- Point-of-sale systems have emerged as the backbone of transactions, inventory management and customer relationship management
- According to Statista, global retail e-commerce sales amounted to US$4.28 trillion in 2020 and are projected to reach US$6.39 trillion this year
- Companies such as Lightspeed Commerce, Shopify and Givex are well-positioned to benefit from the continued expansion of online and offline retail channels
- While the POS sector holds immense potential, by staying on top of developments and keeping a finger on the pulse of the market, investors can position themselves to ride the wave of digital commerce and potentially reap substantial rewards
In today’s digital commerce marketplace, anyone who isn’t on top of point-of-sale (POS) systems has been left behind.
As consumers shift towards online shopping and businesses adapt to omnichannel retailing, POS systems have emerged as the backbone of transactions, inventory management and customer relationship management. For investors eyeing opportunities in this burgeoning sector, understanding the dynamics of POS and identifying key players is essential.
The digital commerce economy and market size
The digital commerce economy has witnessed exponential growth over the past decade, fuelled by factors such as increasing internet penetration, smartphone usage and shifting consumer preferences. According to Statista, global retail e-commerce sales amounted to US$4.28 trillion in 2020 and are projected to reach US$6.39 trillion this year. This surge in online transactions clearly points to the pivotal role that POS systems serve in facilitating seamless and secure payments across various channels.
3 POS stocks to watch
1:Lightspeed Commerce (TSX:LSPD): Founded in 2005, Lightspeed Commerce has emerged as a leading provider of cloud-based POS solutions for small and medium-sized businesses (SMBs) worldwide. The company’s comprehensive suite of services encompasses point of sale, e-commerce, inventory management and analytics, catering to the diverse needs of retailers and restaurateurs. With a customer base spanning more than 100 countries and a robust growth trajectory, Lightspeed Commerce continues to innovate and expand its market presence.
Lightspeed Commerce Inc. stock is up 6.62 per cent in a year and opened trading at C$18.29 per share.
2:Shopify (TSX:SHOP): As one of the pioneers in e-commerce platforms, Shopify has revolutionized the way businesses sell online. While primarily known for its e-commerce software, Shopify’s POS system integrates online and offline sales channels, empowering merchants to manage their operations efficiently. Founded in 2006, Shopify has experienced serious growth, serving millions of merchants globally, and consistently enhancing its platform with new features and capabilities.
Shopify stock is up 53.56 per cent since this time last year and opened trading at C$97.36 per share.
3:Givex Corp. (TSX:GIVX) is a comprehensive, cloud-based global customer engagement and business insights platform. It operates as a full-suite omni-channel gift card, loyalty program, data analytics, stored value ticketing, payments processing solutions and cloud-based POS solutions provider. Givex develops, sells, installs and supports five key types of tech solutions for its merchant clients: Customer engagement solutions; enterprise pos; payment processing solutions; integrations solutions, and analytics. It offers a range of products, such as gift card, loyalty programs, GivexPOS, Quick service restaurant, retail, sports venues, kiosk and self-service, Uptix Ticketing, analytics, and GivexPay.
Givex stock is up 47.27 per cent over this time a year ago and opened trading at $0.81 per share.
Bonus honourable mention – POSaBIT Systems Corp. (CSE:PBIT): POSaBIT Systems distinguishes itself in the POS space by focusing on the cannabis industry. Leveraging its proprietary technology, POSaBIT provides compliant payment processing solutions tailored to the unique needs of cannabis retailers. By offering integration with existing POS systems and enabling secure transactions, POSaBIT has positioned itself as a key player in this rapidly expanding market segment.
POSaBIT Systems Corp. stock has moved 80.56 per cent lower over the past year, but started Friday more than 12 per cent higher at $0.19 per share.
Final thoughts
Investing in POS stocks presents a compelling opportunity to capitalize on the growth of the digital commerce ecosystem. Companies such as Lightspeed Commerce, Shopify and POSaBIT Systems are well-positioned to benefit from the continued expansion of online and offline retail channels. Investors should keep a close eye on industry trends, company performance and market dynamics to make smart moves.
While the POS sector holds immense potential, investors should approach with caution and conduct proper research before making investment decisions. By staying on top of developments and keeping a finger on the pulse of the market, investors can position themselves to ride the wave of digital commerce and potentially reap substantial rewards.
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