Increased interest among consumers for secure payment gateways and payment card industry (PCI) PIN entry devices will further bolster growth, finds Frost & Sullivan's Digital Transformation team
SANTA CLARA, California, March 9, 2017 /PRNewswire/ -- The growing popularity of electronic funds transfer point-of-sale (EFTPOS) terminals is driving vendors to introduce systems with advanced security, mobility and contactless, near-field communications (NFC) and cloud-based payment options. Europay, MasterCard, and Visa (EMV) implementation in the United States, increased investment from small and medium-sized business (SMB) retailers, as well as, emerging economies in Asia-Pacific (APAC), Latin America, Central and Eastern Europe (CEE) is driving most of the growth within the market.
New Frost & Sullivan analysis, Global Electronic Funds Transfer at Point of Sale Terminals Market, Forecast to 2022, finds revenue for the market is expected to reach $5,209.2 million in 2022, at a compound annual growth rate (CAGR) of 6.2 percent, despite the slowdown in Western Europe and some Asia-Pacific countries that are advanced in Europay, MasterCard, and Visa (EMV) migration.
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"The constant evolution of payment technology, rapid adoption of mobile/contactless payments, country-specific certifications, and declining profit margins, imply a high barrier to entry for new vendors, while forcing existing players to constantly modify their business models and strategies to remain competitive," revealed Frost & Sullivan Digital Transformation Research Analyst Aravindh Vanchesan.. "For now, most vendors are investing in R&D to make their terminals multi-functional and the cashless payment process faster, secure, and more convenient."
Prolonged and unstable global macroeconomic conditions are likely to dampen growth rates for EFTPOS terminals. Consumer tendency to opt for low-priced magnetic stripe, and avoid the cost of establishing a secure infrastructure for chip-based transactions, is also holding back revenue growth. These challenges can be overcome if card associations set and implement a strict EMV migration deadline for customers. Otherwise, price will remain a key purchase factor.
"With technology advancements, the complexity at the point of sale (POS) is increasing rapidly in terms of speed, memory, and software, to help retailers better utilize resources," added Vanchesan. "Retailers can take advantage of the latest generation of payment terminals by creating new revenue streams. For instance, loyalty programs, gift card applications, and customer relationship management, allow merchants to segment potential customers and identify the most profitable areas. Furthermore, the multi-application feature can be leveraged for competitive differentiation by offering different card applications and card designs."
Global Electronic Funds Transfer at Point-of-sale Terminals Market, Forecast to 2022, a part of Frost & Sullivan's Digital Media Growth Partnership Service program.
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Global Electronic Funds Transfer at Point-of-sale Terminals Market, Forecast to 2022
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SOURCE Frost & Sullivan