Market Trends of Contactless Payment Terminals Industry
Retail Industry is Expected to Hold Major Market Share
- With the increased use of contactless payment terminals in retail, together with benefits arising from placing them on offer like promotion of sales at merchants and improved customer satisfaction, it is expected to have a strong market share. Retailers provide a contactless payment option to enhance the speed and efficiency of the checkout process, fostering customer loyalty through smoother and quicker transactions.
- Point-of-sale terminals (POS) across retail stores and The primary drivers for this segment are outlets and a preference of mobile wallets to check out from retail stores. The evolution of mobile-based POS (mPOS) includes an card reader connected to a basic ePOS app on a tablet or smartphone, and while Merchant onboarding is simple, where the service is delivered on a 'pay-as-you-go model. In the retail sector, these cases are likely to lead to deployment of Contactless Payment Terminals.
- Market players offer innovative and smart solutions for retailers, expected to drive the adoption of contactless payment terminals in the retail segment. For instance, the previous year, Square, a financial services platform, It's announced to its millions of sellers in the United States that it will be launching a Tap To Pay service for iPhone. In addition, the newly launched Tap to Pay on iPhone enables all sizes of vendors Accepting contactless payments directly from their iPhones without any hardware or additional costs is also available as an application in Square Point Of Sale'siOS point of sale applications.
- Moreover, the growth in contactless debit card and credit card transactions in retail stores and outlets is anticipated to drive the market demand for contactless terminals in the retail sector over the forecast period. For example, the most popular payment method in the UK last year was debit cards which accounted for 45 % and 28 % respectively of all payments made at POS terminals according to statistics from Worldplay.
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Europe is Expected to Hold Significant Share in the Contactless Payment Terminals Market
- The European region is expected to hold a significant market share over the upcoming period, owing to the changing payment landscape for various reasons: changing consumer habits, regulatory developments, innovation, and the COVID-19 pandemic. Moreover, the broader adoption of contactless payment terminals in different end-user industries is witnessing significant growth, further driving the market in the coming years.
- In Europe, consumers' wearable devices for payments continue to take off as they grate this relatively new payment method into their daily lives. For example, a ring, a wearable device, a bracelet, or a smartwatch, has Near-field Communication (NFC) capabilities. There exists 'active' and 'passive' wearables. The transaction which can be authorized by entering the PIN code on the payment terminal, just as with a plastic card, if you have your passive wristwatch that is like a ring. When you wear an active watch, such as a smartwatch, the PIN is inserted on your device itself and payments can be made using one tap.
- Additionally, amidst the COVID-19 situation, contactless card limits across Europe grew substantially as contactless payments were promoted across the continent. More and more consumers in the region are moving toward contactless payments after the pandemic, which is further expected to drive the market.
- In addition, continuous product innovation by market vendors in the region is expected to drive the market over the forecast period. For instance, in May last year, PayPal Holdings Inc. launched Tap to Pay with Zettle by PayPal for small businesses in the United Kingdom. The new function will enable individual sellers and small businesses to accept contactless in-person payments directly on Android mobile devices without additional hardware and fees.
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