The installed base of contactless-enabled POS (Point of Sale) devices will exceed 161 million by 2024 growing from 78 million in 2019, according to new forecasts from Juniper Research.
In five years, contactless POS devices will then be 94 per cent of all POS devices in use.
According to the research, POS Hardware: Payments Innovation, Vendor Analysis & Market Forecasts 2019-2024, this growth will be largely driven by the deployment of contactless POS terminals in the US and the increasing use of contactless payments to replace traditional cash payments in emerging markets.
Juniper Research recommends that hardware vendors focus on enabling higher value contactless payments on existing POS devices by embracing mobile wallets and biometric payments cards at POS.
Contactless transactions at POS are increasingly displacing cash in multiple markets. The research found that the average value per contactless transaction will grow from under $19 in 2019 to over $23 in 2024, with mobile payments and increasing contactless card issuance in the US driving growth.
It recommends that POS vendors focus on minimising the cost of POS hardware solutions to enable further displacement of cash for more diverse use cases such as pop-up restaurants or home services.
The study found that biometric payment terminals, where payments are authorised on the device, are gaining traction in emerging markets. It forecasts that global transaction values for biometric-equipped terminals will increase from $84 million in 2019 to $254 million in 2024; propelled by the acceptance of biometric payments in India and China.
“In India, where biometric identity schemes are bringing the unbanked into the financial system, this type of device has high potential. It also has disruptive possibilities in developed regions, where biometric data is already being used in smartphones and identity documents, such as passports,” said Research author Susannah Hampton.
“We recommend that established POS hardware vendors develop biometric capabilities early to enable future revenue growth.”