Market Trends of Slovenia Point of Sale (POS) Terminal Industry
This section covers the major market trends shaping the Slovenia Point of Sale (POS) Terminal Market according to our research experts:
Increasing Demand for Mobile POS Terminals and Wireless Communication Technologies
- The significant rise in demand for contactless and mobile POS terminals is also a significant driver for the market. Contactless payments have been around for a while, even before the pandemic. The COVID-19 pandemic has just pushed the trend forward. The growing e-commerce is also triggering mobile or contactless POS terminals, which are helpful in cash-on-delivery payments.
- The increasing demand for faster internet connectivity across enterprises and different end users has spurred the need for wireless connectivity services. With the rise in high internet traffic and devices, average fixed broadband speed and average internet users are expected to grow exponentially in the forecast period. This unexpected disruption due to the COVID-19 pandemic boosted the use of wireless communication technologies to keep businesses and critical functions operational. Such trends are expected to boost the adoption of POS terminals as they foster digitalization and wireless communications.
- Furthermore, wireless sensors offer several advantages, such as accuracy and reliability, with the help of various innovative connectivity technologies, such as RFID and Bluetooth, and the potential to make POS devices easy to integrate with the existing payment mechanism. As a result, they gained significant traction in the past few years.
- With the rapid technological developments, various global mobile POS vendors are also penetrating the market through collaborations and innovations. The market penetration of players also encourages the market's growth. In July 2021, Verizon Business signed a deal with Mastercard to use 5G and wireless technology for contactless payments and provide an autonomous checkout service for retail stores. The Verizon Business collaboration with Mastercard aims to utilize 5G smartphones and near-field communication (NFC) technology for merchants to accept customer payments.
- In addition, there have been efforts taken by such financial services to promote POS terminals that enable contactless payments. For instance, according to Mastercard, from April 2023, all the POS terminals must be dual interface hybrid terminals that support and encourage both EMV contact and EMV mode contactless payment functionality.
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Retail is One of the Factor Driving the Market
- The retail industry is one of the major users of POS terminals. The segment is expected to hold a significant share globally. The retail segment is slowly picking up with the reopening of brick-and-mortar stores in different parts of the world. Tech and non-tech-savvy customers are equally demanding in desiring a seamless experience at their preferred retailers.
- The increasing need for multiple POS systems among big retailers, supermarkets, and departmental stores with a robust and centralized system has propelled the retail sector's steady growth in the POS terminal market. The increased emphasis on consumer behavior has led to increased POS adoption due to its consumer mapping application. According to OECD, Slovenia's total retail trade sales volume index increased in 2021 by 13.8 (+11.62%) compared to 2020. As a result, Slovenia's full retail trade sales volume index peaked in 2021 at 132.55.
- The rising number of retail stores across regions attracts customers due to significant discounts and other services; however, customer retention becomes the primary challenge to sustaining in the market. This competition increases the requirement to reinvent their business models to avoid competition concerning price and find the balance between investing in the latest technologies and revenue.
- The inventory, sales reporting, financial management, and customer analytics features that POS terminals provide assist retailers in overcoming the problems related to customer retention. Hence, the industry's requirement for customer retention and competition growth promotes the development of POS terminals.mPOS systems are poised to be significantly utilized in retail outlets to integrate core functions such as sales reporting, customer management, inventory management, and employee management under one system.
- Furthermore, the digital economy is expected to expand rapidly, creating significant demand. Temasek and Google predict that by 2023, online consumer spending across the top 6 economies will witness almost a quarter of a trillion dollars. The rise of e-commerce is fueled by rising disposable incomes, increased internet usage, improved logistical networks, and alternative payment methods.
