The global mobile point-of-sale (mPOS) system market refers to the market for portable and wireless devices used for processing payments and conducting transactions in various industries. With the use of these systems, companies can collect payments easily anywhere, giving both customers and merchants flexibility and convenience. The mPOS market is segmented based on types and end users. These systems are sub segmented into card readers, chip-and-PIN readers, and others. Card readers, chip-and-PIN readers, and other systems are subdivided into this group. Card readers offer a practical way to conduct transactions by reading and processing payments made with credit or debit cards. On the other hand, Chip-and-PIN scanners provide increased security by requiring a client to input a PIN number during the transaction. Other mPOS systems include mobile wallets, contactless payment methods, or QR code scanners.
These systems are used in several sectors, including restaurants, retail, healthcare, hospitality, and entertainment, among others. Restaurants and retail businesses are significant users of mPOS systems, as they allow for efficient order taking and payment processing. Healthcare facilities may utilize mPOS systems for patient billing and appointment scheduling. The hospitality industry benefits from mPOS systems for hotel check-ins, event ticketing, and food and beverage services. The entertainment sector, such as concerts or sports events, also adopts mPOS systems for ticket sales and concessions.
Key Drivers of the mPOS Market
The mPOS market is driven by several factors. The key driver is the growing adoption of smartphones. For instance, according to OurWorldInData, in the US alone, smartphone penetration grew from 10% in 2009 to 90% in 2019. As mobile users grew, the mPOS market also witnessed significant demand. The convenience and portability offered by mPOS systems make them highly appealing to both merchants and customers. Another driver is the escalating need for streamlined and efficient payment solutions. Modern consumers expect quick and seamless transactions, prompting businesses to seek ways to meet these expectations. Mobile POS systems enable businesses to accept various payment methods, including credit and debit cards, contactless payments, and mobile wallets, among others.
In 2022, Experian Global Insights, a leading global information services company, conducted a survey on consumer behavior. According to the survey, digital payments have surpassed credit cards in India, with 91% of Indians favoring online payment methods. Additionally, the European Central Bank (ECB) conducted a study in 2022 to understand payment behavior among consumers. According to a study on the payment attitudes of consumers in the euro area (SPACE), cash remained the dominant payment method at the point of sale (POS) in the euro area, but its usage has been declining over the years. In 2022, cash was used in 59% of transactions, down from 79% in 2016 and 72% in 2019. On the other hand, card payments have been steadily increasing, accounting for 34% of POS transactions in 2022, compared to 19% in 2016 and 25% in 2019. Other payment methods, such as mobile apps, made up 7% of POS transactions in 2022, showing a significant increase from less than 1% in 2019 to 3% in 2022.
Expansions and Innovations by Major Market Players
The mPOS market has significant contributors such as PAX Technology Ltd., Cisco Systems, Inc., Panasonic Corp., HP Inc., Toshiba Corp., and others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments include-
• In October 2022, National Australia Bank (NAB) entered the mPOS sector with the launch of NAB Easy Tap, an application that enables Android phones to function as contactless card acceptance devices. In collaboration with payments technology partner Quest, NAB aims to serve small businesses and individuals involved in side ventures. NAB Easy Tap offers advantages such as the absence of a minimum purchase requirement and upfront costs, providing users with immediate insights into their business performance. The solution targets businesses including local farmers markets, coffee carts, and mobile hairdressers, eliminating the necessity for conventional payment terminals or dongles.
• In October 2022, German fintech company Unzer introduced POS Go, an mPOS system tailored to small and medium-sized businesses in Europe. POS Go enables merchants to accept cashless payments anywhere and offers additional features such as digital accounting, receipt storage, and real-time sales analysis. The system also facilitates the integration of popular payment methods like buy-now-pay-later and loyalty programs. Unzer aims to target smaller retailers, allowing them to accept payments in various settings, such as beer gardens or sports events. POS Go can also be connected to online stores, enabling businesses to engage with multiple marketplaces without the need for separate software.