South America Point of Sale (PoS) Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, PoS Terminal Software), By Type (Fixed PoS, Mobile PoS, and Others), By Deployment (On-Premise and Cloud-based), By Operating System (Windows/Linux, Android, and iOS), By End-user (Restaurants, Retail, Entertainment, and Others), and Regional Forecasts, 2023-2030

The South America Point of Sale (PoS) market size is projected to grow at a CAGR of 15.9% during the forecast period. The global market for PoS systems is projected to grow from USD 25.28 billion in 2022 to USD 81.15 billion by 2030.

The South America Point of Sale market is a dynamic and rapidly growing market, driven by a combination of factors including the increasing adoption of mobile devices, the rise of e-commerce, and growing trend toward digital transformation. According to GSMA 2021 report, which surveys more than 750 operators, revealed that the mobile phone penetration rate across the region was 69% in 2020 (equivalent to 437 million subscribers) and is expected to increase to 73% by 2025 (equivalent to 485 million subscribers). The market is highly fragmented with a large number of players ranging from established financial institutions to emerging startups. The market is expected to continue to grow in the coming years, owing to rising consumer demand for convenient and secure payment solutions.

LATEST TRENDS

Increasing Usage of Data Analytics and Artificial Intelligence to Drive the Market Growth

Numerous companies are using Point of Sale solutions to collect and analyze transaction data. The data provides valuable insights into consumer behavior, product adoption, and latest market trends. With this information, businesses make informed decisions about their operations such as inventory management, marketing, and customer service. For instance, StoneCo developed a platform coined Stone Intelligence, which utilized machine learning and AI to analyze transactional data and provide insights to merchants.

Overall, the use of data analytics in PoS solutions is not refined, but is expected to grow in importance in the coming years.

DRIVING FACTORS

Growing E-Commerce and Deployment of Sophisticated PoS Solutions to Drive the Market Growth

As e-commerce continues to grow in the region, there is an increased demand for PoS solutions that can facilitate online payments. For instance, Argentinian fintech MercadoLibre, which operates an e-commerce platform and provides a range of PoS solutions to merchants. According to WorldPay Report on Global Payments, PoS cash payments, installment purchases, and credit card accounts, amounted to 44.6% in the e-commerce sector. Additionally, due to surging mobile adoption, providers are developing increasingly sophisticated solutions to attract consumers and enable increased efficiency.

Thus, increased adoption of mobile and networking devices, resulting in enhanced use of e-commerce is estimated to drive the South America Point of Sale market growth.

RESTRAINING FACTORS

Regional Cash-based Economy to Impede the Market Growth

High level of cash usage and limited access to banking services reduce the usage and trust factor of digital payments. Despite efforts to increase the adoption of electronic payments, cash remains the preferred payment method in many countries, making it challenging for PoS providers to deploy their technology. Additionally, a significant portion of population remains unbanked, which limits their ability to use traditional payment methods. As an alternative, companies have deployed cash-based payment systems where banking services are limited.

Such factors hamper the market growth by reducing the deployment and usage of PoS solutions and contactless payment methods.

KEY INDUSTRY PLAYERS

Key Players are Making Continuous Developments to Strengthen their Market Position

The South America Point of Sale market share is consolidated by leading players such as Gertec, Paguelo Facil, PagSeguro Digital Ltd., and KeyCorp. These key players are expanding their operations by adopting strategies such as mergers, acquisitions, product launches, collaborations, and partnerships.

List of Key Companies Profiled:

• Gertec (Brazil)


• Elavon Inc. (U.S.)


• PagSeguro Digital Ltd. (Brazil)


• StoneCo Ltd. (U.K.)


• Ingenico Group (Worldline) (France)


• PAX Global Technology Limited (China)


• Paguelo Facil (Panama)


• Mercado Pago (Mercado Libre) (Brazil)


• KeyCorp (U.S.)


• Ualá (Argentina)

KEY INDUSTRY DEVELOPMENTS:

• March 2022: Apple launched Apple Pay Point of Sale (PoS) terminals in Argentina. It enabled Apple consumers to make payments through mobile phones, with support for financial cards of other numerous banks. They are deployed in pharmacies, supermarkets, restaurants, taxis, retailers, and other businesses.


• December 2021: Mercado Libre, an Argentina-based PoS market player, acquired Redelcom, which also provided financial services to SMEs in Chile. The company aimed to consolidate its value proposition, and expand its geographical footprint by enhancing digital financial solutions and multiple payment tools.


• October 2021: Hash, a Brazilian payment infrastructure fintech, raised USD 40 million on series-C funding. The funding was led by Kaszek and QED investors, and their PoS software is being used by more than 16,000 SMEs.


• December 2020: Uala, an Argentinian mobile payments company, expanded their financial offerings to include mobile PoS systems for SMEs. This enabled the SME to transact through payment links, while reducing hassle and improving consumer experience.

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