A highly competitive market awaits those looking to provide mPOS services, says Transparency Market Research (TMR) in a new report. There are already a large number of players in the market. As a result, it is difficult for players to achieve substantial differentiators for themselves to set their services apart.
TMR finds that Ingenico S.A., PAX Technology Ltd., and VeriFone Systems, Inc. were the leading providers of mPOS services in 2015 through a flurry of positively received innovative efforts. The former has also made heavy investments in making mPOS available across all three major smartphone operating systems: Android, iOS, and Windows and has also covered a landmark acquisition of ROAM Data, Inc. in 2012. Additionally, players such as VeriFone are investing significant amounts into improving their customer engagement practices and methods.
Large Influx of New Players to mPOS Services Expected
The number of mobile point-of-sale (mPOS) vendors has increased significantly over the recent past, thanks to the ease with which companies can establish their presence in this space. The concept allows small business owners to set up their own POS services to help them carry transactions with their customers.
They can do this without the need for heavy investments in support software, further increasing the appeal of mPOS for vendors. These services are capable of speeding up transactions, simultaneously improving consumer experience and support, making mPOS a highly sought-after service by a large portion of global vendors in various industry verticals.
NFC-enabled mPOS Out to Make a Mark With High Global Proliferation
One of the greater trends for mPOS is the migration of mPOS services on to near field communication devices. Apple was the key driver for this segment after the introduction of Apple Pay in 2014. After that, the launching of the now majorly used services such as the mPOS variants for PayPal and Google Wallet.
Additionally, the use of NFC in mPOS is expected to increase even further after a wider scale of implementation of host card emulators. Most of the major names in the global banking industry, such as Barclays Bank PLC and ING Group have planned to create a global usage of HCE mPOS. The same can be visible through its high scale implementation in China and India, where mPOS is generating high traction.
India and Other Emerging APAC Nations Show Major Scope of Growth in mPOS Sales
“As revealed by the World Bank, India had nearly 6.9 POS terminals for every thousand individuals. This low number of terminals, coupled with the smartphone sales boom, and the high population density of the country, have placed it at the top of the charts for growth potential in mPOS,” says a TMR analyst.
A few challenges still exist for players in the mPOS market. For one, the Indian market for mPOS is largely unorganized. According to the IBEF, only 7% of the Indian retail market was organized in 2013. This makes India a highly potent untapped market for organized retail and the large scale introduction of mPOS technologies and services. Banks have already begun providing mPOS enabled cards, further increasing the scope of awareness and use of mPOS.
Expanding at a 38.0% revenue-based CAGR between 2014 and 2022, the global mPOS market is expected to reach US$38 bn by 2023. It was recorded at US$2 bn in 2015. Imparting a major chunk of revenue to this market and its meteoric rise is its product segment of card reader accessories, which is progressing at a CAGR of 43.3% within the same forecast period.
The above data was collated from a research report released by TMR, titled “Mobile Point-of-Sale (mPOS) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.”
Key Segments of the Global mPOS Market
Mobile Point-of-sale (mPOS) Market
By Solution Type
- Integrated Card Reader Solutions
- Card Reader Accessories
- Hybrid Technology Solutions
- EMV Chip and Pin
- Chip and Sign
- Near Field Communication (NFC)
- Health Care
- Public Transport
- Rental Cars and Intercity Buses
- Consumer Utility Services
- North America
- Asia Pacific
- Middle East and Africa
- Latin America