NFC POS Terminal Market size is expected to witness prolific growth over 2021-2027, given the rising production of smartphones equipped with NFC technology worldwide. The deployment of this technology is highly beneficial, as it uses minimal battery and processing power and can improve the functionality of devices. In addition, the escalating adoption of the technology to overhaul public transportation and use of NFC-enabled smartphones as bus or metro passes will further boost the industry growth.
Near Field Communication (NFC) technology refers to a short-range and high-frequency wireless communication technology. This next-gen technology enables users to seamlessly make transactions, exchange digital content, as well as connect electronic devices. It also complements the diverse contactless technologies, hence allowing the development of current and future solutions in areas of transportation, payment, and digital exchange.
Shifting preference of shoppers from payments via cash to NFC-enabled smartphones, owing to the convenience of contactless POS systems will foster the NFC POS terminal market trends. Likewise, the rising prominence of online payments across the retail sector, alongside the accelerating launch of NFC-enabled digital payments, will further amplify the market growth. In September 2020, Google Pay introduced a new feature to enable users to make transactions on NFC-enabled POS terminals through their smartphones.
In terms of segmentation by application, the retail segment will hold a considerable share by 2027. This can be credited to the rising government initiatives to promote contactless transactions across the retail sector. For instance, the Australian government has urged retailers to deploy NFC POS systems for making contactless debit card transactions. Moreover, the rising inclination of shoppers towards retail stores that offer contactless payment options across various economies will further boost the segmental growth in the coming years.
Regionally, the Europe NFC POS terminal market will register substantial revenue over the forthcoming years, led by the growing number of smartphone users and the rise of the e-Commerce sector in the region. These factors have led to the rapid usage of digital payments, with millions of users in European countries choosing cashless payments over cash or credit cards. Merchants in Germany, for instance, have announced the acceptance of PIN-free contactless payments on Android NFC-based smartphones in April 2021. This form of payment will be enabled through the usage of the sPOS (software point of sale) solution introduced by Sparkasse, a group of saving banks in the country.
Major NFC POS terminal market players include VeriFone Holdings (Francisco Partners), SZZT Electronics Co., LTD., NEC Technologies, Ingenico (Worldline), Paz Technologies, Heartland Payment Systems (Global Payments), First Data Corporation (Fiserv), Equinox Payments, and Cybernet, among others. Innovative product launches, acquisitions, and collaborations are among the key strategies being employed by these firms to expand their businesses and geographical footprint across the global market.
For instance, in June 2021, Cardknox announced its support for the NFC-enabled P400 payment terminal PIN pad developed by Verifone, with an objective to provide a secure, frictionless, and faster checkout experience.
The ongoing coronavirus crisis has led to the temporary closure of retail stores worldwide, creating unprecedented disruptions in the commerce field. Multiple brands and retailers have been shocasing a multitude of daunting short-term challenges associated with health and safety, labor force, supply chain, consumer demand, cash flow, and marketing. These factors may, in turn, create a hindrance to the acceptance of NFC POS machines across the retail sector.
However, there has been a shift from cash-driven to a cashless economy, more prominently during the prevailing COVID-19 pandemic, to curb the disease transmission through contacts at store checkouts. This has resulted in the robust adoption of the NFC technology-based contactless payments and in turn, will help the industry to gain traction over the coming years.