Poland POS Terminal Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Poland POS Terminal Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Poland POS Terminal Market is anticipated to grow with a CAGR of 8.4 % during the forecast period (2022 - 2027). POS terminals are being used extensively for accepting cashless payments and have become a commodity in recent years due to their ease of use.

Key Highlights

• The Poland government-sponsored Cashless Poland Program aims to subsidize the cost of POS hardware and merchant service charges for new merchants. The operation has already elevated the number of POS terminals to over 1 million – of which nearly 385,000 were subsidized, with 500,000 more planned to be installed by 2022.
• POS Terminals have been adopted in the country primarily due to favorable government policies, increasing Payment Service Providers (PSPs) in the country, shifting consumer payment behaviors, etc. Mellon Poland, for instance, has over 200,000 POS terminals installed and has been providing customized yet innovative solutions and services across the payment and POS terminals market space. Offering an end-to-end platform supporting all aspects of card Issuing and acquiring services has benefitted allied financial organizations by easing operation in the card market.
• The increase in payments volumes via mobile phones are leading to POS/ECR-dedicated hardware being replaced by all-in-one devices, facilitating card-based payments with PIN on glass or Face-to-Face (F2F) E-commerce payments without an NFC requirement. This could lead to payments through Payment Initiation Service Providers (PISPs) with an easier customer interface for payment methods at merchant vendors.
• There has been a growth in the innovation activities by major players in the market to launch products that support different payment options during COVID-19. For instance, in February 2021, Paydoo, a digital payments provider, partnered with PAX Technology to launch PAX E-series, an all-in-one POS and payment solution for Retail and Hospitality verticals. The E-Series is the first retailer solution to combine cash register and payment terminal powered by Android. It gives merchants full control over their store's operations from one simple, intuitive interface while supporting traditional payments from Chip and Pin, contactless, and QR codes.
• However, several regulations have been passed at the country-level to prevent security breaches in POS terminals. The laws such as the Revised Payment Services Directive (PSD2) and POS security ordinance for the technical security of POS systems help reduce fraudulent activities. The vendors in the market are also upgrading their systems to meet the governmental authorities' regulations, which helps reduce security breaches.

Key Market TrendsStrong adoption of Mobile Point-of-Sale System is Driving the Market Growth

• An mPOS is a smarter alternative to the traditional POS terminals, which connects to smartphones via Bluetooth. A mobile point of sale system allows users to accept payments via tablets, smartphones, and other handheld devices without being tied to a POS register in a single location. The transactions can include credit card magstripe reader payments and wireless transactions. It utilizes a mobile phone’s data connection to process transactions.
• Mobile POS systems are gaining traction in the country as they allow sales and service industries to conduct the transaction at the customer’s location, adding flexibility to the whole process and improving the customer experience.
• The growth in e-commerce and the entangling of brick-and-mortar and online retail practices are also expected to affect the future growth of the terminals. In fact, with the option of cash on delivery provided by major e-commerce platforms, a sudden surge in the adoption of mobile POS terminals has been recognized.
• Data protection is paramount as mPOS devices may not have security protocols as robust as their POS counterparts, especially if users using commercial-off-the-shelf (COTS) devices such as Apple or Android smartphones and tablets.
• Towards the end of the forecast period, the segment is expected to multiply in market presence as vendors increase their relevant offerings in response to the increased demand for contactless ease-of-use payment methods. As mPOS solutions are specially designed for tablets instead of desktop computers, the trend of smaller and more portable devices will augment the growth of the market.

Retail Sector is One Factor for Market Growth

• Retail industry is one of the major users of POS terminals. The segment is expected to hold a significant share in Europe. The retail segment is slowing picking up with the reopening of brick-and-mortar stores in different parts of the region.
• According to central statstical office of poland, After increasing by 23.6 % in the month of may, retail sales in Poland increased by 19.9 %year over year in June 2022.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 application of consumer mapping.
• 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 sustain in the market. This competition increases the requirement to reinvent their business models to keep away from 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, which POS terminals provide, assist the retailers in overcoming the problems related to customer retention. Hence, the requirement for customer retention and competition growth of the industry promotes the development of POS terminals.
• mPOS systems are poised to be significantly utilized in the retail outlets to integrate core functions such as sales reporting, customer management, inventory management, and employee management under one system.

Competitive Landscape

The Poland POS terminal market is moderately consolidated, with the presence of a few major companies. The companies are continuously investing in making strategic partnerships and product developments to gain more market share. Some of the recent developments in the market are:

• January 2022 - The debut of mobile Android point of sale (POS) terminals in the EU was announced by Adyen, the global payments platform of choice for many of the top businesses in the world. With the ability to serve as an all-in-one solution and do away with the need for separate cash registers, barcode scanners, and customer-facing displays, the devices represent a fundamental shift in the function of the payment terminal. The terminals also include an app administration system that enables retailers to upload and control the apps they regularly use for inventory management, loyalty programs, refunds, and other purposes. Introducing these multipurpose terminals will not only lower the cost of their hardware but also significantly enhance in-person client experiences for enterprises.
• June 2021 - PayTel S.A., a leading acquirer on the Polish market specializing in the processing of cashless payments announced the launch of the NEXGO N3 terminal in the market.

Additional Benefits:

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

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