UAE POS Terminal Market Size (2024 - 2029)

UAE POS Terminal Market Analysis

The UAE POS Terminal Market is expected to register a CAGR of 6.5 % during the forecast period (2022-2027). The COVID-19 outbreak forced retailers to adopt mPOS devices due to increased contactless payment limits and lowered charges. According to a Mastercard study quoted by Mashreq Bank, 82% of consumers in the UAE consider contactless as their preferred payment method, and "81% stated they would continue to use digital forms of payment once the pandemic is over, pointing to a long-term behavioral shift.

• The POS terminal market has grown significantly over the past few years, owing to its ability to offer an increased return on investment and ease of access. POS systems that facilitate transactions from the central component of businesses across industries, like retail, hospitality, transportation, and banking, have gained importance in companies of small and big sizes over the years.
• Further, the COVID-19 pandemic has significantly transformed how consumers shop, affecting several market verticals. The retail sector witnessed a drastic change due to the pandemic. Consumers have also increased their use of various sales methods, such as curbside pickup, virtual consultations, contactless payment, and even social commerce, i.e., shopping through social media. According to the latest retail experts and shopper surveys, this new behavior is expected to stay over the forecast period. Such trends have affected the demand for POS terminals across the country.
• POS terminal systems have evolved from being transaction-oriented terminals/devices to systems that can integrate with the company's CRM and other financial solutions. This evolution has empowered the end-users with business intelligence to better manage their revenue streams and inventory. Lower maintenance costs, accurate transactions, and real-time inventory are key advantages of POS systems. With the functional benefits that the advanced POS systems offer, companies have replaced their traditional billing software with POS systems, thus, securing the growth of the POS system market.
• One of the major drivers of the market is the low cost of ownership compared to other payment channels. The enhanced POS systems provide higher durability and reliability, which leads to a lower cost of ownership, thus raising the demand for POS solutions in both medium and small-sized businesses compared to the traditional system.
• One challenge to the market's growth is the security concerns due to using critical information. POS terminals are connected to the network and the internet, making them vulnerable to attacks to gain access to and manipulate it like any other insecure machine. The terminal communicates with the rest of the network means attackers could access unencrypted card data, including Track2 and PIN information, providing all the necessary information required to steal and clone payment cards.

UAE POS Terminal Industry Segmentation

The POS Terminals market captures revenues accumulated from hardware, software, and services that manages the transaction during the sale of a product or a service. It helps to store, capture, share, and report data related to the sales transaction.

It eases the shopping experience and helps to expedite the checkout process, resulting in customer satisfaction. Inventory management, stock in hand, availability of a product, and pricing information are primary data that are acquired from the systems.

The various end-user industries considered in the scope include entertainment, retail, healthcare, hospitality, among others. The impact of COVID-19 on the market and affected segments is also covered under the scope of the study.