South Africa Hospitality Point Of Sale Software Market Size, Share & Trends Analysis Report By Product (Fixed POS Terminal, Mobile POS Terminal), By Country, And Segment Forecasts, 2021 - 2028

Report Overview

The South African hospitality point of sale software market size was valued at USD 71.0 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.7% from 2021 to 2028. The growing demand for POS solutions integrated within restaurant/hotel management systems for streamlining operations is expected to drive market growth. POS solutions allow POS devices to perform multiple tasks, from financial tracking to back-of-the-house ordering. It also helps restaurants with loyalty programs and sales tracking, inventory monitoring, along with managing crucial customer data simultaneously, which is triggering the market growth. Although the POS solutions offer multiple advantages, the decline in South Africa's hospitality industry business due to the COVID-19 pandemic negatively impacted the demand for hospitality POS software in 2020. The market was expected to witness growth in 2021. However, the second wave of the pandemic slowed the market recovery, and currently, the third wave of the pandemic is expected to further negatively affect the hospitality industry.

In the hospitality industry, especially in hotels, POS systems are used to manage transactions at minibars, travel desks, and spas, among others. The POS system at the hotels can act as a standalone system or can be integrated with the property management solution to provide a complete hotel technology solution. The features of the POS software include billing, customer management, order management, labor management, inventory management, loyalty program management, and reporting and analytics, among others. The POS software helps, the hospitality industry to increase its operational efficiency and enhance the guest experience. The aforementioned features and added advantages of integrating POS software are expected to boost the market growth.

For restauranteurs in South Africa, POS expenditures are consistently the largest line items. By transforming tablets and smartphones into POS terminals, restaurants can reduce costs and improve the efficiency of their establishments. The POS terminals with integrated suitable software drive traffic and eliminate wait times at checkout, minimize security risks and enhance customer confidence, and reduces equipment and hardware costs. The POS software is used in restaurants to efficiently perform front-end and back-end applications such as table management, kitchen management, inventory management, delivery management, back-office reporting and analytics, and planning and scheduling.

The growth rate of the hospitality industry was adversely impacted due to the COVID-19 pandemic. The pandemic claimed millions of lives and forced people to stay indoors and the governments including the government of South Africa imposed strict lockdowns. The restrictions on movement and the shutdown of restaurants and hotels negatively impacted the growth of the industry. The slumped businesses further affected the demand for POS terminals and related software across the hospitality industry. The South African tourist hotspots are suffering losses due to international travel restrictions. The hospitality POS software market in South Africa is expected to regain its foothold post the pandemic. Currently, mPOS and contactless payment terminals are in high demand as they contribute to the effort of containing the spread of the coronavirus.

Product Insights

Based on product, the South Africa hospitality POS software market is segmented into fixed POS terminals and mobile POS terminals. The product segment encompasses demand for the integration of POS software in fixed and mobile POS terminals. The fixed POS terminal segment dominated the market in 2020 and accounted for a revenue share exceeding 60% in 2020. The POS solutions for a dedicated standalone system that requires kitchen, inventory, table, and employee management features have contributed to the segment growth. The fixed POS terminal users mainly include large hotels and QSR/FSR having at least five users per terminal. As a fixed POS terminal is preferred by large vendors to ensure the safety of information, the POS solution companies provide solutions compatible with desktop Windows. The integration of a POS solution facilitates quick payment, assigning of tables, and managing back-end and front-end activity at hotels and restaurants.

The mobile POS terminals segment is expected to register the highest CAGR of over 6.0% over the forecast period. The growth can be attributed to the increasing demand for mobile POS terminals integrated with POS solution, which provides accurate dish information and suggestive selling; improves table turns and service level, and reduces operation cost and mobility to attend to customers. Moreover, the demand for a POS solution for mPOS terminals is growing owing to the increasing penetration of tablets and smartphones owing to its affordability. This has augmented the adoption of mobile POS terminals among restaurants, pubs, and café owners. The higher Return on Investment (RoI) over a period, ability to revise menu as per customer preference, analyzing sales, and tracking profitability features of iOS- and Android-based POS software have compelled the hospitality industry to adopt POS solutions.

Country Insights

South Africa offers one of the most promising and growing hospitality industries in the African region. The trend of online payment triggered the initial adoption of POS software solutions across the hospitality industry in the country. However, the decline in the number of tourists from overseas in South Africa due to COVID-19 negatively impacted the cash inflow and spending in business improvement in the hospitality industry. From restaurant operators to hotels and resorts, spending on technologies declined and negatively impacted the growth of the POS software market in the country.

The revenue generated by POS software vendors in South Africa declined drastically in 2020. One of the major POS companies, AdaptIT, witnessed a negative year-on-year decline in the hospitality industry in 2020. As national lockdown in the country continued to reduce COVID-19 cases, the demand for digital payment increased as online food delivery became the most desired medium. Additionally, the adoption of mobile POS terminals due to their portability and affordability led to an increase in the demand for iOS- and android-based POS software.

Key Companies & Market Share Insights

The market is highly competitive. Some of the key industry competitors include AdaptIT (acquired SA Oracle Micros); NCR Corporation, Square Inc.; TouchBistro; Sapaad; and Lightspeed. The vendors opted for a combination of acquisition and new product development strategies to gain a competitive edge in the market. For instance, in July 2019, Lightspeed acquired iKentoo, a Switzerland-based company with a strong presence in Switzerland, France, and South Africa. The latter company offered POS solutions to SMBs in the hospitality industry. Through this acquisition, the former company aimed to expand its business. Moreover, in May 2020, Clover Network, Inc. introduced the latest feature, Clover Online Ordering, in its Clover POS platform to help restaurants receive and process orders for pick-up and delivery purposes. The company introduced the feature owing to the rise in demand for pick-up, take-out, and other delivery models, which emerged during the COVID-19 pandemic, as dining restaurants were closed.

The POS software companies operating in South Africa largely comprise vendors with headquarters in the U.S. and the U.K. and a presence across the world. These vendors target restaurants, hotels, bars, cafes, and other sections of the hospitality industry to strengthen their market presence and increase their market shares. The ease of deploying the solution on the cloud is one of the main factors helping these vendors cater to the overseas hospitality industry. Furthermore, the increasing penetration of smartphones and digital payment amongst consumers impelled vendors to develop mobile-based POS applications and features to help businesses implement software easily within the existing systems. For instance, Clover Network Inc. offers “Clover Flex mobile POS”, which helps in accepting different payment types tableside and at the counter. Some of the prominent players operating in the South Africa hospitality point of sale software market are:

• ORACLE MICROS (AdaptIT)

• NCR Corporation

• Clover Network, INC.

• Lightspeed

• ThinnPro

• Square, Inc.

• Sapaad

• inTouch Point of Sale

• TouchBistro

• Vectron Systems Pty Ltd.

South Africa Hospitality Point Of Sale Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the South Africa hospitality point of sale software market report based on product and country:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Fixed POS Terminal

  • Mobile POS Terminal

• Country Outlook (Revenue, USD Million, 2017 - 2028)

  • South Africa