 2022 to reach USD 5.13 trillion - USD 5.23 trillion. In addition, the increasing adoption of digital payment processing solutions by various retailers is further improving the market’s growth.

The restaurants segment is expected to grow at a significant CAGR over the forecast period. Contactless payment has gained significant popularity in the restaurants and hospitality industry. The SoftPOS technology can be seamlessly integrated with the restaurant's core business application, such as order collection. This technology provides benefits to both restaurant managers and customers, enhancing the efficiency of the check-in and checkout process, thereby boosting staff’s productivity, and improving the overall customer experience simultaneously. The expected growth of this technology is owing to the substantial increase in contactless payments in recent years, which offer a seamless, convenient, reliable, and secure payment method.

Regional Insights

The North American region dominated the market with a revenue share of more than 82% in 2022. Increasing adoption of contactless payment and rising adoption of advanced digital technologies are major factors behind the growth of the market in the North American region. For instance, according to the Payments Canada’s, Canadian Payment Methods, and Trends Report 2023, in 2022, there were a total of 7.5 billion contactless payment transactions, amounting to a total value of CAD 379.7 billion (USD 276.6 Bn). Year-over-year, there was an 11% increase in contactless transaction volume and an 18% increase in transaction value.

The Asia Pacific region is expected to grow at a significant CAGR during the forecast period. The vast presence of global as well as local SoftPOS solutions providers in countries such as China, India, and Japan are driving the growth of the market. In March 2022, Cashfree Payments, India's prominent API banking and payments solutions company, announced the launch of SoftPOS solution. SoftPOS is a solution for businesses such as retail shops, grocery stores, automobile industry, food delivery apps, and others. Such initiatives are expected to improve the market’s growth during the forecast period.

Key Companies & Market Share Insights

The market players are focused on strategies such as partnerships and collaborations to launch advanced SoftPOS solutions, which are contributing to the market’s growth. For instance, in March 2023, PAYM8, a South African financial gateway service provider, in collaboration with a global innovative payment solution provider, Wizzit (Pty) Ltd, launched its Tap-on-Phone SoftPOS solution. The solution provides an advanced alternative to conventional point-of-sale devices. It is expected to offer customers of PAYM8 an easy, safe method to pay that is usable in any location. The solution meets EMV (Europay, MasterCard, and Visa) and PCI (Payment Card Industry) requirements.

In March 2023, Verve, the prominent digital token and payment card brand in Africa, announced a partnership with Alcineo, a prominent provider of payment software and services. This collaboration aims to deploy a Software Point-of-Sale (SoftPOS) SDK solution, which offers a cost-effective way for merchants to accept contactless payments from customers using their mobile phones or mobile devices.

SoftPOS Market Report Scope

Global SoftPOS Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global SoftPOS market report based on enterprise size, operating system, end-use, and region:

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)      

  • Micro & Small Business

  • Medium & Large Business

• Operating System Outlook (Revenue, USD Million, 2017 - 2030) 

  • Android

  • iOS

  • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Retail

  • Restaurants

  • Public Transport

  • Hospitality

  • Media and Entertainment

  • Others (Healthcare, Beauty Salons, Travel, Parking)

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa