Slovenia Point of Sale (POS) Terminal Market

Slovenia Point of Sale (POS) Terminal Market Analysis

The Slovenia Point of Sale Terminal Market is expected to register a CAGR of 12.36% during the forecast period.

• According to the World Bank, Slovenia's consumer spending for 2021 was USD 32.29 billion, a 19.99% increase from 2020. The demand for POS terminals as a convenient payment option increased in direct proportion to the increase in consumer expenditure. Furthermore, it is anticipated that the development of POS terminals would be impacted by the expansion of e-commerce and the integration of traditional and online retail strategies. A rapid increase in mobile POS terminals has been observed as a result of the major e-commerce platforms in the area offering the option of payment upon delivery.
• One of the region's major market drivers is the low cost of ownership compared to other payment channels. The enhanced POS systems provide higher durability and reliability, which leads to a lower cost of ownership, thus raising the demand for POS solutions in both medium and small-sized businesses compared to the traditional system. 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.
• To survive the pandemic and adhere to the new expectations of shoppers in the current scenario, merchants need to use modern POS technology, which would allow them to adapt to market changes quickly (for instance, future lockdowns) and promptly sell both in-store and online. Various businesses have deployed contactless payment options to offer customers touch-free alternatives in response to social distancing requirements and consumer preference for not using cash. As customers are becoming more used to using these payment options, they expect more businesses to provide them with these options.
• Card fraud is evolving heavily, driven by increased customer demands for fast and easy payments. The coronavirus pandemic is also fueling explosive growth in card fraud activity. Point-of-sale fraud is primarily caused by merchants failing to leverage point-to-point encryption (P2PE) solutions to safeguard POS data. Several merchants depend on transmission-level encryption for POS transactions, where card data is encrypted while moving from the POS terminal to the payment processor. The lack of encryption of the card data drives security concerns and adds a risk factor in transactions.

Slovenia Point of Sale (POS) Terminal Market Trends

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.

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.

Slovenia Point of Sale (POS) Terminal Industry Overview

The Slovenia point-of-sale terminal market is moderately fragmented due to the presence of local and international players. The players in the market are investing in inventing new ways to attract and retain customers. The subscription-based pricing model in the software segment offers flexibility to the customers but increases the market competition.

• September 2022: Switchio by Monet+, a free software platform that oversees thousands of payment terminals in Europe, has joined with Kevin., the next-generation payment tech infrastructure supplier of direct, secure, and resilient end-to-end financial transactions. Kevin made account-to-account (A2A) payments. It will be accessible on any POS (point-of-sale) terminals linked to the Switch platform.
• May 2022: Elly POS, an advanced digital payment technology that supports cryptocurrency transactions, is currently available at more than 1000 terminals around the region. The first Android POS terminal to be used in Slovenia is the 1000th Elly POS terminal to be deployed. It integrates various card payment choices with alternative methods, like GoCrypto, VAL, and mBills, and is user-friendly. Together with Eligma and the BTC firm, Lab4Pay created the Elly POS platform.

Slovenia Point of Sale (POS) Terminal Market Leaders

Slovenia Point of Sale (POS) Terminal Market News

• March 2022: The Croatian mobile wallet, Aircash, and Nuvei Corporation, the worldwide payment technology partner of booming businesses, have joined forces. With the assistance of Nuvei, which offers acquisition and payment gateway services as well as more than 530 different payment options, Aircash will be able to expand into more European nations.
• April 2022: As a player in Android POS and payment systems, WizarPOS announced that its flagship mobile POS, Q2 and Q3, has received the OmniPay certificate from Fiserv, a division of European Merchant Services. This authorized certification includes online and offline PINs for magnetic stripe, chip, contactless cards, and common credit and debit card transactions, enabling omnichannel payments across borders.