News

EFT Terminals Manufacturers Target New Markets and Consumer Segments to Drive Growth

Tuesday 10 February 2004 15:40 CET | News

Demand saturation for electronic fund transfer and point-of-sale terminals and systems -- particularly in the United States and Europe -- is compelling companies participating in these markets to identify new growth opportunities.

Currently, almost all retailers and commercial establishments in these regions, which is the largest market for point-of-sale (POS) terminals, are capable of electronic fund transfer (EFT). Due to this, POS equipment manufacturers are faced with the daunting task of reselling to the same customer base that prefers refurbished units to new ones. New analysis from Frost & Sullivan (www.autoid.frost.com), World EFT Terminal Market, reveals that this market generated revenues worth $1.8 billion in 2002 and is likely to reach $2.6 billion by 2007. The government sector and the quick-service restaurant segment in the United States, with their low POS terminal penetration, are two potential growth areas that the participants can focus on to increase market share and profits. Efforts can also be channeled toward targeting new geographic regions such as India and China where the payment card industry is currently making giant strides. However, the requirement for high investment and complexities involved in installing payment systems may deter small retailers from deploying EFT and POS terminals. Major card associations are addressing the cost issue directly, with Visas Smart Breakthrough Acceptance Device program being one such prominent industry response. Under this scheme, terminal manufacturers such as Cybernet and Intellect offer special base prices of just over $200 for terminals that conform to global Europay, MasterCard and Visa (EMV) standard for chip-based debit and credit cards. This includes the cost of hardware and EMV core library with support and service warranties. Availability of inexpensive electronic components, economies of scale in manufacturing and market maturity are some of the other factors expected to bring down prices. Nonetheless, key market participants are concentrating on increasing the value proposition in terms of software and services rather than just relying on price reductions to increase market penetration. In the case of POS systems, equipment purchased prior to the launch of Pentium processors and those bought in preparation for the Y2K problem lack the capacity for new technological upgrades. These systems, which are nearing the end of their product life, are likely to be replaced in the coming years, encouraging market growth. If you are interested in an analysis overview which provide manufacturers, end-users and other industry participants an overview, summary, challenges and latest coverage of the World EFT Terminal Market -- then send an e-mail to Julia Paulson, industrial media relations executive, at dwhite@frost.com with the following information: Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, E-mail. Upon receipt of the above information, an overview will be e-mailed to you.


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Keywords: ,
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce


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