Summary

The global electronic payment terminal (EPT) market has demonstrated robust growth, valued at over $80 billion as of 2021 and projected to expand at a CAGR of 6.9% through 2028, potentially reaching $130 billion. This momentum is driven by several factors, including a rising preference for card over cash payments, technological advancements like mPOS and SoftPOS payment terminals, and value-added services that assist businesses in revenue and inventory management. The adoption of mobile payments is simultaneously increasing; for instance, in France, mobile payments accounted for 6% of contactless transactions in volume by 2022, doubling from the previous year. In terms of the market structure, traditional incumbents still dominate, holding 95% of the market share even with the entry of fintechs. The landscape of payment methods sees card payments leading in transaction volume and operator transfers in value. Market players are diversifying their offerings, as seen in the variety of payment terminal types, and ensuring integration with various transaction forms to maintain a competitive edge. Despite these positive drivers, data security concerns persist, especially with newer payment technologies, moderating overall market expansion.

Trends and Key Figures in the French Electronic Payment Terminal Market

In France, the electronic payment terminal (EPT) market has experienced remarkable growth over the past decade, with key trends emphasizing technological innovation and the increasing adoption of cashless payment options among both consumers and merchants. The number of payment terminals in the country has seen a significant increase of approximately 85%, arising from 1.490 million devices in 2016 to between 2.5 and 2.7 million Eftpos terminals by the year 2021. This growth trajectory highlights an expanding market where more businesses are keen on facilitating electronic transactions.

The advancement of cashless payment methods correlates with the rise in the number of bankcards, which escalated from around 60 million in 2012 to between 75 and 80 million in 2022. This growth bolsters a favorable environment for the deployment of more payment terminals, considering the consumer shift towards less cash usage. Additionally, electronic card transactions have seen an upward trend, with a notable rise of 35% 

Even with a temporary downturn in 2020 due to the pandemic, the rebound in 2021 by around 9% compared to 2020 emphasizes the resilience and ongoing adoption of electronic payments. Mobile payment, has rapidly gained traction in France, revealing consumer willingness to adopt new payment technologies.

Noteworthy is that mobile payments lack the legal limit present in contactless card transactions, potentially opening doors for further growth in this segment. In terms of payment methods, while card payments dominate the volume of cashless transactions at 59.6%, they account for only 1.8% of the total cashless payments in terms of value. On the contrary, higher-value transactions such as credit transfers take the lion's share of cashless payment values, at 91.4%.

Not to be overlooked are the emerging payment options like contactless payments via cards and mobile devices, e-wallets, and QR code payments, demonstrating a market ripe with innovation and customer adoption. Over 80% of French individuals have utilized contactless card payments, and a majority are also engaging in e-commerce payments. In the face of this evolution in payment preferences, the payment terminal market has witnessed the rise of fintechs challenging incumbent players' dominance. These new entrants are reshaping the offer by providing modernized and diversified EPT solutions, tailored to the growing needs.

Key Contenders in the Global Electronic Payment Terminal Market

The landscape of electronic payment terminals is dominated by notable incumbents, interspersed with dynamic fintechs that are revolutionizing the market with innovative solutions. Here's an overview of the main players cited in the text, outlining their contributions and unique offerings in the sector:

  • Ingenico - Hailing from France, Ingenico has been a longstanding giant in the payment terminals industry. Renowned for their comprehensive range of products, Ingenico terminals cater to various merchant needs with offerings that include fixed, portable, and mobile EPOS systems. Following a high-profile acquisition, Ingenico is now a part of Worldline, which only strengthens its position in the market.

 

  •  Verifone - This USA-based company is one of the heavyweights in the global market, supplying a wide array of terminals. Verifone's portfolio includes fixed, mobile, and PinPad terminals, known for their reliability and extensive features that support the evolving needs of merchants across the globe.

 

  •  SumUp - A leading fintech company, SumUp has emerged as a game-changer, specifically catering to the needs of small and medium enterprises with its minimalistic yet powerful mobile payment solutions, such as the SumUp Air and Solo, which are designed for simplicity and ease of use.

 

  •  iZettle - Acquired by PayPal, iZettle has gained a reputation for its user-friendly and cost-effective payment solutions. Their Reader2 and Terminal products are notable for their mobile capabilities, enabling small businesses to process payments fluidly, anywhere sales happen.

 

  •  Smile & Pay - A French fintech company, Smile & Pay exemplifies the innovative spirit of new entrants disrupting the EPT market. They provide a range of mobile terminals like the Mini, Smart, Super, and Maxi, which are designed to cater to the diverse needs of merchants without locking them into contracts or monthly fees.

 

  •  Square - Square has made a pronounced impact on the market with its distinctive reader and mobile app, which turns smartphones into powerful sales processing units. Emphasizing simplicity and accessibility, Square has opened up the potential for merchants of all sizes to accept card payments.

 

  •  Yavin - Another French player in the market, Yavin offers versatile electronic payment solutions that keep up with the latest developments in payment technology, offering merchants a competitive edge.

 

  •  Famoco - With a focus on mobile-first solutions, this is another French actor in the market.
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  • Last update : 21/09/2023
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Summary and extracts

1 Market overview

1.1 Definition and scope of study

An electronic payment terminal (EPT) is a device that is becoming almost indispensable for retailers worldwide. The classic model consists of a casing, a screen, a keyboard and a card reader. More and more innovative forms of Eftpos terminals are also appearing, such as mobile Eftpos terminals, which are used in particular by companies on the move.

This TPE brings together the 4 parties required for a transaction:

-The cardholder

-The merchant

-The merchant's bank

-The cardholder's bank

This connection guarantees the effectiveness of the payment, unlike payment by cheque, for example, which is a security feature for the merchant. What's more, as consumers carry less and less cash, merchants are obliged to adapt and offer payment by card.

But these payment terminals are subject to commissions on transactions: these generally depend on the type of card used (debit, credit, prepaid...), the country of issue, and the network (VISA, Mastercard, American Express...). These commission rates average between 0.5% and 2.5%.

The size of the global payment terminal market has exceeded $80 billion by 2021, and is expected to grow at a CAGR (average annual growth rate) of almost 7% between 2022 and 2028.

As far as the French market is concerned, just over one in two merchants has an Eftpos terminal, but a strong trend towards digitalization is driving fintechs to position themselves in this segment.

Among the players in this sector are the giants Ingenico (France) and Verifone(USA), as well as fintechs such as iZettle, SumUp and Smile & Pay.

1.2 The global market

The global payment terminal market was valued at US$**.** billion in ****. The market is expected to grow at aCAGR of *.*% over the period **** - ****. As a result, sales are expected to reach *** billion US dollars by ****.

Evolution of global payment terminal market size World, **** - ****, in billions of USD Source: ****

Factors ...

1.3 Domestic market

To estimate the size of the French payment terminal market, we can multiply the number of payment terminals in France (***).

Thus, for ****, we obtain the following calculation:

(***) = *.*** billion euros

The same applies to other years:

Market size trend for payment terminals in France France, **** - ****, in billions of euros Source: ...

2 Demand analysis

2.1 Increase in the number of payment terminals and bankcards

In eleven years, the number of payment terminals in France has increased by **%, reaching *.*** million devices in ****. The increase is particularly significant between **** and ****, rising from *.*** million to *.*** million Eftpos terminals, an increase of **%.

Number of electronic payment terminals in France France, **** - ****, in number of units Source: ****

At the same ...

2.2 Payment methods used

The most widely used cashless payment method, in terms of volume, is card payment, accounting for **.*% of the total number of transactions. Cashless means of payment are distinct from banknotes and coins. They enable funds to be transferred by means of a payment order: these include cheques, bankcards, transfers, direct debits, ...

2.3 Focus on credit card payment

The following chart shows the breakdown of bankcard use by sector, in terms of number of transactions. This breakdown includes all bankcard payments, whether physical (***). It does, however, enable us to identify trends in the sectors where bankcards, and thus payment terminals, are most widely used.

In terms of the number ...

2.4 Focus on contactless payment

In ****, of the **.* billion bankcard payments, *.* billion were contactless payments, representing **.*% of the total number of card payments. [***]

In ****, **% of the number of proximity card payments (***) will be contactless. However, they only represent **% of the total value of card payments in proximity. In fact, the average basket for contactless payments was ...

2.5 Focus on mobile payment

Mobile payment has been rapidly democratized in France in recent years (***). However, the proportion of mobile payments in contactless payments will only represent *% in volume in ****, although this number has doubled compared to ****. [***] Note that unlike contactless payment by card, which has a legal limit of ** euros, contactless mobile payment has ...

2.6 The French and cash payments

For "local" transactions, e.g. in physical stores (***), the main alternative to payment terminals is cash .

Cash continues to be used regularly by the French. In fact, **% of French people say they pay "at least occasionally in cash", and **% even say they pay in cash "on a daily basis". Only *% of ...

3 Market structure

3.1 Overview of payment solutions

This section aims to give an overview of the payment environment in France, and the place of payment terminals in this environment.

Payment is a transaction that takes place between a buyer and a beneficiary. With the exception of cash payments, payment transactions call on one or more intermediaries to ensure ...

3.2 Card payment via a payment terminal

Several players are involved in the act of paying by card in a "physical place" (***):

The buyer of the good or service The merchant The issuer's bank (***) The acquirer's bank (***) External service providers, who supply the payment terminals and mediate the transaction

Thus, the merchant's bank transmits a payment authorization request ...

3.3 The VSE market still dominated by incumbents, but disrupted by fintechs

The payment terminal market is currently dominated by traditional players. However, fintechs are becoming increasingly present, modernizing the offering (***)

The emergence and development of new payment methods is turning the payment terminal market upside down, and encouraging the emergence of new players in this sector. These new payment methods include contactless ...

3.4 VSE distribution

Payment terminals cannot be distributed to private individuals. To obtain an EFTPOS terminal, you need to be a professional, a company or an association, and have a SIRET number. note that micro-entrepreneur status is sufficient to obtain this number. [***]

There are several distribution channels for electronic payment terminals:

Fintechs (***). From traditional ...

4 Offer analysis

4.1 Offer typology

The TPE offer is divided into * models: purchase and rental. According to Crédit Agricole, an Eftpos terminal costs between *** and *** euros. Prices vary according to options (***), and whether the equipment is new or used. To rent an Eftpos terminal, you'll need between ** and ** euros per month, depending on the model ...

4.2 Supply trends

MPOS terminals:

The mPOS terminal, initially developed and marketed by startups, consists of a mobile payment terminal that requires connection to a tablet or smartphone via Bluetooth. Over the last few years, this solution has become increasingly popular, particularly with micro, small and medium-sized businesses, as well as mobile retailers (***)

This ...

5 Regulations

5. Regulations

The payment market is governed by an extensive and strict regulatory framework. Listed below are the main regulations concerning payment terminals:

The law authorizes professionals and associations to own an electronic payment terminal. To do so, professionals and associations must have a Siret number. Private individuals, on the other hand, are ...

List of charts

  • Number of electronic payment terminals in France
  • Number of card payments made using electronic payment terminals
  • Number of French bankcards
  • Value of card payments made using electronic payment terminals
  • The best-known mobile payment applications
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Latest news

Virtual reality headsets, new Macs - 05/06/2023
  • Apple plans to unveil its first virtual and augmented reality headset.
  • The headset is expected to cost $3,000
  • Apple expects to sell around 900,000 units in the first year
  • Several Mac and iPhone applications will be integrated into the headset, such as Camera, Contacts, FaceTime, Email and Messages, Maps, Notes, Music, Photos, Safari and Weather.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Ingenico
Verifone
PAX Technology
Smile & Pay
Apple
Zettle
Dejamobile
Preludd Payment
SumUp

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