Report on U.S. EMV, NFC, Mobile and Other POS Technology Adoption (2013-18)

In U.S. there are about ~33 Mn merchant establishments (single business location of a company which is engaged in a single activity). The Retail and Hospitality sector has about 6.87 Mn merchant establishments with more than 1 employee and there are about 13 Mn micro merchants who also belong to this category. We have not considered merchant establishments under the agriculture, forestry, mining, and manufacturing sector.

About 35% of Retail and Hospitality sector merchants (total of 19.87 Mn), have adopted POS, and have an average of about 2.0 POS per store. The Supermarkets & Grocery Store and Convenience Stores & Gasoline Stations are amongst the largest adopters of POS terminals (% penetration of POS).

In this study conducted by the Research Team at Let’s Talk Payments, the installed base of POS terminals is estimated to be approximately 12.2 million excluding Mobile POS. The penetration of EMV POS terminals (as a percentage of total POS terminals) is in single digit percentages.

EMV POS terminals adoption by various merchant categories varies drastically. The supermarkets and grocery store are the one’s leading in the adoption of EMV POS with a penetration rate going into double digit percentages. They are the ones who have the capacity to invest in technology and are being cautious about the fraud and security after Target and Neiman Marcus breaches.

On the other hand, gasoline station merchants who enjoy a buffer time of two additional years for the liability shift, have the lowest adoption rate of EMV.

When it comes to mobile POS systems, the 'others' category which includes micro merchants are the largest adopters primarily due to adoption of mobile card readers.

Table of Contents:

  1. Project Methodology and Definitions
  2. POS Terminal Market in the US
  3. Gross Transaction Value of Retail Payments in US
  4. Installed Base of POS Terminals in US (2015)
    • Installed Base by sub Segments
    • Average Age of POS Terminal
    • Average Number of POS per Store
    • Top 10 Retailers by Number of POS Terminals
  5. Projected Installed Base of POS Terminals in US (2020)
    • NFC Terminals
    • EMV Terminals
  6. Recent Trends—Adoption of POS by Top Retailers
  7. Appendix

Merchant categories included in the report: Supermarkets & Grocery stores, Convenience stores & Gasoline stations, Pharmacies and Personal care stores, Departmental stores, Hospitality industry, Arts & Entertainment and others.

Companies Covered:

Retailers – Wal-Mart, Kroger, Target, Costco, Walgreens, Home Depot, Lowe’s, Mcdonalds, Macy’s, Nordstrom, Sears, Apple stores, J.C. Penney, Staples, Subway, Gap, 7- Eleven, Aldi, Starbucks, Burger king, Office Depot, Autozone, Safeway, CVS caremark, IKEA and 100+ others.

POS and Tech companies – Ingenico, NCR Corp, Fujitsu, Harbortouch, Accuspos, Vend, POS nation, Verifone, Square, Payleven, SumUp, and dozens of others.

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