Latest POS Trends Shaping Retail and Hospitality Industries

POS technology has impacted the retail industry far and wide ever since its debut in the 1970s. Before the modern POS system, transactions were manual, cash-based, and tangible. However, with the advent of technology, the POS has changed how retailers do business and how consumers do their shopping.

Though the first POS was focused on processing cash payments in a clean, trackable way, it quickly evolved to facilitate credit and debit card transactions. And now? POS systems can do a whole lot more than just process payments. They’ve turned into mini business management command centers!

So, what are the latest trends in POS systems? Below, I break down the POS retail trends of 2024 that are impacting the industry now and into the future.

Cloud POS

Business has transitioned to mostly cloud-based solutions—and that includes the POS. Cloud POS systems are increasingly becoming the norm, replacing the old-school traditional point-of-sale terminal that makes data difficult to access and manage.

According to Straits Research, the global cloud POS market size was worth $3,987 million in 2022 and is forecasted to be more than $30,205 million by 2031—that’s a compound annual growth rate (CAGR) of 24.7%.

The cloud POS is a significant point of sale innovation because it has made data, agility, and mobility accessible to businesses of all sizes. Especially in a world where retail is no longer single-channel, cloud POS technology allows businesses to sync data and ensure operations run smoothly regardless of their business size or location(s).

A retailer with 100 physical locations, its own website, and a thriving Amazon presence can benefit from the cloud POS just like the small mom-and-pop shop that’s managing a single retail location plus online channels.

With cloud POS technology, you’re no longer tethered to a specific place or a hardwire connection. You can access your business technology from anywhere, at any time.

AI and automation

AI and automation are also changing virtually every aspect of the business landscape. I bet there are ways you already use these technologies that you don’t even realize!

The trend is also impacting the POS—and in a good way. 100% of retail business owners surveyed by Square Future of Retail report say automation has improved their business in some way.

That same survey found that tracking is the top area of automation for 43% of businesses, and the biggest benefit is an improved customer experience for 47% of businesses. Another 45% have seen improved employee retention and profitability thanks to automation.

What role does AI play in modern POS systems?

When it comes to POS technology, AI and automation happen in a ton of potential use cases:

Automated reordering for inventory
Fraud detection and prevention
AI-powered pricing adjustments
Loyalty and rewards programs
Email marketing

Shoppers from Square’s report say they’d support retailers automating:

Checkout: 31%
Product search: 22%
AI-generated product descriptions: 22%
Dynamic pricing: 21%
Product recommendations: 18%
Product reviews: 15%

Seemingly, the possibilities are truly endless. I’m excited to see this trend play out and develop each year with innovative point-of-sale systems.

Payment options

Today’s consumers like convenience and options. And this is true for payments made at the POS terminal. I remember when it was just a cash or credit world—now, customers can choose to pay for their purchases in many ways.

According to Square, here’s how it breaks down in terms of the payment methods retailers accept:

Cash: 58%
Mobile wallet apps like Apple Pay or Google Pay: 57%
QR code payments: 52%
Traditional card payments: 47%
Touchless card payments: 44%
Buy-now, pay-later (BNPL) options like Clearpay: 43%

POS technology is advancing in a way that accommodates these ever-changing payment preferences. In fact, modern POS trends show that the platforms have incorporated new features and functionality to process different payment methods and offer options like subscriptions, cryptocurrency, saved payments, bill splitting, and gift cards.

Mobile POS

Mobile POS, or mPOS, is another hot trend. The global mPOS market is estimated to be worth around $3.78 trillion, according to Statista. More than 2 billion mPOS users are expected by 2028. And nearly a quarter of shoppers want to use mobile checkout options.

So why is this trending? Just like consumers are more mobile, so are associates. Now, associates can meet shoppers where they are on the sales floor and process the transaction on the spot. Customers don’t have to wait in line at the POS terminal—they can check out wherever they’re at.

But this extends past transactions, too. An mPOS makes it easier for retail staff to perform various tasks, such as barcode scanning, inventory counts, etc.

Customer self-serve

Self-checkout is another trend in retail, and while it originally made its mark in grocery stores, other verticals are exploring the trend, too. This is largely consumer-driven— with Square Future of Retail reporting that two-thirds of shoppers prefer to do tasks independently, like checking out or seeing if a product is in stock.

Consumers are increasingly feeling empowered to do things independently, influencing the future of POS.

When asked what tasks they’d like to perform on their own with the help of technology as opposed to with a live staff member, here’s what the respondents said:

Checking product inventory: 29%
Ordering out-of-stock products: 26%
Gathering information about a product: 26%
Picking up an item ordered online: 24%
Using mobile checkout or in-store terminals: 24%
Arranging home delivery: 23%

Why? They love the efficiency and convenience of being able to do things themselves. “Customers are looking for speed,” writes Bob Phibbs, The Retail Doctor. Self-checkout can provide that efficiency.

These consumer preferences continue to impact point-of-sale market trends.

Biometric security

Security should be a top concern for businesses—to protect both themselves and their customers. POS technology often comes equipped with security to safeguard all parties involved. PCI compliance, data encryption, and two-factor authentication are just a few examples.

However, one security trend that will impact POS technology in 2025 and beyond is biometric security features. This includes things like fingerprint identification and facial recognition.

Biometric payments are experiencing a surge in growth, with Juniper Research forecasting a CAGR of 113.6% from 2024 through 2028. Some even expect it to become the norm within the next decade.

Businesses are increasingly implementing these security measures on their POS systems. This can be for employees or admins who log in to the POS system and authentication for customer payments.

And not only does biometric authentication help boost security, but it also makes login and connection more efficient. And remember, shoppers love efficiency and convenience.