Market Trends of Malta POS Terminal Industry
This section covers the major market trends shaping the Malta POS Terminal Market according to our research experts:
Rise in the e-commerce sector and rapid urbanization rate has driven the need of POS Terminals in Malta
- In the current market scenario, Malta is facing a high rise in the e-commerce sector, especially due to the rise in the various e-commerce startups and companies. This is one of the primary reasons for the enhancement of the market growth in the region. These startups and companies are taking various approaches to innovate the e-commerce industry. Companies across the size spectrum ranging from cutting-edge startups to established brands, are known for exceptional performance in factors like innovation, innovative ideas, innovative products, exceptional growth strategy, management, etc.
- Moreover, Malta has achieved considerable progress in developing an ICT-oriented society. It performs much better than the average of the EU in terms of broadband connectivity and internet usage. Moreover, Malta is the only Member State in the EU with full coverage of very fast broadband, with subscriptions to such services growing yearly.
- According to the Digital Economy and Society Index (DESI) 2022, Malta remains one of the top-performing countries in broadband connectivity and the provision of digital public services. Also, it is one of the most advanced Member States on total VHCN coverage (all with more than 90% of homes covered). In addition, in the area of digital public services, Malta has one of the highest scores for digital public services. Hence with the rise in digital public services, the market is expected to face various lucrative growth opportunities in the upcoming days.
- On the other hand, the overall economic power of Malta is in a rising state. The aggregate value of all services and goods produced within the country every year is rising steadily. According to IMF, in 2021, Malta's gross domestic product amounted to around 17.2 billion U.S. dollars, whereas it was 14.91 billion U.S. dollars in 2020. This rise in the GDP will impact the POS terminal market positively and will enhance the overall growth rate of the market.
- Furthermore, the share of the urban population in the total population in Malta is quite huge. As per World Bank, in 2021, 94.81% of Malta's total population lived in urban areas and cities, which shows a greater degree of urbanization in Malta in the year 2021. This greater degree of urbanization has propelled the need of POS terminals and acts as one of the key drivers of market growth, and hence the market is going to have a positive impact due to this.
Understand The Key Trends Shaping This Market
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Rising adoption of innovative payment options by the small retailers
- The financial sector is one of the fastest growing sector of the entire Maltese economy. The country is internationally recognized as a world-class center for blue chip banks, investment houses, and fund managers. Malta has a set of comprehensive laws and restrictions that mostly regulate financial services and provide a favorable regulatory & legal framework for the provision of such services. This indicates the government's commitment to supporting and sustaining development in the sector.
- On the other hand, the small retailers and trading companies in Malta have adopted a wide range of innovative payment options like third-party payment apps (e.g., Paypal, Revolut, etc.); Virtual Currencies, Credit cards (Visa, Mastercard, etc.); Debit cards (Quikcash, Cashlink, etc.)
- According to The Internet & eCommerce Use by Business Survey 2021 survey, it has been found that out of various payment methods offered to online customers, around 59 % of the respondents use third-party payment apps (e.g., Paypal, Revolut, etc.). A total of 431 businesses across Malta and Gozo were interviewed in the survey. The survey was conducted to assess the level of digitalization amongst the local business community as it makes headway in its journey of digital transformation. The sample population was stratified proportionately among fourteen business sectors based on the actual number of registered companies in each sector.
- The Maltese retail distribution sector is primarily made up of small local retail stores and street vendors. However, entry into the EU and the overall adoption of the Euro have changed the face of traditional local retailing and have paved the way for large European retailers and franchises to expand on the islands. This rise in the number of retailers will influence the market growth in a positive manner and will help the market to grow in the future.
- For instance, as per Eurostat, in 2022, there were around 33,442 SMEs operating in Malta, with the majority of these (30,903) being micro-sized enterprises which employed between zero and nine people. Additionally, there were approximately 2,154 small businesses, which had between 10 and 49 employees, and 386 medium-sized businesses.
