LONDON--(BUSINESS WIRE)--Technavio’s latest EMV (Europay, MasterCard and Visa) POS terminal market in the US report highlights three key emerging trends predicted to impact market growth through 2020. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.
“Vendors in the EMV POS terminal market in the US include well-established players that are adopting new technologies to gain a competitive edge. Verifone and Ingenico are leading the market in the US, with Verifone recording the largest market share in 2015. Ingenico is, however, closing the gap, and both companies are adopting different strategies with the common goal to dominate the market,” said Sunil Kumar Singh, one of Technavio’s lead industry analysts for computing devices research.
“Mobile EMV POS terminal vendors such as Square and PayAnywhere provide terminals at a much lower cost, and charge less from merchants. However, they mostly target micro and small enterprises that have fewer resources to opt for conventional EMV POS terminals. Large and medium enterprises still prefer conventional terminals as they offer faster card transactions and are easier to operate,” added Sunil.
Technavio’s market research study identifies the following three emerging trends expected to propel the growth of the EVM POS terminal market in the US:
- Shift toward cloud-based solutions
- Big data management
- Need for effective information management
Shift toward cloud-based solutions
Several large retailers and small and medium-sized enterprises in the US are expected to migrate to software as a service (SaaS) in the cloud from back-end processes during the forecast period. It will enable these companies to store large volumes of data that can be accessed from anywhere by authorized units. These solutions require fewer IT resources and reduce associated costs and complexities. They are expected to enhance cloud-computing technology and the related POS processing environment for retailers. Also, EMV terminals can be integrated with such POS solutions, to create more demand for EMV POS terminals. For instance, First Data Clover Station is a cloud-based POS solution (in which EMV POS terminal is integrated), which delivers benefits such as inventory management, secure transactions, and increased customer loyalty.
Big data management
The increasing number of cloud-based solutions will result in the deployment of more back-end software to the cloud. It will also help retailers access customer information and product data across multiple platforms, coupled with a strong customer relationship manager (CRM) division. Large amounts of data and its functioning will require highly compatible POS solutions that will work efficiently with the information present in the cloud, such as demographics, payment preferences, and customer buying behavior, to fuel market analytics (pre-marketing and post-sales marketing). EMV POS solutions also encourage more customer visits to stores by doing the following:
- Providing loyalty points
- Offering self-checkout and payments solutions
- Enabling new mechanisms such as visual identification along with voice recognition and biometrics
Need for effective information management
Effective information management is a key requisite for any company to attain profitability. Companies need to gather business-related information such as sales data pertaining to individual segments or sales data pertaining to the demography of customers to remain competitive in the market. Retailers can use POS solutions that integrate EMV terminals to have real-time data pertaining to their inventory stock. To tap the market potential, vendors are focusing on providing multiple value-added services using card transaction data. Inventory management, analytical tools, sales reports, and receipts management are some of the services provided by the leading vendors. Their services help end-users take the right course of action and minimize inventory management costs.
Verifone and Ingenico are currently leading the market in terms of providing such value-added services. End-users, in fact, consider these services to be a major buying factor when choosing between vendors. In the future, vendors are likely to focus more on similar services, and augment the demand for advanced POS terminals.
Browse related reports:
- POS Terminals Market in China 2015-2019
- POS Terminals Market in the US 2015-2019
- Global POS Terminals Market in the Retail Sector 2015-2019
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