In spite of some recent security setbacks, the market for point-of-sale terminals is set to keep growing, as new payment technology becomes more integrated.
This data comes from a new report released by Grand View Research, a business consulting firm. According to the report titled “Global Point-of-Sale (POS) Terminals Market Analysis Size And Segment Forecasts To 2020,” the adoption of near-field communication (NFC) and cloud technology for payments will boost the market for POS terminals.
NFC is the technology that allows users with chip-enabled cards or digital wallets to pay wirelessly just by waving their phone or card near a payment terminal. According to a recent story aired on Good Morning America, 70% of card users will be upgraded to cards with chips by 2015.
Both chip-embedded cards and digital wallets are being pushed as the answers to the rash of POS breaches that have plagued retailers over the past year, so security will definitely be an incentive for people to buy NFC-enabled POS systems. According to the report, security will be a major factor in expanding the market for certain systems.
Of course, the new technology poses its own problems. The same story on Good Morning America showed how hackers with NFC-enabled smartphones could steal credit card information just by scanning someone’s wallet for a few seconds. Still, upgrading from magnetic strips to computer chips does add a layer of security at the checkout, if not in your wallet.
“Retailers who don’t adopt the newer more secure technologies like NFC stand to suffer the consequences when the October 2015 deadline for implementing EMV,” says Mark Hurd, Cequis.com. “After that date, there’s a huge liability shift where if credit card fraud takes place, the liability for the costs will fall on the merchant. Considering that liability in the US is estimated at $10 billion does is it really seem worth the risk not to embrace the new standards?”
The study out of Grand View Research attributed the market growth to an improved return on investment and ease of use for POS systems featuring cloud and NFC payment options. Advanced POS systems are also more durable, reliable and cost-effective to own and maintain.
Grand View Research also predicts that the potential for more convenient and modern mobile POS terminals to replace traditional terminals will also have a positive influence on the market, as will the expansion of small and medium sized businesses.
According to the report, the only thing that may dampen growth is the need for complex and extensive government regulations and certifications.