Digital Lifescapes

The way shoppers pay for products has evolved due to the rise of eCommerce during the pandemic. Online retail transactions have grown rapidly, and in many parts of the world, in-person cash transactions are now a smaller percentage of retail payments. These changes have a significant implication for retail point-of-sale (POS) terminal vendors, as consumers choose to shop less at local in-store retailers and more online, or the vendor may lack the functional capabilities to process contactless payments. The evolution of payment interactions has driven an in-store retailer transformation. With COVID-19 pandemic-related government control measures and the ongoing public wariness in many nations, non-contact forms of payment are becoming even more popular. POS Terminal Market Development According to the latest worldwide market study by Juniper Research , the total value of transactions processed by POS terminals will exceed $17.3 trillion in 2026 -- that's up from $14.8 trillion in 20...

Across the globe, digital commerce transaction growth has pushed past the prior boundaries. As an example, the COVID-19 pandemic has fueled a widespread increase in contactless payment limits around the world. There are several important examples of this phenomenon in action. In April 2020, the UK increased its contactless payment limit from £30 ($41.73) to £45 ($62.60). The UK government then announced plans to increase the limit again, to £100 ($139.11), which took effect in March 2021, but will require a transition period throughout the year. In March 2020, Germany agreed to increase its contactless payments limit from €25 ($30.14) to €50 ($60.29), which was a major move for a country that had previously been slow to adopt contactless payment services. Furthermore, in December 2020, the Reserve Bank of India announced plans to increase the contactless payment limit in the country from ₹2,000 ($26.65) to ₹5,000 ($66.63). Global Digital Commerce Market Development According to the lat...

Following the transition from magnetic stripe to EMV (smart cards that store data on integrated circuit chips), the U.S. retail market is upgrading to contactless point-of-sale (POS) terminals. Meanwhile, 100 percent of POS terminals may already be contactless-enabled in Canada, the UK and Japan. Moreover, Visa reports that about 50 percent of its in-person transactions (outside the U.S.) are already contactless, through payment cards and mobile devices. In the U.S. market, where the EMV rollout is recent, it's estimated that 52.7 percent of POS terminals were now contactless-enabled in 2019. Contactless POS Market Development According to the latest worldwide market study by Juniper Research, the installed base of contactless-enabled POS devices will exceed 161 million by 2024 -- growing from 78 million devices in 2019. Contactless POS devices will then be about 94 percent of all POS devices in use. Juniper believes that this growth will be driven by the deployment of cont...

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards. While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017. This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million). Contactless Payment Market Development Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions. Furthermore...

Digital ticketing will continue to be a high growth market. A mobile ticketing user is someone who either purchases and/or stores a ticket using their mobile handset for later redemption. In contrast, an online ticketing user is likely someone who purchases a ticket online via an Internet connected device, thereby replacing the prior conventional ticket purchase process. There's been substantial new growth in mobile and online ticketing, partly as a result of growing user adoption and usage momentum. While in some markets ticketing is a new service offering and users have simply never had this functionality open to them previously, in other markets these services are mature and well established. Digital Ticketing Market Development Online ticketing now accounts for majority of ticketing transactions in many markets across the globe, including both developed and developing countries. That said, mobile ticketing is fast becoming a popular method for transit fare collection and ...

Following a disappointing year in 2016, when the Europay, Mastercard and Visa (EMV) payment cards market nearly came to a complete halt, ABI Research now expects that the market will bounce back this year with an anticipated annual growth rate of 4.6 percent. The EMV market problems began in 2016 with overstocking issues in the U.S., causing shipments to drop by 18 percent. Additionally, the market in China reached saturation and was further impacted by new legislation limiting the number of accounts one citizen is permitted to own at a singular bank. Both issues in China resulted in a card shipment decrease of 8 percent YoY. Global EMV Market Development All eyes are now firmly fixed on the U.S., China, and India, driven by an expectation that over 56 percent of all EMV cards issued globally in 2017 will be issued into one of these three countries. India will be one of the positive growth factors in the near-term future, currently in the early stage of EMV migration which will...

Contactless payment cards offer an array of benefits to both the retailer and consumer, such as faster throughput at the Point of Sale (POS) terminal, potentially leading to increased sales and reduced operating costs from cash handling. However, to succeed the contactless card needs the attendant payment infrastructure to be upgraded to support contactless transactions, thus requiring co-operation from the various stakeholders in retail payments. Contactless Payment  Market Development According to the latest market study by Juniper Research, the number of OEM-Pay contactless users -- including Apple Pay, Samsung Pay, and Android Pay -- will exceed 100 million for the first time during the first half of 2017, before surpassing 150 million by the end of this year. The combined market share of Apple, Samsung, and Google (via Android Pay), increased from 20 percent in 2015 to 41 percent in 2016, as a proportion of total mobile contactless payment users. Juniper forecasts that...

Retail in-store payment capabilities are evolving with near-field communication (NFC) for point-of-sale (POS) terminals. NFC is a secure wireless technology that enables two devices in close proximity to exchange data. It's used for a variety of applications, including contactless payments. The market for NFC-ready POS terminals continued to show momentum in 2016 with annual shipments anticipated to reach an estimated 16.1 million units, according to the latest worldwide market study by Berg Insight. Retail Payments Market Development The attach rate for NFC was highest in EU28+2 and the North America regions, where 93 percent and 92 percent respectively of the POS terminals shipped featured NFC. NFC was also a popular feature in many other major markets worldwide -- including Brazil, Turkey and China. On a global basis, almost three out of every five POS terminals shipped in 2016 included NFC. Berg Insight projects the global installed base of NFC-ready POS terminals wil...

Use of cash varies widely, even in developed markets. However, there's been steady growth of credit and debit card use across the globe. Therefore, point-of-sale (POS) terminals are becoming more commonplace, as growth is driven by adoption of electronic payments by emerging markets. For example, China experienced the most significant growth among the larger emerging economies during 2015, with a year-on-year increase in terminal numbers of ~20 percent. Industry analysts estimate that the global total number of POS terminals reached nearly 80 million in 2015. Worldwide POS Transaction Growth A new market study by Juniper Research has found that the 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 about 5 percent of the total va...

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....

There are now more than 6.4 billion mobile phones in circulation worldwide. They've evolved far beyond a simple means of two-way communications. They're now a multifaceted enabler of numerous day-to-day online activities made possible by mobile internet access. Clearly, there are both opportunities and challenges associated with this trend. As people increasingly complete more digital transactions via smartphones and other mobile devices, the need to verify their identity -- and protect it from theft -- becomes paramount. According to the latest market study by Juniper Research, the increased rollout of contactless payment services using fingerprint scanners will increase the number of biometrically authenticated transactions to nearly 5 billion by 2019 -- that's up from less than 130 million in 2015. Juniper observed that at present, only two services -- from Apple and Samsung -- used fingerprint scanners for authentication, with availability currently limited to the...

Over the past decade, eRetail transactions have accelerated to the point whereby, in 2013, more than $1 trillion in physical goods were sold online. At the same time, contactless payments have emerged as a means by which both retailers and transport operators can see tangible benefits. A global market study by Juniper Research has found that the annual combined transaction value of online, mobile and contactless payments will reach $4.7 trillion by 2019 -- that's up from just over $2.5 trillion this year. The study findings uncovered that the largest net increase in spending would occur through remote physical goods purchases. It also highlighted the dramatic surge in activity in emerging markets such as China, with the online retailer Alibaba accounting for 20 percent of all global B2C (business to consumer) and C2C (consumer to consumer) eRetail worldwide in 2013. However, while there was organic growth in the overall transaction levels due to increased purchasing on tabl...

Since 2011, expectations have been high that mobile contactless payments -- enabled via Near Field Communications (NFC) -- would rapidly gain traction around the world. This has not come to pass. Disagreements and uncertainties over business models and standards, combined with a failure to communicate the benefits of a transition to contactless, led to a cycle of indifference towards NFC. Juniper Research has found that the number of consumers making contactless payments via their mobile handsets would reach 300 million globally by 2017 -- that's up from just over 110 million last year. The Juniper global market study found that many markets were being seeded for mobile contactless adoption by accelerated rollout of contactless cards. These rollouts were being accompanied by marked increases in contactless POS (Point of Sale) terminals, with leading vendors VeriFone and Ingenico both now shipping the majority of their terminals with NFC as standard. Apparent Need to Educa...

In the course of the past 5 years, the mobile phone device has transitioned from a mechanism for person-to-person communication to a multi-purpose facilitator of essential everyday activities. Making payments has been an integral part of this transition, and the emergence of the mobile wallet is a key to ongoing market development. Juniper Research has found that 1 in 5 mobile handsets will have mobile wallet functionality by 2018 -- that's compared with less than 1 in 10 at the end of 2013. Growth will be driven by two distinct wallet models. In emerging markets, SVAs (Stored Value Accounts) are increasingly enabling first time financial access for unbanked individuals. Empowered by this model, it's anticipated that there will be a surge in deployments across sub-Saharan Africa, developing Asia and Latin America. Meanwhile, Juniper believes that wallet launches across developed markets -- such as North America and Western Europe -- are increasingly expected to feature co...

Contactless payment technology is applied when the user fulfills a transaction by tapping a card or mobile phone handset against a Chip & PIN machine, rather than swiping a debit or credit card through the Point of Sale (POS) terminal. According to the latest market study by Juniper Research, the number of contactless transactions via mobile handsets will exceed 9.9 billion globally by 2018 -- that's up from just over 3 billion this year. Their study findings found that two key disruptive factors -- HCE (Host Card Emulation) and the anticipated launch of Apple’s iWallet -- were likely to spur additional contactless transaction growth in the medium term. HCE transforms a smartphone app into a virtual smartcard, so that for NFC (Near Field Communication) transactions, the SE (secure element) no longer has to be physically present in the handset. How Standards Enable Market Development According to Juniper's assessment, utilizing a remote HCE-based SE can reduce time...

Over the past five years contactless payments have emerged as a means by which both retailers and network operators can gain tangible benefits. This advantage comes from reduced operating costs and increased sales -- with greater consumer throughput at the point of sale (POS) terminal. Juniper Research has found that 249 million cards will be used for contactless payments in 2014, driven by the global migration to EMV (Europay, MasterCard, Visa) standards-based CHIP & PIN and rising contactless infrastructure at the point of sale. According to the latest global market study by Juniper, growth in usage will initially be driven by early adopter markets such as Australia, Canada, Poland and the UK. In the medium term, user numbers will be enhanced by substantial adoption in the U.S. market following the mandated transition from magnetic-stripe cards. Juniper observed that growth in the UK had been bolstered by ticketing as well as retail usage, with more than 3.5 million L...