Cellular connectivity has become a popular option for POS terminals and the installed base of cellular POS terminals reached 90 million worldwide in 2020. The publisher forecasts a CAGR of 11.8 percent between 2020 and 2025, resulting in a total of 157 million cellular POS terminals at the end of the forecast period.
The market for NFC-ready POS terminals also continued to display strong momentum in 2020 with annual shipments reaching an estimated 67 million units worldwide. The report also forecasts the mPOS market. Get up to date with the latest information about vendors, products and markets.
Highlights from the report:
- Detailed analysis of the payments industry.
- Summary of the latest industry trends and developments.
- Updated in-depth profiles of key players in the POS and mPOS terminal market.
- Reviews of vendor market shares and competitive dynamics.
- Perspectives on the impact of mobile wallet services.
- Extensive global and regional market forecasts lasting until 2025.
This report answers the following questions:
- What is the potential market size for cellular IoT communication in the retail industry?
- Which trends and developments are shaping the market?
- How many of the NFC-ready terminals have contactless capabilities turned on?
- What are the market shares for the leading POS terminal vendors?
- How will emerging mobile wallet services affect the market?
- What is the attach rate for cellular connectivity in POS terminals by region?
Who should read this report?
POS Terminals and Wireless M2M is the foremost source of information about the adoption of wireless IoT solutions in the payments industry. Whether you are a device vendor, service provider, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.
1.1 The card payments industry
1.1.1 The transaction process in card payments
1.1.2 Costs of a card payment transaction
1.1.3 Revenue distribution in the card payments industry
1.1.4 Card payments and household consumption expenditures
1.1.5 Breakdown of household consumption expenditures
1.1.6 Card payment volumes
1.2 The POS terminal market
1.2.1 POS terminal market data
1.2.2 POS terminal form factors
2 Wireless M2M and NFC
2.1 Evolution of electronic payments
2.1.1 EMV migration
2.1.2 Adoption of cellular IoT communications
2.1.3 Rollout of NFC-ready terminals
3 POS Terminal Vendors
3.1 Vendor profiles and strategies
3.1.3 Castles Technology
3.1.6 Dspread Technology
3.1.7 Equinox Payments
3.1.8 ID Tech
3.1.9 Itron Electronics
3.1.12 Newland Payment Technology
3.1.13 New POS
3.1.14 Nexgo (Xinguodu)
3.1.15 PAX Technology
3.1.16 REA Card
3.1.17 SZZT Electronics
3.1.18 Vanstone Electronic
3.1.20 Worldline (Ingenico)
4 Forecasts and Conclusions
4.1 Market trends and drivers
4.1.1 Steady uptake of wireless M2M
4.1.2 NFC has become ubiquitous
4.1.3 POS terminal app stores are a potential game-changer
4.1.4 New technologies can transform the shopping experience
4.1.5 The mPOS market segment is growing fast
4.2 Market forecasts
4.2.1 Cellular POS terminal market forecast
4.2.2 NFC-ready POS terminal market forecast
4.2.3 NFC-ready mPOS terminal market forecast
List of Figures
Figure 1.1: Typical payment transaction flow
Figure 1.2: Visa interchange fees in the UK and the US (2020)
Figure 1.3: Revenue distribution in card payments
Figure 1.4: Card payments as a share of HCE and GDP (World 2020)
Figure 1.5: Household consumption expenditures by service and product (EU28 2018)
Figure 1.6: Card payments in Europe and North America (2020)
Figure 1.7: Installed base of POS terminals and ATMs (World 2015–2019)
Figure 1.8: POS terminal density by country (World 2019)
Figure 1.9: Stationary and mobile POS terminals
Figure 1.10: mPOS devices
Figure 1.11: Android POS terminals
Figure 2.1: EMV implementation status (World 2020)
Figure 2.2: POS terminals with cellular connectivity by region (World 2020)
Figure 2.3: NFC-ready POS terminals by region (World 2020)
Figure 3.1: POS terminal shipments by the manufacturer (World 2020)
Figure 3.2: PAX Technology POS terminals
Figure 3.3: Verifone POS terminals
Figure 4.1: Deployment of NFC and cellular technologies (World 2019–2025)
Figure 4.2: Cellular POS terminal shipments by region (World 2019–2025)
Figure 4.3: Cellular POS terminal installed base by region (World 2019–2025)
Figure 4.4: NFC POS terminal shipments by region (World 2019–2025)
Figure 4.5: NFC POS terminal installed base by region (World 2019–2025)
Figure 4.6: mPOS terminal shipments by region (World 2019–2025)
Figure 4.7: mPOS terminal installed base by region (World 2019–2025)
The world is continuously shifting from the coin and paper-based payments such as cash and cheques to electronic forms such as payment cards and mobile phone payments. The has accelerated in the past two years due to the COVID-19 pandemic. As a part of this evolution, POS terminals are becoming more and more common in all parts of the world. The global installed base of POS terminals grew to almost 207 million units in 2020. Market growth is primarily fuelled by the increasing adoption of electronic payments in emerging markets. Developed markets are relatively saturated in terms of POS terminal adoption. In addition, the mPOS terminal market is today growing fast and the publisher forecasts that the installed base of mPOS terminals worldwide will grow from 80 million units in 2020 to reach 127 million units by 2025.
Cellular connectivity has become a very popular option for POS terminals and was incorporated in 46 percent of the devices shipped in 2020. The wireless technology has an important role in facilitating the global adoption of electronic payments, as it enables the rollout of POS terminals to many new market segments and parts of the world where the fixed-line telecommunications infrastructure is less developed. The installed base of cellular POS terminals reached 89.8 million in 2020. The publisher forecasts a CAGR of 11.8 percent between 2020 and 2025, resulting in a total of 156.6 million cellular POS terminals at the end of the forecast period.
The market for NFC-ready POS terminals continued to display strong momentum in 2020 with annual shipments reaching an estimated 67.2 million units worldwide. The attach rate for NFC was highest in EU27+3 and North America, where 96 percent of the POS terminals shipped featured NFC. NFC was also a very popular feature in many other major markets worldwide including Brazil, Turkey and China. While the installed base of NFC-ready POS terminals has grown quickly, some of the terminals do still not have the contactless features turned on. The publisher estimates that approximately 90.0 million POS terminals accepted contactless payments with Visa payWave, MasterCard PayPass or UnionPay Quickpass in 2020.
A selection of companies mentioned in this report includes:
- Castles Technology
- Dspread Technology
- Equinox Payments
- ID Tech
- Itron Electronics
- New POS
- Newland Payment Technology
- Nexgo (Xinguodu)
- PAX Technology
- REA Card
- SZZT Electronics
- Vanstone Electronic
- Worldline (Ingenico)
The Internet of Things is very diverse. There are hundreds of different use cases, each with different dynamics. The starting point is to segment the market.
The analyst begins with a number of sectors: Automotive, Cities, Health, Industry, Home, Industrial, Energy, Retail and Consumer Electronics. Each of these sectors breaks down into a number of applications. In total across all sectors, the analyst examines around 150 separate applications. It is at this application level that they generate their IoT forecast. The analyst builds reliable data bottom-up. They take into consideration the current adoption rate, regulations, demographics, vertical-specific statistics, value chain structure, etc.
The rigorous data collection methods are based on first-hand and secondary sources. The analyst conducts many hundreds of executive interviews on a yearly basis with companies from all parts of the IoT value chain. They talk to on a regular basis all major mobile operator groups and regulators as well as the chipset, module, and terminal vendors. They also interview many companies in each of the vertical markets.