The mobile point of sales (mPOS) terminal market is expected to grow at a CAGR of 18.5 during the forecast period of 2023 to 2030. The term "mobile point of sale" (mPOS) refers to a portable system that can be loaded on mobile devices like smartphones and tablets to make the payment process easier. Because businesses just need to install mobile POS software on their portable devices like tablets or smartphones, mobile point-of-sale systems enable merchants to service their clients regardless of where they happen to be located. mPOS has swiftly emerged as a critical tool that enables shops of all sizes to accept card payments. mPOS is increasingly being utilised for payments, inventory management, printing bills, and delivering loyalty programmes across numerous sector verticals such as retail, hospitality, and entertainment. mPOS allows sales and service sectors to execute financial transactions at a customer’s place, increasing customer experience and helping free up valuable space that would be otherwise given to fixed POS. Companies that specialise in mobile point-of-sale systems offer their solutions either directly to retailers or indirectly through third parties, such as financial institutions and mobile network operators.
The rising use of EMV chip card technology for payments made with credit and debit cards is one factor that may be credited with the expansion of the market.The primary forces that are propelling the mobile point-of-sale business forward are the growing emphasis on providing an improved experience for customers and the proliferation of cashless transactions.Because owners of small businesses may complete transactions and set up mPOS without having to make an investment in any support software, mobile point-of-sale (mPOS) systems offer a solution that is both cost-effective and convenient for those owners. As a result of service providers' efforts to achieve an early-mover advantage in mPOS-ready emerging economies, mobile point-of-sale (mPOS)-related operations in developing countries are picking up speed. A high smartphone and internet penetration rate, a big base of micro-merchants, SMBs, and card users, and encouraging bank and government programmes are important elements of an economy that is prepared to employ mPOS technology. It is anticipated that there will be a sizeable rise in the demand for mobile point-of-sale (mPOS) solutions from both small and large enterprises over the next few years. Using mPOS technology is one strategy that large retailers are pursuing to improve the in-store payment experience.
Focus on Enhanced Customer Experience Is Driving the Market
One of the primary drivers for the mPOS terminals market is the rising focus of organisations on improving the experience of customers. Due to the fact that check-out lineups at markets and major retailers sometimes contribute to the loss of customers’ time, mobile POS systems are being embraced. This manner, clients can complete the sale immediately from the main product area of a shop, by paying for the goods digitally and bypassing the long lineups. Such solutions contribute to a higher customer satisfaction, which further boosts brand trust and loyalty, which is why firms are quickly shifting from conventional systems to tablet and smartphone POS.
Facilitated Access to Drive the International Market
mPOS technologies contribute to queue busting, faster inventory checking, and space savings as compared to traditional POS systems. Retailers, for instance, are able to boost their sales by raising the level of client involvement and simultaneously tracking their inventory when they use mobile phones that are linked with point-of-sale software. Mobile point-of-sale systems (mPOS) are not only convenient but also economical for owners of small businesses. A great number of mobile point-of-sale (mPOS) systems are offered at extremely affordable prices, which results in a decreased total cost of ownership (TCO). Since most merchants already have smartphones and tablets, the only thing they need to do is purchase affordable mobile point-of-sale systems. Recently, retailers have begun to look beyond the initial expenses and are focused on lower TCO (total cost of ownership) with the need to decrease initial investment in comparison to their competitors. This shift in perspective came about as a result of the necessity to minimise initial investment. In addition, the mPOS terminal's reliability and cheaper total cost of ownership have contributed to a growth in the demand for the best mobile POS systems. The introduction of innovative payment technologies like Near Field Communication (NFC) and Europay, Master Card, and Visa (EMV), as well as an increase in the use of payment methods like debit and credit cards, have both contributed to the growth of the mobile point-of-sale (mPOS) market.
AffordableCloud-Based Point-Of-Sale Terminals to Fuel the Market Growth
Because more and more small and medium-sized businesses in the UK are becoming comfortable using cloud computing services, it is anticipated that the market for cloud-based mPOS terminals in the UK will increase at a CAGR of more than 22% during the forecast period of 2023 to 2030. For instance, in the year 2020, during the COVID-19 pandemic, 51% of the company executives in the United Kingdom switched to a strategy that was based on the cloud. The cloud-based deployment strategy provides a number of benefits, including the security of the underlying infrastructure, high speed, scalability, and availability of services around the clock. Cloud-based mobile point-of-sale (mPOS) terminals require nothing more than a reliable internet connection, which frees up enterprises to spend less money on physical infrastructure. In addition, the expanding use of contactless payment technologies across a variety of different industrial sectors is driving demand for mobile point-of-sale terminals that are hosted in the cloud.
Focusing on Better Shopping Experience for Customers Is Increasing the Adoption of Mobile Point-Of-Sale Terminals
Within the mPOS terminals market, the retail application subsegment is anticipated to be the one to exhibit considerable growth prospects. The growing competition from online shops has driven traditional brick-and-mortar stores to adopt modern payment methods in order to attract more customers. The mobile point-of-sale terminals give merchants the ability to precisely control inventory and gain insight into the products that are most successful in attracting customers. The terminals make it possible for retailers to enhance the shopping experience of their customers by providing a more streamlined and protected method of making payments and checking out. Integration with inventory management, loyalty programmes, reporting and analytics, customer relationship management (CRM), and e-commerce platforms is made possible by mPOS terminals.
Mobile Point-of-Sale (mPOS) Value-Added Services (VAS) Create Opportunities for the Market for Mobile Point-of-Sale (mPOS) Terminals
New providers of mobile point-of-sale systems have been making available packages that include no monthly fees, pricing based on a flat rate percentage, minimally expensive hardware, and minimally expensive continuing maintenance expenses. For example, LevelUp, a firm based in the United States, has been providing free payment processing in exchange for obligatory marketing services. LevelUp's customers are required to sign up for these services. As a result of an increase in the number of competitors in the QSR mPOS market, it is anticipated that there will be intense competition in the near future based on the prices offered by mPOS suppliers. As a result, the ability to differentiate products and provide services with additional value is projected to be a critical aspect in maintaining a competitive environment.
mPOS vendors have a responsibility to provide individualised mPOS solutions that are tailored to meet the requirements of particular industrial verticals. A number of the most important value-added services (VAS) are loyalty and reward programmes, mobile discount programmes, cash-back incentives, gift card and voucher offerings, and gift cards. It is anticipated that mobile point-of-sale systems would be utilised more frequently to reward customers for participating in activities both before and after buying. The market for mobile point-of-sale (mPOS) terminals is expected to be driven over the projected period by the innovative features of mobile point-of-sale (mPOS) systems. In the coming years, there will be an increase in the prevalence of some types of services, such as analytics, which offer advice to business owners regarding appropriate inventory levels, ordering cycles, and the purchasing habits of their clients.
Hardware Segment Dominated the Product Market
In 2021, the hardware subsegment of the mPOS terminals market held the largest proportion of the market based on the components available. This is due to the fact that different types of point-of-sale hardware are needed in order to accept digital payments, which are currently seeing widespread adoption in the retail, food service, and hospitality industries across the globe.In the mobile point-of-sale terminals market, the cloud bifurcation, which is based on deployment type, is expected to witness faster growth during the forecast period. This is due to the fact that cloud deployment of mobile POS software and applications offers improved mobility as well as automatic data backup. Additionally, due to a lot less necessity for complex information technology (IT) infrastructure, cloud also helps users save money.
Retail Segment Dominates the Application Market
Till 2030, the retail category, under segmentation by application, will continue leading the mPOS terminals market, due to the high adoption rate of the point-of-sale technology by retailers. Customers are able to skip standing in line and finish the transaction from wherever they are located within a huge store thanks to the technology, which also helps retailers increase their ability to quickly capture revenue. For instance, in 2018, Walmart Inc. installed similar systems in 350 of its locations in the United States so that customers could check out immediately.
Cloud-Based Mobile POS Systems Are Getting Popular Among the End Users
A prominent development in the mPOS terminals market is the desire for cloud-based solutions. The conventional point-of-sale systems have significantly higher operational expenses than their cloud-deployed point-of-sale counterparts. This is due to the fact that conventional POS systems require on-site servers, which can be fairly expensive. As per Mckinsey& Company Inc., the usage of cloud technology in the retail sector would climb to 71% by the end of 2020 from 57% in 2018. According to the findings of another study, approximately half of all restaurants in the United States will be employing point-of-sale terminals that are hosted in the cloud by the year 2023. Users are able to centralise all of their data in one location, access it safely from anywhere, and streamline their information management with the help of such solutions.
North American Dominant
In 2021, North America held a major share of the global market for mobile point-of-sale (mPOS) terminals. In North America, there is a considerable demand for mobile point-of-sale systems due to the widespread awareness of mPOS solutions among small merchants and the rapid acceptance of these systems in the retail, hospitality, and restaurant sectors. There is a well-established network infrastructure in North America, which helps to promote the Internet of Things among various businesses. It is anticipated that IoT will have a significant positive impact on mPOS since it creates a robust network that enables an organisation to better monitor and control its operations.The rapid trend toward secure, robust, and speedy business solutions as well as the prevalence of tablet devices will drive the expansion of the mobile point-of-sale terminals market in the U.S. at a rate of CAGR of 16% during the forecast period of 2023 to 2030. Tablet POS terminals have considerably gained in popularity among businesses due to the inexpensive cost of installation and the streamlined checkout process that they provide. Tablets give retailers the ability to boost their Return on Investment (ROI) and accomplish their sales goals while also increasing the productivity of their workforce. Users will soon be able to manage inventory, consumer data, and analytics thanks to new software that is being introduced by market participants.In the mPOS terminals market, Asia Pacific accounted for 30% of the revenue share in the year 2021. Consumers' preference for using digital payment methods has grown as a direct outcome of the expanding e-commerce sectors in both India and China. This growth is based on projections made for 2019. Because of this, online businesses have been pushed to replace their traditional devices with mobile point-of-sale terminals so that they may provide customers with a smooth purchasing experience across all channels.
The presence of a highly developed technology infrastructure in the region is one of the factors contributing to the expansion of the mobile point of sale (mPOS) market. On the other side, it is predicted that growth in the Asia Pacific area will occur at the greatest CAGR of 20.16% during the time covered by the forecast. The expansion of the cashless economy as a priority for the Indian government is having a beneficial effect on the expansion of the market in this region. Both customers and retailers in China are making widespread use of mobile point of sale (mPOS) technology for transactions ranging from the purchase of newspapers to the purchase of beverages from vending machines. As a result, the mobile point of sale industry in China is experiencing robust growth.
Focus on Market Expansion to Offer Significant Opportunities
The mPOS industry is increasing at a quick rate, and the major competitors in this market are competing fiercely to acquire top market positions by enhancing and expanding their product portfolio. In addition to mobile point-of-sale (POS) hardware, value-added services (VAS) are increasingly being made available by key players. Despite this, the introduction of specialised mobile point of sale systems is anticipated to hasten the rate of everyday adoption. Additionally, significant players are growing their business portfolios through strategic partnerships, acquisitions, and collaborations with other organisations. For example, in November of 2021, Visa, Inc. teamed with Clip to roll out more mobile point-of-sale (mPOS) and tablet point-of-sale (tablet POS) devices to retailers all throughout 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. are the key players operating in the global market for mobile point-of-sale (mPOS) terminals.The participants in the industry are releasing novel mPOS terminals in order to maintain their position as competitors in the market and to attract end-use clients. The most important market leaders are concentrating their efforts on broadening both their product catalogue and their consumer base.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Mobile Point Of Sales (mPOS) Terminals market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Component
| |
Deployment
| |
Application
| |
|
Region Segment (2022-2032; US$ Million)
|
Key questions answered in this report
