Market Trends of Europe POS Terminal Industry
Increasing Adoption of Contactless Payments Driving the Market
- With the advent of NFC, the market is seeing rapid adoption of contactless payment methods like "tap-to-pay." Users are becoming more prevalent at a fast rate. For instance, most of the new POS terminals are outfitted with NFC as an option to support contactless payments, along with alternatives, according to the study data provided by Postbank.
- The growing desire for contactless and cashless payments has also fueled market growth. The rise in digitalization, the use of e-payment platforms, and the rising regulatory intervention on secure payments due to multiple financial fraud cases have led to the growth of the payment terminal market in the region.
- According to the European Central Bank (ECB), the number of contactless card payments in Europe in the first half of 2023 increased by 24.3% to 20.9 billion compared to the same period in 2022, with total value rising by 25.9% to USD 0.54 trillion.
- In the previous year, Worldline signed a partnership to smartly manage expense policies on corporate cards. The partnership will combine Worldline's pan-European card issuing processing platform and its manager, who has expertise in business expense management.
- To accept payments, businesses and services nationwide quickly integrate and embrace various mobile payment systems, including PayPal, Samsung Pay, and Apple Pay. This tendency is anticipated to persist over time due to the enormous changes in lifestyles, daily commerce, and the quick rise of internet shopping.
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Retail Sector Expected to Witness Significant Growth
- Traditional and new formats of retail establishments have increased in number across Europe. Urbanization, increased disposable incomes, and evolving consumer lifestyles are some causes of this growth. The demand for POS terminals to enable seamless transactions and improve the shopping experience has increased as more retail firms open for business.
- The European retail sector has seen tremendous digital change as companies have embraced advanced tools to improve workflow and consumer experience. This shift incorporates omnichannel retailing, mobile payments, contactless payments, cloud-based POS systems, and mobile payments. These improvements call for advanced POS terminals to handle a variety of payment methods and offer real-time analytics.
- The emergence of omnichannel retail techniques and e-commerce have changed the retail environment. Nowadays, customers need a seamless shopping experience across all channels, including online and physical stores. Retailers need integrated POS solutions to manage inventory, track consumer data, and enable unified payments across several channels to meet these expectations.
- According to the European Central Bank (ECB), retail payment systems in Europe cover payments made by individuals and businesses with low value and high volume. Thirty retail payment systems within the Euro area processed around 29.8 billion transactions in the first half of 2023. The three largest systems (STEP2-T, CORE in France, and RPS in Germany) processed 62% of the volume and 71% of the value of all transactions processed by Euro area retail payment systems in the first half of 2023.
- Retailers are becoming increasingly aware of the importance of data-driven insights for enhancing daily operations, streamlining inventory control, and customizing consumer experiences. With sophisticated analytics capabilities, POS terminals give businesses valid data on inventory trends, consumer behavior, and sales patterns. Retailers can increase operational effectiveness, increase sales, and make data-backed decisions based on these insights.
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