Javelin Strategy & Research released on Monday the firm’s annual point of sale forecast, which indicated that retail POS purchases are expected to reach $4.2 trillion by 2018, though mobile payments are on the rise.
Last year, mobile POS proximity payments accounted for just 0.01 percent of total retail volume. Mobile devices, including smartphones and tablets, have served as a purchasing channel and payment option, and an industry-wide push towards mobile technology and accessibility in the coming years could push mobile POS proximity payments to reach $5.4 billion by 2018.
“The retail POS market is evolving at a remarkable rate with the increased popularity of the e-commerce and mobile payments markets,” Aleia Van Dyke, an industry analyst at Javelin, said. “Today’s consumers are demanding more digitized payment options to enhance their in-store shopping experience. The advanced features of non-traditional payment options like mobile and prepaid cards have encouraged adoption with today’s tech-savvy shoppers.”
While POS retail sales account for 93 percent of total U.S. retail dollar volume and will likely outperform the online market in future years, brick-and-mortar retailers have begun to adopt more mobile and online payment channels in order to compete. Over the next five years, mobile payments are expected to have the highest compound annual growth rate over all other payment types.