Saudi Arabia PoS Terminal Market

Saudi Arabia PoS Terminal Market Size and Share:

The Saudi Arabia PoS terminal market size was valued at USD 1098.00 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 2538.70 Million by 2033, exhibiting a CAGR of 9.80% from 2025-2033. The increasing digital payment adoption, government initiatives promoting cashless transactions, rapid retail and e-commerce expansion, rising smartphone penetration, financial sector reforms, growing tourism demand, advancements in NFC and biometric authentication, and the adoption of artificial intelligence (AI) driven analytics are some of the major factors positively impacting Saudi Arabia PoS terminal market share.

The market is experiencing substantial growth due to the increasing digitization of payment systems, which is accelerating the shift toward cashless transactions. Moreover, the rapid expansion of the retail and e-commerce sectors is necessitating advanced and secure payment solutions. According to industry reports, the Saudi Arabia e-commerce market will grow at a compound annual growth rate (CAGR) of 12.8% from 2025 to 2033, reaching USD 708.7 Billion in 2033. The growth of e-commerce in the country further increases the demand for PoS terminals. Furthermore, a significant Saudi Arabia PoS terminal market growth driver is the rising penetration of smartphones and internet connectivity. This propels consumer preference for digital payments, thereby prompting businesses to integrate PoS systems for seamless transactions.

Additionally, financial sector reforms and policies encouraging financial inclusion are increasing the adoption of electronic payment methods, particularly among small and medium-sized enterprises. The integration of cutting-edge technological advancements such as near-field communication (NFC) and biometric authentication, is further strengthening the security and efficiency of payment processing, fostering market expansion. According to an industry report, nearly 94% of people use contactless payments, especially those made via near-field communication (NFC). Apart from this, the expanding tourism and hospitality sectors, primarily stimulated by religious tourism in Mecca and Medina, are demanding sophisticated and multilingual payment systems, thereby fueling the Saudi Arabia PoS terminal market demand. Also, the high acceptance of contactless payments among consumers as the demand for more hygienic and convenient payments has been rising across the globe since the pandemic, which is also accelerating market growth.

Saudi Arabia PoS Terminal Market Trends:

Growth of Soft PoS and Mobile PoS Solutions

The increasing adoption of software-based PoS (soft PoS) and mobile PoS (mPoS) solutions is transforming the Saudi Arabia PoS terminals market outlook. Businesses are shifting from traditional hardware-based PoS systems to smartphone-enabled payment solutions, allowing merchants to accept digital transactions using only one application. On February 4, 2024, PayTabs Group announced a partnership with Nearpay to enhance their Soft POS payment services. This collaboration integrates Nearpay's 'Tap to Phone' technology into the PayTabs Touch application, enabling merchants to accept contactless payments via smartphones and tablets. The initiative aims to streamline payment processes and provide a secure, modern payment option for businesses and customers across Jordan and other markets in the region. This trend is particularly beneficial for small businesses, street vendors, and e-commerce deliveries, reducing hardware costs and improving payment flexibility. The increasing use of QR code-based payments and tap-to-phone technology is also driving demand, supported by banks and fintech companies developing cost-effective solutions. The regulatory push for cashless transactions is further accelerating this shift.

Increasing Adoption of Biometric Authentication in PoS Transactions

According to the Saudi Arabia PoS terminal market research report, the adoption of fingerprint scanning, facial recognition, and voice authentication is improving transaction security while enhancing the customer experience. Therefore, biometric authentication is becoming a key security feature in the market. Banks and payment service providers are integrating biometric PoS systems to comply with anti-fraud regulations and know your customer (KYC) requirements. This technology is particularly gaining traction in high-value transactions and financial institutions, reducing dependency on PINs and passwords. For example, on October 23, 2024, BMA International, a fashion retail company operating in the Middle East and Asia, including the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE), Bahrain, Oman, Kuwait, and Qatar, announced the deployment of over 1,100 HID DigitalPersona 4500 fingerprint readers across retail outlets in the Middle East, effectively eliminating nearly all point-of-sale fraud and abuse. This biometric system requires floor supervisors to be physically present for authentication, enhancing accountability and improving attendance and punctuality.

Rising Demand for Integrated PoS Systems with Business Analytics

Businesses in Saudi Arabia are increasingly adopting PoS terminals. According to an industry report, on the last week of December 2024, Saudi Arabia's PoS usage increased by 17.2 percent, with a weekly increase in point-of-sale transactions to USD 3.6 Billion. The need for automation, omnichannel commerce, and seamless digital transformation across industries drives this Saudi Arabia PoS terminals market trend. Additionally, the advancements in analytics and cloud-based capabilities enhance operational efficiency. Customer relationship management (CRM), inventory management, and other systems are integrated with these platforms, and real-time sales tracking, providing businesses with data-driven insights. Restaurants, retail stores, and service providers are leveraging artificial intelligence (AI) driven PoS solutions to analyze customer preferences, optimize stock levels, and improve marketing strategies.

Saudi Arabia PoS Terminal Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia PoS terminal market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type and end use industry.

Analysis by Type:

• Fixed Point-of-Sale Systems
• Mobile/Portable Point-of-Sale Systems

Point-of-sale (PoS) fixed systems are used widely in the retail and hospitality sectors of Saudi Arabia, providing a stable and efficient solution for high-transaction-volume businesses. These are mostly hardware systems consisting of a combination of components such as barcode scanners, registers and receipt printers, are used in supermarkets, malls, and large restaurants for their reliability and comprehensive functionality. As the Saudi government pursues a cashless economy through Vision 2030, cash-intensive PoS solutions have increasingly been adopted to increase the efficiency of transactions, improve the management of inventories, and better customer service. Fixed PoS integrates with ERP-based software, facilitating streamlined operations to adhere to regulations from the ZATCA. The Saudi business is modernizing further, yet fixed PoS remains a primary need for a merchant who necessitates a sound, secure, and data-driven way to optimize its sales process in the Saudi region.

Mobile and portable PoS systems have gained significant traction in Saudi Arabia, driven by the growing demand for flexibility and digital payment solutions. Typically operating on a smartphone or a tablet, these systems enable businesses to process transactions in any location, thus perfect for small retailers, food trucks, delivery services, and pop-up stores. The rapid expansion of e-commerce, contactless payments, and fintech innovation in Saudi Arabia accelerates the adoption of mobile PoS devices, allowing businesses to provide seamless and convenient payment experiences. Also, due to their affordable prices and usability, these products are more attractive to SMEs looking for opportunities to provide their customers with added convenience without any sophisticated infrastructural investments. As digital transactions continue to rise, mobile PoS systems play a crucial part in shaping the future of Saudi Arabia’s payment ecosystem.

Analysis by End Use Industry:

• Retail
• Hospitality
• Healthcare
• Others

The retail sector in Saudi Arabia contributes significantly to the PoS terminal market as it requires efficient, secure, and compliant payment solutions to compete with the stiff competition in supermarkets, hypermarkets, fashion, and convenience store chains. The government's push for digital payments under Vision 2030 and the high usage of the Saudi Payments' Mada system hastens the deployment of PoS. Advanced features like contactless payments, e-invoicing compliant with ZATCA regulations, and integration with loyalty programs also benefit retailers. With e-commerce and omnichannel shopping developing, the PoS solution evolves to have an efficient way of handling smooth online and offline transactions that keep retail experiences seamlessly effective in every region of the Kingdom. 

The hospitality industries, ranging from hotels or restaurants to restaurants and cafeterias, require PoS terminals to enhance operational efficiency and improve customer service. With the growth of tourism, especially driven by Vision 2030 initiatives, businesses are investing in modern PoS solutions to facilitate smooth, fast, and secure transactions. These terminals are integrated with reservation and inventory systems, which help manage orders, track sales, and process payments seamlessly. Contactless and mobile PoS systems are becoming increasingly popular in restaurants and hotels to enhance convenience and cater to tech-savvy consumers. With the increasing growth in the tourism and hospitality sector in Saudi Arabia, PoS will be crucial in providing an uninterrupted and smart customer experience.

The healthcare industry in Saudi Arabia is rapidly turning digital, with PoS terminals helping to improve the processing of payments for hospitals, clinics, and pharmacies. PoS systems help medical facilities manage transactions efficiently while ensuring compliance with local regulations. Contactless and mobile PoS terminals provide patients with convenient payment options, reducing wait times and enhancing service quality. In addition, PoS integration with electronic health records (EHR) and billing systems allows seamless financial management. As healthcare infrastructure expands under Vision 2030, the demand for secure and efficient PoS solutions will continue to grow, supporting the Kingdom's digital transformation in medical services.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The Northern and Central regions, especially Riyadh, are the economic and financial center of Saudi Arabia. The region, particularly Riyadh, has a dense concentration of businesses, shopping malls, government institutions, and corporate offices that require the most advanced payment solutions. This widespread usage of retail, hospitality, and healthcare by the PoS systems is enabled by strong digital infrastructure and governmental cashless promotions. The rapid development of a fintech ecosystem, along with a regulatory push towards e-invoice compliance, accelerates further PoS adoptions. Increased adoption and deployment of fixed as well as mobile PoS in these businesses and consumers directly aid the nation's Vision 2030 plan.

The western region is also a key area for the Saudi PoS terminal market as it houses Jeddah, Makkah, and Madinah, where the tourism and hospitality sectors are thriving. Jeddah, which is a business and trading center, experiences significant volumes of transactions in the retail, dining, and entertainment sectors. This will increase the need for effective PoS systems. Makkah and Madinah, as religious tourism centers, host millions of pilgrims every year, and businesses need to adopt fast, reliable, and multilingual payment solutions. The growth of e-commerce, digital wallets, and contactless payment methods further fuels the adoption of PoS in the region.

The Eastern region, including Dammam, Al Khobar, and Dhahran, is an important industrial and commercial center with a strong demand for PoS terminals. This region has Saudi Arabia's oil and gas industry, huge business districts, and an expanding retail and hospitality sector. High consumer spending combined with a population that is more tech-savvy than in other parts of the world has driven digital payment and advanced PoS adoption. International businesses and expatriate communities increase the need for multi-currency and contactless payment options, and loyalty programs and ERP integration are essential for enterprise business in this region.

The Southern region, comprising Abha, Jazan, and Najran, has been steadily increasing its adoption of PoS terminals, with retail, tourism, and government investment expanding. As infrastructure development continues and tourism initiatives promote the region's scenic landscapes, the demand for modern payment solutions is increasing. The rise of small and medium-sized enterprises (SMEs) in retail and hospitality further boosts the need for affordable and mobile PoS systems. Moreover, government efforts to digitize financial transactions are encouraging local businesses to shift towards cashless payments. Although the market is still developing compared to other regions, the increasing penetration of digital payment solutions is positioning the Southern region as an emerging growth area in the Saudi PoS terminal market.

Competitive Landscape:

According to Saudi Arabia PoS terminal market analysis, the market is dynamic and competitive due to the growth in digital payments and the implementation of government initiatives toward a cashless economy. Market participants highly focus on technological advancements and innovations in solutions such as contactless, biometric, and cloud-based to improve the safety and efficiency of transactions. With an increased preference for integrated payment ecosystems, financial institutions, fintech firms, and retail businesses form strategic partnerships. For instance, on October 24, 2024, NARD POS and MyFatoorah announced a strategic partnership to upgrade retail payment solutions in Saudi Arabia. The collaboration aims to integrate NARD POS's cloud-based retail management systems with the payment processing capabilities of MyFatoorah to offer merchants unified sales operations, inventory control, e-invoice issuance, and multiple payment options. The expansion of mobile PoS solutions and demand for sector-specific features, such as real-time analytics and inventory tracking, further intensify competition. The increasing penetration of PoS terminals in SMEs and the hospitality sector results in players innovating to present cost-effective, scalable, and secure payments.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia PoS terminal market with detailed profiles of all major companies.

Latest News and Developments:

• November 19, 2024: Tarabut, the regulated open banking platform in the MENA region, and Geidea, one of the major providers of POS payment solutions in Saudi Arabia, signed a Memorandum of Understanding to investigate and create customized finance options for Saudi Arabia's small and medium-sized businesses. This partnership is aimed at filling the massive financing gap that SMEs in the Kingdom currently face, amounting to more than SAR 300 Billion for approximately 1.3 Million SMEs.
• October 2, 2024: One of the world's top suppliers of cloud-native enterprise-class point-of-sale (POS) systems, TRAY, has extended its collaboration with Alraedah Finance, a Saudi company, to include a sizeable financial commitment to improve TRAY's POS system and assist enterprise clients. Alraedah Finance subsidiary Alraedah Digital Solutions will provide knowledge of product development, data analytics, and third-party integrations. The goal of this partnership is to offer cutting-edge point-of-sale (POS) solutions to small and medium-sized businesses as well as bigger enterprise clients throughout the Middle East and North Africa region.
• December 10, 2024:  The Saudi Central Bank (SAMA) announced the launch of Samsung Pay through the national payment system, mada, in Saudi Arabia. This is set to enhance financial inclusion further and increase the spread of fintech across the Kingdom. Samsung Pay allows digital payments with NFC-enabled POS, allowing consumers to make contactless transactions using their smartphones. Also, it offers users an advanced and secure payment experience.
• January 19, 2025: the Saudi Central Bank (SAMA) announced a strategic partnership with Google to introduce Google Pay in Saudi Arabia by 2025. This collaboration will integrate Google Pay with mada, a national debit card network that links all of the Kingdom's point-of-sale (POS) terminals and ATMs. This partnership aims to accelerate the adoption of digital payments and reduce reliance on cash.

Saudi Arabia PoS Terminal Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia PoS terminal market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia PoS terminal market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia PoS terminal industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.