Market Size of Saudi Arabia POS Terminal Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 10.62 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia POS Terminal Market Analysis
The Saudi Arabian POS Terminal market was valued at USD 1.42 billion in the previous year and is expected to register a CAGR of 10.62 % during the forecast period to become USD 2.6 billion by the next five years. The POS terminal industry has grown significantly in recent years, owing to its capacity to provide a higher return on investment and ease of use. POS systems, which permit transactions from the key component of organizations in areas such as retail, hospitality, transportation, and banking, have grown in popularity in enterprises of all sizes over the years.
- When a credit or debit card is used to pay for anything, a traditional point-of-sale (POS) terminal scans the magnetic strip. It determines if there is enough money in the account holder's linked bank account or e-wallet to transmit to the retailer and complete the transaction. The sale is recorded, and a receipt is emailed, printed, or texted to the customer.
- In March 2022, Bank AlJazira partnered with JCB International Co., Ltd. to launch JCB acceptance through its POS and ATM network devices deployed across the Kingdom of Saudi Arabia (KSA). This also highlights the role of Saudi Payments in enabling international payment schemes to operate in the KSA market. This partnership allows Bank AlJazira to accept JCB Cards across their POS and ATM terminals deployed throughout the country.
- Similarly, in March 2023, American Express Saudi Arabia announced a strategic partnership with Riyad Bank to permit merchants on Riyad Bank's Point of Sale (POS) network to accept American Express Card payments. Through this partnership, American Express Cardmembers will have access to pay with their Cards at a significant number of new locations, providing greater payment choice and wider acceptance for them.
- The market was expected to witness a significant boost from the hospitality sector as hotels re-opened after the COVID-19 pandemic. Furthermore, the country's focus on tourism is expected to drive the demand for POS terminals. For instance, in May 2022, according to the Saudi Tourism Authority, Saudi Arabia is targeting 70 million visitors in 2022 compared to 62 million visitors in 2021. Hospitality point-of-sale systems are computerized systems that incorporate cash registers, computers, and peripheral equipment.
- However, cyber security remains a constant threat to POS terminal devices and their software network, as it shares sensitive information of users, merchants, and banks. According to Kaspersky, the number of cyber-attacks increased by 46% to almost 656,045 in the first four months of 2022, in comparison to 449,082 infections during the same in 2021. This requires stringent measures to ensure data security against such high attacks.
- Because of the COVID-19 pandemic, there was an increased demand for contactless payments, necessitating the installation of POS terminals equipped with NFC, RFID, and other technologies capable of accepting payments contactless. Customers use these payment options and expect more businesses to offer them. According to the Saudi Central Bank and Visa, during the COVID-19 pandemic, contactless payments surged exponentially, making the country the highest in the Middle East and North Africa region.
Saudi Arabia POS Terminal Industry Segmentation
The scope of the study includes Fixed and Mobile POS Terminals. Fixed/EPOS Terminals are PC-based workstations, namely LAN-available terminals and PC-class Processors, that are fully programmable and can transmit data to other devices unrestrictedly. Mobile Terminals include electronic funds terminals such as countertop, multilane, tablet, handheld terminals, PCI-DSS approved chip & PIN devices, approved chip & signature devices, and mPOS devices. All other systems, such as PC-based systems, PIN pads, etc., are excluded from the scope.
The Saudi Arabia POS terminal market is segmented by Type (Fixed Point-of-Sale Terminals and Mobile/Portable Point-of-Sale Terminals) and by End-user Industry (Retail, Hospitality, and Healthcare). The study tracks the number of POS terminals in the country. All the above segments of this market are valued in USD.
By Type | |
Fixed Point-of-Sale Systems | |
Mobile/Portable Point-of-Sale Systems |
By End-user Industry | |
Retail | |
Hospitality | |
Healthcare | |
Other End-user Industries |
Saudi Arabia POS Terminal Market Size Summary
The Point of Sale (POS) terminal market in Saudi Arabia has experienced significant growth in recent years, largely due to its ability to provide a higher return on investment and easy usability. These systems, which enable transactions in sectors such as retail, hospitality, transportation, and banking, have become increasingly popular among businesses of all sizes. The market is expected to continue growing at a steady rate over the next few years, driven by factors such as the reopening of hotels post-pandemic and the country's focus on boosting tourism. However, the industry also faces challenges, particularly in the area of cybersecurity, as POS terminal devices and their software networks handle sensitive user, merchant, and bank information. The demand for contactless payments, accelerated by the COVID-19 pandemic, has necessitated the installation of POS terminals equipped with technologies such as NFC and RFID. Furthermore, the market is witnessing trends such as increased payments from NFC-compatible smartphones and smart cards, and a growing retail sector, which is driving the demand for POS terminals.
Explore MoreSaudi Arabia POS Terminal Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increased Payments from NFC-Compatible Smartphones and Smart Cards
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1.1.2 Retail Sector Adopting the NFC POS Solutions Considerably
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1.1.3 Significant Rise in the Demand for Contactless and Mobile POS Terminals
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1.2 Market Challenges
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1.2.1 Problems With Transaction Limit Installation Costs
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1.2.2 Security Concerns Due to the Usage of Sensitive Information
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1.3 Market Opportunities
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1.3.1 Rising Adoption of Contactless Payment
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Fixed Point-of-Sale Systems
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2.1.2 Mobile/Portable Point-of-Sale Systems
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2.2 By End-user Industry
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2.2.1 Retail
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2.2.2 Hospitality
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2.2.3 Healthcare
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2.2.4 Other End-user Industries
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Saudi Arabia POS Terminal Market Size FAQs
What is the current Saudi Arabia POS Terminal Market size?
The Saudi Arabia POS Terminal Market is projected to register a CAGR of 10.62% during the forecast period (2024-2029)
Who are the key players in Saudi Arabia POS Terminal Market?
PAX Middle East, Geidea Solutions, VeriFone, Inc., Ingenico (Worldline) and Datecs Ltd. are the major companies operating in the Saudi Arabia POS Terminal Market.