Market Trends of Luxembourg POS Terminals Industry
Retail Segment is Expected to Grow Significantly
- A POS system (POS terminal) is an amalgamation of software and hardware, implementing touch screens and non-touch screen-based systems. A retail environment, like a grocery store or a mega mart, is the most popular location for traditional POS systems, as they are used to manage the sales of retail goods and help retailers prevent theft. Since the stores are designed around traditional checkout lanes, a stationary point-of-sale system is the most viable option.
- The increasing need for multiple POS systems among big retailers, supermarkets, and departmental stores with a robust and centralized system has propelled the retail sector's steady growth in the POS terminal market. The increased emphasis on consumer behavior has led to increased POS adoption due to its application of consumer mapping.
- Retail businesses, making thousands of dollars in transactions daily, rely on POS terminals to understand sales performance and to better manage their inventory based on the products/services that attract the most customers. With the increasing risk of handling cash, online payments are gaining popularity owing to the streamlined processes involved.
- According to OECD, the total retail trade sales volume index in Luxembourg increased by 2.5 (+7.94%) last year. Additionally, the inventory, sales reporting, financial management, and customer analytics features that POS terminals provide help retailers in overcoming the problems related to customer retention. Hence, the requirement for customer retention and competition growth in the industry promotes the development of POS terminals.
Understand The Key Trends Shaping This Market
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Significant Rise in the Demand for Contactless and Mobile POS Terminals in Luxembourg
- A mobile point-of-sale (mPOS) system is a smarter alternative to the traditional POS, as a mobile point-of-sale system allows users to accept payments via tablets and other handheld devices without being tied to a POS register in a single location. Also, growth in e-commerce and the entangling of brick-and-mortar and online retail practices are expected to affect the future growth of the terminals. With the option of cash on delivery being provided by major e-commerce platforms, a sudden surge in the adoption of mobile POS terminals has been noticed in the country.
- Moreover, in Luxembourg, mPOS systems are used to handle payments and may include features like inventory management, loyalty programs, sales tracking, reporting, etc. Small enterprises and entrepreneurs, as well as small retail stores, pop-up shops, and quick-serve restaurants, will benefit from these methods. mPOS systems are small and compact, as well as economical and convenient.
- According to the European Central Bank (ECB), Luxembourg's card payment value has grown significantly. The volume of card payments recorded was around EUR 14,16 billion (~ USD 14.96 billion) last year, compared to EUR 12.48 billion (~ USD 13.18 billion) from the previous year.
- The pandemic accelerated the transition in payment behaviors worldwide, swiftly increasing noncash payments and minimizing physical contact at the POS. According to Eurostat, a government agency, the share of households with internet access in Luxembourg increased by 5% compared to the previous year. The share of households with internet access thereby grew subsequently, with 99%. The country's rising number of internet users is promoting contactless payment options in the studied market.
