According to a new market report published by Transparency Market Research entitled “Mobile Point-of-Sale Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024,” the mPOS market is expected to reach US$38.38 bn in revenue by 2024, rising from US$2.08 bn in 2015. In terms of revenue, the market is estimated to expand at a CAGR of 38.0% during the forecast period from 2016 to 2024.
mPOS is witnessing huge demand from small and medium-sized businesses for multiple applications, including card payments, inventory management, bill printing, and the provision of loyalty programs. Furthermore, ease of use and low cost are major factors influencing merchants across different industry verticals, such as restaurants, hospitality, retail, entertainment, transport, government, health care, warehouse/distribution, and consumer utility services, to adopt mPOS solutions. The demand for mPOS card reader accessories is driven by their low cost and ease of integration with smartphones. A lower total cost of ownership (TCO) has also been a high attraction for small merchants to adopt card reader accessories, including dongles and sleeves.
Among the different mPOS technologies, the hybrid technology solutions segment accounted for the largest revenue share in 2015. The dominance of the hybrid technology solutions segment can be attributed to its feasibility to read different card technologies such as NFC and EMV. Due to a liability shift, there is an increase in the migration to EMV chip and pin solutions. Hybrid solutions can serve as a bridge between old magnetic-stripe technology and new technologies such as EMV chip and pin and NFC. The NFC technology segment is expected to grow the fastest in terms of revenue and shipment during the forecast period. An increase in payment security levels ensuring the protection of vital data is expected to be one of the major factors to aid the fast growth of NFC technology in the coming years. Implementation of EMV chip and pin solutions has gained traction around the globe as it offers better security than magnetic-stripe solutions.
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The retail end-use segment dominated the mPOS market in terms of revenue, shipment, and installed base in 2015. Small merchants are influenced to adopt mPOS solutions due their low cost and ease of use. Large retailers prefer integrated card readers due to their robustness. However, the transportation and government sectors are likely to grow the fastest in terms of adoption of mPOS solutions during the forecast period. In the coming years, the government sector is expected to adopt mPOS solutions for to reception of payments for various services such as electricity, taxes, and gas.
The major companies profiled in mPOS market study include Ingenico S.A., PAX Technology Ltd., Oracle Corporation (MICROS Systems, Inc.), VeriFone Systems, Inc., Hewlett-Packard Development Company, L.P., Toshiba Corporation, Intuit, Inc., First Data Corporation, iZettle AB, PayPal Holdings, Inc., Square, Inc., and Dspread Technology, Inc.