With contactless payments becoming ubiquitous in many parts of the world, more than 16 million NFC-ready POS terminals will ship this year, according to Berg Insight.
Berg Insight projects the global installed base of NFC-ready POS terminals will grow at a compound annual growth rate of 17.9% from 45 million units in 2016 to 86.9 million units in 2020 – 77% of the world’s terminals.
The firm has also seen a boost in the number of NFC-enabled terminals that are actually activated. By the middle of this year, around 15 million units could accept contactless payments from Visa, Mastercard or UnionPay.
A major factor affecting the market is the rise of mPOS terminals. The attach rate for NFC in the mPOS segment is anticipated to reach 45% in 2016 as terminal shipments reach 8.2 million units.
Johan Fagerberg, senior analyst, Berg Insight, says: “The growth is driven by the increase in mPOS terminal shipments from 18.0 million units in 2016 to 42.3 million units in 2020, as well as by a growth in the attach rate from 45 percent to 77 percent.”