Introduction: Navigating the Competitive Landscape of Cloud Point of Sale Solutions
Cloud POS is an area of the market in which the competition is particularly intense, and the reason for this is the quickening uptake of technology, the changing regulatory framework and the consumers' desire for a more integrated, omni-channel experience. The main players in this landscape are the original equipment manufacturers, IT system integrators, cloud service providers and new players, who are all vying for leadership with their differentiated offerings. The original equipment manufacturers' competitive edge lies in the integration of hardware and software, while the IT system integrators' competitive edge lies in their ability to deliver bespoke, highly efficient solutions. The new players are mainly the data analytics and automation specialists, who are reshaping the market by enabling real-time data insights and the automation of business processes. Cloud service providers are able to provide a comprehensive solution and are able to compete on both price and features. The integration of the IoT and biometrics is also reshaping the market, by improving security and the end-user experience. Looking ahead to 2024 and 2025, the opportunities for growth are set to expand, especially in the emerging markets, where digital transformation initiatives are accelerating, and where the strategic deployment of advanced Cloud POS solutions is essential for capturing market share.
Competitive Positioning
Full-Suite Integrators
The vendors are offering complete solutions, which integrate all the business functions on a single platform.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Oracle Corporation |
Robust enterprise resource planning |
Cloud-based POS and ERP solutions |
Global |
| Intuit Inc |
Strong integration with financial tools |
Accounting and POS solutions |
North America |
| Shopify, Inc |
E-commerce and retail integration |
E-commerce and POS systems |
Global |
Specialized Technology Vendors
These vendors focus on niche solutions tailored to specific industry needs or functionalities.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Square Inc (Block Inc) |
User-friendly interface and pricing |
Mobile and online payment solutions |
North America, Europe |
| Vend Limited |
Retail-focused cloud POS |
Retail management and POS |
Global |
| Lightspeed POS Inc |
Comprehensive retail and restaurant solutions |
Cloud-based POS for retail and hospitality |
North America, Europe, Australia |
| B2B Soft |
Tailored solutions for wireless retail |
POS for wireless and retail sectors |
North America |
| Cegid |
Strong retail and fashion focus |
Cloud-based retail management |
Europe |
Infrastructure & Equipment Providers
The suppliers of the hardware and the necessary equipment are the vendors of the POS system.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| PAR Technology Corp |
Innovative hardware solutions |
POS hardware and software for restaurants |
North America |
| UTC RETAIL |
Focus on retail technology solutions |
Retail POS hardware and software |
North America |
Emerging Players & Regional Champions
- - Square (United States): Offers a complete package of payment and point-of-sale solutions, tailored to the needs of small and medium-sized businesses. Recently it has teamed up with various local retailers to enhance their e-commerce capabilities, thus challenging established vendors such as Shopify. It provides an integrated solution with its own hardware and software.
- Lightspeed (Canada): POS for retail and hospitality, recently launched in Europe, a cloud-based solution that complements traditional POS with advanced reporting and inventory features.
- Zettle (Sweden): a mPOS solution for small businesses, recently signed up local cafés and shops in Scandinavia, aims to compete with larger players such as PayPal with its easy-to-use and inexpensive service.
- Revel (USA): Provides a powerful cloud-based POS platform for restaurants and retail stores, has recently implemented solutions for a number of franchise chains, and complements established vendors with its flexible features and strong customer support.
- Clover (US): Offers a flexible POS system with a range of hardware and app options, and has recently expanded its presence in Latin America. Its simple, logically laid-out app is a challenge to traditional POS systems.
Regional Trends: In 2022, cloud-based POS systems have been widely adopted in many regions, especially in North America and Europe. The needs of enterprises for flexible, scalable, and big data are also increasing. Contactless and mobile payment also become the trend of the times. There are more and more new payment companies that focus on small and micro enterprises and industries, such as retail and hospitality. Competition is intense between traditional vendors and new entrants.
Collaborations & M&A Movements
- A strategic acquisition, combining the two companies' payment solutions, increased Square's market share in cloud POS and made it a leader in the buy-now-pay-later (BnPL) market.
- It has teamed up with DoorDash to give restaurants using its cloud POS system a delivery option, which gives it an edge over its competitors.
- Lightspeed acquired Shopkeep in order to increase its clientele and its product range in the cloud POS market and thus strengthen its position as a major player in the retail and hospitality industries.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| Biometric Self-Boarding |
Square, Toast |
Biometric identification is a means of facilitating the check-in of customers. It enhances security and reduces waiting times. Facial recognition has been installed in some Toast branches, with the aim of improving the customer experience and the working environment. |
| AI-Powered Ops Mgmt |
Shopify, Lightspeed |
Predictive tools, such as those from Shopify, help optimize inventory by providing retailers with recommendations for how much they should stock. Artificial intelligence is also used by Lightspeed to help retailers forecast sales and make data-driven decisions. |
| Border Control |
Verifone, Ingenico |
Verifone has developed a series of products which are connected with the government systems for the purpose of facilitating the transfer of money across the border. The Ingenico terminals also support the safe payment of money across the border, thus facilitating international trade. |
| Sustainability |
Clover, Square |
Clover is an eco-friendly program, reducing paper waste by providing digital receipts. The Square has promised to be carbon neutral in all its operations, which will appeal to consumers concerned about the environment. |
| Passenger Experience |
Toast, Square |
The Toast app is designed to enhance the dining experience. With the help of Square’s POS system, Toast enables a more personal, satisfying experience for diners, which, in turn, increases customer loyalty. |
Conclusion: Navigating the Cloud POS Competitive Landscape
The cloud POS market will be highly competitive and fragmented in 2022. North America and Europe are expected to lead the cloud POS market, while the Asia-Pacific region will be a fast-growing market for cloud POS solutions. Strategically, vendors must use advanced capabilities, such as AI for customer insights, automation for operational efficiency, and sustainable practices to meet evolving customer expectations. The flexibility of service offerings will also be crucial, as customers will seek solutions that are able to grow with their business. Those who can successfully integrate these capabilities into their cloud POS offerings will likely be the market leaders that shape the future of cloud POS.
