January 12, 2016
In May 2015, Let’s Talk Payments estimated the number of NFC terminals in the US to be around 1.3 million whereas the total EMV terminals in the US was estimated to be around 4 million.
In October 2015, the liability shift forced many retailers to move to EMV-based terminals. A large numbers of terminals that have been upgraded in the last six months are both EMV and NFC-enabled. At present, there are around 13.9 million POS terminals in the US. About 57% of these terminals are still non-EMV. In May 2015, we estimated this number to be around 70%. There has been a steady growth of EMV terminals in the last six months, and most importantly, the most amount of demand has been for EMV-based NFC terminals. Currently, there are around 2.4 million EMV-NFC terminals in the US, and around 3.6 million terminals in the US are only EMV-enabled.
Source: LTP research, multiple interviews with POS manufacturing firms and industry experts.
Apart from the 13.9 million POS terminals, mobile POS terminals in the US are also witnessing rapid growth. By May 2015, there were around 3.7 million mobile POS terminals in the US. In the last six months, the number of mobile POS terminals has reached around 4.1 million. Around 35% of the mobile terminals in the US are NFC-enabled.
Although the upgradation from magstripe to EMV is due to the liability shift, the increase in NFC-based terminals is a clear indication that retailers are looking to provide convenience to customers. Payments using mobiles are gaining acceptance due to the trio of mobile payments—Apple Pay, Android Pay and Samsung Pay.
Currently, there are around 3 million POS terminals with more than 340 tier I merchants. These merchants contribute around $3.7 trillion to the US retail industry. Most of these terminals are EMV- and NFC-enabled.
Let’s Talk Payments is coming up with a report titled Comprehensive 2015 (End of Year Analysis) US Market Analysis of POS Terminals and EMV & NFC Status Review.
Table of Contents:
1. Project Methodology and Definitions
2. The POS Terminal Market in the US
- New terminal deployment (Conventional/EMV/NFC)
- New terminal deployment (Mobile POS)
3. Gross Transaction Value of Retail Payments in the US
- Transactions at merchant locations ($, trillions)
- Emerging payments: Transactions at merchant locations ($, billions)
4. Installed Base of POS Terminals in the US (2015)
- Installed base of conventional POS terminals and transaction value
- Installed base by subsegments
- Top 10 retailers by number of POS terminals
- Market share of POS terminal manufacturers
- Market share of POS terminal by OS
5. Projected Installed Base of POS Terminals in the US (2020)
- Projected NFC terminals till 2020
- Projected EMV terminals till 2020