Digital Lifescapes

The traditional point-of-sale (POS) terminal has traveled a remarkable journey since IBM's first mainframe-connected models emerged in the 1970s. What began as clunky screen interfaces tethered to distant computers has evolved into a diverse ecosystem of payment solutions. Today, we stand at the precipice of the most significant transformation yet: the rise of soft POS technology that promises to democratize digital payments for businesses of all sizes. At its core, this evolution reflects a broader shift from hardware dependency to software flexibility. Global POS Market Development With their dedicated terminals, fixed installations, and substantial upfront costs, traditional POS systems have long served as gatekeepers to in-store or mobile payment acceptance. Small businesses, micro-enterprises, and mobile retailers often found themselves locked out of the digital economy, forced to rely on cash transactions or make significant capital investments in POS hardware. Soft POS techn...

While much of retailer digital transformation continues to drive online commerce applications, innovation is advancing the whole sector. Retail point of sale (POS) technologies is an example, as more CIOs and CTOs seek ways to improve in-store product or service payment transaction processing. According to the latest worldwide market study by Berg Insight, the market for NFC-ready POS terminals continued to show strong momentum in 2017 with annual shipments reaching an estimated 24.7 million units worldwide. Retail POS Market Development The attach rate for near field communications (NFC) was highest in EU28+2 and North America markets, where 90 percent and 88 percent respectively 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. On a global basis, almost three out of every five POS terminals shipped in 2017 included NFC. Berg Insight projects the global installed base of...

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 ...

When the smartwatch market came into being, most industry analysts assumed that Apple would dominate the new category. Now it seems that Google Android will likely lead the market, via its extensive open ecosystem of software developers. While the number of high-end smartwatches is faltering, hybrid watches remain largely unaffected by the market slow-down, according to the latest market study by Juniper Research. These watches have traditional watch faces but offer some connected functions -- such as tracking the user's steps or enabling NFC payments -- and claim a larger portion of the market than previously anticipated. Smartwatch Market Development Trends While basic smartwatches account for around 30 percent the current market value, Juniper anticipates that this share will grow to almost 40 percent within the next five years. The new research findings anticipate that as the high-end multi-functional smartwatch market slows, vendors will refine or remove unpopular fu...

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...

Savvy retailers will create a connected in-store shopping experience. They'll also extend their online engagement with consumers -- moving beyond creating awareness and facilitating payments, to a deeper integration of their customer loyalty programs. The pursuit of this agenda has seen digital coupons evolve from merely being a means of driving consumers to storefronts, to becoming a core element of promoting and reinforcing retail brand loyalty. According to the latest market study by Juniper Research, nearly 1.6 billion coupons will be delivered annually to shoppers via in-store beacon technology by 2020 -- that's up from just 11 million this year. In 2016, more retailers will develop proximity marketing programs for deployment in and around their stores. The Juniper study found that several leading U.S. retailers have already deployed beacon networks, with Macy’s having installed more than 4,000 within its retail stores. The research findings demonstrate that in-sto...

Over 1.5 billion airline boarding passes will be delivered via smartphones by 2019, compared to approximately 745 million boarding passes estimated to be delivered this year, according to the latest worldwide market study by Juniper Research. This means boarding passes that are presented via a smartphone will represent 1 in 3 boarding passes issued by all airlines at the end of 2019. However, adoption of this approach is not mainstream. Mobile boarding passes are increasingly used by frequent flyers, but less used by leisure passengers who are less familiar with the technology. According to SITA, the airline IT specialist, 53 percent of airlines have already implemented mobile boarding passes via software apps -- which is expected to rise to 91 percent by 2017. Furthermore, Juniper found that the majority of airlines have implemented boarding passes via apps, and the industry is witnessing rapid adoption in markets such as the U.S., Far East and Europe. Some of the early a...

Back in 2003, Apple launched the iTunes Music Store with 200,000 songs offered at 99¢ each and forever changed the music recording industry. Apple has a history of being a disruptor -- they're the ultimate opportunist that knows how to exploit fear, uncertainty and doubt. They find opportunity where the executive leadership of the traditional incumbent players are very weak, indecisive and lack a forward-thinking vision of the future market dynamics. So, is that why they launched Apple Pay , to disrupt the nascent mobile payments industry? Primed and Ready for Exploitation The latest market study by Juniper Research has found that there will be 516 million mobile users of Near Field Communication (NFC ) contactless payment services by the end of 2019, that's up from 101 million this year. Their study findings argue that Apple's introduction of an NFC-based payment mechanism -- now known as Apple Pay -- would stimulate the wider marketplace, helping to address the ke...

Smartphones are increasingly viewed by savvy marketers as a critical enabler -- not merely of ubiquitous connectivity and interactivity, but as a means to engage in a meaningful way with their customers and prospects. From a marketer's perspective, the fact that smartphones are personal and ever-present with their owner -- and that those owners are interacting with their device constantly -- presents them with an opportunity. To the informed marketer, mobile is no longer merely a channel through which to sell goods remotely, but a series of related channels through which their relationship with the customer can be nurtured and developed over time. This is a basic principle of multi-platform marketing communication. The approach can transform legacy marketing practices -- such as the process of offering a discount coupon for redemption -- via the creative application of mobile devices. According the the latest global market study by Juniper Research, they now forecast that t...

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...

Wireless communication capabilities will become embedded in more and more everyday devices over time. The resulting connectivity applications seem limitless. Moreover, the growing demand creates a huge opportunity for wireless chipset manufacturers. Annual wireless connectivity chipset shipments across Bluetooth, Wi-Fi, NFC, GPS, and ZigBee show no sign of slowing down, reaching almost nine billion annual shipments by 2019, according to the latest market study by ABI Research. Had it not been for combo chipsets and integrated platforms the number of chipsets shipped would have been even higher. Cumulative chipset shipments from 2010 through 2014 will have reached over 21 billion -- from 2015 to 2019, cumulative shipments will almost double to over 39 billion. "That is over 60 billion wireless connectivity chipsets that will have shipped over the ten year span from 2010 to 2019, driven by the emergence of new device types," said Philip Solis, research director at ABI Res...

As the mobile phone evolved from basic voice communication device to a multifaceted lifestyle accessory, making payments has become a key element within that evolution. The mobile device, be it a smartphone or featurephone, can now be used to make payments -- either remotely or at the Point of Sale (PoS). The value of global payments via mobile devices will reach around $507 billion this year -- that's an increase of nearly 40 percent year-on-year, according to the latest market study by Juniper Research. The Juniper study found that growth would continue to be driven by purchases of physical goods via mobile devices. Moreover, average transaction sizes over media tablets are already exceeding those via desktop PCs in many markets. It also observed that while spend via smartphones was increasing sharply, their primary function in retail was as search and discovery devices -- with the final purchase more typically being made via a tablet. Meanwhile, Juniper argued that the s...

The U.S. mobile payment landscape is progressing very slowly. Although two-thirds of American consumers are interested in learning more about transitioning to a smartphone wallet platform, that interest is simply not translating into adoption. While traditional point of sale payment methods continue to reign supreme, a number of third-party mobile wallets are jockeying for position in the U.S. marketplace -- but not all have the vision needed for long-term survival. To endure the inevitable wave of consolidation, a well-defined road-map paired with patience and endurance will be among the many competencies required. According to the latest market study by the Yankee Group, they ranked the staying power of Google Wallet, Isis, LevelUp, Loop, MCX, PayPal, and Square as determined by the strength of their merchant and consumer value propositions and ability to deliver on them. Highlights from the market study include: Mobile wallets remain a story of high interest and low adopt...

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...

Mobile device technology is evolving rapidly. Enhancements such as accelerometers, gyroscopes, near field communication (NFC), and gesture recognition are predicted to be the big winners. These mobile technologies are projected to make the greatest penetration gains over the coming years, according to the latest market study by ABI Research. "Hands-free operation or gesture recognition is soon going to become a key differentiator in high-end flagship smartphones, media tablets, and smart glasses," says Joshua Flood, senior analyst at ABI Research . Samsung's latest Galaxy S4 has already incorporated the technology within its handset and has received significant recognition for its new innovative user experience. Furthermore, with a host of new smart wearable products soon to be released, it is easy to imagine the usefulness of the interface with this product. In 2013, almost 12 percent of smartphones shipped will have vision-based gesture recognition capabilities....

Mobile money services for the unbanked, popular in emerging markets, are showing both much faster adoption than m-wallets and related services addressing those with a bank account and a steeper revenue curve. According to the latest market study by Pyramid Research, mobile payments are becoming increasingly integrated into a broader range of mobile services. Furthermore, services such as marketing, advertising, loyalty cards, coupons and discounts are also becoming part of the broader mobile wallet. Mobile network operators in developed markets need to make a long-term commitment to the mobile payment opportunity and have access to large financial reserves to be able to reap long-term benefits. While adoption of NFC-capable mobile devices and readers is finally showing real growth, Pyramid believes that mobile network service providers still face major challenges in mobile contactless payments. The mobile commerce opportunity is becoming an increasingly attractive one, and oper...

The smartphone in your pocket is capable of many things -- including making payments to purchase tickets for use on public transportation, and a host of other useful applications for this emerging m-commerce technology. As consumer adoption of smartphones increases, usage of mobile devices to purchase goods and services has soared. The mobile phone user base, once cautious of using the technology, increasingly expects to be able to easily complete these transactions. Just over 950 million mobile phone users worldwide are expected to use their handsets for mobile ticketing by 2018 -- that's up from 458 million this year, according to the latest market study by Juniper Research. Growth is expected to be driven primarily within key transport verticals, although significant uptake is anticipated across other key sectors -- such as live entertainment events and cinema ticketing. Air, Metro Ticketing will Fuel New Growth Juniper analysts noted that the airline industry was a...

Mobile payments, performed via a device such as a smartphone, is clearly a fast growing sector of the global communications and retail-related marketplace. In the next two years many more consumers worldwide will be engaging in making mobile payments, according to the latest comprehensive market study by Portio Research . At the end of 2012, there were 480 million mobile payment users worldwide -- this number is expected to cross the 1 billion users mark by the end of 2015. Moreover, the figure is expected to continue increasing -- eventually reaching nearly 1.5 billion users by the end of 2017. Mobile payment volumes -- that's the total value of goods and services and utility bill payments made through mobile devices annually -- reached $81.3 billion worldwide in 2011. The growth rate enjoyed an increase of 148 percent over the course of 2012 -- to reach an estimated $202 billion. Worldwide, the market is set to grow to reach $410 billion this year, in 2013, and then v...