Market Size of Saudi Arabia POS Terminal Industry
|2019 - 2029
|Base Year For Estimation
|Forecast Data Period
|2024 - 2029
|Historical Data Period
|2019 - 2022
*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.