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The biometric POS terminals market size is forecast to increase by USD 5.29 billion at a CAGR of 13.9% between 2023 and 2028. The market is witnessing significant growth due to several driving factors. One of the primary factors is the increasing adoption of EMV (Europay, Mastercard, and Visa) standards, which require merchants to implement more secure payment solutions. Another trend boosting the market is the growth in the adoption of self-service kiosks, which offer faster and more convenient transactions for customers. However, the absence of uniform standards in the global market poses a challenge, as it hinders the interoperability and widespread adoption of these terminals. Despite this, the market is expected to continue growing, driven by the need for secure and efficient payment solutions.
Biometric technology is revolutionizing the Point of Sale (POS) industries with its identification technologies, including fingerprint recognition, face recognition, palm recognition, iris recognition, and voice recognition. These advanced identification methods offer convenience and security, enabling faster transaction processing and reducing the need for physical cards. The adoption of biometric technology in POS systems is particularly prominent in e-retailers, where the convenience of convenient payment through digital wallets and mobile payments is paramount. Biometric recognition enhances payroll efficiency and operational efficiency by automating employee identification and attendance tracking. The medical and healthcare sector is another significant user of biometric technology in POS systems, ensuring secure access to patient records and reducing the risk of identity theft.
Biometric data, obtained through fingerprint scanners or other methods, is encrypted and stored securely, eliminating the need for card replacement fees and enhancing the overall security of payment processing. Biometric technologies offer a more secure and convenient alternative to traditional card payment processing, making them an essential component of modern POS systems. The integration of biometric technology in POS systems is set to continue, with advancements in technology and increasing demand from various industries.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The retail segment is estimated to witness significant growth during the forecast period. Biometric technology plays a significant role in the evolution of Point of Sale (POS) systems, with the global market for biometric POS terminals witnessing strong growth. These terminals, which incorporate identification technologies such as fingerprint recognition, face recognition, palm recognition, iris recognition, and voice recognition, offer enhanced security and convenience for various industries, including healthcare, banking and finance, and consumer electronics. In the retail sector, biometric POS terminals streamline the payment process, providing single-factor and multi-factor authentication options. These terminals can be found at retail check-outs, cash counters, and even in restaurants, where they offer a convenient and secure payment solution.
Furthermore, biometric data is used to authenticate cardholders, reducing the risk of payment fraud and cyberattacks. The healthcare sector benefits from biometric POS terminals through secure patient data management and tokenization, ensuring the protection of sensitive information. In the banking and finance sector, biometric POS terminals offer operational efficiency, with faster transaction processing and improved security features. These terminals come in various voltage and power rating options, catering to diverse business requirements. With features such as fingerprint scanners, integration with digital wallets and mobile payment platforms, and seamless card payment processing, biometric POS terminals offer a comprehensive payment solution.
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The Retail segment was valued at USD 1.42 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in North America is driven by the extensive use of physical cards such as credit and debit cards. However, the prevalence of these cards also brings about challenges, including card replacement fees and the risk of chargebacks due to fraudulent activities. With over 58 million credit and debit cards affected by cybercrimes at Home Depot and 40 million cards compromised at Target, security has become a top priority. Biometric technologies, including palm vein and fingerprint scanners, offer a solution by enhancing customer identification through fingerprint sensors. These security measures not only ensure the convenience of contactless transactions but also reduce the risk of fraudulent activities, thereby mitigating potential losses for businesses.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing adoption of EMV standards is the key driver of the market. Biometric technology has revolutionized identification processes in various sectors, including healthcare, banking and finance, and consumer electronics. Biometric POS terminals, incorporating technologies such as fingerprint recognition, face recognition, palm recognition, iris recognition, and voice recognition, offer enhanced security features compared to traditional magnetic stripe or chip-and-PIN payment systems. These terminals utilize single-factor or multi-factor authentication for convenient and secure payment processing. Biometric PoS terminals ensure operational efficiency and security by eliminating the need for manual entry of card data and reducing the risk of payment fraud. The healthcare industry benefits from biometric technology in managing patient records and ensuring secure access to sensitive medical information.
Furthermore, in banking and finance, biometric technology provides an additional layer of security against cyberattacks and payment card data theft. Voltage and power rating are essential considerations for biometric POS terminal implementation. Fingerprint scanners, a common biometric technology, require a stable power source and voltage to function effectively. Biometric data is encrypted and tokenized for security, ensuring convenient payment processing through mobile payment platforms, digital wallets, and merchant POS terminals. Biometric technology's integration into payment systems offers significant advantages, including improved security, operational efficiency, and user convenience. Biometric data is unique to each individual, making it an effective tool for single-factor or multi-factor authentication.
Moreover, biometric PoS terminals provide a more secure and convenient payment process, reducing the risk of fraud and enhancing the overall payment system's security. In retail environments, biometric technology is increasingly being used for cash counters and check-outs, streamlining transactions and improving operational efficiency. Despite the benefits, it is crucial to address the challenges associated with biometric technology, such as data privacy concerns and potential errors in recognition, to ensure a seamless and secure payment experience.
The growth in adoption of self-service kiosks is the upcoming trend in the market. Biometric POS terminals are gaining significant traction in various industries, particularly in self-service markets such as retail check-outs and kiosks, due to the increasing need for quick and secure transactions. These terminals utilize identification technologies like fingerprint recognition, face recognition, palm recognition, and iris recognition, as well as voice recognition, for single-factor or multi-factor authentication. The healthcare, banking and finance, and consumer electronics sectors are major adopters of biometric technologies for payment systems, ensuring operational efficiency and reducing payment fraud. Biometric PoS terminals offer convenient payment methods, including mobile payments and card payment processing, while ensuring security against cyberattacks and protecting card data.
Furthermore, with the rise of mobile payment platforms and digital wallets, biometric PoS terminals are becoming essential for merchants to provide a seamless payment process and maintain customer satisfaction. These terminals are designed with voltage and power rating considerations to ensure optimal performance and reliability. The integration of biometric data into payment systems enhances security, making biometric PoS terminals an indispensable tool for businesses seeking to streamline transactions and provide a more convenient and secure payment experience for their customers.
The absence of uniform standards in the market is a key challenge affecting market growth. Biometric POS terminals, which utilize identification technologies such as fingerprint recognition, face recognition, palm recognition, iris recognition, and voice recognition, are gaining popularity in various industries, including healthcare, banking and finance, consumer electronics, and retail. These terminals offer single-factor and multi-factor authentication, ensuring security against payment fraud and cyberattacks. However, the lack of standardization in biometric POS terminals poses a significant challenge to interoperability. This issue complicates the integration process and hampers operational efficiency, particularly for merchants using PoS terminals in restaurants, retail check-outs, cash counters, and payment systems. Standardization is essential to enable seamless interoperability among different biometric technologies from various vendors.
Furthermore, this simplifies the adoption of new technologies and minimizes disruptions to workflow. Biometric PoS terminals, which support tokenization and secure payment processing, offer a convenient and secure alternative to traditional card payment processing. Furthermore, the integration of biometric PoS terminals with mobile payment platforms, digital wallets, and card payment processing systems is vital for enhancing operational efficiency and ensuring a seamless payment process.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aratek Biometric: The company offers biometric POS terminals such as Marshall 8 Plus, Marshall 8, BM5510, and many more.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Biometric technology has revolutionized the payment industry with the introduction of biometric POS terminals. These terminals utilize identification technologies such as fingerprint recognition, face recognition, palm recognition, iris recognition, and voice recognition for single-factor or multi-factor authentication. The healthcare sector, banking and finance, and consumer electronics are major industries adopting biometric POS terminals for secure and convenient payment processing. Biometric POS terminals offer operational efficiency, with features like voltage and power rating optimizations. Fingerprint scanners are commonly used in these terminals for quick and accurate identification. Biometric data is encrypted and tokenized for enhanced security against payment fraud, cyberattacks, and data breaches.
Furthermore, biometric POS terminals are used in various applications, including healthcare check-ins, retail check-outs, restaurants, and cash counters. They support multiple payment systems, including payment cards and mobile payment platforms like digital wallets. The integration of biometric technology in POS terminals ensures a more secure and convenient payment process, reducing the risk of fraud and enhancing customer experience.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.9% |
Market Growth 2024-2028 |
USD 5.28 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.9 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aratek Biometric, BIYO LLC, CiVinTec Global Co. Ltd., DERMALOG Identification Systems GmbH, EKEMP Intl Ltd., ePortation Inc., Fujitsu Ltd., HID Global Corp., IDEMIA France SAS, Ingenico, International Secure Environments PTY LTD., M2SYS, Mantra Softech India Pvt. Ltd., PayTango Inc., SmartMetric Inc., Sthaler Ltd., Telepower Communication Co. Ltd., VeriFone Inc., Zvetco LLC, and Zwipe AS |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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