Increasing Adoption of EMV Standards Drives the Global Electronic Fund Transfer POS Terminals Market, According to New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Point of Sale (POS) Terminals markets. Global Electronic Fund Transfer POS (EFTPOS) Terminals market is projected to reach 34.8 million units by 2018, driven by increasing adoption of EMV standards and burgeoning demand in the rapidly growing developing markets. Rising awareness regarding the risks posed by card frauds and the shifting of liability of losses from frauds to merchants is additionally expected to drive voluntary adoption of EMV standards.
San Jose, California (PRWEB) November 05, 2012
Follow us on LinkedIn – Characterized by continuously evolving technologies and industry standards, POS terminals have evolved to become open-architecture systems that feature compliance with a wide range of software and hardware. POS terminals find extensive application across various retail establishments, hospitality centers, shopping malls, among others. Growth in this market primarily stems from the heightened focus on security of payments made over electronic fund transfer. Increasing instances of fraudulent payments across the globe is driving the need to establish stringent security standards, including ensuring end-to-end data encryption, and compliance with guidelines. Against this backdrop of continuous evolution of security standards, the market for EFTPOS terminals is projected to flourish, given the need to upgrade the terminals periodically to comply with each evolving standard.
The global POS terminals market is projected to witness robust growth over the next few years primarily driven by the ongoing migration to EMV standards that mandates the adoption of smart cards with microchip embedded on them to ensure high level of security in performing electronic fund transfers. Consequently, merchants are required to upgrade to smart card enabled POS terminals to be able to handle smart cards thereby fueling growth in the market. Conventional Magnetic Stripe EFTPOS terminals is on the decline given their growing inability to battle the increasing sophistication of card data abuse and fraud across the world. Resultantly, smart cards are increasingly being adopted to curb the vulnerability of magnetic stripe cards thereby providing traction to the smart card enabled EFTPOS terminals market. Major countries across the globe are in the process of adopting the new standards with developing countries spearheading growth in the market. Traditionally, Europe has been the primary adopter of the technology and the region has a near complete deployment of the new technology. Other regions especially the Asia-Pacific and Latin American regions are witnessing a robust growth in adoption of EMV terminals, thanks to the massive migration to smart cards being witnessed in the region's growth engine, China. Major countries such as India, Australia, Singapore, Brazil, and Mexico among others are also driving the adoption of POS terminals. Rapid economic development, strong GDP growth and the growing base of affluent middle class population are all factors responsible for indirectly sparking substantial investments in POS terminals across all industries in these countries.
While market for smart card enabled POS terminals is witnessing robust growth in other regions across the world, the US has been lethargic in its migration to the new standard. Issues that have been weighing down the market include the general perception that the technology is not fool proof; migration to EMV entails significant costs, the technology is outdated and the level of fraud in the country doesn't justify the investment made for migration. However, undertones in the country indicate that migration to EMV is inevitable given the fact that the vulnerability of the country's payment system is now being magnified against a backdrop of dwindling frauds in other countries which have made headway in adoption of EMV cards. Additionally, mandates issued by leading payment systems such as MasterCard and Visa to shift the liability of fraud occurring on magnetic stripe cards to the merchants is also bearing a positive impact on the market. Migration to the EMV standard in the US is gradually gaining steam and the trend is projected to continue over the next few years as the benefits offered by the technology come to the fore.
European market for POS terminals is presently sandwiched between challenges and opportunities in the wake of the towering debt crisis that is casting a shadow on the growth of the region. Declining purchasing power of an average European household, eroded by higher levels of inflation and the higher indirect taxes legislated as part of the austerity measures is resulting in reduced household consumption, reduced spending, and reduced cash and non-transactions, especially in personal retail payments. Reducing regulatory impetus for demand growth against a backdrop of near complete migration to EMV standards in the region additionally weighs down the EFTPOS market. However, offsetting this weakness in card transactions are factors such as the ban on cash payments over and above the specified limit, being implemented in few of the European countries. For instance, debt stricken governments such as in Italy and Spain are legislating a maximum cap on cash transactions in a measure to curtail the use of cash and prevent money laundering and to closely track all monetary transactions in the economy to curb evasion of taxes. The scenario is forecast to result in reductions in cash transactions while simultaneously increasing non-cash transactions, thus magnifying the business case for EFTPOS.
As stated by the new market research report on Point of Sale (POS) Terminals, Asia-Pacific emerges as the largest as well as the fastest growing regional market for EFTPOS with volume shipments from the region projected to surge at a CAGR of 21.7% over the analysis period. By product, Smart Card Enabled EFTPOS Terminals represents the most prominent segment with volume shipments projected to wax at a CAGR of 18.7% over the analysis period.
Major market participants include Atos Worldline, Equinox Payments LLC, First Data Corporation, Fujitsu Limited, Ingenico S.A, International Business Machines Corp. (IBM), Intellect Solutions, Keycorp Pty Limited, Micros Systems Inc., Motorola Solutions Inc., NCR Corporation, Radiant Systems, Inc., Olivetti S.p.A., Smartpay Ltd., Spire Payments UK, Thyron Systems Limited, VeriFone, Verifone Israel, and Wincor Nixdorf AG, among others.
The research report titled "Point of Sale (POS) Terminals: A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, drivers, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for EFTPOS Terminals in volume sales for the US, Canada, Japan, Europe (France, Germany, Italy, UK, and Rest of Europe), Asia-Pacific, Latin America, and Rest of World markets. Product segments analyzed include Magnetic Stripe Card EFTPOS Terminals and Smart Card Enabled EFTPOS Terminals.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
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