Mobile Card Reader Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI4272
Mobile Card Reader Market size may witness significant growth over the predicted timeframe owing to ongoing government initiatives for promoting the adoption of digital payment methods, such as internet banking, POS terminals, and mobile wallets, for completing monetary transactions. Several countries are introducing schemes to spur the movement of digital payments and shift toward a cashless and digital economy. For instance, the Indian Government programme of Cashless India aims to transform the country into a digitally empowered society and knowledge economy. With a rise in such initiatives, the demand for these solutions for online transactions is expected to grow in the coming years. These devices enable the processing of payments through smartphones or tablets using different methods such as card swipe, contactless, and chip payments. In addition, they offer various features, such as invoice, receipt, and tax calculation, to the business.
The increased demand for the device across end-use industries, such as retail and hospitality, is expected to boost the mobile card reader market growth. These devices offer several benefits to businesses, such as inventory control, online store, analytics, invoicing, and customer directory, enhancing the payment processing and consumer experience. The transactions are done based on the plastic currency with the help of these readers, resulting in increased cost-effectiveness and efficiency for both vendors and customers. Retail and wholesale stores are highly adopting these readers as they are cheaper, portable, and easy to carry. Moreover, the companies are investing in providing various schemes to expand their business and customer base in the market. For instance, PayPal Holdings, Inc., an online payments company, is offering free card readers for low-volume businesses, allowing them to easily manage inventory and expand customers.
The rise in data security concerns and cybercrimes associated with the devices may hinder the mobile card reader market growth. These devices are highly prone to unauthorized access by individuals trying to steal customers' personal details such as credit card information. Security threats in card readers allow hackers to manipulate commands using Bluetooth or mobile applications, modify payment amounts, and gain full remote control of the device. Such security concerns are challenging the adoption of readers among several small businesses and enterprises. Moreover, the rising adoption of digital payment techniques in the Indian market, such as Unified Payments Interface (UPI), Paytm, PhonePe, PayPal, and Google Pay, may hinder the India market growth.
The introduction of value-added benefits in these solutions to expand the scope of the device beyond payment acceptance options is stimulating the mobile card reader market. Vendors are focusing on improving their customer retention rate by providing new value-added services using card transaction data such as inventory management, analytical tools, sales reports, and receipt management services. Moreover, the growing consumer adoption for contactless, mobile payment, NFC, and IoT technologies will alleviate the demand for these advanced solutions in the coming years. According to OnBuy, a UK-based market, around 75% of the customers in the country preferred using card for payment transactions.
The demand for contactless card readers is projected to grow in the coming years. These cards accept contactless payments with Apple Pay, Android Pay, and other NFC-enabled smartphones and watches. They are embedded with multiple layers of security, such as chip & PIN payments, which provide safe & secure payment transactions. In addition, these devices can work within a few centimeters range of Point-of-Sale (POS) terminals, preventing the virtual interception of customer information and improving fraud protection for merchants. Such factors are resulting in its high adoption in a wide range of applications. Moreover, manufacturers in the mobile card reader market are focusing on providing various modes of contactless payments on a single device. For instance, Square Inc., is offering a card reader, which accepts chip cards and NFC payments by connecting wirelessly to mobile devices. The card also supports Apple Pay, Google Pay, and other contactless digital payments methods, attracting customers to use it over traditional POS systems.
Low operating costs and easy-to-use techniques have led to the increased use of these devices in the retail industry. Benefits, such as mobility, personalized service, quick checkout, and multiple pay options, have led retailers to adopt these readers in their shops, driving the mobile card reader market. These devices enhance the customer experience by reducing wait times and long queues at the checkout counter. The installation of the solutions also reduces the transaction processing time, allowing customers to have an easy and convenient shopping experience. Several companies are focusing on introducing these devices specific to retail industries. For instance, in July 2019, Thumbzup Innovations (Pty) Ltd. announced the launch of mobile readers with in-store Cx and omnichannel capabilities. The product offers service lookups, availability, ordering, and dispatching orders for e-commerce and retailers for enhancing the customer shopping experience.
The Asia Pacific mobile card reader market is expected to witness high growth in the coming years. The presence of a large number of semiconductor and resistor manufacturing companies coupled with the easy availability of raw materials in the region is expected to drive the market growth. Moreover, the rise in government initiatives for digitization and shift toward cashless economy in countries including India, China, Japan, and Indonesia will provide lucrative opportunities for market growth. the presence of leading giants, such as Alipay, WeChat Pay, and Tenpay, in China will help to improve online payment methods in the country. Similarly, in India, the effect of demonetization has provided sharp growth to the digital payments industry.
The key players in the mobile card reader market include Tappr, Clover Network, Electronic Merchant Systems, SumUp Inc., Paypal Inc, Intuit Inc, Square Inc., First Data Corporation, Ezetap Mobile Solutions Pvt. Ltd, Intuit Inc, Total System Services Inc, iZettle, JUSP, mSwipe, and PayAnywhere. These companies are focusing on investing in various techniques to maintain their market presence and compete with other manufacturers. Companies are entering into various partnerships, mergers & acquisitions, and collaborations to increase their customer reach in the market. For instance, in February 2019, SumUp Inc., the London-based financial technology company, announced the acquisition of Shoplo, a multichannel e-commerce platform, for expanding its services for over 1 million active users globally. This acquisition will help the company to offer online storefronts features of invoicing & payments, international shipping, and chat functionality and will enable them to access various online markets.
Mobile Card Reader Market, By Solution
Mobile Card Reader Market, By Deployment
Mobile Card Reader Market, By Technology
- Chip and PIN
- Magnetic stripe
- Near Field Communication (NFC)
Mobile Card Reader Market, By Application
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- South Africa
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