The Rising EMV POS Terminal Market in the US

As the world grows increasingly digital, brick-and-mortar businesses are facing a new challenge: how to accept payments securely and efficiently in a world where cash is becoming less and less prevalent. Enter EMV POS (point of sale) terminals, which provide a secure method for processing credit and debit card payments. In this post, we'll dive into the EMV POS terminal market in the US, explore its growth, and analyze what it means for businesses and consumers alike.

EMV: An Overview

Before we dive into the market itself, it's helpful to understand EMV technology. EMV stands for Europay, Mastercard, and Visa, three companies that collaborated to develop a global standard for credit and debit card payments. The technology involves a microchip embedded in a payment card, which generates a unique code for each transaction. This code, along with the card's information, is encrypted and transmitted to the payment processor, where the transaction is authorized. The result: a secure and convenient way to accept payments.

The Growth of the EMV POS Terminal Market

So, how has the EMV POS terminal market grown in the US? When EMV technology was first introduced in the early 2010s, it faced some resistance due to the cost of implementation. However, as more data breaches and fraud cases occurred, businesses started to realize the importance of upgrading their payment systems. In 2015, liability for fraudulent transactions shifted from the card issuer to the merchant if the merchant wasn't using EMV technology. This mandate accelerated adoption, and by 2017, 65% of US merchants had implemented EMV technology.

Since then, the EMV POS terminal market has continued to grow. A recent report from Mordor Intelligence estimates that the North American EMV POS terminal market will grow at a compound annual growth rate of 9.15% between 2021 and 2026. This growth is driven by various factors, including increased EMV card usage, the need for secure payment systems, and the rise of contactless payments.

Implications for Businesses and Consumers

So, what does this growth of the EMV POS terminal market mean for businesses and consumers? For businesses, it means that upgrading to an EMV POS terminal is now more important than ever. Not only does it reduce the risk of data breaches and fraud, but it also provides a better customer experience. With contactless payments on the rise, businesses that offer EMV terminals that can accept both contactless and chip-based transactions will have an advantage over those that don't.

For consumers, EMV technology provides peace of mind when making purchases. With unique codes generated for each transaction, it's much harder for criminals to steal credit card information. Additionally, with the rise of contactless payments, consumers can now make payments quickly and easily without having to touch a potentially contaminated terminal.

Conclusion

In conclusion, the EMV POS terminal market in the US is poised for continued growth in the coming years. As businesses and consumers become increasingly aware of the importance of secure payment systems, we can expect to see more and more merchants upgrade to EMV technology. This shift will not only reduce the risk of data breaches and fraud but also provide a better experience for customers.