POS Terminals and Wireless M2M

The world is continuously shifting from coin and paper-based
payments such as cash and cheques to electronic forms such as
payment cards and mobile phone payments. As a part of this shift,
POS terminals are becoming more and more common in all parts of
the world. The global installed base of POS terminals grew by 11
percent to 75 million units in 2014. Market growth is primarily fuelled
by the increasing adoption of electronic payments in emerging
markets. Developed markets are relatively saturated in terms of POS
terminal adoption.
Cellular connectivity has become a very popular option for POS
terminals and was incorporated in around one third of the devices
shipped in 2014. The wireless technology has an important role in
facilitating the global adoption of electronic payments, as it enables
the rollout of POS terminals to many new market segments and
parts of the world where the fixed line telecommunications
infrastructure is less developed. The installed base of cellular POS
terminals reached 20.8 million in 2014. Berg Insight forecasts a
CAGR of 7.2 percent between 2014 and 2019, resulting in a total of
39.2 million cellular POS terminals at the end of the forecast period.
The market for NFC-ready POS terminals continued to display
strong momentum in 2014 with annual shipments reaching an
estimated 9.5 million units worldwide. The attach rate for NFC was
highest in EU28+2 and North America, where 80 percent and 75
percent of the POS terminals shipped featured NFC respectively.
NFC was also a very popular feature in many other major markets
worldwide, including Brazil, Turkey and China. While the installed
base of NFC-ready POS terminals has grown quickly, many of
terminals do still not have the contactless features turned on. Berg
Insight estimates that approximately 9.0 million POS terminals
accepted contactless payments with Visa payWave, MasterCard
PayPass or UnionPay Quickpass at the end of 2014. This marks a
major increase from 2012 when just 2.6 million POS terminals
worldwide had the contactless features enabled.

1 Introduction
1.1 The card payments industry
1.1.1 The transaction process in card payments
1.1.2 Costs of a card payment transaction
1.1.3 Revenue distribution in the card payments industry
1.1.4 Card payments and household consumption expenditures
1.1.5 Breakdown of household consumption expenditures
1.1.6 Card payment volumes
1.2 The POS terminal market
1.2.1 POS terminal market data
1.2.2 POS terminal form factors
2 Wireless M2M and NFC
2.1 Evolution of electronic payments
2.1.1 EMV migration
2.1.2 Adoption of wireless M2M communication
2.1.3 Rollout of NFC-ready terminals
3 POS terminal vendors
3.1 Vendor profiles
3.1.1 CCV
3.1.2 CyberNet
3.1.3 Brookfield Equinox
3.1.4 ID Tech
3.1.5 Ingenico
3.1.6 PAX Technology
3.1.7 REA Card
3.1.8 Spire Payments
3.1.9 SZZT Electronics
3.1.10 VeriFone
3.1.11 Worldline
4 Forecasts and conclusions
4.1 Market trends and drivers
4.1.1 Steady uptake of wireless M2M
4.1.2 Interest in NFC surges
4.1.3 POS terminal app stores are a potential game-changer
4.1.4 New technologies can transform the shopping experience
4.2 Market forecasts
4.2.1 Cellular POS terminal market forecast
4.2.2 NFC-ready POS terminal market forecast
Glossary