mPOS Terminals Market: Overview
The market size for the mPOS terminals market was USD 20.3 billion in 2021, and it is projected to grow at a CAGR of 18.5 percent during the forecast period. The continuous transition of payment methods from cash to electronic payments has directed businesses and people towards adopting advanced payment methods like Mobile Point of Sale (mPOS) around the globe. Many developed and developing countries around the globe have seen accepting mPOS as a card acceptance solution which has become more popular than traditional payment methods. The ability of mPOS to connect with smartphones or tablets with a mobile card reader wirelessly increases its adoption daily. Moreover, a key trend in the mPOS terminals market is the preference for cloud-based solutions. Compared to conventional systems, the cloud-deployed point-of-sale variants entail considerably lower operational costs, as they have no requirement for on-site servers, which are slightly expensive. As per Mckinsey & Company Inc., the adoption of cloud technologies in the retail sector will increase to 71% by the end of 2020 from 57% in 2018.
With the rapid growth in the mPOS market, key players are struggling to achieve top market positions by increasing and expanding product offerings. Along with mobile POS hardware, value-added services (VAS) are growingly provided by key players. Although, the development of customized mobile point of sale is likely to enhance the adoption of mPOS daily. Furthermore, key players are extending their business portfolios through strategic collaborations, partnerships, and acquisitions. For instance, In November 2019, Visa, Inc. merged with Clip to enhance mPOS and tablet POS devices throughout Mexican merchants.
Moreover, new mPOS vendors have been providing schemes that require no monthly fees, flat rate percentage pricing, minimal cost hardware, and minimum ongoing maintenance charges. LevelUp, a U.S.-based company, has been offering 0% payment processing fees in exchange for mandatory marketing services. Competition based on pricing among mPOS vendors is anticipated to be excessive soon due to the increase in the number of players in the QSR mPOS market. Thus, product differentiation and value-added services are key factors in sustaining the competitive environment.
mPOS Terminals Market: COVID-19 Impact
The COVID-19 pandemic has had a positive impact on the mPOS terminal market. A growing number of utilizers use mobile payment platforms such as Google Pay, Apple Pay and others to avoid transmitting the COVID-19 pandemic or simply as a safer mode of payment. This will enhance the demand for POS terminal devices during the forecast period. Corporations were increasingly adopting technology-aided payment tools that can be leveraged remotely and secure payment and business continuity among disruptions. The mPOS terminal system has increasingly gained market traction during the COVID- 19 pandemic to serve virtual payment with the growing adoption of contactless payment.
mPOS Terminals Market: Drivers
Increasing Number of Product Launches to Drive Market Growth
One of the major factors that drive the mPOS terminals market during the forecast period is companies' growing focus on improving customer experience. Various companies such as Samsung Electronics Co. Ltd., Volly, Adyen and others are launching new products to stay competitive in the market to improve customer experience. In October 2019, Samsung Electronics Co. Ltd. and a contactless mobile card payment firm named Mobeewave Inc. introduced a near-field communication (NFC)-enabled contactless payment acceptance solution for mobile devices. With this solution, customers can make payments by tapping their contactless credit or debit cards or Apple Pay, Samsung Pay, or Google Pay wallets on the NFC-enabled devices introduced by Samsung. Moreover, in June 2019, Volly introduced a new mobile POS app, with which loan officers can invite borrowers to apply or receive prequalified loans from anywhere, anytime. Moreover, the app allows borrowers to upload the documents for the loan from their mobile phones, while loan officers can track the deal's status.
Increasing Adoption of Digital Payments Drives Global mPOS Terminal Market Growth
Increasing adoption of digital payments, including Amazon Pay and Google Pay, among consumers, is one of the major factors that will enhance the global mPOS terminal market during the forecast period. For instance, in 2020, Google Pay processed 960.02 million transactions, followed by PhonePe with 868.4 million, and Paytm with 260 million transactions in India. The growing utilization of contactless payments motivates merchants to acquire mPOS terminals to accept contactless payments directly on customers’ smartphones. The merchants are replacing traditional POS systems with advanced terminals for accepting payment and NFC-enabled cards or apps.
mPOS Terminals Market: Restraints
Lack of Standardization and Data Security to Hamper Market Growth
Lack of standardization, data security, and growing cyber breach threats may hamper mPOS terminal market growth during the forecast period. Consumers do not have proper knowledge concerning the transaction through mobile devices and less awareness concerning the benefits of utilizing contactless payments, which results in difficulty in using mobile wallets or other related apps to send or receive money. Thus, this can hamper the global mPOS market growth.
mPOS Terminals Market: Segment Overview
Cloud-based to Dominate Market as it Minimizes Risk of Fraud.
Demand for cloud-based POS systems is growing during the forecast period as they provide encrypted online storage without risk of failure or incompatibility. Cloud-based POS systems are more secure than on-site systems. These systems streamline customer transactional processes by providing multiple payment options and automatically sending invoices via the preferred channel or method. Cloud-based POS systems reduce business owners from the complicated task of hosting and maintaining an on-site server. Furthermore, to reduce the risk of fraud associated with credit card processing, the adoption of cloud-based POS systems is growing, significantly reducing both merchant's security liability and the chances of cybercriminals performing data breaches. Thereby growing the demand for cloud-based POS systems, which in turn boosts the market growth.
Increasing Competition with Online Retailers Dominates Retail Market
The retail application segment is poised to witness high growth opportunities in the mPOS terminals market during the forecast period due to the growing competition with online retailers that have motivated physical brick-and-mortar stores to implement advanced payment solutions to attract customers. The mPOS terminals permit retailers to manage inventory and understand the sales performance of products that attract customers. The terminals allow merchants to improve the customer shopping experience by providing them with fast check-out and secure payment transaction processes. The mPOS terminals permit integration with inventory management, loyalty program, reporting & analytics, CRM, and e-commerce platforms. Furthermore, the factors that grow retail sectors are enhanced competitiveness, developing global economies, and foreign investments; the sector has undergone a considerable transition in the last ten years. As a result, more secure payment methods, such as EMV standards, are being adopted by PoS terminals.
mPOSTerminalsMarket: Regional Landscape
North America to Dominate Market due to the Growing Adoption of mPOS in Restaurants, Retail and Hospitality Sector.
North America dominates the global mPOS terminals market during the forecast period due to the increase in the demand for mPOS due to the widespread awareness of mPOS solutions among small merchants and fast adoption in the restaurant, retail, and hospitality sectors. North America has an accepted network infrastructure that encourages IoT among different businesses. mPOS is anticipated to largely benefit from IoT, as it forms a strong network for an organization to monitor and control its activities.
The mobile point-of-sale (mPOS) terminals market in the Asia Pacific is anticipated to grow at the highest CAGR during the forecast period due to the increase in internet penetration and smartphones in emerging economies, including India and China. The Government in China is taking initiatives to generate mobile micro-ATMs utilizing mobile point-of-sale devices in rural areas and low-tier cities. India provides vast potential for mPOS due to its large population and increasing technological awareness. For instance, in March 2022, Ingenico S.A announced partnering with BharatPe. This partnership focused on providing advanced payment and commerce services to Indian merchants and fueled the adoption of POS devices in India. Furthermore, in September 2021, Gurugram-based online-to-offline commerce platform DotPe acquired point-of-sale (PoS) startup vista in an all-cash deal. The development marks the entry of DotPe into the PoS segment and builds up its bouquet of offerings to offline merchants.
Global mPOS Terminals Market: Competitive Landscape
In January 2022, Ayden N.V. discovered an all-in-one mobile POS terminal containing the Android OS in the U.K., the U.S., and the E.U. One of the major advantages of utilizing this device is that it does not require barcodes or separate cash registers to conduct financial transactions, which can expand the efficiency of a company. Furthermore, in October 2021, London-based SumUp Inc., a mobile point-of-sale (mPOS) company, finalized the acquisition of Fivestars, a U.S.-based commerce network that merges a marketing platform with integrated payments. The acquisition assists SumUp in providing payments and marketing automation services to SMB merchants globally and increasing its customer base globally. Moreover, in October 2019, Equinox Payments, a provider of payment terminals, software, and services, declared product integration with PioneerRx, a retail pharmacy software vendor. The Luxe 8500i payment pads from Equinox have now been successfully combined into the PioneerRx pharmacy system. Due to this, Equinox will be able to extend into the retail pharmacy market.
Few of the players in the mPOS terminals market include AURES Technologies SA, Castles Technology Co. Ltd., Francisco Partners Management L.P., Hewlett Packard Enterprise Co., NCR Corp., Fiserv Inc., PayPal Holdings Inc., Panasonic Corp., Newland Digital Technology Co. Ltd., PAX Global Technology Ltd., Zebra Technologies, New POS Technology Ltd., Oracle Corp., Shenzhen Xinguodu Technology Co., Ltd, and others.
Global mPOS Terminals Market is Segmented as Below:
Key Elements Included In The Study: Global mPOS Terminals Market
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