GrowinG demand for e-payment solutions
Ongoing drive for sophisticated systems continues to pave way for innovation
Droning tasks of entering information and physical cross-checking in commerce are almost obsolete. Convenience is the buzzword in today’s high-tech society, as automated systems take over most industries.
The first generation of input devices such as bar code readers and optical character recognition in routine chores have made a notable difference in the world of business and finance. But ongoing drive for sophisticated systems continues to pave the way for innovation, upgrades and novel gadgets.
With the UAE en route to become a smart nation with e-governance, several organisations are taking initiatives to introduce state-of-the-art schemes that comply with the concept and ensure a secure platform.
ENOC, for instance, introduced the Vehicle Identification Pass (ViP), an encoded electronic security tag that uses Radio Frequency Identification (RFID) technology to ease the process of refuelling cars. The system gives vehicle owners a convenient way to track their transactions and pay for purchases without the need to handle cash. KeyBS facilitates electronic payments on POS devices in over 5,000 terminals and dispenses e-vouchers related to pre-paid recharge cards. Telr, on the other hand, partners with banks in the UAE and across the Middle East to offer entrepreneurs a user-friendly platform to manage online payments via web and mobile.
As novel systems take over, the global market for Point-of-Sale (POS) terminals is on the rise. A report published by US-based Zion Market Research attributes this to the hike in e-commerce transactions that are driven by the widespread use of smartphone devices and tablets.
It further revealed that the market recorded a value of $45.9 billion in 2016, and is expected to grow to $98.3 billion by 2022, which would mark a compound annual growth rate (CAGR) of 13.5 per cent between 2017 and 2022.
More residents prefer cashless forms of payment, which could augment the demand for such systems. However, certain security concerns as well as the lack of awareness among small businesses may impact growth of the market.
According to the study, POS terminals market is dominated by North America and Europe, compared to Middle East, Africa, Latin America and Asia-Pacific. This is due to high adoption rate and demand from retail and hospitality sectors in the regions. But Asia-Pacific (including countries such as India and China), has high potential to grow at the fastest CAGR, thanks to its drive towards a cashless economy and government support towards digitalisation.