Market Trends of Denmark POS Terminals Industry
This section covers the major market trends shaping the Denmark POS Terminals Market according to our research experts:
Mobile POS Payments is Expected to Witness Significant Growth in the Market
- The demand for mobile POS terminals is rising owing to the growing demand for contactless payments and benefits offered by mobile solutions that provide convenience with open access to a large amount of precious consumer data that can be monetized through analytics and AI.
- Further, innovative mobile POS solutions offered by market players in the country augment the demand for mobile POS terminals. For instance, Shopify Denmark offers smart inventory management, checkout, and staff management solutions in its POS terminals.
- Moreover, with contactless payments through debit and credit cards and mobile wallets like Apple Pay and MobilePay increasing in popularity across the country, mPOS systems are better equipped to accommodate these solutions. For instance, according to the International Trade Administration, the most widely used payment cards, with approximately 85% of online purchases, are Dankort and Visa/Dankort. In comparison, MasterCard/Eurocard is used for 10% of all purchases. Recently, there has been a quick uptake due to app-based payment systems, such as MobilePay.
- Further, growing card transactions in physical trade and e-commerce are driving the demand for mPOS solutions in the country. Additionally, the growth in contactless card payments provides a promising future for the mPOS terminals in the country. For instance, as per data from Danmarks Nationalbank, the card turnover in Q1 of this year reached USD 25,136 million compared to USD 20,794 million in Q1 2021.
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Retail Segment is Expected to Account for the Largest Share
- The unit costs of debit card payments in Denmark have declined significantly, reflecting the shift from cash to electronic payments, such as debit cards and online payments. Further, the social costs of retail payments relative to GDP in Denmark have declined, which suggests the development of innovative payment methods and related innovations, such as POS terminal payments, have made retail payments less costly overall.
- Further, the booming growth in the retail segment forced retailers to adopt electronic POS terminals to provide ease and convenience to customers. For instance, as per the data from Statistics Denmark, the retail sales index of the total retail trade in Denmark reached approximately 115.9 points in November last year, compared to 101.2 points in Jan last year. In addition, the monthly retail sales index exceeded 120 points in March of the previous year. The year 2015 has been taken as the base year used to calculate the index value.
- Further, growth in POS terminals is also driven by increasing online shopping penetration and a willingness to spend online on high-value items. The restrictions caused by COVID-19 pushed more consumers to adopt online shopping for essentials. Also, with excellent physical, digital, and banking infrastructure, consumers expect to be able to order and receive their products quickly and easily.
- Further, the launch of Amazon in Denmark will gradually enhance B2C e-commerce in the following years. Further, there are multiple guides aimed at helping independent sellers break into the online market. There are both B2B and B2C service providers with paid services assisting private companies in their pursuit of setting up online and expanding their business in e-commerce. Such instances are further expected to boost the demand for POS terminals in Denmark's retail sector over the forecast period.
