Market Trends of Slovakia POS Terminal Industry
This section covers the major market trends shaping the Slovakia POS Terminal Market according to our research experts:
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.
Understand The Key Trends Shaping This Market
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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.
