Point-of-Sale Software Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Point-of-Sale (POS) Software Industry

The consolidation of Environmental, Social, and Governance (ESG) within the financial statements and reporting aids in the disclosure of data points covering the organization’s operations and processes. This also provides a snapshot of the business’ impact within the investment and decision-making areas for investors. Investment into ESG in the POS industry could be witnessed to have skyrocketed during the COVID-19 pandemic, with the global transition from the coin & paper-based payments to digital transactions.

Prominent players in the POS sector are familiar that digital transactions play a principal role in developing a sustainable society. It has provided individuals with an option for online sales thereby leading to a rise in the enhancement of the quantities of online groceries, food deliveries, and shopping that encouraged the method for contactless payment getaways.

In 2020, the global, Covid-19 pandemic made way for POS software to expand. Many food administrations, retail, and different organizations chose internet-based sales channels to satisfy buyer necessities to empower their businesses. Since then, digital transactions have been declared a crucial factor in growth strategies by governments worldwide and the POS industry has received increased attention from investors focused on ESG impact investing.

Key POS Software companies researched in this theme have built on this market position to develop several sustainable strategies aiming to create a positive ESG impact within this sector.

ESG Trends

Companies in the POS software industry promote reduction in the utilization of paper in POS-printed receipts by decreasing the top margin, on-request printing, and receipt compression while adopting green manufacturing of POS. To add to this, the adoption of wireless POS results in lower energy utilization than a fixed POS software.

Top companies and start-ups in the POS software space engage in the selection of energy-productive processors to consume lesser energy than same-class competitive models and decrease paper use by 25% or more. Further, helping individuals to remain adaptive in the ever-changing business landscape of technologies.

The market yields far-reaching benefits while attaining the United Nations - Sustainable Development Goals (UN – SDGs). To mention some of the SDGs that come into focus are Actions to combat the effects of Climate Change, Reduced inequalities (with respect to availability for all shops) and Building Resilient Infrastructure to foster sustainable. Digital transactions have ensured business continuity through policies such as the transfer of money from any part of the world and helping people meet their needs at a time of urgency, thus also contributing to improved health and well-being.

By promoting online transactions companies in the POS software sector promise environmental benefits - reduced CO₂ emissions, decreased energy consumption, and conservation of natural resources. One of the industry leaders in this POS software market has enabled government agencies to adopt creative solutions to switch to digital transactions for finances.

ESG Challenges

The development of POS software requires accountability in terms of data privacy & security.  With the increase in the number of gadgets and tools, multiple factors like monetary incorporation, along with the environmental impact of the manufacturing process of payment terminals, their conveyance, utilization, encouragement, and end-of-life handling of the products come into focus as challenges. Consumer data privacy & security and supply chain disruption call for increased responsibility among the companies’ governance and supply chains.

The market also faces the generation of waste through large-scale utilization of paper to design printed receipts. Also, there are many disadvantages that have resulted due to the authorization of several processes like reduction in top margin, on-site printing, receipt compression, along with greener manufacturing of halogen-free cases & recyclable packaging.

To this, major POS companies, part of our research have initiatives aimed at having a significant positive impact on reducing their carbon footprint and have adopted programs related to climate change.

Growth of the POS Software Market

In 2020, the global POS software market size was valued at USD 9.26 billion and is expected to expand at a compound annual growth rate (CAGR) of 9.5% from 2021 to 2028. In the Asia Pacific, the POS sector is expected to expand at a remarkable CAGR of more than 11.0% over the predicted duration, where the on-site distribution for POS software resulted in the largest revenue share of over 67% for the financial year 2020.

The availability of POS software to all retailers and its accessibility or inclusiveness at the reasonable cost of affordability makes the market more approachable. Besides this, the industry also provides various advantages such as tracking of inventory across multiple stores, improved customer experience, and providing complete and precise sales reports, while enhancing the product return processes. The major drawback faced by this industry is related to the issues of customer data privacy & security including leaks of personal and financial pieces of information.

The Payment Card Industry (PCI) consistency is commanded with MasterCard organizations to assist with guaranteeing the security of MasterCard exchanges in the installments business. PCI norms are created and overseen by the PCI Security Standards Council hence promising a positive framework for POS software companies to build upon their strategies.  

Key Companies in this theme

    • Clover Network, Inc.

    • H&L POS

    • IdealPOS

    • Lightspeed

    • NCR Corporation

Scope of the POS software Industry ESG Thematic Report: 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the POS software Industry ESG Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations, and innovations affecting the POS software sector, globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities for business among leading players in the POS software industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment