Slovakia POS Terminal Market

Slovakia POS Terminal Market Analysis

The Slovakia POS Terminal Market is expected to register a CAGR of 8.81% during the forecast period.

• 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 to business intelligence.
• The ongoing move towards digitalization has pushed banks of Slovakia to increase customer comfort so that clients have the opportunity to pay conveniently and quickly. This is supported by the growing number of contactless payments by card, mobile phone, or smartwatch. This form of payment is on the rise at the expense of cash due to its ease of use and the growing network of merchants accepting these payments.
• The Slovak Republic's e-commerce industry has been thriving in recent years. The majority of e-commerce enterprises saw record sales in 2021. The Slovak e-commerce business generated approximately EUR 2 billion in revenue in 2021. These data show a about 12% rise over the previous year. The rise in e-commerce sales also drives demand for POS terminals across the country.
• 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. Companies such as Sharp Electronics, Aures Technologies, and others offer fixed POS solutions with touchscreen displays and robust processors that help improve operations and reduce failures. In addition, the POS offered by Aures comes with fanless temperature control to reduce the number of moving parts in a terminal.
• New regulations from the government are also complementing the market with ease of payment methods and options for payment network providers. Since February 2022, the SEPA Instant Credit Transfer (SCT Inst) scheme has been used in Slovakia, where three payment service providers (PSPs) have joined the scheme.
• The payment behavior of Slovaks was significantly affected by the COVID-19 pandemic. The market witnessed a growth in the volume of non-cash payments made at point-of-sale (POS) terminals in the last year, which increased by double-digits. As a result, the use of mobile cashless payments increased significantly. In 2021, the number of mobile payments increased by more than 100%; This has further increased the demand for mobile POS terminals in the market.

Slovakia POS Terminal Market Trends

Significant Rise in the Demand for Contactless and Mobile POS Terminals

• The growing usage of card payments in the country has increased the need for mobile point-of-sale platforms. Leading players in the market are launching android-based POS solutions that can change mobiles or tablets into POS systems. This, in turn, increases the ease of doing business for customers in modern retail stores.
• Companies like ComGate and Switchio are changing payment transaction standards and bridging the advantages of paying on the internet and in traditional brick-and-mortar shops. Their collaboration is also bringing the advantages of smart payment systems to a wide range of service providers, such as SMI, general contractors, self-employed individuals, and others.
• Kevin.com offers mobile POS NFC SDK, which enables account-to-account payments with an in-store POS terminal. The company further raised USD 65 million as it charges ahead on account-to-account payments over the point-of-sale terminal. Moreover, Kevin, account-to-account payments allow firms to avoid costly card systems. Merchants keep more revenues due to lower payment processing costs, giving them a competitive advantage.
• The widescale introduction of NFC-enabled devices in Slovakia is what popularized contactless payments for their ease of action. The mPOS with NFC is gaining popularity for easy and fast payments, leveraging NFC.
• The increase in internet services and bandwidth is also one factor leading to the rise in the demand for mPOS terminals across the country. For instance, In March 2022, O2 Slovakia expanded its 5G network by adding dozens of new places, including Kosice, Kezmarok, Poprad, Spisska Bela, Lipany, Svaty Jur, and Topolcany. According to Zive.sk, the operator now offers 5G services in 64 cities, towns, and villages.

Retail Sector Driving the Growth of POS Terminal Market

• The features provided by POS terminals, such as sales reporting, inventory, financial management, and customer analytics features, help merchants address client retention challenges. As a result, the demand for client retention and increased competitiveness in the market drive the rise of POS terminals.
• Taking advantage of the industry's expanding spectrum of digital solutions, several retailers have invested in high-tech improvements for their storefronts and expanded their multichannel offerings.
• 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 the CEIC data, Slovakia's retail sales increased 1.2% year on year in July 2022, compared to a 1.5% increase the previous month.
• Online shopping is becoming a more popular way to buy things in Slovakia. Alza.sk is the most significant player in the Slovakian eCommerce market. In 2021, the store earned USD 571 million. With USD 69 million and USD 54 million, alza.sk is followed by mall.sk and itesco.sk are the second-and third-largest retailers. The top three stores account for 50% of all online income in Slovakia.
• According to the PPRO, Czechia had the highest average online spending among Central and Eastern European countries in 2021, at USD 785. The average expenditure on online purchases in Poland exceeded USD 640, while Slovakia ranked sixth with USD 412.
• According to the International Trade Administration, eCommerce has been a rapidly increasing market in Slovakia over the last several years, with 51 percent of the population shopping online. In 2021, the number of eCommerce users in Slovakia was 2.8 million (more than half of the population), with a 12% increase to 3.1 million users by 2025.

Slovakia POS Terminal Industry Overview

The Slovakia POS Terminal Market is moderately competitive, with a considerable number of regional players. The companies leverage strategic collaborative initiatives, acquisitions, and product launches to increase market share and profitability.

• March 2022 - The Czechoslovak company Solitea acquired a majority share in the company Pay Solutions, developer of the online payment gateway Besteron. The payment gateway, which is used by over 1,500 e-shops, is further complemented by the payment services and business team of the company Tapeon, which intermediates contact and contactless payments through payment terminals in Slovakia, the Czech Republic, and Slovenia.

Slovakia POS Terminal Market Leaders

Slovakia POS Terminal Market News

• September 2022 - SumUp, a mobile point-of-sale (mPOS) company, has entered the business-to-consumer (B2C) arena with the launch of its first digital wallet and loyalty rewards program. SumUp Pay offers a secure payment option that combines a virtual Mastercard and an integrated reward program that supports local businesses to consumers across Europe.
• May 2022 - PayPal introduces a software point-of-sale (softPOS) solution in Slovakia and the remaining parts of Europe through Zettle that could help the company gain greater in-store volume. SoftPOS enables merchants to accept contactless payments using existing hardware, allowing them to meet changing consumer payment trends without incurring extra hardware costs.