The group of countries forming this block represents a major market of more than 400 million inhabitants. However, the number of payment terminals is relatively modest at an estimated 400,000 units, therefore providing Ingenico with great business scope.
The growing use of bank cards and acceptance of the EMV standard will accelerate the deployment of terminals, estimated to be one million units by 2010, the company believes. Currently, Ingenico estimates that its market share in this region exceeds 25%, and its goal is to control at least 50% of new terminal shipments by the end of the decade.
One of our primary goals is to develop our position in Eastern Europe, Northern Asia and the Indian subcontinent, regions with significant short-term and medium-term potential, commented Gerard Compain, Ingenico’s CEO.
EMV deployment and the dynamic development of consumer activity in these countries are impelling Eastern European businesses to install new terminals. By taking a strong local position in these countries, we have positioned ourselves to build upon our market leadership, as we have done in the other countries during the past few years.
The Polish subsidiary, known as Ingenico Polska Ltd, was officially incorporated on March 18, 2005, with 80% owned by Ingenico and the remaining 20% by local management. Ingenico intends to take a significant share of the current addressable market of 110,000 terminals while taking advantage of the country’s significant development potential, which it believes should result in a doubling of volume by the end of the decade.
In Hungary, the opening of the Ingenico subsidiary will provide local distribution of the Group’s product, and position the company for a significant share of the market. As of today, the installed base of terminals is estimated to be 40,000 units, which Ingenico also believes will double by the end of the decade.
In December 2004, Ingenico opened a representative office in Serbia, the goal of which is Ingenico’s commercial development in this country, as well as in Bulgaria, Bosnia and Macedonia. The company’s goal is to become the leader in this geographical area, with the potential estimated at more than 40,000 units by 2008.
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