ABI Research has released a new report predicting that 85% of point-of-sale terminals worldwide will be contactless-enabled by 2016 — up from just 10% in 2010.
In “Cellular-enabled POS Terminals, ATMs, and Vending Machinesm,” ABI attributes the growth to the proliferation of contactless cards, “rapid” adoption of NFC-enabled cell phones, and the introduction of major mobile payment services like Google Wallet.
ABI sees the greatest growth potential in the vending machine industry thanks to the increased speed and simplicity of contactless payments. Customers benefit from the quick and easy cashless transactions, while operators are spared the hassle of dealing with PIN entry or signatures. This, ABI says, plays into the “essence” of the vending industry.
ABI also found contactless technology to be the very early stages of adoption in ATMs. Convenience will also be the driving factor in this market, with customers waving a card in front of the ATM reader rather than inserting it.
Ingenico, VeriFone, and Hypercom are the three leading vendors of POS terminals and command most of the market, according to ABI. VeriFone recently completed the acquisition of Hypercom after satisfying the antitrust concerns of the US Department of Justice. The report finds that contactless terminals have formed an increasingly significant part of Ingenico’s portfolio in recent years, accounting for 21% of the company’s shipments in 2010.