Most people have some sort of mental checklist they run through before leaving the house in the morning—wallet, transit pass, phone, or some combination thereof. This list is about to get a whole lot shorter as cash, cards and even your wallet go the way of the dinosaur in favour simple, quick payments done entirely on your smartphone.
This simplified life isn’t even so far off, as the Global NFC Point of Sale Terminals Market is set to explode in coming years, with a CAGR of more than 57 percent through to 2018.
NFC explained
NFC or near field communications allows devices to pass information back and forth, based on their proximity. In the specific context of NFC point of sales (POS) terminals, this means that an NFC-enabled device can pass data (in this case, payment) to a POS terminal, such as the checkout at a grocery store, simply by touching it. Tap-to-pay, as it were.
The downside? It’s expensive and not always an easy system to implement, especially for smaller retailers. NFC POS systems require specific hardware in order to function, and many retailers are not keen to make upgrades to existing point of sales systems that for all rights and purposes are working just fine.
Another thing hindering growth in this market is the fact that many mobile devices aren’t actually NFC enabled. Until now, only Android devices have been compatible with NFC systems. But as with any new technology, consumer awareness has a big effect on the market. Consumers are becoming more knowledgeable about mobile wallet services, which stores credit and banking information in your phone, negating the need for physical credit cards and other payment methods.
The increasing popularity of the mobile wallet has caught the attention of industry heavyweights. The Incipio Cashwrap was recently launched, which allows iPhone users to make digital payments in the same vein as their Android-toting counterparts. The Incipio case is simply embedded with an NFC chip that interacts with a corresponding app.
Although it seems at first to be a clumsy addition to the iPhone, the case is just one indication of just how much NFC technology is going to take off in the near future. As NFC-enabled mobile devices become prevalent, retailers will be keen to keep up by installing NFC POS terminals.
Outside of the retail sector, major growth in the NFC POS terminal market will be spurred by large industries such as transportation, as they make changes to how they do business. Many transportation services like city buses and commuter trains are starting to implement NFC technology in place of traditional ticketing systems, thereby saving a good deal of paper, as well as making their customers’ morning commute a bit smoother.
There is also the expectation that NFC technology will be adopted in international airports check-ins, in order to scan passports and streamline travel. These major advances will continue to boost the NFC POS terminal market over the coming years.
For more information, view our 2014-2018 Global NFC POS Terminals Market report.
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