Middle East and Africa Point of Sale Market: Trends, Growth, and Opportunities
The Middle East and Africa Point of Sale Market is undergoing a significant transformation as businesses across the region increasingly shift from traditional cash-based transactions toward modern, technology-driven payment systems. Point of Sale (PoS) systems, which combine hardware and software to facilitate sales transactions, inventory management, and customer relationship functions, have become essential tools for retailers, restaurants, and service providers throughout the Middle East and Africa. As digital transformation accelerates and consumers demand faster, more secure, and more convenient payment options, the PoS market in this region is positioned for robust expansion in the coming years.
Market Size and Growth Trajectory
According to Fortune Business Insight, the Middle East and Africa Point of Sale (PoS) market is projected to grow at a compound annual growth rate (CAGR) of 16.8% during the forecast period of 2023 to 2030. This growth rate places the MEA region among the fastest-expanding PoS markets globally. According to Fortune Business Insight, the global market for PoS systems as a whole is projected to grow from USD 25.28 billion in 2022 to USD 81.15 billion by 2030, underscoring the scale of transformation happening across the payments landscape worldwide, with the Middle East and Africa contributing meaningfully to this expansion.
According to Fortune Business Insight, the Middle East and Africa region is projected to retain the second-highest CAGR among other regions during the forecast period, reflecting the pace at which businesses in this region are adopting electronic payment infrastructure. This growth is not uniform across the entire region; rather, it is concentrated in more developed and urbanized economies where digital infrastructure and consumer readiness are further along.
Regional Adoption Patterns
The adoption of electronic payments is increasing steadily, particularly in urban centers and more developed economies such as the United Arab Emirates and South Africa. These two markets have emerged as regional leaders, driven by strong banking infrastructure, high smartphone penetration, and government-led initiatives promoting cashless economies. Despite this progress, the broader region continues to face challenges such as limited infrastructure in less developed areas, which can slow the pace of PoS adoption. Nevertheless, the market is expected to continue growing at a healthy rate, propelled by ongoing economic development and digital transformation initiatives across MEA countries.
Key Trends Shaping the Market
One of the most notable trends influencing this market is the surging integration of digital wallets. PoS systems across the region are increasingly being integrated with popular digital wallet platforms such as Apple Pay, Samsung Pay, and Google Pay. This integration allows customers to complete purchases directly from their mobile devices, while also enabling merchants to offer loyalty programs and rewards to digital wallet users. A notable example of this trend is the partnership between UAE-based payment provider Network International and Samsung Pay, which enabled merchants to accept Samsung Pay transactions. Many leading players in the market are pursuing similar digital wallet integrations as a strategic move to enhance the customer experience and maintain competitiveness in an increasingly crowded marketplace.
Driving Factors
High mobile penetration stands out as a primary driver fueling market growth. According to Fortune Business Insight, the mobile internet user count in the Middle East and Africa region has surpassed 300 million and is projected to reach 50% population penetration. The Gulf Cooperation Council (GCC) Arab states demonstrate the highest concentration of mobile internet users within the region, although lower adoption rates in other areas highlight the ongoing need to bridge the digital divide and bring offline populations into the digital economy. This dynamic presents a significant opportunity for PoS providers to develop mobile-based payment solutions tailored to underserved markets, further expanding the region's overall market share.
Restraining Factors
Despite the positive growth outlook, the market faces certain restraints. In various parts of the region, a considerable number of consumers still prefer cash transactions over digital payment methods such as wallets and cashless transfers. This preference is largely attributed to a lack of trust in digital payment systems, which are sometimes perceived as less secure and more susceptible to fraud. This trust deficit, particularly in areas where cash remains the dominant form of payment, may continue to impede faster adoption of PoS and digital payment solutions in certain markets.
Competitive Landscape
The Middle East and Africa Point of Sale market is characterized by a consolidated group of leading players, including Network International LLC, Intellect Design Arena Ltd., Foodics, POSRocket, and Kopo Kopo. According to Fortune Business Insight, these key players are actively expanding their product portfolios by deploying advanced PoS terminals equipped with compliant features such as ERP modules and inventory management capabilities. Companies are pursuing growth through mergers, acquisitions, product launches, collaborations, and strategic partnerships to strengthen their market position.
Several notable industry developments illustrate this competitive activity. Intellect Design Arena Ltd. launched a cloud-based, in-store PoS solution for the MEA region, aimed at revolutionizing the retail experience across hypermarkets, fashion outlets, and supermarkets through a microservices-based, cloud-native architecture. Dukkantek, a UAE-based store management platform provider, raised significant funding to expand its business across Europe and the Middle East and Africa. Additionally, Foodics, a Saudi Arabia-based restaurant technology provider, acquired POSRocket to strengthen its ecosystem for managing payments and infrastructure.
Conclusion
The Middle East and Africa Point of Sale market presents a compelling growth story, driven by rising mobile penetration, growing digital wallet adoption, and increasing demand for modernized payment infrastructure. While challenges such as limited trust in digital payments and infrastructure gaps persist in certain areas, the overall trajectory points toward sustained expansion through 2030. As key industry players continue to innovate and expand their offerings, businesses across the region stand to benefit from more efficient, secure, and customer-friendly point-of-sale solutions.
Source:https://www.fortunebusinessinsights.com/middle-east-and-africa-point-of-sale-pos-market-107524