Top 10 future POS system trends

Top 10 future POS system trends

By Tess Bemporat, Content Manager at Sekure Payment Experts

As a business owner, odds are you’re always looking to the future. Questions like “What new challenges and trends should I prepare for?” and “How should I adapt?” likely frequently occupy your thoughts as you plan ahead and anticipate the changes to come.

One area that’s changing for businesses? The rise of digital payments. Technological advancements, shifting consumer preferences, and global events have profoundly influenced the evolution of payment methods. While numerous trends are on the horizon one thing remains clear: digital payments are here to stay.

In order to stay competitive, it’s crucial for businesses to constantly innovate and be open to change. From digital wallets to the implementation of enhanced POS security measures, staying on top of trends and predictions in payment processing will be essential for business success and survival.

What new challenges and trends should businesses prepare for?

With the widespread adoption of smartphones and the ease of online transactions, consumers are increasingly opting for digital payment solutions over traditional cash transactions. To be successful however, businesses need to make sure their setup is ready to accept these types of payments, and any new type of payments that might come up, like mobile wallets and contactless payment methods.

While cash transactions were once the norm, the appeal of digital alternatives has led to a gradual decrease in cash usage. To remain competitive, small businesses must ensure their POS systems are equipped to handle digital payments securely and efficiently. This involves integrating robust security measures to protect sensitive financial information and providing incentives to encourage customers to embrace cashless transactions.

By embracing digital payment solutions, optimizing POS systems for seamless integration, and incentivizing customers to go cashless, small businesses can position themselves for success in an increasingly digital-driven marketplace.

10 payment processing and POS trends

Digital isn’t just one payment type or one process. Ultimately, digital payments means flexibility for the customer and for the merchant. The modern day customer wants to be able to pay how they want, when they want. As a merchant, this means identifying the different types of payment trends and being ready to embrace them.

Every customer is different, this means that their payment preferences might be different, but there are clear patterns to their preferences: customers are looking for contactless, mobile, easy to use and frictionless payment experiences.

Contactless payments

With a meteoric rise during the COVID era, contactless payments are still going strong with consumers increasingly opting for touch-free payment methods. Now, most purchases are just a tap away. Near Field Communication (NFC) technology enables users to complete transactions by simply tapping their cards or smartphones against a compatible POS terminal. Contactless POS and payments are trends that won’t be going away anytime soon and are expected to continue gaining momentum, with businesses and consumers alike embracing the speed and convenience of contactless payments.

Enhanced mobility

The world is mobile. In 2021, the number of mobile users worldwide stood at 7.1 billion. Businesses have been increasingly changing their operations to adapt to the mobile world and meet customers in their preferred method of interaction. The mobility of transactions will be a key focus, with the continued rise of mobile POS solutions. Businesses, especially those in the hospitality, retail and professional services industry industries, will deploy mobile devices equipped with POS capabilities, allowing for transactions to occur anywhere within the business premises. This trend not only improves customer service but also provides greater flexibility for businesses to adapt to changing consumer demands.

Digital wallets

It’s the era of all-things-digital and mobile. Mobile payment solutions like digital wallets and virtual credit cards have been growing steadily in popularity. With approximately 2.8 billion mobile wallets currently in use around the world, it’s safe to say digital wallets have become a popular choice for customers looking to leave their credit cards at home. Why? Digital wallets are easy to set up, and allow customers to keep all of their cards on their phone, meaning that they’ll always have it handy. This payment method is quickly becoming the preferred choice for consumers seeking a seamless and secure payment experience.

“Overall, the focus on contactless payments and the integration of digital wallets and alternative payment methods will be crucial for business owners to stay competitive and meet the evolving needs of their customers in the payment processing industry by 2024. We will also start seeing a focus on AI driven technology. Companies will need to continually evolve” .– Jamie-Lee Carlino, Former Senior Manager at Sekure Payment Experts

Digital currencies

The integration of blockchain technology and cryptocurrencies into POS systems is predicted to be a game-changer. Cryptocurrencies, such as Bitcoin and Ethereum, are gaining acceptance as legitimate forms of payment. As more businesses recognize the advantages of decentralized finance and crypto payments, the use of blockchain in POS systems is likely to increase.

Buy Now, Pay Later (BNPL)

A notable addition to the POS landscape is the increasing prevalence of Buy Now, Pay Later services. You’ve likely seen these pop up at checkout whenever you’re shopping online in specific retailers. This payment model allows customers to make purchases and defer payment in installments. BNPL services are gaining popularity for providing consumers with flexibility and affordability, while merchants benefit from increased conversion rates and higher average transaction values.

AI-powered personalization and machine learning

AI is everywhere, and we can expect POS systems to leverage AI and ML for things like predictive analytics, inventory management, and personalized customer engagement. These technologies will not only automate routine tasks but also provide valuable insights into customer behavior, allowing businesses to make data-driven decisions and deliver personalized recommendations and promotions in real time.

Integrated omnichannel solutions

The customer experience is no longer a linear process. Customers browse online, buy in store, try on in store, shop online, order for pickup online, order with their phones and many other combinations of these touchpoints. They’ve also come to expect a consistent and seamless experience, no matter where they’re shopping with you. Omnichannel isn’t new, but it’s evolving and becoming a bigger, more important part of the experience for the business owner and customer. POS systems are at the forefront of this transformation.

Businesses are increasingly adopting integrated POS solutions that seamlessly connect online and offline channels. This integration allows for real-time inventory updates, consistent pricing, and a unified customer experience, regardless of whether the transaction occurs in store or online.

Frictionless checkout experiences

It’s all about frictionless checkout experiences. When customers are ready to pay, they want a seamless process that’s as quick as a tap. Businesses are recognizing the importance of reducing wait times and simplifying the payment process for customers. Streamlining checkout through advanced POS systems that leverage technologies like RFID, NFC, and QR codes will become commonplace, ensuring that the customer journey from product selection to payment is as seamless as possible.

Enhanced POS security and fraud detection

With the increasing frequency and sophistication of cyber threats, businesses will be prioritizing enhanced security measures when it comes to their payment solutions and point of sale systems. This includes the widespread adoption of tokenization, end-to-end encryption, and biometric payment security features such as biometric authentication to safeguard sensitive customer information during transactions. Businesses will invest heavily in payment and POS security systems to build and maintain customer trust, ensure an uninterrupted flow of operations and protect themselves against cyber attacks.

Social commerce

This trend allows customers to discover and purchase products directly through social channels, creating a seamless shopping experience. Social commerce not only enhances brand visibility but also provides an avenue for businesses to engage with customers in real time, fostering a sense of community around their products and services. Keep your eyes peeled for more social commerce in the future, as businesses integrate POS systems with social media platforms.

Face the future with Sekure Payment Experts

Is your payment solution ready for the future? Sekure is here to help. With our wide range of POS partnerships and longstanding payment processing experience, we’re able to help you find the POS and payment solution that’s right for you. How does it work? Our Payment Experts will review your statements and give you straightforward advice about rates, equipment and how much you can save. Talk to one of our Payment Experts today to get a free consultation.