Skip to main content

Contactless POS Transactions will Reach $500B in 2017

The global retail sector is undergoing a significant disruption from technology-based innovations. Online eCommerce is part of the story, but there's nearly as many dramatic changes occurring within physical retail stores -- particularly at the point of sale (POS).

A POS terminal is an electronic device used to process card or contactless mobile payments at retail or merchant locations such as stores, restaurants etc. The terminal can be owned by the retailer or an acquirer-owned terminal (i.e. provided on a rental basis to the merchant).

According to the latest market study by Juniper Research, the global value of contactless POS terminal transactions -- conducted in-store via cards, mobile phones and wearables -- will approach $500 billion annually by 2017; that's up from an estimated $321 billion this year.

However, the low value nature of contactless payments means that it will only represent just 5 percent of the total value of all worldwide POS transactions in 2017.


POS Terminal Market Development

According to the study findings, a surge in contactless-enabled POS terminals occurred in 2015, mostly related to retailer obligations to card companies in many markets, to ensure that all terminals will be contactless ready by 2020.

This upgrade is likely to prompt new growth in the migration to more contactless payments. For example, Visa announced more than 3.2 million contactless terminals in Europe as of April 2016 -- that's up by 23 percent from 2.6 million at the end of April 2015.

Contactless terminals now account for a significant minority of terminals in many regions (and in a majority in several national markets) and, as of the end of 2015, numbered 15.3 million -- or nearly 20 percent of all POS terminals worldwide.

According to the Juniper Research assessment, these numbers will increase sharply over the next 5 years, with contactless accounting for more than 2 in 3 POS terminals by 2021.

Their research uncovered limitations in some markets. "This is mainly due to the lack of widespread availability of supporting POS contactless reader terminals, and also that some potential users are likely to remain cash-centric," said Nitin Bhas, head of research at Juniper Research.

For example, Germany remains a highly cash-centric economy, with cash still accounting for around 57 percent of all in-store retail transactions, based on the value of sales.

Other key findings from the study include:

  • Contactless cards will represent 1 in 2 payment cards in issue by 2020.
  • Smartphone and tablet-based mPOS terminals will handle 20 percent of all retail POS transaction value by 2021.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of