NFC POS Terminal Market Growth Opportunities and Forecast by 2027

The NFC POS Terminal market was valued at US$ 3,390.47 million in 2019 and is projected to reach US$ 11,503.09 million by 2027; it is expected to grow at a CAGR of 16.8% from 2020 to 2027.

NFC is a wireless data transfer method that enables data to be exchanged in close proximity by smartphones, laptops, tablets, and other devices. Via mobile wallets such as Apple Pay, Android Pay, as well as contactless cards, NFC technology powers contactless payments. The rising number of the supermarket, specialty store, and hypermarket are raising demand for the NFC POS terminal across them. US, China, Germany, France, and Japan are five major countries contributing to the highest revenue share in the NFC POS terminal market. Some of the factors stimulating the market for NFC POS terminal include an increasing preference for NFC-compatible smartphones for payment among global population. While 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 industry. 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.

In 2019, North America led the global NFC POS terminal market with more than 30% revenue share, followed by APAC and Europe. The rising use of NFC-enabled smartphones is accelerating the use of NFC POS terminals for payments in industries such as retail and healthcare in the region. The rising number of department stores in the US and growing demand for advanced technologies with an objective to gather real-time information is also surging the market in North America. The rising security concerns due to cyberattacks and increasing government initiative are factors contributing to the growth of NFC POS terminal market in the region.

Published Report - NFC POS Terminal Market: Strategic Insights

As contactless payments are becoming ubiquitous in several European countries, such as Germany and Russia, most of the NFC POS terminals are likely to ship at a high rate in coming years. Advantages such as secure, fast, and swift transactions via NFC POS terminals have led consumers in Europe to opt for electronic payments; thus, the popularity of NFC in various countries is surging to meet the growing consumer needs. As per Verifone study, ~27 million payment cards and ~6 million mobile phones are enabled for NFC in Germany, which is propelling the demand for NFC POS devices. The growth in investment in the retail to adopt advanced solutions for better management of the outlets is likely to influence the growth of the market in Europe. APAC is likely to account for the highest CAGR during the forecast period. The rising adoption of advanced technologies in retail, entertainment, and healthcare industries in countries such as China, India, Japan, South Korea, and Australia drives the adoption rate of NFC POS. Companies are highly investing in mPOS to streamline their payment operations. The presence of fast-growing economics, mounting technology adoption, increasing penetration of NFC-enabled phones are among the prime factors expected to drive the growth of the NFC POS market. Other developing regions, such as MEA and SAM, are also projected to grow at a rapid pace due to increasing government initiatives to digitalize the economy with advanced technologies.

Market Insights

Rising Adoption of NFC POS Solutions in Retail Sector

Over the years, near-field communication (NFC) as emerged as one of the best-known technologies used in many mobile payment solutions. Smartphones are fitted with NFC chips these days; therefore, while making store transactions, mobile consumers can use their devices instead of cash and credit cards. The technology may also be used to provide end users with a better experience, in addition to removing the hassle of paying for in-store products. With the introduction of NFC POS solutions, store owners can smartly deliver product details to their shoppers by making the billing process across the store simpler and less time consuming. These digital accessories are typically attached to a store item with a "tap to pay" label that customers can use to directly pay for the purchased item without any hassle.

Product Type-Based Market Insights

Based on product type, the NFC POS terminal market is segmented into mobile and fixed. Rising usage of payments through credit or debit card with NFC technology is the significant factor driving the global market. NFC is one of the emerging wireless technologies, which is widely used for payments. Paying for groceries and transit fares through NFC POS device signifies a new cutting-edge technology for payment in various technologically advanced countries, such as the US, Canada, and Japan. In mobile type of payment method, payment to a merchant is initiated from a NFC-enabled credit card reader, which is held close to the POS device.

Application -Based Market Insights

Based on application, the NFC POS terminal market is segmented into entertainment, healthcare, hospitality, and retail. Several industries are moving toward streamlined transaction procedures and they are integrating POS to provide a unique, interactive, and personalized solution to their customers. Further, focusing on investing in advanced technology is expected to play a crucial part in accelerating the demand for NFC POS during the forecast period.

NFC POS Terminal

Published Report - NFC POS Terminal Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - NFC POS Terminal Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Product development is the commonly adopted strategy by companies to expand their product portfolio. Castles Technology Co., Ingenico Sa, NEC Technology, Verifone Systems,, among others are the key players implementing strategies to enlarge the customer base and gain significant share in the global NFC POS Terminal market, which in turn permits them to maintain their brand name. A few of the recent key developments are:

• In 2019, Equinox Payments LLC announced that their Luxe 6200m and Luxe 8500i payment terminals and its Remote Key Injection (RKI) solution were approved by PCI Security Standards Council..
• In 2019, Verifone, a provider of self-service devices, POS terminals and modular payment components acquired Zivelo, the companies confirmed to Kiosk Marketplace.

NFC POS Terminal Market Segmentation:

By Product Type

• Mobile
• Fixed

By Application

• Entertainment
• Healthcare
• Hospitality
• Retail
• Others

Company Profiles

• Castles Technology Co.
• Cybernet, Inc.
• Equinox Payments
• First Data Corp
• Heartland Payment Systems
• Paz Technology Ltd.
• Ingenico SA
• NEC Technology
• Szzt Electronics Co., Ltd.
• Verifone Systems