Market Trends of Japan POS Terminals Industry
Mobile POS Payments is Expected to Witness Significant Growth in the Market
- The growing need for mobile POS terminals with convenience features like invoice management, inventory management, and image scanners across industry verticals, including retail, tourism, and e-commerce, will push the POS terminal market forward. Furthermore, as debit and credit card technology evolved, contactless payments became popular for completing a rapid transaction without inputting a PIN, driving up demand for the POS terminal market in Japan.
- Android Smart POS offers various advantages over traditional payment terminals, such as user-friendliness, greater flexibility, and faster transaction times. It can also provide access to accept a diverse range of payments such as QR codes, digital wallets, NFC, and apps that can be designed and customized specifically for the merchant, making them the ideal solution for all sizes of businesses. As a result, mobile POS payments are projected to further acquire a portion of the market in the forecasted time period.
- Growth in smartphone penetration, a large base of SMEs and micro-merchants, and an expansion of card user base due to different government and bank card acceptance programs are boosting the Japan POS market.
- According to Japan's Ministry of Internal Affairs and Communications, in 2022, approximately 93.4% of people aged 20 to 29 years old, 94.3% (30 to 39 years old), and 92.2% (40 to 49 years old) used smartphones to access the internet. Because of the adoption of smartphones, mobile internet usage has grown significantly in Japan. Smartphones have become the most popular internet access device. Mobile internet connections are also used for payment(NFC technology), propelling the POS terminal market in Japan forward.
- The increasing number of individuals and businesses embracing digital payment options will support market growth. Furthermore, in recent years, the government of Japan has also taken initiatives to push toward a cashless society to improve the convenience and efficiency of financial transactions and reduce the costs linked with handling cash.
- The vendors in this region are expanding their product line by launching new solutions and promoting market growth. For instance, in February 2023, Ingenico announced the introduction of Android Smart POS and payment innovation in Japan. Android AXIUM DX8000 offers a best-in-class digital experience in-store while optimizing security, productivity, and performance. The DX8000 is equipped with EMV Chip & PIN, magstripe, contactless, QR-code scanner, and digital wallets to accept various payment methods.
Understand The Key Trends Shaping This Market
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The Retail Segment is Expected to Grow Significantly
- The increasing number of retail stores across regions attract customers due to large discounts and other services; however, customer retention becomes the major challenge for them to sustain in the market. This competition increases the need to reinvent their business models to keep away from the competition concerning price and find the balance between investing in new technologies and revenue.
- The sales reporting, inventory and financial management, and customer analytics features that POS terminals provide assist retailers in overcoming the issues related to customer retention. Hence, the need for customer retention and competition growth in the industry promotes the growth of POS terminals.
- The market is witnessing several partnerships between retail stores and vendors in the region to deliver more effective sales and improve digital transformation and the checkout experience, which creates the demand for POS systems. For instance, in August 2022, ACI Worldwide announced a strategic partnership with CARDNET to modernize digital payments in Japan. The new infrastructure will allow the company to fulfill increasing demand and provide its customers with more sophisticated digital payment solutions and services covering both Japan's domestic and international markets.
- The vendors in this country are providing effective solutions for Restaurant-based POS systems. For instance, in June 2023, Oracle announced the launch of the Oracle MICROS Workstation 8 series. The Workstation 8 Series features multiple configuration options. This includes a mount for a low-profile setup that helps remove any barriers between guests and staff or a vertical stand with a weighted base for a streamlined countertop design that conceals cabling for a clean aesthetic. Restaurants can implement a workstation on its own or leverage the Peripheral Expansion Module (PEM), which provides options for a cash drawer, scale, or scanner. This promotes the growth of the POS terminals in the Restaurant division.
