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New research from Coresight Research and point-of-sale provider Aptos finds that, despite more than 20 years since the first cloud-based point-of-sale system debuted, many retailers still have yet to make the move fully to such systems.
In the “Retail POS Modernization: Strategic and Financial Case for Transformation” report, commissioned by Alpharetta, Ga.-based Aptos and completed by New York City-based Coresight, 22% of retailers say they continue to operate hybrid or fully on-premises POS technologies. The 78% majority have either moved to a cloud-native or cloud-hosted POS platform. Aptos is a POS technology provider.
Coresight says cloud-native POS systems have the distinction of being fully modular and adaptable while cloud-hosted ones may not have that same modularity, ability to scale, or possess the same continuous-update capabilities.
Cloud-based POS systems are important because their flexibility enables retailers to scale transaction volumes, issue incremental updates, have more consistent system uptimes, offer better configurability, and consolidate data and operations across its network, Coresight says in the report. Coresight forecasts a compound annual growth rate for the global POS market at 13%, increasing from $34.1 billion in 2025 to an estimated $59.3 billion by 2030.
The report, which is based on a survey of 150 global retail executives, found that of the set of 84 respondents involved in their company’s POS strategy and decision making, those who already modernized their POS systems experienced an average 4.3% increase in average transaction value. Coresight modeled the cost advantage of a cloud-native POS system, finding that a retailer with $1 billion in annual revenue and 750 stores could save approximately $4.4 million annually and increase its revenue up to $39.6 million per year.
In addition to aiding retailers with cost and sale objectives, Coresight says modern POS systems also can make integrations easier and improve hardware flexibility, such as when new equipment is necessary.
Integration complexity, especially at larger retailers, is no easy task. Forty-five percent of those with a modern POS system ranked that complexity as a top challenge.
Even with these challenges, the payoffs can be substantial, Coresight says. “Retailers increasingly recognize the financial benefits of POS modernization. Among retailers that have modernized their POS systems, 85% reported that ROI either met or exceeded expectations. The more pressing question for retailers is how to execute modernization in a way that captures this value while minimizing operational disruption, given POS’s critical role in day-to-day retail operations,” the report says.
