With mobile technology creating storm in every industry sector, the global retail business has made big strides during the last few years owing to advancement in mobile communication which helped consumers enjoy a unique shopping experience.With plastic cards transactions still rule the payment market, online transactions using smart phones or tablets, the mobile POS technology adoption is gaining momentum and growing at rapid pace.
India too is not lagging behind to this trend. With e-commerce sector taking a big leap, the Rs 600 crore retail sector is poised to reach one billion mark within five years, thanks to the overwhelming indulgence of online shopping by Indians through smart cards and mobile devices. Several retailers in cities and towns too are leaning towards mobile Point of Sale (POS) devices
to sophisticate their business transactions and thereby, increase customer's satisfaction and sales.
According to a 451 Researchforecast, the installed capacity of mobile POS
technology in the world will witness a fourfold jump to reach up to 54.03 million units by 2019 from the present 13.3 millionachieving 32 per cent compound annual growth rate.
Pointing out that the reasons driving the growth are different and cover a wide range of geographical locations and industries, the report said, in emerging markets like India, mPOSterminals
promote financial inclusion, whereas in developed economies, the technology is increasingly used as queue-buster and helps retailers for overall engagement.
Commenting on the overall report, Jordan McKee, a senior analyst covering mobile payments for 451 Research, said, "We think of mPOS as a fairly well penetrated technology, but we've only scratched the surface."
Will Mobile POS replace fixed POS terminals
in the near future? The report says in negative.
Despite the increased momentum, mobile technology is not going to replace other hardware and processes on a large scale in the near future. "However, over the next few years we will see retailers using mPOS more holistically across the organization,"McKee commented.
"MPOS won't replace fixed terminals in the foreseeable future, it's a complementary solution," McKee opined.