Rise in inexpensive wireless communication techniques among developing nations has stimulated global mobile POS terminal market which is expected to surpass $20 billion from the present $12 billion by 2020 with an expected CAGR of 19 per cent, according to a global study.
Mobile Point Of Sale (mPOS) is a wireless equipment that can be a Tablet or Smartphone which is the advanced version of the ordinary Cash Register or electronic POS Terminal. MPOS can be used not only to register sales, but also for performing scores of back-store operations such as inventory management, customer behavior tracking, understanding sales pattern on daily, weekly or monthly wise, employee performance, multi-store sales tracking, to name a few.
According to Global Market Insights report, exponential rise in demand from end use sectors like Hospitality and Retail Sectors is boosting the sales of MPOS across the nations as these devices are widely used to enhance customer experience by avoiding long queues in payment counters.
Shoppers use MPOS terminals for payment of products and services. Wireless systems can be utilized to modernize services like cab rental or purchasing food items from stores. Using wireless systems like Wi-Fi devices, GPRS systems or CDMA technologies can reduce cost per each transaction, remove time delay during sales and services and improve work efficiency.
However, the report stated that data security is a main challenge which has badly affected the growth of global mPOS terminal market and will remain the area of concern in the near future too.
Giving a segmented growth prediction for POS software and hardware components of MPOS, the report projected that hardware will take the lead of $10.4 billion with a CAGR or 18.1 % compared to 9.6 billion for software part with expected CAGR of 22.1 per cent.
Application wise, global mPOS terminal market can be segregated into retail, healthcare, entertainment, warehouse, restaurant and hospitality. The report said retail application had contributed more than 30% to global industry share in terms of revenue in 2015 and is expected a CAGR of about 18% in the next four years while entertainment sector is expected revenue of about $4.36 billion by the end of 2020. Entertainment sector consists of casinos, amusement parks and tourism which require highly dependable mPOS terminal systems to enthuse customers.
Globally, mPOS market has larger presence in Asia Pacific, North America, Middle East & Africa, Latin America and Europe. While Europe still reining high with $3.1 billion in 2015, Asia Pacific regions is fast catching up and may ever surpass during the forecast period.
The report has further said that the rise in number of users due to increase in mid and small sized firms and reducing operational and owning cost are expected to act in favour of Asia Pacific mPOS terminal market.