The POS terminal market in Europe was valued at around 9 million units in 2015 and is expected to reach 14 million units by 2020, says Technavio.
Technavio has announced its latest market research report on POS terminal to its computing devices portfolio. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the POS terminal market in Europe during the forecast period 2016-2020. Some of the top vendors listed in this industry analysis include Ingenico, PAX Technology, and Verifone.
“One of the major trends gaining traction in this market is the increased adoption of cloud-based solutions. The requirement for value-added services such as big data analytics, inventory management, and sales management tools with POS terminals has resulted in an increased need for efficient and economical data storage solutions. Owing to the better connectivity of cloud based terminals, merchants can manage transactions, and access information easily. This software will be beneficial to both small and medium enterprises,” says Sunil Kumar Singh, a lead analyst at Technavio for research on computing devices.
The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Large potential customer base
To increase their market revenues, most of the vendors are targeting on MSMEs (micro, small and medium enterprise), since most of these firms still use cash as a mode of transactions. The main reason for MSMEs not incorporating POS terminals include mutiple banking procedures, the complexity of POS terminals, and multiple fees charged by banks. However, the situation is changing with the increase penetration of payment cards as the merchants are forced to adopt POS terminals to provide better service to their customers. Inspite of the growing number of MSMEs in Europe, the use of POS terminals is quite low, which gives the local and regional vendors ample opportunities to enter the market. With an increase in the number of MSMEs by 2020, there will be improvement in infrastructure, subsequently making easy for vendors to enter the European market.
Increasing card transactions
The vendors are increasingly adopting card payment mechanism due to the increased use of debit and credit cards for payment transactions by the customers. Besides this, it is now expected from the customers that they use cards and digital money more than cash. The increased use of cards by the merchants and customers will encourage mobile card readers to invest in this technology. The European countries such as, Denmark, Scandinavia and Sweden have started adopting POS terminals.
Rising regulatory intervention on secure payments
Due to few financial fraud incidences, several countries are forced to set strict regulations to ensure payment security. Regulatory bodies have enforced a rule on retailers and merchants for the recertification of electronic payment systems. As per one of the EMV shift rule in Europe, the merchants and issueres should adopt EMV technology standards, failing which they will be charged in the case of any fraudulent transaction. The certification of electronic sytems employed by merchants must be obtained from reliable sources such as card associations, financial institutions, and payment processors. This requires the majority of retailers to change their existing POS systems to new POS systems. EMV or Chip and PIN standards are part of the cashless payment infrastructure in many developed countries, and by the end of the forecast period, it is expected that card transactions will be more than cash transactions in Europe by 2020.
Increasing e-commerce transactions
With the increase in the number of smartphones the demand for mobile commerce has increased, thereby giving rise to the demand for e-commerce market. At present, the market has more than 50% of online shoppers globally, who use smartphones or tablets to shop. The primary reasons for the growth of the ecommerce sector include increased competition, exploring new markets, meet the customer demands that are changing and business scenarios. Such trends have led to the adoption of user friendly payment methods. In countries like India, people prefer paying through CoD (cash on delivery) mode, which creates the need to develop mobile POS terminals so that it can accept cards. Increase in the number of e-commerce transactions will augment the demand for mobile POS terminals, resulting in the growth of the overall POS terminal market in Europe.
Some of the other prominent vendors identified in this report are ATOS Worldline, CyberNet, Equinox Payments, First Data, Keycorp, NCR, and Spire Payments.
This research report includes an in-depth analysis and market shares and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, key financials, etc. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
Other related reports:
- Global POS Terminals Market 2016-2020
- Global EMV POS Terminals Market 2016-2020
- Global mPOS Market 2016-2020
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