Belgium POS Terminals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Belgium POS Terminals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Belgium POS terminal market is expected to grow with a CAGR of 13.87% during the forecast period of 2022–2027. 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 for business intelligence.

Key Highlights

• As per the European Central Bank, in 2021, the total number of POS terminals, including all payment services in Belgium, was 300,220, whereas the total count was 273,972 in 2020, indicating a rise in the total number of POS terminals in Belgium.
• As per Statbel, in 2022, the population of Belgium was approximately 11.58 million and had increased by about 63,000 compared to 2021. With the rise in the population, the overall consumption of goods and services will also increase. This rise in the consumption of goods and services will create the demand for better payment alternatives and fuel the overall growth of the POS Terminals Market in Belgium.
• The rise in fraud, scams, and various security-related concerns due to the usage of critical information during payment methods might be a factor that can restrain the market's growth in the region.
• The surge in the demand for online payment methods propels the payment terminal market's growth. In Belgium, various merchant offerings on online payment, such as point-of-sale and rebates, encourage users to make digital payments, driving the demand for payment terminals. The digital payment market is growing primarily due to rapid advancements in e-commerce, mobile payment technologies, and the rising use of mobile wallets.
• The COVID-19 pandemic had created a huge demand for contactless payments, increasing the need for POS terminals equipped with NFC, RFID, and other technologies accepting payments from contactless chip cards or digital interface cards.

Key Market TrendsRising Adoption of Contactless Payment

• People in Belgium are widely adopting contactless payment options. There is a growing trend of contactless payment systems like credit cards, smart cards, debit cards, or other devices, including smartphones and various other mobile devices that utilize radio-frequency identification (RFID) or NFC (near field communication), e.g., Google Pay, Apple Pay, Fitbit Pay, Murphy, or any bank mobile application which support Contactless technology for making secure payments.
• The stores and services in Belgium are rapidly integrating and adopting several mobile payment applications, like PayPal, Samsung Pay, Apple Pay, AliPay, and WeChat Pay, to accept payments. Due to the vast changing lifestyles, daily commerce, and rapid growth in online retailing, this trend is expected to continue over the forecasted period.
• As per the National Bank of Belgium, the introduction of chatbots and digital wallets, the creation of neobanks, and the several establishments of partnerships with other major market players are all initiatives that illustrate the growing digitization in the banking sector. This technique is not new, but the pandemic has pushed digitization in this sector into high gear.
• The growing desire for contactless and cashless payments has also fueled the market growth. The rise in digitalization, the use of e-payment platforms, and the rising regulatory intervention on secure payments due to multiple financial fraud cases have led to the growth of the payment terminal market in the region.
• As per Eurostat, the total share of daily internet users in Belgium increased by two percent in 2021 compared to the previous year. With 86 %, the share of daily internet users thereby reached its highest value in the observed period. Notably, the share of daily internet users has been, except for 2020, continuously increasing over the last years. This will drive the demand for Contactless payment systems, which will enhance the market's growth in the region throughout the forecasted period.

Retail Sector is Expected to Witness Significant Growth

• Belgium, which is situated in Western Europe, is a modern economy with a diverse set of industries and commercial activities. Over the past decade, sales numbers of the entire wholesale and retail trade in Belgium have developed positively. This positive sales development in terms of the total retail trade industry will augment the market's growth.
• According to Retail-Index, in the year 2022, with 100 chains, the fashion and apparel industry was the largest retail chain in Belgium. Home goods came in second with 29 retail chains. The third-placed furniture and decoration industry had 25 retail chains, while the pet care and car parts and accessories industries had only six each.
• According to OECD (Organisation for Economic Co-operation and Development), in the second quarter of 2020, the total retail trade sales volume in Belgium was 99.7index. Retail trade volume surpassed the index level starting in the third quarter of 2020 and was recorded at 105.4 in the second quarter of 2022. This rise in the overall retail index indicates a growing trend in the positive direction in terms of the growth of the retail sector in Belgium.
• The retail market, both on the occupational and investment side, in Belgium is changing rapidly, primarily due to the factors like the COVID-19 outbreak, changes in demographic patterns, the exponential rise of online retail, and the emergence of new formats and retail concepts. The retail market is experiencing an unprecedented mutation. Due to this, retailers, owners, developers, brokers, and clients are positively impacted.
• Belgium saw a significant change in total retail trade sales in the last decade. As per OECD, in 2021, the overall retail sales grew by 5.5% compared to the previous year's period. This increase in retail sales will significantly drive the growth of the Belgium POS Terminals Market.

Competitive Landscape

Belgium's POS terminals market has several regional competitors and is moderately competitive. Corporations rely on strategic collaborative initiatives, mergers, and acquisitions to enhance market share and profitability. Some of the main players in the region are Sumup Inc., Elavon, Worldline, Payworld, etc.

• July 2022 - Worldline signed a partnership to smartly manage expense policies on corporate cards. The partnership will combine Worldline's pan-European Card Issuing Processing platform and manager.one expertise in business expense management.
• November 2021 - SumUp announced that it completed the acquisition of Fivestars, America's largest two-sided local commerce network that combines a marketing platform with integrated payments. Fivestars was acquired for a total of USD 317 million. The acquisition will give the company access to more than 12,000 small businesses and 65 million consumer members on Fivestars's network, which drives over USD 3 billion in sales and 100 million transactions annually.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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