The banking and payments industry continues to be a hotbed of innovation owing to ever changing consumer expectations. The rapid technological developments in the areas of banking and payments that aim to offer seamless experience to consumers is now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance to stay relevant and grow in the market. In the last three years alone, there have been over 92,000 patents filed and granted in the banking industry, according to GlobalData’s report on Innovation in Banking: point-of-sale terminals. Buy the report here.
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However, not all innovations are equal and nor do they follow a constant upward trend. Instead, their evolution takes the form of an S-shaped curve that reflects their typical lifecycle from early emergence to accelerating adoption, before finally stabilising and reaching maturity.
Identifying where a particular innovation is on this journey, especially those that are in the emerging and accelerating stages, is essential for understanding their current level of adoption and the likely future trajectory and impact they will have.
60+ innovations will shape the banking industry
According to GlobalData’s Technology Foresights, which plots the S-curve for the banking industry using innovation intensity models built on over 195,000 patents, there are 60+ innovation areas that will shape the future of the industry.
Within the emerging innovation stage, transaction-enabling smart contracts is a disruptive technology that is in the early stage of application and should be tracked closely. Distributed ledger network, BNPL payment protocols, and virtual banking assistant are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are IM trading platforms and in-app payments, which are now well established in the industry.
Innovation S-curve for the banking industry
Point-of-sale terminals is a key innovation area in banking
A point-of-sale terminal is an electronic device used to process payments at the time of purchase in various forms, including credit/debit cards. It also provides additional features like printing receipts, inventory management, and sales data tracking. It has become popular due to its convenience and efficiency in processing payments, reducing the need for manual transactions and handling cash.
GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 20+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of point-of-sale terminals.
Key players in point-of-sale terminals – a disruptive innovation in the banking industry
‘Application diversity’ measures the number of different applications identified for each relevant patent and broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of different countries each relevant patent is registered in and reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
Patent volumes related to point-of-sale terminals
| Company | Total patents (2010 - 2022) | Premium intelligence on the world's largest companies |
| Intel | 174 | Unlock Company Profile |
| DeviceFidelity | 106 | Unlock Company Profile |
| Toshiba | 81 | Unlock Company Profile |
| Metrologic Instruments | 37 | Unlock Company Profile |
| Extreme Networks | 25 | Unlock Company Profile |
| Digimarc | 17 | Unlock Company Profile |
| Honeywell International | 16 | Unlock Company Profile |
| Walmart | 16 | Unlock Company Profile |
| Nokia | 15 | Unlock Company Profile |
| NXP Semiconductors | 12 | Unlock Company Profile |
| Hydra | 10 | Unlock Company Profile |
| ZTE | 9 | Unlock Company Profile |
| NCR | 8 | Unlock Company Profile |
| JPMorgan Chase | 7 | Unlock Company Profile |
| Sony Group | 7 | Unlock Company Profile |
| NEC | 6 | Unlock Company Profile |
| Worldline | 6 | Unlock Company Profile |
| Morgan Stanley | 6 | Unlock Company Profile |
| Thales | 6 | Unlock Company Profile |
| Maruka Machinery | 5 | Unlock Company Profile |
| Legend Holdings | 5 | Unlock Company Profile |
Source: GlobalData Patent Analytics
DeviceFidelity is a key patent filer in the field of POS terminals. The company has filed several patents related to magnetically coupled antennas to enhance receptivity and/or reading range of radio frequency (RF) transaction devices, switching antennas of transaction cards, switching between near-field communication systems, and executing reader applications. Some other key patent filers in the POS terminals industry are JPMorgan Chase and Worldline.
In terms of application diversity, Intel leads the pack. Maruka Machinery and Digimarc stood in the second and third positions respectively. By means of geographic reach, Thales holds the top position followed by Intel and Nokia.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Banking.
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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.
GlobalData’s Patent Analytics tracks patent filings and grants from official offices around the world. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
