Why Enterprise Retailers are Increasingly Investing in Cloud POS

By Holly 2 years ago
Five Reasons Your POS May Be Your Best Business Advisor

Much has changed in the world of payments over the past couple of years. Due to the pandemic, most of these changes happened out of necessity. One of the most notable is point-of-sale (POS) technology. 

Recently, POS technology has gone from being a low-growth channel for POS solution and hardware providers to one that presents significant growth opportunities. The main driver of this growth has been the pandemic. Consumers have quickly turned to contactless payments, self-checkout technology and other alternatives like buy now, pay later.

Top Providers Move to Capitalize 

According to the latest reports, major players like NCR Corp., ACI Worldwide Inc. and Verifone Inc. are taking big steps to try and capitalize on these trends. The timing is just right as large merchants are no longer losing sales to ecommerce sellers, allowing their focus to shift from containing costs to further growth.

One result of this trend is more and more leading U.S.-based POS and payment solutions providers offering cloud-based Platform-as-a-Service (PaaS) solutions. The main reason being it offers a way for large merchants to expand customer relationships. What are PaaS solutions?

Platform-as-a-Service (PaaS) Solutions

Essentially, a PaaS platform enables POS and payment solutions to offer a wide variety of services to consumers’ in an effort to meet their ever-changing preferences. This includes, card issuing, payments clearing, cross-border payments, disbursements, and ecommerce gateways, according to a report by Moody’s Investor Service.

In truth, it’s hard to match the speed at which PaaS cloud-based services build applications fast and efficiently. The PaaS market continues to evolve fast as merchants continue to look for solutions that will help speed up processes (while also minimizing costs). It strikes the perfect balance between meeting immediate business needs and considering long-term growth.

The move in this direction is expected to propel profits for giants like NCR and ACI. Verifone is predicted to be the biggest winner of all, with double-digit percentage gains expected in 2022. According to Moody’s, the forecasted revenue growth for the leading U.S. POS solutions providers this year are NCR at 8%, Verifone North America at 15%, and ACI at 6%.

Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.