A pay card reader is a type of device which is mainly utilized for reading debit cards & credit cards through magnetic band and a pin technology. Pay card reader is commonly connected to the smart-phones through an audio jack or also through NFC or Bluetooth technology. The device decodes the information contained on the card, and transmits the information to a payment processor. After this, the payment processor authenticates that sufficient funds are available to complete the transaction, and the merchant completes the sale.
According to study, “Pay Card Reader Market: By Technology (Europay MasterCard Visa (EMV) Chip, near field communication technology, QR codes), By Application (Healthcare, Hospitality, Retail, Entertainment, Transportation and Consumer Utility Services) – Global Forecast till 2022” the key companies operating in the pay card reader market are Square, Inc., Paypal Inc, NXP Semiconductors, PayAnywhere LLC, Intuit Inc., First Data Corporation, CPI Card Group Inc., Gemalto, Paynear ONE Solutions, Mahindra Comviva, Infineon Technologies Ag. The key companies are expected to enter into various business strategies in order to enlarge the business portfolio and to mark their large presence in global market.
Based on solution type, pay card reader market is segmented into integrated card reader solutions and card reader accessories. Based on technology, market is segmented into Europay MasterCard Visa (EMV (point-of-sale (POS) terminal & chip-compatible cards)) Chip, QR codes and, near field communication (NFC) technology. EMV technology is used for smart card payments, automated teller machines, and at other payment terminals. NFC technology is defined as a short-range wireless connectivity standard which includes chip & sign, magnetic strip and biometrics. In addition, based on application, market is segmented into healthcare, retail, restaurant, warehouse/distribution, transportation & entertainment, government & consumer utility services etc. The healthcare industry is facing several challenges for instance insurance reimbursement, growth in presence of data breaches and increase in patient responsibility.
The pay card reader market is driven by rise in penetration of tablets & smart-phones across globe, followed by transformation in the payment mode from cash & cheque to electronic mobile payments, expansion in number of small scale, medium sized and large ventures, rise in awareness about technology, increase in use of electronic mobile payment, rise in popularity of pay card reader devices, and increase in government initiatives. However, information transferred from the pay card reader to mobile device goes unencrypted is estimated to hinder the market during the forecast period. Moreover, mass transition from magnetic strip technology to micro-controller smart cards is a key opportunity for market.
Based on geography, the North-American region holds major share, followed by European region in pay card reader market owing to presence of major technology players and high rate of cybercrimes in the region. Additionally, region has a well-established infrastructure, which allows elevated penetration of devices & ultimately provides better connectivity. The Asian-Pacific region is expected to witness higher growth rate due to rapid urbanization and increase in disposable income over the forecast period. It is anticipated that the market will be reached at raid pace on account of rise in demand to revolutionize contactless payment system over the forecast period.
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Ankur Gupta, Head Marketing & Communications