NFC POS Terminal Market Size, Industry Outlook, Regional Analysis, Application Development, Competitive Landscape & Forecast, 2021 – 2027
Report ID: GMI1354
NFC POS Terminal Market size is anticipated to witness growth opportunities over the forecast timeframe. Growing usage of NFC-enabled smartphones and emergence of mobile wallet services would be major drivers for the industry growth. Technological substitutions for ticketing in transportation, such as NFC-based mobile ticketing and contactless smart cards, are further driving the growth of NFC POS terminal market.
An increase in the penetration of NFC-based mobile handsets is one of the prime reasons contributing to the NFC POS terminal market growth. Growing usage of NFC-enabled smartphones is likely to boost the use of NFC POS terminals for payments and digital exchange in transportation, retail, and healthcare industries. Usage of NFC payment infrastructure and popularity of NFC as a preferred payment mode for customers globally are pushing the NFC POS terminal market.
Value added services in POS terminals, such loyalty cards and coupons, will ensure customers a seamless experience thus driving the NFC POS terminal market. The availability of NFC technology and its incorporation into smartphones and POS terminals will help in achieving the benefit of access control and ticketing. Modernized POS terminals can calculate the best ticketing fare based on travel length, discounts, and prior journeys thus resulting in many benefits for customers as well as transport authorities.
NFC POS terminal market is witnessing an increase in the penetration of NFC POS terminals in the transportation sector for ticketing transactions. The inclination of customers towards the use NFC-enabled smart cards in automated fare collections is likely to boost the NFC POS terminal market growth. The NFC technology helps in achieving the short-range communication between electronic devices thus having a high compatibility with fare collection platforms. In comparison to its alternatives, NFC technology provides a high degree of customer satisfaction and experience as it is fast and helps in fast-tracking connections thereby escalating the demand for NFC POS terminal market.
An increase in the adoption of electronic payment systems in emerging countries fuel NFC POS terminal market. However, markets in developed countries are saturated due to the prior installations of NFC POS terminals. The use of NFC payment solutions and its growing popularity as an ideal payment mode by customers globally are driving the NFC POS market. The pay by phone trend by NFC compatible phones is pushing the adoption of NFC handsets among consumers thus speedily driving the roll-out of NFC POS terminals in various market sectors such as vending and parking.
A trend boosting the NFC POS terminal market is the adoption of contactless payment cards known as smart cards, which are embedded with chips and are encrypted with data. The data stored on these cards can be read by EMV-enabled POS terminals. In these devices, the transaction takes place with the help of NFC technology, which is also present in smartphones and smartwatches. The contactless cards when placed near the POS systems can accept payments within seconds thus making it easy for customers to make payments using NFC technology and thereby propelling the NFC POS terminal market.
Card issuing banks in many countries have gradually started to issue contactless cards in high numbers. There are a reasonable number of customers, who possess a contactless card and can use them, which makes it clear that NFC has a significant role in mobile wallet services thus propelling the NFC POS terminal market.
Ease of using NFC POS terminals with the existing infrastructure is preventing the further need of investments. The high cost of these solutions is expected to pose a challenge and thus hinder the growth of the NFC POS terminal market. While the installed NFC POS terminals are growing rapidly over the timeframe, the contactless technology has not been activated or is instantiable in many cases.
The upgrading of the magnetic stripe to EMV is due to the legal shift. The expansion of NFC POS terminal market is an indication that retailers are looking to provide convenience to customers. Payments using smartphones are slowly getting acceptance from customers and retailers due to the mobile payments solutions such as Android Pay, Apple Pay, and Samsung Pay. The capabilities of NFC POS terminals are not only affecting the financial ecosystem but also other important business aspects, such as marketing and customer services, making NFC POS terminal an attractive market.
North America and Europe NFC POS terminal markets were introduced with Apple Pay in 2015. It was launched by Apple to make it possible to pay for goods and services by tapping one’s iPhone, iPad, or Apple Watch to a card reader. This could be possible if the customer was banking with a bank, which supports Apple Pay thus escalating the NFC POS terminal market demands. Furthermore, Android Pay and Samsung Pay were introduced in these regions. In the UK, the Transport for London (TFL) introduced the ‘pay for travel using contactless cards’, driving the NFC POS terminal market. North America market is expected to dominate the market.
In the U.S. NFC POS terminal market., some retailers had been cautious to adopt NFC POS payments in the beginning due to the lack of understanding of the added value, hardware, training expense, and security concerns. These issues were overcome as the merchants addressed and solved them thus opening doors to great benefits such as branding, loyalty, and data collection.
Asia Pacific NFC POS terminal market is expected to witness a high growth during the forecast period. This can be due to the increasing adoption of smart devices across these regions. Apple Pay is supported in some countries such as Singapore, Japan, Hong Kong, Australia, and New Zealand in the Asia Pacific region. China and India are expected to favorably impact the market owing to the large software base and its distribution in retail stores & automotive sector. High market growth in the region is due to the reduction in Total Cost of Ownership (TCO) and increase in Small and Medium Business (SMBs).
Key market players dominating the NFC POS terminal market include Cybernet, Inc. Equinox Payments, First Data Corp., Heartland Payment Systems, Paz Technology Ltd., Ingenico SA, NEC Technology, SZZT Electronics Co., Ltd., and VeriFone Systems.
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