Germany POS Terminal Market Size

Germany POS Terminal Market Analysis

The German POS terminal market is estimated to register a CAGR of 8.2% from 2022 to 2027. The market is already developed for the pre-requisites for POS to flourish across different regions. The developed infrastructure welcomes the expansion of POS terminal devices for payments throughout the country.

• The government regulations and measures shape the payment scenario in the country. Several laws are introduced to promote different incorporations in the all-in-one POS terminals, complying with the rules. For instance, according to epay.de, in November 2021, the German Banking Industry Committee (GBIC) issued a new Technical Annex (TA) 7.2, or TA7.2 Errata update for POS systems, which defined amendments for the "single tap" functionality for requesting PIN in case of contactless payment. The incompliance of the same post 1st January 2022 would incur 2.9 points (or EUR 29 cents) after 30th September 2022.
• Such measures guide the compliance of the new terminal devices and the need for upgrading the existing devices accordingly. This also defines the cyber security measures, ensuring universal conduct across all POS terminals. The security systems like TA and incorporation of Value Added Tax (VAT) regimes also define the relationship of the device and the software and payment interface services provided by the companies, updating the device kernels regularly.
• The market is seeing a rise due to the increasing preference for electronic cards for card-related and contactless payments among the German crowd. For instance, according to Euro Card System Institution, a recent survey conducted among 1,200 consumers in June 2021 highlighted that 47% of the consumers indicated they preferred to pay at the register with a giro card (formerly known as an EC card), followed by 13% of the consumers selecting a credit card, and 10% to chose another method. The increasing preference among the crowd generates huge significant demand for POS terminals.
• Despite the strict measures, cyber security and data breaches are constant threats to the system, still affecting the conservative share of the German population. The inconsistency of the software raises concerning questions. For instance, in May 2022, according to hackaday.com, Verifone's POS Terminal, H5000, stopped processing payments as one of its certificates expired, affecting the transactions for days. The certificate was not an over-the-air update and required visiting the company's website. Such issues also emphasize the importance of compliance with the law and the requirement for smoother technological options and cybersecurity measures.
• The increased use of online shopping and payment modes through the COVID-19 pandemic has encouraged users to prefer payment modes other than physical transactions through terminals. However, incorporating NFC and QC codes has enabled users to use their online payment and virtual cards through contactless fund transfer methods provided by the POS terminals. The aware and hygiene-conscious users also use their smart wearables and smartphones for contactless payments at the POS terminals, providing constant growth to the market.