Globally, Mobile Point of Sale (mPOS) service has become a highly competitive market with the presence of a large number of players making it difficult for them to set their service apart, according to Transparency Market Research (TMR).
With their innovative efforts and technology, VeriFone Systems, Ingenico S.A. and PAX Technology have been regarded as the leading mPOS service providers in 2015. They have made huge investments to make mPOS available across major smart phone operating systems - iOS, Android and Windows. Additionally, VeriFone and other leading names are spending significantly to improve their customer engagement methods and practices.
More mPOS Services
The number Mobile Point of Sale (mPOS) service providers has gone up significantly over the decade, as new companies are establishing their name in this space due to huge demand for such services. The profitability and sustainable business environment has made small businesses take up their own mPOS services to facilitate them to carry mobile transactions with their clients.
Global mPOS growth
The global mPOS market, which was at US $ 2 bn in 2015, is expected to climb US $ 38 bn by 2023, growing at a CAGR of 38%. Whereas the card reader accessories, which contribute significant revenue to this market is expected to see a meteoric rise with a CAGR of 43.3% in the forecast period, the research report revealed.
These days, mPOS users globally prefer migration of their mPOS services on to Near Field Communication devices. Apple was one of the early entrants into this segment after the launch of Apple Pay in 2014. This was followed by now majorly used services like the mPOS variants for Google Wallet and PayPal.
The use of NFC in mPOS is expected to go up further in the coming years after the large scale implementation of Host Card Emulators, the report suggested, adding, “Most of the big names in the global banking industry are in the process of creating the global usage of HCE mPOS. India and China are already witnessing high scale implementation of HCE mPOS due to high traction for such services.”
India Tops the Chart for mPOS growth
“India had nearly 6.9 POS terminals for every 1000 retail businesses. The low number of POS terminals coupled with the smart phone boom and high population density have placed India on top of other nations in the region for having highest growth potential for mPOS,” says an analyst from TMR.
Challenges galore for mPOS players in India, as the market is highly untapped but has huge potential for growth. Indian market for mPOS is fragmented and unorganized. As per a 2013 estimate by IBEF, only seven per cent of the Indian retail market was organized. The country offers a highly potent untapped market for organized retail and provides huge scope for large scale introduction of mPOS services and technologies.
New Payment Terminal
Recently, Paynear Technologies, a Hyderabad-based mPOS mobile payment terminal provider, has entered into Indian payment service market space with its hand-held mobile POS card swipe machine with host of applications and facilities for retailers. The app-based service needs a smart phone to connect the wi-fi-enabled card reader to transact any bank’s card in just three easy steps.
With the government’s recent demonetization of high value currencies and push to make the economy “cash-less”, several banks are already providing mPOS enabled card swiping and mobile devices, to further increase the scope of usage and awareness on mPOS technology.