LONDON, Sept. 30, 2013 /PRNewswire/ -- The electronic funds transfer-point of sale (EFT-POS) terminals market is expected to grow rapidly as vendors capitalize on opportunities in emerging markets such as China, India, Brazil and Mexico. The emergence of mobile POS (mPOS) payment-based solutions has provided added opportunities for vendors.
These developments will spur market revenue growth from $2.53 billion in 2012 to $3.51 billion in 2017 at a compound annual growth rate (CAGR) of 6.6 percent, according to the recent EFT-POS Terminals—Implications for Digital Identification Payment Providers analysis from Frost & Sullivan.
"mPOS payment-based solutions have become a viable option for small enterprises and direct sellers owing to its cost-efficiency, security and easy-to-use features," said Frost & Sullivan Global Program Director, ICT in Financial Services, Jean-Noel Georges. "This niche market is also the perfect entry point for new challengers to deploy their innovative payment systems based on a cost-effective business model."
Market entrants will still face significant barriers especially in Western Europe and the United States, where the market is saturated. Moreover, challenging economic conditions have led to prolonged recession in some of the major markets for the POS industry — the United States, the Eurozone, and parts of Asia and Latin America, reducing the addressable market base for terminal vendors as even existing customers are wary of capital expenditure.
Another factor holding back robust growth is the lack of industry-wide security and payment processing standards. Despite the existence of the Europay, MasterCard and Visa as well as Payment Card Industry standards, several countries in Europe and Asia have set their own policies. While these new security requirements play a key role in combating fraud, they have an adverse impact on a vendor's time to market.
Nevertheless, these national level mandates issued by governments to aggressively pursue the upgrade of payment infrastructure have also widened the prospects for terminal manufacturers.
"To capitalize on this potential, global EFT-POS providers must enhance and personalize customer experience," noted Georges. "Apart from extending services such as money transfer, bill payment, age verification, mobile top-up and couponing, offering loyalty programs and gift card applications will open up additional avenues for revenue generation."
If you are interested in more information on this research, please send an e-mail to Joanna Lewandowska, Corporate Communications, at email@example.com.
EFT-POS Terminals—Implications for Digital Identification Payment Providers (9843) is a Market Insight that is part of the Smart Cards (http://www.smartcards.frost.com) Growth Partnership Service program. Frost & Sullivan's related research services include: 2013 Global Smart Card Forecaster, The Smartphones and Tablet Market in South Asia, and North American Hosted IP Telephony and UCC Services Market.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Corporate Communications – Europe
P: +48 22 481 62 20
SOURCE Frost & Sullivan