As per MRFR analysis, the Virtual Payment POS Terminals Market Size was estimated at 18.38 (USD Billion) in 2022.
The Virtual Payment POS Terminals Market Industry is expected to grow from 20.04(USD Billion) in 2023 to 43.5 (USD Billion) by 2032. The Virtual Payment POS Terminals Market CAGR (growth rate) is expected to be around 8.99% during the forecast period (2024 - 2032).
As a result of the changing technology in mobile devices and acceptance of contactless payments, the global Payment POS Terminals Market is in high demand. A growing emphasis on paying securely and conveniently, an increase in the use of smart and mobile devices, and growth in e-commerce are some of the key forces in the market. Emerging markets are considered to be less saturated and thus present numerous opportunities in regions where electronic payment systems have not fully penetrated. Other current developments include the recent development of loyalty programs, systems inventoriation, and customer management using virtual payment banks’ POS terminals. Furthermore, the market has also been using software as a service, which is important because it increases the flexibility of payment systems. It is believed that tapping these trends and opportunities will enable businesses to take advantage of the numeric growth in the Payment POS Terminals Virtual Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Both the rising number of people opting for digital payments and the growing popularity of e-commerce are some of the primary drivers of the growth of the Virtual Payment POS Terminals Market Industry. Virtual Payment POS Terminals are highly beneficial and, thus, cater to a wide range of businesses. They allow businesses or individuals to accept digital payments. Since more and more individuals are opting for digital payments, the demand for the use of these virtual terminals is growing.Many customers now use mobile wallets, contactless cards, and other digital payment methods for their ease and security.
Moreover, an increasing number of people are being exposed to digital payments and, in the coming years, most people would be comfortable using them. Hence, because of the ease of use, these virtual terminals will be used more in the future. Another driver of the demand for these virtual Payment POS Terminals is the popularity of e-commerce.An increasing number of businesses are now selling their goods and services online. Even businesses looking to sell or expand their businesses globally use these virtual payment methods on their websites to receive payments from customers worldwide. Hence, both the growth of digital payments and e-commerce are significant drivers of the growth of the Virtual Payment POS Terminals Market Industry.
The increased need for security is another major factor driving the growth of the Virtual Payment POS Terminals Market. Most businesses have concerns about their payment systems’ security because they have heard about the risks of fraud and data breaches. There are various security features that a virtual payment POS terminal can offer to safeguard a business’s payment system against fraud and data breaches. For example, virtual Payment POS Terminals can be used for data encryption, where encryption makes it quite difficult for fraudsters to steal.In addition, these terminals can be used to track transactions to help businesses identify fraudulent transactions and put in place conditions for preventing such acts. The demand for security is expected to continue to drive the growth of the Virtual Payment POS Terminals Market Industry in the future.
Government regulations are another factor that is driving the growth of the Virtual Payment POS Terminals Market Industry. In many countries, governments are putting in place regulations that require businesses to accept digital payments. These regulations are put in place to protect the consumers and to make it easier for businesses. Virtual Payment POS Terminals are in line with these regulations and that is another quality that is making them very attractive to businesses that want to accept digital payments.
According to the report, the Virtual Payment POS Terminals Market is segmented as fixed and mobile. The fixed segment had a larger market share in 2023 and is expected to continue leading the market throughout the forecast period. It is estimated that the high market share of the fixed segment is caused by the fact that they are highly used in storefronts, including retail stores, restaurants, and so forth. Moreover, they have a higher level of security, are more reliable overall, and can be readily integrated with existing payment systems.
On the other hand, the mobile segment is likely to show a faster growth rate during the forecast period due to the increase in sales of smartphones and tablets and the overall growth in the popularity of mobile payment solutions, which offer more flexibility. As estimated, the Virtual Payment POS Terminals Market was valued at USD 12.5 billion in 2023, while it is expected to be almost USD 21.3 billion in 2032, with a CAGR rate of 6.9%. The mobile terminal segment is expected to grow from almost USD 7.5 billion in 2023 to USD 22.2 billion in 2032, with a CAGR of 10.2%.
As has been mentioned, the major driving factors for the growth of both the fixed and mobile PoS terminal markets include an increase in the overall popularity of digital payments, growth in e-commerce sales, and the overall increase in the demand for more secure and convenient payment solutions. In addition, growth in the adoption of more secure payment methods, including contactless payment NFC, and the higher number of integrated value-added services, including various loyalty programs and inventory management, are likely to contribute to the growth in the popularity of PoS terminals.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Virtual Payment POS Terminals Market technology segment is a major driver of market growth. EMV technology provides enhanced security, and currently accounted for the highest revenue share in 2023. It is projected to continue leading the market throughout the forecast period. NFC technology also offers higher convenience and speed to drive its adoption and is expected to grow significantly during the forecast period. Contactless technology offers a touch-free and hygienic payment operation, which is also driving market growth. QR Code technology utilizes the increasing penetration of smartphones and is expected to drive market growth in emerging markets.
The Operating System segment of the Virtual Payment POS Terminals Market is expected to account for a significant portion of the market revenue in 2023. Among the major operating systems, Android is projected to hold the largest market share, driven by its wide adoption in smartphones and tablets. iOS is anticipated to follow Android in terms of market share, owing to its dominance in the Apple ecosystem. Windows and Linux are expected to have a smaller market share, but they are still significant players in the industry. The growth of the Virtual Payment POS Terminals Market is attributed to the increasing adoption of digital payments, the rising popularity of e-commerce, and the growing demand for secure and convenient payment solutions.
The Virtual Payment POS Terminals Market is segmented by end-user industry into retail, hospitality, healthcare, transportation, and government. Among these segments, the retail segment is expected to account for the largest market share in 2023, due to the increasing adoption of e-commerce and the growing popularity of mobile payments. The hospitality segment is also expected to witness significant growth, driven by the rising number of tourists and the increasing use of mobile payments in hotels and restaurants. The healthcare segment is expected to grow steadily due to the increasing use of virtual Payment POS Terminals in hospitals and clinics.The transportation segment is also expected to experience growth, due to the increasing adoption of mobile payments in public transportation systems. The government segment is expected to grow at a moderate pace, due to the increasing use of virtual Payment POS Terminals in government offices and agencies.
Sales Channel Insights The Virtual Payment POS Terminals Market is segmented by sales channel into online, offline, direct, and indirect. Among these channels, the online channel is expected to witness the highest growth rate during the forecast period. The growth of the online channel can be attributed to the increasing adoption of e-commerce and the convenience of making payments online. The offline channel is also expected to grow, but at a slower pace than the online channel. The direct channel involves the sale of virtual Payment POS Terminals directly from the manufacturer to the end-user.The indirect channel involves the sale of virtual Payment POS Terminals through distributors and resellers. The Virtual Payment POS Terminals Market revenue through the direct channel is expected to be higher than the revenue through the indirect channel. This is because manufacturers can offer better prices and services to end-users through the direct channel.
The Virtual Payment POS Terminals Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, followed by Europe. The Asia-Pacific region is expected to witness the highest growth rate during the forecast period. The growth in the North American region is attributed to the increasing adoption of virtual Payment POS Terminals by businesses of all sizes. The region is home to a large number of tech-savvy consumers who are increasingly using mobile devices to make payments.This has led to a surge in demand for virtual Payment POS Terminals that are compatible with mobile devices.
The growth in the European region is driven by the increasing adoption of virtual Payment POS Terminals by small and medium-sized businesses. The region is home to a large number of small businesses that are looking for affordable and easy-to-use payment solutions. Virtual Payment POS Terminals provide a cost-effective and convenient way for these businesses to accept payments from customers. The growth in the Asia-Pacific region is attributed to the increasing adoption of virtual Payment POS Terminals by businesses in emerging economies.The region is home to a large number of businesses that are looking for ways to improve their payment infrastructure. Virtual Payment POS Terminals provide a cost-effective and easy-to-use way for these businesses to accept payments from customers.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Companies in the Virtual Payment POS Terminals Market are focusing on staying ahead of the curve by launching new products and other strategies. Leading players in the Virtual Payment POS Terminals Market are focused on new technologies for increasing customer experience, such as contactless payment or mobile payment, as well as innovative alliances, partnerships and mergers and acquisitions that help them bring in a wider range of products to a more diverse consumer base. Moreover, the Virtual Payment POS Terminals Market growth is driven by the increasing adoption of digital payments due to rapid internet penetration and the increasing demand for safer and more convenient payment methods.
The competitive landscape of the Virtual Payment POS Terminals Market is expected to be quite fierce in the future as new products are expected to keep emerging. Moreover, leading market players remain determined to stay ahead of the curve by launching new ways of transacting for their customers. These companies remain focused on continuing their heavy investments in research and development.
One of the leading providers of various types of payment solutions on the market, including virtual payment terminals, is Verifone. A global payment and commerce solution, Verifone offers tools ranging from payment processing to point-of-sale systems to mobile payment. With a heavy global presence, the company serves millions of customers all around the world, including small merchants to large retailers and financial institutions. Moreover, Verifone remains deeply committed to innovation, continuously launching new products in loyalty or app-based payments, for example. As such, it is a significant market player in the Virtual Payment POS Terminals Market because of its strong global reach, reputation and continuous innovations.
Ingenico is another leading player on the market that is a global provider of comprehensive payment systems, including virtual payment terminals, point-of-sale systems, and payment processing. With a heavy presence in Europe and Asia and its expansion in other regions, the company is known for its strong, innovative approach to providing customers with world-leading secure and intuitive payment solutions. As such, its wide array of products and continued innovations will make Solve a major competitor in the Virtual Payment POS Terminals Market.
The integration of advanced technologies such as contactless payments, biometrics, and mobile payments is driving market growth.Growing adoption of e-commerce: The surge in online shopping and digital payments is fueling the demand for virtual PoS terminals that facilitate secure and convenient transactions.Rise of mobile payments: The increasing popularity of mobile wallets and smartphones is driving the adoption of mobile virtual PoS terminals, allowing merchants to accept payments anywhere.Government initiatives: Governments worldwide are implementing regulations and incentives to promote digital payments, further boosting the adoption of virtual PoS terminals.Strategic partnerships: Key players in the market are forming strategic partnerships to expand their reach and offer comprehensive payment solutions to merchants.
| Report Attribute/Metric | Details |
| Market Size 2022 | 18.38(USD Billion) |
| Market Size 2023 | 20.04(USD Billion) |
| Market Size 2032 | 43.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 8.99% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Poynt, Intuit, NCR Corporation, Clover Network, Square, Dejavoo, Fiserv, EVO Payments, Ingenico Group, PAX Global Technology, Global Payments, TSYS, CPI Card Group, Verifone, Worldline |
| Segments Covered | Type, Technology, Operating System, End-User Industry, Sales Channel, Regional |
| Key Market Opportunities | 1 Growing adoption of mobile payments and digital wallets 2 Increasing demand for secure and convenient payment solutions 3 Proliferation of ecommerce and m-commerce4 Government initiatives to promote digital payments5 Expansion into emerging markets |
| Key Market Dynamics | Growth of ecommerce Increasing adoption of POS systems Rising demand for contactless payments Government initiatives Technological advancements |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Virtual Payment POS Terminals Market was projected to reach a value of USD 20.04 billion in 2023.
The Virtual Payment POS Terminals Market is expected to grow at a CAGR of 8.99% from 2024 to 2032.
North America is expected to hold the largest market share in the Virtual Payment POS Terminals Market in 2023.
Virtual Payment POS Terminals are used in a variety of applications, including retail, hospitality, and healthcare.
Some of the key competitors in the Virtual Payment POS Terminals Market include Verifone, Ingenico, and PAX.
The growth of the Virtual Payment POS Terminals Market is being driven by factors such as the increasing adoption of digital payments and the rising popularity of e-commerce.
The Virtual Payment POS Terminals Market faces challenges such as security concerns and the high cost of implementation.
The Virtual Payment POS Terminals Market is expected to reach a value of USD 43.5 billion in 2032.
Asia Pacific is expected to grow at the highest CAGR in the Virtual Payment POS Terminals Market from 2024 to 2032.
Some of the emerging trends in the Virtual Payment POS Terminals Market include the adoption of contactless payments and the integration of AI and machine learning.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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