The global NFC POS terminal market was valued at US$ 3,390.47 million in 2019 and is expected to reach US$ 11,503.09 million by 2027; it is estimated to grow at a CAGR of 16.8% during 2020–2027.
NFC is a wireless data transfer method that enables data to be exchanged in close proximity by smartphones, laptops, tablets, and other devices. NFC technology powers contactless payments via mobile wallets such as Apple Pay, Android Pay, and contactless cards. The rising number of the supermarket, specialty store, and hypermarket is raising demand for the NFC POS terminal. The US, China, Germany, France, and Japan are five major countries contributing to the highest revenue share in the NFC POS terminal market.
Increasing preference for NFC-compatible smartphones for payment among global population is stimulating the market for NFC POS terminal. In the mid-2000s, Near Field Communication or NFC was developed jointly by Philips and Sony; over the years, the technology has evolved for different use cases. With 3.4 billion active smartphones in the world today, mobile penetration is at an all-time high. There are 2 billion computers, mostly tablets that can be NFC-enabled. Increased penetration of NFC-based mobile handsets is one of the main factors contributing to the growth of the NFC POS terminal market. The increasing use of NFC-enabled smartphones is likely to expand the use of NFC POS terminals for payments and digital exchange in the transportation, retail, and healthcare industries.
The NFC POS terminal market is segmented on the basis of product type and application. By product type, the market is bifurcated into mobile and fixed. Based on application, the NFC POS terminal market is segmented into entertainment, healthcare, hospitality, retail and others. By geography, the market is segmented into North America, Europe, APAC, MEA, and SAM. The US is the worst affected country due to COVID-19 outbreak across the world, thereby influencing the high adoption of online shopping across the country. For instance, according to studies, Amazon recorded an increase in sales by 37% owing to the pandemic. A few of the key players operating in the global NFC POS terminal market are Castles Technology Co.; Cybernet, Inc.; Equinox Payments; First Data Corp; Heartland Payment Systems; Paz Technology Ltd.; Ingenico Sa; Nec Technology; Szzt Electronics Co., Ltd.; and Verifone Systems among others.
The global NFC POS terminal market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the NFC POS terminal market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the NFC POS terminal market.