Market Trends of Germany POS Terminal Industry
This section covers the major market trends shaping the Germany POS Terminal Market according to our research experts:
Retail Industry to Significantly Help Grow the Market
- The retail sector is shifting towards electronic and online payment modes for the new norm, replacing cash. Introduction of hyper stores and retail chains operating throughout the country prefer centralized payment records and systems, implementing intelligent POS solutions. Such systems are implemented by complying with the government norms, ensuring safe and reliable payments. The evolution of technology is also witnessing smart integrations for a better user experience.
- For instance, Diebold Nixdorf and McDonald's Germany signed an expanded IT service partnership agreement. According to the agreement, Diebold Nixdorf will provide installation, commissioning, and maintenance services for all new McDonald's Germany restaurant openings or upgrades, coordinating and implementing through its exclusive IT-service partner, SOS Industrieservice GmbH. The partnership also included the deployment of self-service terminals and payment transaction technology like the TSE Connect Box to implement the Kassensicherungsverordnung (KassenSichV; a German security regulation for POS systems).
- The significant shift in consumers' preferences is another factor supporting the change in payments from cash to electronic media, creating considerable demands for POS terminals. For instance, in May 2022, according to the Global Payment Report 2022 presented by Worldpay, cash transactions accounted for 40% in 2021, compared to 55% in 2020, along with 25% of the transactions to be debit card transactions in 2017, compared to 38% in 2021. Similarly, Credit Card transactions too registered a slight growth from 1% in 20217 to 7% in 2021.
- The widescale shift after the Covid-19 to avoid cash payments for hygiene has resulted in drastic changes in the market, creating more demand for POS terminals. Moreover, integrations of POS terminals as all-in-one solutions for counter-top options, providing data-driven results for the transactions, has helped retail businesses track their payments better, along with tax and other requisites conveniently. The hand-held form factor and self-service stations will drive the market's future, leveraging Germany's developed retail infrastructure.
Understand The Key Trends Shaping This Market
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Increasing Adoption of Contactless Payments Driving the Market
- The market is witnessing heavy adoption of contactless modes of payments like "tap-to-pay" with the introduction of NFC. The adoption of users is increasing at a considerable rate. For instance, according to the survey results presented by Postbank, most of the new POS terminals are equipped with NFC as an option to facilitate contactless payments, along with alternatives.
- The adoption post the COVID-19 pandemic is evident, shifting the German population toward contactless payments. For instance, according to the Postbank Digital Study 2022, 59% of Germans believed digital payment methods to be faster and easier than cash, compared to 50% in 2021. The survey also highlights that 32% of the participants use cards only, and 7% use mobile phones for making payments. Further, 49% of the participants admitted using contactless payment supported by carrying their smartphone with them.
- The well-established networking infrastructure in the country leads to internet penetration, facilitating the adoption of POS terminals even in remote areas of Germany. According to a survey from "E-Commerce Report in Europe 2021" by Postnord, the proportion of internet users in Germany is 96%. The survey also highlighted that 94% of the citizens had shopped online. This reflects the readiness to expand and adopt contactless payments through POS terminals, including the unreached locations.
- The widescale introduction of NFC-enabled devices in Germany is what popularized contactless payments for its ease of action. The POS with NFC is gaining popularity for easy and fast payments, leveraging NFC. According to Verifone, 27 million payment cards and 6 million smartphones are enabled for NFC, with options like "tap and go" gaining popularity. Hence, the POS terminal market will benefit significantly from the developments and advancing consumer behavior, considerably driving the growth of POS Terminal devices in Germany.
