The worldwide POS terminal market continues to provide a growth channel where POS terminal vendors are able to compete. To date the market has been dominated by Ingenico and VeriFone and through various acquisitions both vendors have further strengthened their positions. With organic growth slowing, strategies are turning towards new developments and technologies to encourage the latest POS technology adoption and provide a migration path from lower-end to higher-end devices offering contactless payment processing alongside other added value services including loyalty applications.
Additionally, there remain some mature payment markets in the process or about to migrate to EMV/smart card technology. This presents a substantial opportunity as legacy based terminals need replacing with those able to process chip and PIN/signature transactions. Most notably China is in the process of migrating to its PBOC 2.0 standard and the US is aiming for a 2015 migration completion date in line with mandates set by the major networks.
Although the market has remained dominated by two large vendors the additional opportunity presenting itself is providing smaller vendors the chance to compete on the international stage. POS terminal shipments reached 13.8 million units in 2013 and this is set to increase to 15.6 million in 2016—a growth increase of 14%. ABI Research’s POS terminal Competitive Assessment includes a POS vendor matrix where companies were judged and scored under both an Implementation and Innovation category with a set of criteria and score weightings set out for each. This report provides ABI Research’s opinion on which vendors have the most relevant innovative product lines, development and future proof strategy in place to win out in an already well-established market, with substantial future opportunity. This Competitive Assessment also presents full year 2013 market shares based on the POS terminal shipments.