ID: MRFR/SEM/3801-CR | July 2019 | Region: Global | 117 pages
The Global Pay-Card Reader Market is expected to grow from USD 5,860 million in 2016 to USD 73,057.27 million by 2023, at a CAGR of 43.63% during the forecast period. Rising penetration of tablets and smartphones across the globe, increasing use of the electronic mobile payment, increasing use of electronic mobile payment, transformation in the payment mode from cash and cheque to mobile electronic payments, and rising popularity of pay card reader device will be expected to drive the market during the forecast period.
Furthermore, the mass transition from magnetic strip technology to micro-controller smart cards will be expected to become an opportunity for pay-card reader market. However, information transferred from the pay card reader to mobile device goes unencrypted are expected to restrain the market during the forecast period. The transition from magnetic strip technology to micro-controller comprised card is going to boost the pay card reader market. The micro-controller consists of security controller that holds the information during the payment process. The security controllers consist of dynamic features that include robust fraud-resistant chip architecture designed for international security standards. The micro-controllers provide fast and secure data transactions that are best utilized while making contact, contactless, and dual interface applications for varied industry verticals such as eGovernment, banking, and public transport.
Global Pay-card Reader Market Size
Source: MRFR Analysis
Technology is playing a vital role in the contactless payment transaction. There is numerous technology that is used to connect the pay card reader device with the smartphone or other portable devices such as near field communication technology, Bluetooth, chip and sign, biometrics, magnetic strip, and QR code. The technology listed above has its significant characteristics and is widely used in the mobile-based payment procedure. EMV technology is used for making smart card payments, automated teller machines, and payment terminals. EMV cards are also known as smart card and consist of a magnetic strip that stores their information on integrated circuits. EMV technology is a global standard for authenticating credit and debit card-based transaction that consists of chip-compatible cards and point-of-sale (POS) terminal. EMV technology also allows card owners to enter a personal identification number before checkout, ensuring a second level fraud protection. Near field communication technology is defined as a short-range wireless connectivity standard. It comprised of magnetic strip induction to enable the connection between two devices when these devices are touched together or within proximity. Philips and Sony jointly developed this technology for establishing a peer-to-peer network to exchange data. With NFC, the user card information is encrypted on their phone. Popular payment solution such as Apple Pay and Android Pay use near field communication technology to strengthen security. QR code technology has not been introduced yet, but technologists are supposed to launch it soon. A QR code can be used as an option for undertaking card transaction through mobile or point-of-sale (POS) devices. This enables retailers to receive payment through the application without the need of card reader. Mobile-based POS includes smartphones, tablets, or any wireless device that operates in the same way as that of any electronic PoS terminal. For using this service, the user has to download a mobile app and connect the device to a card reader to carry out transactions.
The key players of the global pay-card reader market are Square, Inc. (US), PayPal Inc. (US), Intuit Inc. (US), Payanywhere LLC (US), First Data Corporation (US), CPI Card Group Inc. (US), Infineon Technologies AG (Germany), Gemalto NV (Netherlands), and Mahindra Comviva (India) among others.
Source: MRFR Analysis
The global market for pay-card reader is estimated to grow at a significant rate during the forecast period from 2017 to 2023. The geographic analysis of the pay-card reader market has been conducted for North America, Europe, Asia-Pacific, and the rest of the world. North America is expected to dominate the pay-card reader market during the forecast period with the market share value of 38% due to rising penetration of smartphone and tablets across the region. Europe has successfully counted the second position in pay-card reader market. Asia-Pacific is expected to grow at a faster rate during the forecast period. However, the rest of the world (RoW) is expected to grow with a slow growth rate during the forecast period.
In February 2018, PayPal Inc launched two omnichannel pay-card readers, Chip and Swipe reader and the Chip and Tap, reader. This new reader provides various services and the various option for merchants to accept digital payments, including Apple Pay, Google Pay, and Samsung Pay.
In January 2018, Gemalto NV launched the first biometric EMV card for both chip and contactless payments. This card is compatible with existing payment terminals which are placed in the countries.
Key questions addressed by the report
Frequently Asked Questions (FAQ) :
The global for pay-card reader market will be gaining a valuation of USD 73,057.27 million by the year of 2023.
The transition from magnetic strip technology to micro-controller having the card is going to boost the pay card reader market in a greater way.
The factor of information transferred from the pay card reader to mobile device goes unencrypted are to restrain the market during the growth period.
Square, Inc. (US), PayPal Inc. (US), Intuit Inc. (US), Payanywhere LLC (US), First Data Corporation (US), CPI Card Group Inc. (US), Infineon Technologies AG (Germany) are the key players investing in the growth of the global for pay-card reader market.
PayPal Gemalto NV are the key companies known for investing in the global for pay-card reader market growth.