Smart checkout tech to process $387bn in transactions by 2025

The value of transactions processed by smart checkout technologies will reach $387 billion in 2025, up from just $2 billion in 2020.

This is according to Juniper Research, which predicted that frictionless systems will provide much simpler user experiences by embracing a ‘just walk out’ approach. The rapid growth will be driven by retailers seeking sustainable business models in the wake of the COVID-19 pandemic.

The report found that while the growth in adoption will be dramatic, innovation will be limited to the convenience segment, where product lines are simpler and implementation costs are lower. These roll-outs will also be limited to larger retail chains that can afford the significant investment costs involved.

Juniper stated that the use of artificial intelligence (AI), including smart checkout systems and chatbots, will be critical in ensuring that retailers can deliver a compelling omnichannel experience to consumers. The drive for efficiency will lead to investments of over $23 billion by retailers in AI by 2025, up from just over $5 billion in 2020.

Research co-author Nick Maynard noted: “To compete with e-commerce disruptors which heavily rely on AI, traditional retailers must adopt AI rapidly to boost efficiency – if they fail to do so, they will face a highly commoditised retail market with an outmoded, uncompetitive business model.”

The research suggested that the use of RFID for tracking is essential to enabling analytics use within the retail supply chain.

As retailers need ever greater efficiency, analytics is crucial, but it is only as good as the data it is based on. This need for standardised data for analysis will propel RFID’s deployment; driving RFID shipments for retail to over 32 billion in 2025, from 9 billion this year.

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