“The mPOS terminal market is growing faster than the traditional POS terminal segment and there are more than 70 vendors active on the global market today” said Johan Fagerberg, Principal Analyst at Berg Insight.
The adoption rate was higher in Europe and North America, where respectively 90% and 88% of POS terminals shipped included NFC. The near-field communication technology is also a popular feature in other important markets, such as Brazil, China and Turkey. Globally, nearly three out of five POS terminals shipped in 2017 featured NFC.
Berg Insights anticipates that, worldwide, the installed base of NFC POS terminals will grow at a compounded annual growth rate of 15.6%, from 54.5 million units in 2017 to 112.3 million in 2022. By 2022, 78% of the world’s POS terminals will be NFC-ready, up from 50% in 2017. In comparison, the installed based for POS terminals nearly reached 109 million devices in 2017.
However, while the installed base of NFC-ready POS terminals has grown, the contactless technology had in many cases not been activated. As this changes, Berg Insight estimates approximately 30 million POS terminals accepted contactless payments with Visa payWave, Mastercard PayPass or UnionPay Quickpass at the end of 2017.
“The growth is driven by the increase in mPOS terminal shipments from 18.3 million units in 2017 to 40.7 million units in 2022, as well as by a growth in the attach rate from 53 percent to 85 percent”, concludes Mr Fagerberg.