Cyprus POS Terminals Market

Cyprus POS Terminals Market Analysis

The Cyprus POS Terminals Market is expected to register a CAGR of 13.6% during the forecast period.

• The POS terminals market in the country has been witnessing a rising trend in demand for POS terminals, owing to the increasing shift towards contactless payments, widespread adoption of POS terminals among the retail sector, and the government's efforts to increase the use of card-based payments.
• The government efforts further support the growth of POS terminals. For instance, in June 2021, the Cyprus Ministry of Finance issued a Decree imposing the obligation to accept payment means by card on specific categories of businesses that carry out economic activities in Cyprus. The Decree determines that the terms 'POS' (Point Of Sales) terminals and 'card-based payment means' for the imposed obligation include devices such as wired and wireless POS terminals, mobile POS terminals, methods and applications such as virtual POS terminals which can be used for the acceptance of cards, with and without the physical presence of a card, meaning distance sales.
• The finance ministry's Decree will increase the widespread adoption of wired, wireless POS terminals and mobile POS terminals in various end-user industries, such as retail and hospitality, to accept card-based payments, thus positively impacting the market's growth.
• In addition, high internet penetration has resulted in the widespread adoption of contactless card payments in the region, supported by market vendors' mobile POS solutions. For instance, according to the Kepios Analysis data, Cyprus's internet penetration rate stood at 91.0% of the total population at the start of 2022.
• The Covid-19 pandemic acted as a catalyst for digital payments and the acceleration of POS terminals in the country. The use of cards as a payment form instead of cash or performing contactless payments has been widely observed and experienced, thus boosting the adoption of POS terminals in businesses to provide a wide range of digital payments during the pandemic.

Cyprus POS Terminals Market Trends

Mobile/Portable Point-of-sale Systems are Expected to Hold the Largest Share

• Mobile/Portable POS systems are increasingly becoming popular in the country owing to the increasing adoption among small and medium-sized businesses. These systems enable merchants and restaurant owners to accept and process payments on the go. With an mPOS system, Merchants can use their smartphones or tablet as a register.
• High internet and smartphone penetration have further boosted the adoption of mobile POS terminals across the country. The use of smartphones in payment terminals gives tremendous flexibility to users and enables businesses to speed up checkout and accept contactless payments.
• For instance, according to the data from GSMA Intelligence, there were 1.78 million cellular mobile connections in Cyprus at the start of 2022. The numbers indicate that mobile connections in Cyprus were equivalent to 145.8% of the total population in January 2022.
• Market vendors in the region started offering convenient mobile POS terminal solutions that make it easy for customers to transact while ensuring operational efficiency for the merchants. In addition, market vendors are offering flexible mPOS solutions that can provide value-added for merchants of various industries, thus driving the growth of mobile or portable POS terminals in the country.
• In addition, boosting the adoption of cardless payments will further strengthen demand for mobile POS terminals in the country, which is further supported by the country's government efforts. For instance, in June 2021, the Finance Ministry of Cyprus issued a decree obliging companies in Cyprus operating in the service sector and retail trade to accept payments via cards as of 20 September 2021. In particular, companies in Cyprus will need to install wireless and wired POS, mobile POS, and virtual POS terminals. And they should accept card payments issued by a four-way payment system such as VISA, MASTER CARD, MAESTRO, and UNION PAY.

Retail Segment is Expected to Gain Significant Traction

• The retail segment in Cyprus' POS terminals is expected to hold a significant share as retailers across the country have started embracing POS solutions in their retail stores to offer consumers a wide range of payment solutions. Further, modern POS terminals accept a growing range of preferred payment systems, thus enabling the strong need for POS solutions in the retail sector.
• In addition, the adoption of POS solutions gives merchants access to innovative payment platforms without requiring any investment or new hardware thus, boost the adoption among retail businesses across the country.
• Further, growth in supermarkets and grocery stores coupled with increased retail sales will foster the demand for POS terminals in the retail sector. For instance, as per data from the Statistical Service of the Republic of Cyprus, the retail trade value index in the country increased from 127.7 points in March 2022 to 144.1 in Aug 2022. The year 2015 has been taken as the base year used to calculate the index value.
• In addition, POS solutions for retail businesses can provide a safe and sustainable alternative to cash and allow merchants to digitalize effectively, offer more payment options to their customers, and ultimately grow their businesses. Market vendors in the region are capitalizing on the opportunity and started offering innovative POS terminals for retail payments. Such instances are expected to enhance the adoption of POS terminals in the retail segment over the forecast period.

Cyprus POS Terminals Industry Overview

The Cyprus POS terminal market is moderately consolidated with the presence of major players such as VeriFone Inc., Pay Xpert, and DATECS Ltd., among others. The market vendors in the country are offering advanced POS solutions providing value to consumers and merchants and are indulging in strategic partnerships and acquisitions to gain more market presence in the region.

• October 2021 - JCC Payment Systems Integrated Phos' SoftPoS Into New App for Cypriot Retail Merchants. The solution requires no additional hardware to establish and can be integrated across many Android devices. Once the start-up is complete, merchants can quickly start accepting and processing cashless payments; while also adhering to the Cypriot government's new mandate.

Cyprus POS Terminals Market Leaders

Cyprus POS Terminals Market News

• June 2022 - Fintech startup Vibrant announced raising EUR 4 million in seed funding for its Android smartphone app, allowing small business owners and merchants to turn their phones into point-of-sale (POS) payment systems. The company will use this latest round of funding to consolidate our position in our current markets of Denmark, Norway, Spain, Greece, and Cyprus while launching our app in Germany and Italy.