According to a new research report from specialist IoT analyst firm Berg Insight, the market for NFC-ready POS terminals continued to show strong momentum in 2020 with annual shipments reaching an estimated 67.2 million units worldwide.
The attach rate for NFC was highest in EU27+3 and North America, where 96 percent of the POS terminals shipped featured NFC. NFC was also a very popular feature in many other major markets worldwide, including Brazil, Turkey and China. On a global basis, about 74 percent of the POS terminals shipped in 2020 included NFC.
Berg Insight projects the global installed base of NFC-ready POS terminals will grow at a compound annual growth rate (CAGR) of 14.3 percent from 140.5 million units in 2020 to 274.2 million units in 2025. As a result, more than 91 percent of the world’s POS terminals will be NFC-ready in 2025, up from 68 percent in 2020.
“The mPOS terminal market is growing at about the same rate as the traditional POS terminal segment and there are more than 70 vendors active on the global market today,” said Johan Fagerberg, Principal Analyst at Berg Insight.
mPOS is the use of consumer-oriented mobile devices such as tablets and smartphones that function as a point-of-sale terminal to facilitate payment card transactions through a connection to a card-accepting reader. The attach rate for NFC in the mPOS segment was 69 percent in 2020 as NFC-ready mPOS terminal shipments reached 26.9 million units.
Berg Insight forecasts that global shipments of NFC-ready mPOS terminals will grow at a compound annual growth rate (CAGR) of 11.7 percent in the next five years to reach 46.7 million units by 2025.
Mr Fagerberg concludes:
“The growth is driven by the increase in mPOS terminal shipments from 39.2 million units in 2020 to 50.3 million units in 2025, as well as by a growth in the attach rate from 69 percent to 93 percent.”