Estonia POS Terminal Market

Estonia POS Terminal Market Analysis

The Estonia POS Terminal Market is expected to register a CAGR of 14.3% during the forecast period.

• Estonians rank highly for their use of cards and other non-cash payments because of their literacy in digital payments and the broad acceptance and use of cards without minimum thresholds. In the early 1990s, we built our financial and payment infrastructure from scratch using the best technologies available.
• Estonia is set out to become a digital nation where banks act as fintechs, advancing digital payment solutions and building up high expectations among payment service users.
• The efforts by the European Commission to simplify the payment acceptance facilities of merchants are also triggering the market's growth. Till 2023, as part of the retail payments strategy, the European Commission has an action plan to support the modernization and simplification of EU merchants' payment acceptance facilities. This support could be achieved by guidance and awareness-raising amongst national retailers.
• However, the country's sharp decline in birth rate has been the topic of discussion. According to IMF, the country's population is forecasted to remain at 1.33 million by 2027. The decline in population can have a negative impact on the long term usage of POS Terminals market.
• The move to a cashless society was in full swing before COVID-19. However, the perceived risk of infection accelerated it via hard currency. Before the pandemic, cash accounted for around 44% of in-store payments in Europe, according to Worldpay's Global Payments Report. Already being a digitally fueled economy, the country witnessed a significant surge in demand for PoS Terminals.

Estonia POS Terminal Market Trends

Retail Segment to Hold Significant Market Share

• Estonia's retail sector began to develop after regaining independence in 1991. Several retailers dominate the market today. Estonia has one of Europe's highest stock levels per capita shopping centres per capita. Despite the high retail floor space supply, the market is strong, and there are expected vacancy levels.
• The development of modern shopping centres is concentrated in the capital, Tallinn. However, similar centres are found in most major secondary cities, such as Tartu, Narva, Parnu, Rakvere, Jofvi, and Viljandi. Such developments, coupled with the digital economy, are boosting the demand for PoS terminals in the Estonian market.
• The country is also witnessing a significant rise in fashion and clothing retail stores compared to other segments. According to a survey by Retail-Index, the country in 2021 had 14 fashion retail chains and nine food and consumer electronics retail chains.
• According to the Organization for Economic Co-operation and Development, the country registered an 11.8% year-on-year growth in the retail sector in 2021. The steady growth in the retail sector has a direct positive influence on the deployment of POS Terminals across the country.

Healthcare Segment to Exhibit the Significant Growth Rate

• About three decades after reobtaining independence, Estonia underwent radical economic reforms and widespread privatization. Successful monetary reform and the union with NATO and the EU led to further economic viability.
• Over the years, the country has witnessed a significant increase in healthcare expenditure as a share of GDP. For instance, according to the Organization for Economic Co-operation and Development, the country's healthcare expenditure crossed 8% in 2020 while it remained at 6-7% until 2019.
• Moreover, the rising GDP of the country is also expected to increase healthcare spending, which in turn is driving the demand for the implementation of POS terminals in the studied segment. According to IMF, the country is expected to have a GDP of USD 53.75 billion by 2027.
• Earlier, the Global Innovation Index ranked Estonia as an emerging European leader in terms of creativity, knowledge, and technology. Such instances are only expanding the country's healthcare domain, directly resulting in more sales of PoS terminals across the nation.

Estonia POS Terminal Industry Overview

Estonia Point Of Sale Terminals Market is consolidated with a few major players occupying most of the market share. Investments in partnerships and alliances are expected to be some of the strategic focus of vendors operating in the market. In addition, the vendors in the market are focusing on expanding their presence in the region to gain new customers.

• 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.

Estonia POS Terminal Market Leaders

Estonia POS Terminal Market News

• 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.