Exploring the Evolution of POS Terminal Shipments in 2017: Insights from the Nilson Report

In a world where digital transactions have become increasingly prevalent, the Point of Sale (POS) terminal market continues to evolve in response to the growing demand for more efficient and secure payment solutions. The Nilson Report, a leading source of information on the global card and mobile payment industry, provides valuable insights into the trends and changes in the POS terminal shipments in 2017. In this blog, we will delve into the key factors behind these shifts and explore the impact on merchants and consumers alike.

Global Growth in POS Terminal Shipments

For many businesses, POS terminals have become essential tools, responsible for managing the critical process of accepting various payment methods. As such, it is no surprise that the number of POS terminal shipments during 2017 saw a significant increase. According to the Nilson Report, the total global shipments exceeded 24.7 million units, highlighting the expanding role of POS systems in business operations.

This growth can be attributed to several factors, including increased demand for contactless payment options, the need for updated security features to counter threats from data breaches, and emerging market opportunities in developing countries.

The Rise of Contactless Payments

One of the primary drivers of growth in the POS terminal market is the rise in contactless payment options. With the majority of major credit card companies now offering contactless cards and mobile wallets like Apple Pay and Samsung Pay becoming mainstream, the demand for terminals capable of processing these transactions has skyrocketed.

From a merchant perspective, the adoption of contactless payment technology has been shown to lead to increased transaction speeds, reduced queue lengths, and higher customer satisfaction levels. As such, it is increasingly important for businesses to invest in POS systems supporting contactless payment options to maintain an edge in the competitive market.

Enhanced Security Features

Security remains a top priority for merchants and consumers alike, especially given the growing number of high-profile data breaches and incidents of fraud in recent years. This has led to an increased focus on incorporating enhanced security features into POS terminals.

In 2017, the industry witnessed a significant shift towards the adoption of EMV (Europay, Mastercard, and Visa) compliant terminals. EMV technology provides additional layers of security by requiring the use of a microprocessor chip embedded in the card, making it much more difficult for fraudsters to access sensitive data from transactions.

Additionally, the growth in contactless payments has driven a push for more robust encryption methods and tokenization to protect against potential risks associated with wireless transmission.

Emerging Markets

Developing countries represent a significant growth opportunity for the POS terminal industry. With increasing numbers of businesses accepting card payments and government initiatives promoting the growth of digital transactions, there has been a surge in demand for modern payment solutions.

In particular, the adoption of mobile payment technologies has been rapid in these markets, providing merchants with a cost-effective alternative to traditional POS systems that can be easily scaled up as their businesses develop.

One of the notable trends in emerging markets during 2017 was the increased uptake of mobile POS terminals. These devices offer a range of benefits, including lower upfront costs, the ability to accept digital wallets, and the potential for expanded customer engagement through loyalty programs and targeted promotions.

The Future of POS Terminal Shipments

As we look ahead, the industry can expect continued growth in the global demand for POS terminals. With the ongoing shift towards cashless payments and the need for businesses to offer secure, seamless experiences to consumers, POS terminal shipments are likely to remain on an upward trajectory.

While established markets will focus on upgrading their existing infrastructure to support new technologies and security requirements, emerging markets will continue to explore cost-effective solutions that enable them to capitalize on the growing prevalence of digital transactions.

The POS terminal landscape is poised to undergo further transformation as innovative technologies, such as biometric authentication and blockchain-based payment systems, gain traction. As a result, businesses will need to stay informed and adaptable to the continual evolution of the POS terminal market to ensure their success in the competitive payment landscape.