The mPOS terminal market is estimated to develop at a 18.5% CAGR from 2023 to 2030. "Mobile point of sale" (mPOS) is a payment system that may be put on smartphones and tablets. Mobile POS solutions allow merchants to serve customers anywhere by installing software on tablets or smartphones. mPOS allows establishments of all sizes to accept card payments. Retail, hospitality, and entertainment use mPOS for payments, inventory management, bill printing, and loyalty programs. mPOS allows sales and service sectors to complete financial transactions on-site, improving customer experience and freeing up space for fixed POS. Mobile point-of-sale system companies sell directly to stores or indirectly through financial institutions and mobile network operators.
Increasing usage of EMV chip cards for credit and debit card payments may have contributed to market growth. Growing emphasis on customer experience and cashless transactions are driving mobile POS forward. Mobile point-of-sale (mPOS) systems are cost-effective and handy for small business owners because they don't require additional software. Mobile point-of-sale (mPOS) operations in developing countries are accelerating as service providers seek an early-mover advantage in mPOS-ready emerging markets. High smartphone and internet penetration, a large network of micro-merchants, SMBs, and card users, and supportive bank and government programs are vital for mPOS-ready economies. Small and large businesses will want more mobile point-of-sale (mPOS) systems in the coming years. Large shops use mPOS technology to improve in-store payments.
The rising focus on customer experience is a key driver of the mPOS terminals market. Mobile POS systems are being adopted due to check-out lines at markets and major retailers. Customers can complete the deal from a store's primary product area by paying digitally and avoiding large lines. Such solutions increase consumer satisfaction, brand trust, and brand loyalty, thus enterprises are fast switching to tablet and smartphone POS.
mPOS technologies help reduce wait times, speed up inventory checks, and save space. When retailers employ mobile phones linked to point-of-sale software, they may increase customer engagement and track inventory. Small business owners find mobile point-of-sale systems (mPOS) handy and affordable. Many mobile point-of-sale (mPOS) systems are inexpensive, reducing the total cost of ownership (TCO). Most retailers already have smartphones and tablets, so they only require mobile POS systems. Retailers are focusing on the total cost of ownership (TCO) and reducing initial investment to compete with competitors. This shift in mindset was needed to reduce initial investment. Reliability and lower total cost of ownership have increased demand for the best mobile POS systems. Innovative payment technologies including Near Field Communication (NFC) and Europay, Master Card, and Visa (EMV) have helped boost the mobile point-of-sale (mPOS) sector.
As more SMBs in the UK become comfortable with cloud computing, the market for cloud-based mPOS terminals is expected to grow at a CAGR of more than 22% from 2023 to 2030. 51% of UK leaders converted to a cloud-based strategy during the COVID-19 epidemic in 2020. Cloud-based deployment offers security, speed, scalability, and 24/7 service availability. Cloud-based mPOS devices require only a reliable internet connection, saving businesses money on physical infrastructure. The increasing use of contactless payment technology across industries is boosting demand for cloud-hosted mobile POS terminals.
The retail application subsegment of mPOS terminals market is expected to grow rapidly. Traditional brick-and-mortar establishments have adopted new payment systems to compete with internet shops. Mobile POS devices let merchants maintain inventories and identify popular products. The terminals help shops improve their consumers' shopping experience by streamlining payment and checkout. mPOS terminals integrate inventory, loyalty, reporting, CRM, and e-commerce systems.
New mobile POS suppliers provide packages with no monthly fees, flat-rate pricing, inexpensive hardware, and low maintenance costs. US-based LevelUp offers free money processing in exchange for marketing services. These services are mandatory for LevelUp clients. As the number of QSR mPOS market competitors rises, pricing rivalry among mPOS suppliers is expected to intensify. In order to sustain a competitive climate, companies will need to differentiate their products and services.
mPOS vendors must deliver individualized solutions for certain industry verticals. Value-added services (VAS) include loyalty and reward programs, mobile discount programs, cash-back incentives, gift cards, and vouchers. Mobile point-of-sale systems will be used more to reward customers for pre- and post-purchase activities. Innovative mPOS features will drive the market for mobile point-of-sale terminals over the forecast period. In the future years, analytics, which advises business owners on inventory levels, ordering cycles, and customer buying trends, will become more popular.
The hardware sub-segment of the mPOS terminals market had the most components in 2021. Digital payments require several forms of point-of-sale hardware, which are widely adopted in the retail, food service, and hospitality industries worldwide. The cloud segment of the mobile point-of-sale terminals market is predicted to grow quickly throughout the forecast period. Cloud-deployed mobile POS software and apps enable improved mobility and automatic data backup. Cloud saves money since it requires less complex IT infrastructure.
Due to merchants' strong acceptance rate of point-of-sale technology, the retail industry will lead the mPOS terminals market through 2030. The technology allows customers to avoid lines and complete transactions from anywhere in a large store. It also helps retailers quickly grab income. Walmart Inc. introduced similar technology in 350 U.S. stores in 2018 to speed up the checkout.
Cloud-based solutions are popular for mPOS terminals. Conventional POS systems have higher operational costs than cloud-based POS. Conventional POS systems require pricey on-site servers. According to Mckinsey& Company Inc., retail cloud adoption will rise to 71% by 2020 from 57% in 2018. According to another estimate, 50% of U.S. restaurants will use cloud-hosted POS terminals by 2023. With such solutions, users can centralize their data in one place, access it securely from anywhere, and streamline their information management.
North America dominated the global market for mPOS terminals in 2021. In North America, mobile point-of-sale systems are in high demand due to widespread awareness among small merchants and quick adoption in the retail, hospitality, and restaurant sectors. North America's well-established network infrastructure helps enterprises adopt IoT. IoT will have a favorable impact on mPOS because it establishes a robust network that enables better monitoring and control. The demand for safe, resilient, and fast business solutions and the popularity of tablet devices will drive the U.S. mobile point-of-sale terminals market at a CAGR of 16% from 2023 to 2030. Tablet POS terminals are popular due to their low cost and faster checkout procedure. Tablets help shops increase ROI and sales targets while enhancing employee efficiency. Market participants are introducing new tools to handle inventory, consumer data, and analytics. The Asia Pacific accounted for 30% of mPOS terminals' 2021 revenue. As e-commerce grows in India and China, consumers prefer digital payment options. 2019 estimates show this growth. Online firms have been encouraged to replace their old devices with mobile POS terminals to give a seamless shopping experience across all channels. The region's advanced technology infrastructure helps expand the mobile point of sale (mPOS) sector. Asia Pacific will increase at a CAGR of 20.16 percent throughout the projection period. The Indian government's push for a cashless economy is helping to grow this region's market. Customers and retailers in China utilize mPOS technology for anything from buying newspapers to buying drinks from vending machines. As a result, China's mobile POS business is booming.
The mPOS sector is growing quickly, and key competitors are expanding their product portfolios to gain market share. Key players offer mobile POS hardware and value-added services (VAS). Mobile POS systems are expected to speed up everyday adoption. Major players are expanding their business portfolios through partnerships, acquisitions, and collaborations. Visa, Inc. partnered with Clip in November 2021 to roll out mobile and tablet point-of-sale devices to retailers in Mexico. Ingenico Group S.A., VeriFone, Inc., PAX Global Technology Limited, Shopify, Inc., Square, SAP SE, Intuit, Inc., NEC Corporation, Clover Network, Inc., Lightspeed, Oracle Corporation, NEW POS TECHNOLOGY LIMITED, NCR Corporation, Newland Payment Technology, and Toast, Inc. Industry participants release new mPOS terminals to remain competitive and attract end-users. The top market leaders are expanding their product line and customer base.
