Europe POS Terminal Market - Growth, Trends, COVID -19 Impact, Forecasts (2021 - 2026)

Europe POS Terminal Market - Growth, Trends, COVID -19 Impact, Forecasts (2021 - 2026)

The European POS terminal market shipment accounted for 10.25 million units in 2020, and it is expected to reach 22.10 million by 2026, registering a CAGR of 13.87% during 2021-2026. The COVID-19 pandemic created a 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.

  • In the current market scenario, the 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 growth in the number of credit transfers within the euro area also triggers the adoption of POS terminals in the region. According to ECB, the number of credit transfers within the euro area increased in 2020 by 3.2% to 23.1 billion, and the total value increased by 10.3% to EUR 155.8 trillion.
  • The declining number of ATMs across the region also indicates the rising adoption of cashless payments, ultimately supporting the market's growth. According to the European Association for Secure Transactions (EAST), many ATMs have been declining since 2016. The number of ATMs in the euro area declined by 2%, from 390,221 in 2019 to 381,410 in 2020.
  • The introduction of regional and country-level security regulations also creates a need for new or retrofits of POS terminals. For instance, the PSD2 regulation has created several requirements that reinforce in-person payments in stores.
  • Similarly, the POS security regulation 2020 in Germany has pushed the need for new POS terminals certified by the Federal Office of Information Security (BSI). The need for such devices is mainly to protect merchants against manipulations of essential digital records.
  • There have been various cases of security breaches that device manufacturers have reported. Recently, in December 2020, prominent vendors in the market, Verifone and Ingenico, issued mitigations after discovering that the devices use default passwords. The affected devices included Verifone VX520, the Verifone MX series, and the Ingenico Telium 2 series.
Key Market TrendsRetail Industry Expected to Witness Significant Growth
  • Retail industry is one of the significant users of POS terminals. The segment is expected to hold a substantial 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 the Office of National Statistics (ONS), the retail sales volume increased by 0.8% in August 2020 compared to July 2020 despite the pandemic. In 2021, the retail sales volumes increased by 0.5% between May and June 2021. The growth in retail sales presents new opportunities for the market.
  • 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.
  • The market is witnessing several partnerships between retail stores and vendors in the region to acquire POS terminals for improving the checkout experience. For instance, in January 2021, Zodio, a cooking and decorating brand, announced that it has rolled out POS technology from Spanish firm Openbravo to all its stores in France. After a three-month pilot, Zodio rolled out 220 Openbravo POS terminals across its 20 stores.
  • Furthermore, in May 2020, the Smart Payment Association (SPA), a global trade body of the smart payments industry, announced a proposal for instant payment card solutions. The solution is aimed to allow retail businesses in Europe to make payments in real-time, even in scenarios such as non-working hours and when other options are unavailable.
  • In addition, in February 2021, Paydoo, a digital payments provider, partnered with PAX Technology, a global electronic payment terminal solution player, to help resellers and independent software vendors (ISVs) attract further revenue streams, by offering the PAX E-Series of all-in-one POS and payment solution for the retail and hospitality verticals. Similar collaborations are expected to aid the entry of global market players into the regional market.
United Kingdom Expected to Witness Significant Growth
  • The United Kingdom’s payments landscape is witnessing a period of transformation, as advancements in technology and innovation continue to drive the digitalization of payments. The UK government, as part of the National Innovation and Science Agenda, introduced several tax-related initiatives. It offers R&D tax relief for investors in fintech startups and promoting digital payment methods in the country.
  • According to UK Finance, approximately 17.3 million people, or nearly one-third of the adult consumers in the United Kingdom, were registered to use their smartphone or smartwatch to make mobile payments in stores by the end of 2020. This represented a significant increase of 7.4 million people when compared to 2019.
  • The London-based trade group’s 2021 Payment Markets Report also states that the number of contactless payments made in the United Kingdom increased by 12% to a total of 9.6 billion. Further, it accounted for more than a quarter of all transactions made in 2020. Such trends are expected to act as major catalysts for the increase in the adoption of POS terminals in the country.
  • Further, SMEs are looking forward to adopting integrated POS terminals, which helps maintain a cost-effective payment processing system and provide an enriched customer experience. For instance, in November 2020, SumUp, a global payment service provider, acquired Goodwill, a POS software provider. This acquisition followed SumUp’s acquisition of Debitoor for accounting and invoicing and Shoplo for e-commerce.
Competitive Landscape

The Europe POS Terminal Market is moderately competitive, with a considerable number of regional players. The companies are leveraging strategic collaborative initiatives, acquisitions to increase market share and profitability.

  • July 2021 - Posbank Europe updated its Apexa 1500, 1560, and 1950 series to Intel Celeron J3455 microprocessor based on the Apollo Lake chipset. The microprocessor offers better performance, data security, and protection. Furthermore, the new maximum frequency of 2.3 GHz ensures faster data transfer rates, resulting in a reliable POS system solution. Significant upgrades have also been made to the Apexa Android range.
  • April 2021 - SumUp partnered with the mobile bank N26. The collaboration is based on the shared vision of promoting a wider acceptance of cashless payment solutions across Europe. Eligible N26 account holders benefit from a special offer for Air card terminals from SumUp.
  • March 2021 - myPOS released a new payment terminal called myPOS Slim, a payment companion for a wide range of businesses, including logistics and delivery companies/couriers and those in the retail and food & beverage industry. It weighs 240 grams, features a powerful Cortex A53 and ARM processor, and comes with 16GB of Flash and 2 GB RAM, allowing merchants to process payments faster than before.
Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support


1 INTRODUCTION
1.1 Study Assumptions​ and Market Definition​
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis​​
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of COVID-19 Impact on the POS System Market
4.4 Market Drivers
4.4.1 Low Total Cost of Ownership Compared to Other Channels of Payments
4.4.2 Significant Rise in the Demand for Contactless and Mobile POS Terminals
4.5 Market Challenges
4.5.1 Security Concerns Due to the Usage of Critical Information
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Fixed Point-of -Sale Systems
5.1.2 Mobile/Portable Point-of-Sale Systems
5.2 By End-User Industry
5.2.1 Retail
5.2.2 Entertainment
5.2.3 Healthcare
5.2.4 Hospitality
5.2.5 Other End-User Industry
5.3 By Country
5.3.1 Italy
5.3.2 United Kingdom
5.3.3 France
5.3.4 Spain
5.3.5 Germany
5.3.6 Netherlands
5.3.7 Portugal
5.3.8 Poland
5.3.9 Greece
5.3.10 Hungary
5.3.11 Czech Republic
5.3.12 Romania
5.3.13 Ukraine
5.3.14 Slovakia
5.3.15 Rest of Europe (Croatia, Slovenia)
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Ingenico Group (Worldline)
6.1.2 NEC Corporation
6.1.3 NCR Corporation
6.1.4 Izettle UK (Paypal)
6.1.5 Verifone Inc
6.1.6 Sumup Inc.
6.1.7 PAX Technology Ltd
6.1.8 Sharp Electronics
6.1.9 myPOS World Ltd
6.1.10 Asseco South Eastern Europe SA
6.1.11 Concardis GmbH (Nets Group)
6.1.12 Vectron System AG
6.1.13 POSBank Co. Ltd
6.1.14 Aures Technologies SA
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook