The global Europay, MasterCard, and Visa (EMV) point of sale (POS) terminals market to grow at a CAGR of close to 10%.
A new report lists fixed EMV POS and mobile EMV POS as the two main product segments for the market of which fixed EMV POS accounted for over 55% of the market in 2016.
Technavio hardware and semiconductor analysts highlight the following three market drivers that are contributing to the growth of the global EMV POS terminals market:
• Regulatory intervention for secure payments
• Increased card transactions
• Increased e-commerce transactions
Before the implementation of EMV regulations, card issuers were liable for fraud related to debit or credit cards and the merchants were usually exempt from any liability. However, due to increasing fraudulent activities, on October 1, 2015, the US shifted the liability of fraud to the merchants in case they do not have EMV POS terminals (transactions made with chip and PIN cards). The payment gateways and network providers have also adopted EMV standards to reduce the chances of fraud.
With an increase in card transactions, enterprises that were once reluctant to adopt payment mechanisms involving cards are now more likely to consider them. Also, consumers are expected to use cards and digital money as a mode of payment more often than cash. This encourages mobile card reader vendors to invest in the technology and market, with the assurance that sellers and consumers will process payments through card transactions.
Most of the credit or debit card issuers like American Express, MasterCard, and Visa have been issuing chip-and-PIN-enabled cards, making the end-user merchants more open to the adoption of EMV POS terminals.
Increased e-commerce transactions
The increased adoption of mobile devices and smartphones is driving the growth of the e-commerce market. The market consists of over 50% people opting for online shopping using smartphones or tablets. While many companies are making digital sales, some are completely replacing their physical stores with the digital sales channel. The need to remain competitive, penetrate unfamiliar markets, meet increasing demands from customers, and respond to changing customer needs and business scenarios are some of the reasons for the rise in e-commerce websites.
With the increase in e-commerce transactions, a need for adopting user-friendly payment mechanisms is also rising. In certain countries, such as India, consumers prefer to pay after receiving the product. The card on delivery (COD) payment mode is quite popular, which creates the need for mPOS terminals that can accept cards. Increasing e-commerce transactions will increase the demand for mPOS and will be a major driver for the market.