Brick-and-Mortar Commerce Surge Fuels POS Innovation

Call it a renaissance for brick-and-mortar commerce.

Revamping in-store browsing and purchasing would have been almost unthinkable just a few years ago, amid the pandemic, where it seemed like clicking the buy button was here to stay as, well, indeed, the only option to get what we need and want.

But now, with the approach of 2025 and the growth of post-holiday shopping data, it has become clear that the tactile shopping experience has value, even if it is adapted to digital features. That means merchants need to improve their point-of-sale (POS) experiences and technology so that commerce happens at any point along the (literal) channels, where customers can use their preferred products. payment options and embedded financing may appear in due course.

In other words, queuing in front of the cashier’s store can still be a sign of commerce, but it is not the only option.

Foot Traffic Is Back With Some Digital Twists

As PYMNTS Intelligence THE audience A few months ago, in the United States, more than 43% of shoppers stopped in stores to buy items, while 19% used a combination of digital features while they were in stores, such as product details, pricing and stored order histories.

A whopping 80% of customers prefer to use their preferred payment options. Recently, as noted by Visa’s own statistics, 77% of holiday spending happened in the store. The pace of that spending has accelerated, as Visa estimates that total retail spending at stores rose 4.1% in the most recent holiday shopping season, compared to a year-over-year period. which is a 1.6% increase in 2023 compared to 2022.

PYMNTS also records the fact that especially among young consumers, “while physical retail rebounds, the younger generation pushes brands to offer connected online-to-offline experiences.”

Bellamy Grindlfounder of a retail consulting company Retaillyticstold PYMNTS that “physical retail is making a comeback as younger generations crave experiences that go beyond the product itself. To be successful, brands must embrace an omnichannel approach, ensuring a seamless connection between online and in-store interactions. Technology such as interactive displays, mobile checkout and loyalty app enhancements can enhance the shopping experience, turning a routine visit into a memorable one. moments.”

The POS Difference

It’s the last few moments of the interaction — the payments themselves — that can stick in a customer’s mind.

Transactions are becoming more portable, in the sense that forms of POS systems are moving away from cash registers and toward tablets and mobile devices. PYMNTS Intelligence revealed, in partnership with the Discover® Global Network, that SoftPOS technology — which helps accept contactless payments through tablets and phones — is improving, and that nearly a quarter of merchants have seen of mobile commerce methods replacing traditional POS systems within a few years.

The results are from the likes of Visayan and MasterCard illustrate the rise of contactless payments in face-to-face commerce. In Visa’s Q4 earnings callmanagement noted that tap-to-pay transactions in the US are 54% of in-person transactions, up 13 percentage points year over year. Mastercard says with contactless payments accounting for more than 70% of the global human payment volume.

Anywhere, Fiserv will also help serve as a barometer of POS innovations and demand. In October, introduced by the company a new set of tools for small businesses tied to Clover POS and business management services. The upgrade includes new hardware, such as Clover Compact and Flex Pocket (available as a portable POS offering), which further builds on the Clover hardware suite. In the latest company income reportClover took sales growth of 28%, and the annual gross payment volume increased by 15%, to $311 billion.

In another announcement, GoDaddy introduced a small POS device for small businesses, the Smart Terminal Flex, that fits inside an employee’s apron pocket while they interact with customers.