Industry Forecast for POS Software in the UK
From the mid-20th century and all throughout the 21st century, the world is going through a drastic digital transformation. Ever since the emergence of computers in the 1950s, the conversion from analogue to digital, connectivity and data were the driving factors of this metamorphosis, continuing to the present day.
This global digitalization rang a bell for all kinds of merchants and consumers alike. While all industries in the world had to come up with innovative, tech-savvy solutions to keep up with the digital revolution, consumers also began to yearn for enhanced user experiences, quick services and unorthodox products, thanks to their access to information and knowledge.
A technical advancement that was able to transform many industries in a world struggling to keep up with digital transformation, is the development of POS systems. Initially, the POS system was nothing more than a cash drawer, which then evolved into a multi-purpose powerhouse of software which can handle all kinds of business processes from start to finish, regardless of the industry. The traditional POS system mainly facilitated quick payment facilities, reducing long queues at the cashier, but current POS systems offer far more diverse business solutions such as inventory management, sales tracking, employee and customer management, reporting and loyalty modules.
The adoption of POS software was fuelled by the increasing demand for POS terminals, which was a result of lifestyle changes and some policies set by the government. For example, the ‘Point of Sale VAT Retail Scheme’ set by the UK government requires retailers to include the relevant VAT calculations on their sales, and they use their POS systems to help configure the matrix.
The government sector is also adapting to POS solutions to tackle the challenges that arise when processing payments. This move towards reducing the administrative workload is also a reason for the surge in the sale of POS software, as well as the encouragement from the government for cashless payments.
Due to the COVID-19 pandemic, the UK faced severe economic setbacks, as did all the countries in the world. While the healthcare sector had to continue operating amid the crisis, businesses across hospitality, retail and other major industries had to go along with the government policies of temporary business shutdowns to mitigate the impact of the pandemic. Nationwide lockdowns and other restrictions imposed by the government further restricted the movement of people, leading to a severe revenue loss in the market of up to USD 19.39 billion in 2020. Due to the disruption of the supply chain and low consumer activity, the global POS market share witnessed a slight market decline of 1.1% in 2020 compared to the previous year.
However, amidst all the challenges that came up with the COVID-19 outbreak and its lasting impacts on the UK economy, the Point of Sale software market in the UK is expected double by 2028, under a Compound Annual Growth Rate (CAGR) of 8.1%, from USD 0.55 billion in 2021 to USD 1.05 billion in 2028. With the UK forecast for POS systems as such, the global Point of Sale market was valued at USD 22.08 billion in 2021, and is expected to reach USD 25.24 billion by the end of 2022, and to grow up to USD 70.75 billion by 2029 at a CAGR of 15.9%.
No matter how unprecedented and new the challenges brought by the pandemic outbreak have been, there are a few perks to be acknowledged in regard to the POS software market as well. Since the pandemic hastened the move towards a cashless economy in the UK, the call for POS software that facilitates cashless transactions points towards favourable market growth. Contactless consumer experiences which were a healthcare concern during the pandemic have also become a trend in the UK now, both as a sanitary precaution and a technology adaptation, further hinting at a flattering market growth.
Main Players in the UK POS Market
This rising demand for POS software in the market calls for a comparison between the main players in the market. Below, we provide a holistic view of the features offered by WITMEG, Lightspeed, Square and Clover, the main POS solution providers in the UK market today.
Features | WITMEG | Lightspeed | Square | Clover |
Unlimited Products | | | | |
Range of Hardware Options | | | | |
Weighing Scale Integration | | | | |
Free 24/7 Support | | | | |
No Payment Contracts | | |