LONDON--(BUSINESS WIRE)--Technavio’s latest report on the global mobile Europay, MasterCard, and Visa (EMV) point of sale (POS) terminals market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Navin Rajendra, a lead analyst from Technavio, specializing in research on computing devices sector says, “The global mobile EMV POS terminals market is expected to exceed 4 billion by 2020, growing at an impressive CAGR of close to 18% during the forecast period. Increased penetration of mobile EMV POS terminals in the retail and hospitality sectors will drive the market growth. The global increase in urbanization, which increases the number of footfalls in the retail sector, is one of the factors contributing to the growing demand for mobile EMV POS systems.”
In 2015, APAC led the market with a revenue contribution of approximately 46% and will maintain its dominance throughout the forecast period.
The top three emerging trends driving the global mobile EMV POS terminals market according to Technavio hardware and semiconductor research analysts are:
- Increased demand for value-added services
- Increased adoption of cloud-based solutions
- Emergence of big data management
Increased demand for value-added services
Conventional mobile EMV POS terminal vendors such as Ingenico and Verifone are providing different value-added services to their customers in the form of analytics, inventory management, advertising and marketing assistance, and other related consulting services. This has not only helped them increase the customer base but also retain the existing customers.
Vendors are focusing on offering different value-added services using card transaction data. Inventory management, sales reports, analytical tools, and receipts management are some of the services provided by vendors. Many vendors are providing these services for free, while some charge a monthly service fee. “These add-on services provide immense value to micro, small, and medium enterprise (MSMEs) but lack in terms of analytics, especially for large businesses. However, as the target market is largely MSMEs, offering such services is a solid strategy for vendors,” says Navin.
Increased adoption of cloud-based solutions
The growing need for value-added services such as inventory management, big data analytics, and sales management tools with POS terminals has resulted in an increased need for efficient and economical data storage solutions. Merchants can configure their POS systems, manage transactions, and access information through cloud-based POS terminals.
Cloud-based POS terminals can connect to all the associated hardware and help centralize vital company information. This information can be accessed by merchants from anywhere by connecting to the web. Vendors are implementing software-as-a-service (SaaS) platforms as an alternative to physical storage, and a number of merchants are migrating to it. This is especially beneficial to small and medium enterprises, as it results in significant reduction in cost. However, merchants need to assess the transformation cost of opting for software upgrades with the existing in-house IT infrastructure before shifting to cloud-based solutions.
Emergence of big data management
The increasing cloud-based solutions will result in more back-end software to the cloud and will be integrated with other software for the smooth functioning. This will enable the retailers to access customer information and product data across multiple platforms coupled with a strong CRM division. The large amount of data and its functioning will require highly compatible mobile EMV POS terminals to capture information such as demographics, payment preferences, and buying behavior. This information will fuel the market analytics (pre-marketing and post-sales marketing) and the trending data such as social networking.
This will enhance the process in the store and leverage the technology and use of POS terminals for a number of functionalities for the merchants in the retail sector. Many merchants will take this opportunity and use it to their advantage during the forecast period. As a result, there will be continuous demand for mobile EMV POS terminals.
Browse Related Reports:
- Global EMV POS Terminals Market 2016-2020
- Global mPOS Market 2016-2020
- EMV POS Terminals Market in the US 2016-2020
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