Market Trends of UAE POS Terminal Industry
This section covers the major market trends shaping the UAE POS Terminal Market according to our research experts:
Retail Expected to Witness Significant Market Share
- The rising number of retail stores across regions attracts customers due to significant discounts and other services; however, customer retention becomes the primary challenge to sustain in the market. This competition increases the requirement to reinvent their business models to keep away from competition concerning price and find the balance between investing in the latest technologies and revenue.
- The growth of supermarket retailers globally has fueled the demand for mPOS solutions worldwide. According to a study by Visa, across the wider Middle East, North Africa, and South Asia region, the UAE showcased the highest annual spend per online shopper at USD 1,648. Visa transaction data further supported the observation, showing that the country continues to maintain a healthy lead in average transaction size compared to both mature and emerging e-commerce markets.
- The inventory, sales reporting, financial management, and customer analytics features, which POS terminals provide, assist the retailers in overcoming the problems related to customer retention. Hence, the requirement for customer retention and competition growth of the industry promotes the development of POS terminals.
- Further, mPOS systems are poised to be significantly utilized in the retail outlets to integrate core functions such as sales reporting, customer management, inventory management, and employee management under one system.
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Mobile/Portable Point-of-Sale Terminals Expected to Witness Significant Market Share
- A mobile point-of-sale (mPOS) system is a smarter alternative to the traditional POS. A mobile point-of-sale system allows users to accept payments via tablets and other handheld devices without being tied to a POS register in a single location.
- The transactions can include credit card magstripe reader payments and wireless payments. An mPOS system utilizes a mobile phone's data connection to process transactions.
- Mobile POS systems are gaining traction as they allow sales and service industries to conduct the transaction at the customer's location, adding flexibility to the whole process and improving the customer experience.
- The growth in e-commerce and the entangling of brick-and-mortar and online retail practices are also expected to affect the future development of the terminals. In fact, with the option of cash on delivery being provided by major e-commerce platforms, a sudden surge in the adoption of mobile POS terminals has been noticed.
- Toward the end of the forecast period, the segment is expected to multiply in market presence as vendors increase their relevant offerings and digitalization in response to the increased demand for contactless, ease-of-use payment methods. As mPOS solutions are designed for tablets instead of desktop computers, the trend for smaller and more portable devices may drive the market's growth.
