Japan POS Terminals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Japan POS Terminals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Japan POS Terminal market is expected to register at a CAGR of 19.8% during the forecast period of 2022-2027. The POS terminal market has grown significantly over the past few years, owing to its ability to offer an increased return on investment and ease of access. POS systems that facilitate transactions from the central component of businesses across industries, like retail, hospitality, transportation, and banking, have gained importance in companies of small and big sizes over the years.

Key Highlights

• POS terminal systems have grown from transaction-oriented devices to systems that support and integrate into firms' CRM and other financial solutions in the present market scenario. Companies could use collected transactional data from POS terminals to provide business insight in this case.
• Vendors have supported consistent development in mobile payments, particularly smartphone-enabled QR-code payments. Similarly, progress has been made in other sectors of the ecosystem. Cashless projects are making tremendous progress, with the establishment of a government-funded biometrics infrastructure and a rise in the use of EMV-based contactless payments (or NFC Pay as it is known in Japan). Such trends are expected to act as major catalysts for the increase in the adoption of POS terminals in the country.
• The modern POS terminals reduce the cost of setup, deployment, maintenance, and power consumption over time, leading to the total cost of ownership. Various vendors offer modular POS terminals with attributes such as touchscreen displays and low power consumption, which helps in reducing the overall cost of ownership. Companies such as Sharp Electronics, NEC Corporation, and others offer fixed POS solutions with touchscreen displays and robust processors that help improve operations and reduce failures. In addition, the POS offered by Aures comes with fanless temperature control to reduce the number of moving parts in a terminal.
• The expanding digitization of the economy and the increasing application of POS platforms across sectors will drive the POS Terminals market forward. Growing awareness of the effectiveness of POS displays, an increase in retail chains, and the increasing usage of near-field communication-enabled systems are all likely to help the market's growth.
• The COVID-19 pandemic has substantially altered how customers purchase, affecting various business segments. The pandemic had a significant impact on the retail industry. Consumers have also increased their usage of diverse sales tactics, such as curbside pickup, virtual consultations, contactless payment, social commerce, or social media purchasing. According to the most recent retail experts and shopper surveys, this new habit is projected to persist during the projection period. Such changes have influenced POS terminal demand.

Key Market TrendsMobile 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 Itlay.
• 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 mPOS market.
• According to Japan's Ministry of Internal Affairs and Communications, in 2021 approximately 90% of people aged 20 to 29 years old, 92% (30 to 39 years old), and 88% (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 Italy forward.
• The vendors in this region are expanding their product line by launching new solutions and promoting market growth. For instance, SB C&S Corp. (SB C&S) and SB Payment Service Corp. (SBPS) announced in May 2022 that they would begin providing DX (Digital Transformation) platform for settlement services to stores in Japan, as well as release the all-in-one mobile terminal 'PayCAS Mobile,' provided by PAX Technology with its Android SmartPOS A920 terminal.

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 the new technologies and revenue.
• The sales reporting, inventory and financial management, and customer analytics feature that POS terminals provide assist the 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 March 2021 Catalina Marketing Japan K.K. formed a partnership with Tokyo-based Toshiba Tec Corporation to expand data-driven marketing solutions for brands and retailers in Japan's rapidly growing in-store marketing space and develop digital transformation (DX) services for various retail technologies.
• The vendors in this country are providing effective solutions for Restaurant based POS systems. For instance, Oracle offers a range of Restaurant POS systems, such as Work station 6-series, Work station 3-series, Self-Service Kiosks, and Other POS hardware services, which allow for fast online ordering, and curbside pickup and delivery. Additionally, expand food options with cloud kitchens and virtual brands. Connect your front-of-house, kitchen, and back-of-house operations to the industry's most secure cloud point of sale. This promotes the growth of the POS terminals in the Restaurant division.

Competitive Landscape

The Japan POS Terminal Market is moderately competitive, with a considerable number of regional players. The companies are leveraging strategic collaborative initiatives, and acquisitions to increase market share and profitability.

• February 2022 - Vesca Co., Ltd., which manages the multi-payment platform "Vesca Ark" with credit card, electronic money, QR code payment, house prepaid, and house points, has a payment terminal lineup. Verifone's pocket-type payment terminal "e280" is now available for purchase. Portable payment terminals in "Vesca Ark" include the PIN pad type "P400" for linking with POS and KIOSK and the countertop (stationary) type "V200c" that can be used independently and linked with POS. It provided three mobile "V400m" variants that can be linked to POS.

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• The market estimate (ME) sheet in Excel format
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