Continuous transition towards automating manual tasks across a wide range of business processes has indeed propelled self-checkout system market over the last decade. Driven by increased focus on reducing customer waiting time and improving the bottom line, these systems, besides ensuring initial savings on labor costs, also help to manage customer traffic during peak hours at retail outlets by allowing faster checkouts, especially for customers buying only a few items. Self-checkout systems have become an ideal customer retention tool for those establishments which experience a large number of transactions and small to medium size buyouts.
Incidentally, cash-based solutions remain a key factor influencing the self-checkout system industrytrends, in an age when most countries and financial institutions are trying to accelerate paper-less payment solutions like credit or debits cards and digital payments. The reason for the same is speculated to be the ready availability of cash as a financial instrument which can be used freely and forms a major part of the daily transactions at retail, travel, hospitality and healthcare segments. It has been observed by monetary agencies that contrary to the widespread notion, demand and utilization of cash is rising in absolute terms. As such, most retail businesses are not looking to dispose of cash payments at their outlets but are adopting more cash-based self-checkout systems to ensure that customers benefit from shorter queues while enjoying their preferred mode of payment. According to a report by Global Market Insights, Inc., cash-based solutions account for almost 60% of the self-checkout system market share worldwide.
A study conducted by the World Economic forum and the World Bank Group had revealed in 2016 that globally, paper-based transactions at micro, small and medium retailers was valued at over USD 19 trillion. These businesses can reap prolific benefits from cash-based self-checkout solutions to support the frequent sale of groceries and personal care products, which contribute significantly to the retail sector. In Europe, around 79% of all POS transactions are in cash, indicating the habitual preference of consumers in the region and the need to accept cash payments in stores throughout the region. Tesco, the U.K. based retail giant, is a prime example of a supermarket chain installing cash-based self-checkout systems in its outlets, enabling customers to forego unnecessary queues and buy products like groceries quicker. As per an estimate by Global Market Insights, Inc. the worldwide retail POS terminals market is poised to surpass a valuation of USD 40 billion by 2024.
The global grocery retail market is anticipated to generate over USD 2.5 trillion in sales by 2022, offering a lucrative and sustainable growth opportunity for the self-checkout system market. Companies that develop these systems have over the last few years been able to eliminate several disadvantages which were earlier associated with cash-based self-checkout machines. For instance, the increased cost of additional hardware to accommodate cash as well as the need for staff to manage and recycle the money and coins were notable hindrances for the industry expansion. These problems were addressed gradually. Diebold Nixdorf’s POS system, which allows cash payment, cash recycling and is able to deliver a closed cash cycle, is representative of the efficient products being offered by the self-checkout system industry.
The rapidly growing population throughout the world has not only elevated the growth of the retail segment but has also propelled the global hospitality industry, which includes fast-food restaurants and quick service joints. As this sector is hugely constituted of cash transactions, cash-based self-checkout systems have helped major restaurant brands in speeding up the ordering and payments process, effectively achieving overall customer satisfaction. Elimination of human errors in ordering and minimal queues have attracted consumers to self-service kiosks at fast-food outlets like McDonald’s, while the food companies have been successful in cutting costs and retaining customers. Revenues from quick service restaurants make up nearly 50% of sales for the overall restaurant industry and increase in the number of fast-food outlets signify tremendous prospects for the cash-based self-checkout system market.
Estimated to witness a CAGR of 8% from 2017 to 2024, the self-checkout system market will be largely dependent on the ability of businesses to offer a seamless cash transaction. Key players like Diebold Nixdorf, Toshiba Global Commerce Solutions, NCR and Fujitsu that have made it to the top pedestal of the competitive spectrum of self-checkout system market via innovative products are likely to seek continuous advancement in technology to provide cost-efficient cash-based self-checkout solutions in the years ahead as well.
Global Market Insights report on retail POS terminals is available for purchase directly from their website.
*Orginal article posted from CashEssentials