Speeding Up EMV Migration and Enhanced Value Proposition Necessary to Drive Market Growth.

PALO ALTO, Calif. -- The varying pace of migration to Europay, MasterCard, and Visa (EMV) across the globe has had a huge impact on the sales of electronic funds transfer/point of sale (EFT POS) terminals.

While this migration has been quite fast in western Europe, Latin America and the Asia Pacific, terminal manufacturers are hard-pressed to find a more compelling business case (apart from fraud prevention) to sustain market share and profitability in North America.

New analysis from Frost & Sullivan, (http://www.autoid.frost.com) World EFT POS Terminal Market, reveals that revenues in this market totaled $863.2 million in 2004 and projects to reach $1,567.3 million by 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the World EFT POS Terminal Market, then send an e-mail to Tori Foster - Corporate Communications at [e-mail] with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via e-mail upon receipt of the above information.

"In many European countries, such as Italy, Germany and Spain, less than five percent of the entire installed terminal base is EMV-compliant," observes Frost & Sullivan Research Analyst V. Aravindh. "With these regions charting out an EMV migration implementation plan by the next year-and-a-half, the EFT POS terminal market is expected to receive a significant boost in the future."

Terminal manufacturers need to concentrate on countries such as China, India and Russia for long-term profitability where there is increasing adoption of electronic payments due to infrastructure development, strong government support, and the expanding presence of wireless networks.

However, in order to drive uptake in North America that has minimal fraud occurrences and a large legacy infrastructure for magnetic stripe technology, terminal manufacturers will have to offer a better value proposition.

"While price is a key differentiation factor, manufacturers need to start considering other parameters, such as enhanced software application delivery and customer services, to boost revenues," says Aravindh.

Online debit and personal identification number (PIN) pad sales are areas that are likely to offer manufacturers an opportunity to increase market share and spur terminal sales in North America.

In addition, value-added services, such as gift, loyalty, e-commerce, advertising, couponing and electronic receipt capture (ERC) programs, are expected to augment revenues and improve profitability.

Leveraging the popularity of IP-enabled technology for payment terminals is also likely to offer a substantial competitive advantage for manufacturers in terms of "always-on" connectivity, high-speed communication in wired and wireless networks, and lower cost of support.

Contactless payment is another rapidly emerging technology, which is likely to spur sales of POS terminals, particularly in the quick service restaurant (QSR) segment.

"Contactless payment using radio frequency identification can save up to 10 to 12 seconds per transaction, resulting in increased throughput," explains Aravindh. "The QSR segment, having a terminal penetration of less than 15 percent in the United States, presents a significant opportunity for manufacturers in the coming years."

World EFT POS Terminal Market, part of the 9212 subscription, offers a detailed analysis of drivers, restraints, trends, and revenue forecasts for the EFT POS terminal market. Participants can use the expansive market forecasts for the total EFT terminal, magnetic stripe terminal, wireless/mobile terminal, IP-enabled terminal, and smart card terminal markets to assess their growth potential and tap emerging opportunities across the globe. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

World EFT POS Terminal Market

F401

Keywords in this release: electronic funds transfer/point of sale, EFT/POS terminal, Europay, MasterCard, and Visa, EMV, online debit, personal identification number pad, PIN pad, electronic receipt capture, ERC, magnetic stripe technology, smart card terminal, IP-enabled terminal, wireless/mobile terminal, contactless payment, quick service restaurant, QSR, research, information, market, trends, technology, service, forecast, market share