The market for NFC-ready point-of-sale (POS) terminals skyrocketed in 2011, with annual shipments doubling to an estimated 2.5m units worldwide, a new research report from Berg Insight reveals.
A move from performing NFC payment trials to accelerating the rollout of NFC-ready payment infrastructure in preparation for the arrival of NFC-based mobile payment services is what drove the rapid growth.
The global installed base of NFC-ready POS terminals will grow at a compound annual growth rate of 49.4pc from 3.9m units in 2011 to 43.4m units in 2017, Berg Insight has forecast.
This corresponds to an increase in the penetration rate from 8pc in 2011 to 53pc in 2017. This rate is expected to be highest in North America, where an estimated 86pc of the terminals will be NFC-ready by 2017. The penetration rate in Europe and the rest of the world will be 78pc and 38pc, respectively.
Berg Insight also expects the emergence of mobile wallet services will be the most significant development in the payments industry during the next few years.
“Mobile wallet services will create an unprecedented opportunity for retailers to interact with consumers in real-time while their purchasing decisions are being formed, for instance, by delivering personalised offers in real-time while consumers are inside the shop,” says Lars Kurkinen, Telecom Analyst, Berg Insight.
Kurkinen adds that support for value-added services, such as coupons, loyalty cards and daily deals, will need to be integrated at POS terminals to enable a seamless shopping experience for the consumer.
Image of NFC payment via Shutterstock
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