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Terminals and Wireless M2M – 3rd Edition

POS Terminals and Wireless M2M is the third consecutive report from Berg Insight analysing the latest developments on the global POS terminal market. This strategic research report from Berg Insight provides you with 45 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

Highlights from the third edition of 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 markets.
Reviews of vendor market shares and competitive dynamics.
Perspectives on the impact of mobile wallet services.
Extensive global and regional market forecasts lasting until 2022.

This research report answers the following questions:

What is the potential market size for wireless M2M communication in the retail industry?
Which trends and developments are shaping the market?
How many of the NFC-ready terminals have the 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?

Executive summary

The world is continuously shifting from coin and paper-based payments such as cash andcheques to electronic forms such as payment cards and mobile phone payments. As a partof this evolution, POS terminals are becoming more and more common in all parts of theworld. The global installed base of POS terminals grew to almost 109 million units in 2017.Market growth is primarily fuelled by the increasing adoption of electronic payments inemerging markets. Developed markets are relatively saturated in terms of POS terminaladoption. In addition, the mPOS terminal market is today growing even faster and BergInsight forecasts that the installed base of mPOS terminals worldwide will grow from 34million units in 2017 to reach 86 million units by 2022.

Cellular connectivity has become a very popular option for POS terminals and wasincorporated in 38 percent of the devices shipped in 2017. The wireless technology has animportant role in facilitating the global adoption of electronic payments, as it enables therollout of POS terminals to many new market segments and parts of the world where the fixedline telecommunications infrastructure is less developed. The installed base of cellular POSterminals reached 37.7 million in 2017. Berg Insight forecasts a CAGR of 10.1 percentbetween 2017 and 2022, resulting in a total of 61.0 million cellular POS terminals at the end ofthe forecast period.

The market for NFC-ready POS terminals continued to display strong momentum in 2017 withannual shipments reaching an estimated 24.7 million units worldwide. The attach rate for NFCwas highest in EU28+2 and North America, where 90 percent and 88 percent of the POSterminals shipped featured NFC respectively. NFC was also a very popular feature in manyother major markets worldwide including Brazil, Turkey and China. While the installed base ofNFC-ready POS terminals has grown quickly, many of the terminals do still not have thecontactless features turned on. Berg Insight estimates that approximately 30.0 million POSterminals accepted contactless payments with Visa payWave, MasterCard PayPass orUnionPay Quickpass at the end of 2017.

Executive summary
1 Introduction
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 wireless M2M communication
2.1.3 Rollout of NFC-ready terminals
3 POS terminal vendors
3.1 Vendor profiles and strategies
3.1.1 BBPOS
3.1.2 Bitel
3.1.3 Castles Technology
3.1.4 CCV
3.1.5 Centerm
3.1.6 CyberNet
3.1.7 Equinox Payments
3.1.8 ID Tech
3.1.9 Ingenico
3.1.10 Newland Payment Technology
3.1.11 Nexgo
3.1.12 PAX Technology
3.1.13 REA Card
3.1.14 Spire Payments
3.1.15 SZZT Electronics
3.1.16 VeriFone
3.1.17 Worldline
4 Forecasts and conclusions
4.1 Market trends and drivers
4.1.1 Steady uptake of wireless M2M
4.1.2 Interest in NFC surges
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 (2018)
Figure 1.3: Revenue distribution in card payments
Figure 1.4: Card payments as a share of HCE and GDP (World 2017)
Figure 1.5: Household consumption expenditures by service and product (EU28 2017)
Figure 1.6: Card payments in Europe and North America (2016)
Figure 1.7: Installed base of POS terminals and ATMs (World 2012–2016)
Figure 1.8: POS terminal density by country (World 2016)
Figure 1.9: Stationary and mobile POS terminals
Figure 1.10: mPOS devices
Figure 2.1: EMV implementation status (World 2017)
Figure 2.2: POS terminals with cellular connectivity by region (World 2017)
Figure 2.3: NFC-ready POS terminals by region (World 2017)
Figure 3.1: POS terminal shipments by manufacturer (World 2016)
Figure 3.2: PAX Technology POS terminals
Figure 3.3: Spire Payments POS terminals
Figure 3.4: Verifone POS terminals
Figure 4.1: Deployment of NFC and cellular technologies (World 2016–2022)
Figure 4.2: Cellular POS terminal shipments by region (World 2016–2022)
Figure 4.3: Cellular POS terminal installed base by region (World 2016–2022)
Figure 4.4: NFC POS terminal shipments by region (World 2016–2022)
Figure 4.5: NFC POS terminal installed base by region (World 2016–2022)
Figure 4.6: mPOS terminal shipments by region (World 2016–2022)
Figure 4.7: mPOS terminal installed base by region (World 2016–2022)

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