Global Contactless POS Terminals Market to Grow at a CAGR of 26% Through 2021, Reports Technavio
February 20 2017 - 12:43PM
Business Wire
Technavio market research analysts forecast the global
contactless point of sale (POS) terminals market to grow at a
CAGR of close to 26% during the forecast period, according to their
latest report.
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Technavio has published a new report on
the global contactless POS terminals market from 2017-2021.
(Graphic: Business Wire)
The market study covers the present scenario and growth
prospects of the global contactless POS terminals market for
2017-2021. The report also lists the retail and
hospitality sector as the two major end-user segments, of
which the retail sector accounted for over 66% of the market share
in 2016.
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Technavio’s sample reports are free of charge and contain
multiple sections of the report including the market size and
forecast, drivers, challenges, trends, and more.
Technavio hardware and semiconductor analysts highlight
the following three market drivers that are contributing to the
growth of the global contactless POS terminals market:
- Strong value position for users and
merchants
- Increasing awareness for contactless
payments and modes of payment
- Presence of large smartphone OEMs in
contactless payment software market
Strong value position for users and merchants
The contactless POS terminal is fast and reliable. The
time taken for a single transaction is much lesser than the
traditional chip and PIN method. The users have a higher value
addition as they do not need to key in the PIN in public or hand
the card to the POS operator. For the merchants, the value addition
lies in faster check out times. The merchants save time as more
customers can keep moving through the terminal faster. This also
helps in forming smaller queues in front of the payment
terminals.
According to Chetan Mohan, a lead analyst at
Technavio for computing devices research, “The contactless
POS terminal system was predominantly used for subways and other
forms of public transportation entry terminals in developed
countries such as the UK and Poland a few years back. The trend
soon caught on and got incorporated into the retail sector
and hospitality sector as well due to the significant value
addition for customers as well as merchants.”
Increasing awareness for contactless payments and modes of
payment
The increasing awareness about near field communication (NFC)
technology among merchants has resulted in the growing adoption
of NFC POS terminals and has, in turn, fostered the growth of the
global contactless POS terminals market. NFC POS terminals
help merchants attain operating cost benefits such as reduced cash
processing and more effective consumer engagement. Apart from
providing easy and quick transactions, merchants can employ NFC POS
terminals for loyalty programs, marketing, and providing
information about products customers are likely to purchase.
Therefore, these benefits associated with NFC POS terminals could
lead to an increase in their demand among merchants, increasing the
growth prospects of the market.
“With the increasing availability of smart
devices in the market, there will be a substantial increase in the
number of contactless mobile POS terminals as well,” says
Chetan.
Presence of large smartphone OEMs in contactless payment
software market
Leading smartphone OEMs like Apple and Samsung
have launched their very own contactless payment options. The
Apple Pay application uses the smartphone and the
smartwatch's inbuilt NFC technology to make contactless payments.
The Samsung Pay application on Samsung phones also uses a
similar NFC technology. However, unlike NFC-enabled cards that do
not require authentication, Apple Pay and Samsung Pay have the
option to enable fingerprint or password authentication before
making the transaction.
Apple Pay and Samsung Pay use the credit cards, debit cards, and
other payment data from the e-wallets or any bank and use the NFC
technology to make the transaction at the contactless NFC-enabled
POS terminal. Currently, Samsung Pay is available only in the US
and South Korea. Samsung Pay uses the debit or credit card details
of any bank that need to be stored and set up, and it uses the NFC
technology to make the transactions at NFC-enabled POS terminals.
Google had introduced this feature in 2011 for NFC-enabled Android
phones.
Browse Related Reports:
- Global EMV PoS Terminals Market
2017-2021
- Global Mobile EMV PoS Terminals
Market 2016-2020
- Global mPOS Market
2016-2020
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About Technavio
Technavio is a leading global technology research and
advisory company. The company develops over 2000 pieces of research
every year, covering more than 500 technologies across 80
countries. Technavio has about 300 analysts globally who specialize
in customized consulting and business research assignments across
the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
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modeling tools and proprietary databases. They corroborate this
data with the data obtained from various market participants and
stakeholders across the value chain, including vendors, service
providers, distributors, re-sellers, and end-users.
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