Mobile point-of-sale (POS) or also referred to as mPOS is a portable point of sale or tablet that works as a register. A mobile POS system is a suitable way for businesses such as home and repair services, food trucks, and market vendors. mPOS uses a credit card to process the payment on the go. Major players in the market are providing additional features such as product detail, inventory management, and payment application with mPOS.
The global mobile point-of-sale (mPOS) market is estimated to have volume of 200.77 Million Units in 2021 and is expected to exhibit a CAGR of 46.7% over the forecast period (2021-2028).
Rest of the World (RoW) held dominant position in the global mobile point-of-sale (mPOS) market in 2020, accounting for 78.7% share in terms of volume, followed by China and India, respectively. Supported by the rapid increased in internet and mobile penetration combined with increased banking network.
Figure 1. Global Mobile Point-of-Sale (mPOS) Market Volume (Mn Units), by Region, 2020
Global Mobile Point-of-Sale (mPOS) Market: Drivers
Rapid mobile and internet penetration combined with increased banking network is expected to drive growth of the global mobile point-of-sale (mPOS) market during the forecast period
The mobile and internet penetration has increased significantly in the recent past among businesses and consumers. The rapid growth of the internet across the globe as transformed the way commerce and monetary functions take place. According to The Mobile Economy report by GSM Association, by 2014, there were 2.9 billion smartphone users worldwide. According to the International Telecommunication Union (ITU), the number of Internet users is projected to reach 3.2 billion by the end of 2015. Furthermore, the number of credit and debit card users are increasing rapidly, owing to increasing number of bank account holders globally. According to data from the World Bank, there was a 20% decline in the size of the unbanked population between 2011 and 2014. Moreover, larger retail chains are focusing on enhancing consumer engagement and offering high levels of convenience to their customers. This, in turn, has increased the demand for mPOS. Thus, these factors are expected to drive growth of the global mobile point-of-sale (mPOS) market during the forecast period.
Replacement demand due to EMV migration is expected to propel the global mobile point-of-sale (mPOS) market growth over the forecast period
Currently, older mPOS systems are being replaced by new mPOS solutions as there is a liability shift toward the adoption of EMV chip and pin after October 2015. These regulations are included, in order to reduce security risks related to card-based payments at POS terminals, namely mPOS. However, transforming to EMV chin and pin-based mPOS would require several years. After October 2015, in case of any card fraud, the party with the less advanced technology will have to bear the liability of fraud. For instance, if a merchant continues to use technology other than EMV chip and pin, they would be held accountable for any fraudulent transactions if the consumer was using a chip and pin card. Hence, these factors are expected to propel the global mobile point-of-sale (mPOS) market growth over the forecast period.
|Base Year:||2020||Market Size in 2021:||200.77 Mn Units|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||46.7%||2028 Value Projection:||2,934.05 Mn Units|
Ingenico S.A., PayPal Holdings, Inc., PAX Technology Ltd, iZettle AB, Oracle Corporation, First Data Corporation, Worldline S.A., VeriFone Systems, Inc., Intuit, Inc., Anderson Zaks, Hewlett-Packard Development Company L.P., and Toshiba Corporation
|Restraints & Challenges:||
Global Mobile Point-of-Sale (mPOS) Market: Opportunities
mPOS value-added service (VAS) can present lucrative growth opportunities in the global mobile point-of-sale (mPOS) market
mPOS has witnessed significant growth in the recent past. For instance, in June 2012, the U.S.-based company LevelUp started offering 0% payment processing fees in exchange for obligatory marketing services. Furthermore, competition among mPOS vendors is expected to be high in the near future, owing to increasing number of players in the mPOS market. mPOS vendors would need to offer customized mPOS solutions catering to the needs of specific end-use verticals. VAS offers enhanced customer interaction with inclusion of loyalty and reward programs, gift cards, vouchers, mobile discounts, and cash-back promotions.
Convergence of consumer mobile commerce and merchant card acceptance ecosystem can provide key business opportunities global mobile point-of-sale (mPOS) market
Converging consumer mobile commerce such as mobile wallets and card acceptance systems of merchants such as mPOS can provide key opportunities. mPOS service providers are increasingly emphasizing on consumer-facing applications to enhance customer experience and engagement. Meanwhile, revenues from cards are diminishing for card providers due to regulatory pressures and through challenges from non-card payment methods.
Growing focus on merchant-related services
A key trend observed in the mPOS market is the increasing focus of solution providers on merchant-related services. In August 2015, iZettle AB launched iZettle Advance, a lending platform to help small merchants and SMBs using iZettle mPOS to access capital as an advance on future card-based sales. Players are increasingly laying emphasis on creating platforms that serve the whole mPOS ecosystem and incentivize developers to create new applications to serve customers. Empowering the ecosystem around a solution enables the scaling of operations to opens up means to innovation.
New trend of NFC payments
Apple Pay has become a driving force for mobile payments along with Google Wallet and PayPal. Apple, Inc. has been launching Apple Pay across different countries since its initial release. It is anticipated the company would be launching Apple Pay in China during 2015 and the company established a new subsidiary Apple Technology Service (Shanghai) Co. Ltd. for the same. Emerging economies such as China and India have gained significant traction for NFC payments during recent years. Companies in China are aggressively promoting NFC technology. For instance, by 2014, China Mobile equipped all its smartphones with NFC capability.
Figure 2. Global Mobile Point-of-Sale (mPOS) Market Share, By Solution Type, 2020
Key Takeaways of the Graph:
Global Mobile Point-of-Sale (mPOS) Market: Restraints
Concerns regarding data breaches expected to restrain growth of the global mobile point-of-sale (mPOS) market growth over the forecast period
It is crucial to build customer confidence and overcome the risks related to fraud. Currently, there is a need for enhanced security measures and although the players throughout the ecosystem of mPOS, such as hardware vendors and acquirers, have been adding multiple new security features, it still has not overcome the lack of confidence of consumers in making transactions through mPOS. Furthermore, mPOS handle critical information, which can be exposed to security breaches. Cyber espionage, point-of-sale intrusions, and web application attacks were some of the major security threats in 2013. POS intrusions were also a significant IT threat in 2013, accounting for 14% of total security breaches. Hence, these factors are expected to restrain growth of the global mobile point-of-sale (mPOS) market during the forecast period.
Technical challenges associated with mPOS are expected to hinder the global mobile point-of-sale (mPOS) market growth over the forecast period
There are various operational, technical, and regulatory challenges associated with the adoption of mPOS. Network connectivity remains a major concern with mPOS combined with battery and reliability of services. This problem would especially be persistent in areas far off from major cities. Therefore, these factors are expected to hinder the global mobile point-of-sale (mPOS) market growth in the near future.
Global Mobile Point-of-Sale (mPOS) Market: Competitive Landscape
Major companies operating in the global mobile-point-of-sale (mPOS) market are Ingenico S.A., PayPal Holdings, Inc., PAX Technology Ltd, iZettle AB, Oracle Corporation, First Data Corporation, Worldline S.A., VeriFone Systems, Inc., Intuit, Inc., Anderson Zaks, Hewlett-Packard Development Company L.P., and Toshiba Corporation.
With the integration of the mPOS system into an existing business process, it allows the operation of cash registers, sales counters, check readers, product displays, gift items displays and electronic check readers, all in one place. This increases sales capacity and efficiency, reduces errors and incurs minimal operational costs. By reducing staffing requirements and increasing employee productivity, this is expected to increase overall profits. In the long run, this will prove to be a very cost-effective solution for businesses that want to increase their sales.
Increasing investment in payment smart cards is expected to propel growth of the global mobile point-of-sale (mPOS) market over the forecast period. For instance, in May 2021, Privacy.com announced that it has changed its name to Lithic and raised US$ 43 million in Series B funding led by Bessemer Venture Partners to double down on its card issuing platform and new B2B focus.
Major players in the global mobile point-of-sale (mPOS) market are focused on adopting various marketing strategies to expand their customer base. For instance, in March 2020, Epson announced to present a complete suite of essential and innovative technology solutions at MURTEC, the multi-unit restaurant technology conference.
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