Slovakia POS Terminal Market Size

Slovakia POS Terminal Market Analysis

The Slovakia POS terminal market is expected to grow at a CAGR of 8.81% during the forecast period 2022-2027. Cash payments dominate the mode of payment in Slovakia. According to data shared by the National Bank of Slovakia, cash payments accounted for over two-thirds of all transactions over the past five years as of June 2021.

• In the current market scenario, POS terminal systems have evolved from transaction-oriented devices to systems that support and integrate into businesses' CRM and other financial solutions. This instance allowed companies to leverage captured transactional data through POS terminals to business intelligence.
• The ongoing move towards digitalization has pushed banks of Slovakia to increase customer comfort so that clients have the opportunity to pay conveniently and quickly. This is supported by the growing number of contactless payments by card, mobile phone, or smartwatch. This form of payment is on the rise at the expense of cash due to its ease of use and the growing network of merchants accepting these payments.
• The Slovak Republic's e-commerce industry has been thriving in recent years. The majority of e-commerce enterprises saw record sales in 2021. The Slovak e-commerce business generated approximately EUR 2 billion in revenue in 2021. These data show a about 12% rise over the previous year. The rise in e-commerce sales also drives demand for POS terminals across the country.
• Modern POS terminals reduce the cost of setup, deployment, maintenance, and power consumption over time, leading to the total cost of ownership. Various vendors offer modular POS terminals with attributes such as touchscreen displays and low power consumption, which helps in reducing the overall cost of ownership. Companies such as Sharp Electronics, Aures Technologies, and others offer fixed POS solutions with touchscreen displays and robust processors that help improve operations and reduce failures. In addition, the POS offered by Aures comes with fanless temperature control to reduce the number of moving parts in a terminal.
• New regulations from the government are also complementing the market with ease of payment methods and options for payment network providers. Since February 2022, the SEPA Instant Credit Transfer (SCT Inst) scheme has been used in Slovakia, where three payment service providers (PSPs) have joined the scheme.
• The payment behavior of Slovaks was significantly affected by the COVID-19 pandemic. The market witnessed a growth in the volume of non-cash payments made at point-of-sale (POS) terminals in the last year, which increased by double-digits. As a result, the use of mobile cashless payments increased significantly. In 2021, the number of mobile payments increased by more than 100%; This has further increased the demand for mobile POS terminals in the market.