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Mobile Card Reader Market size to surpass $65 Bn by 2032

  • Published Date: January 23, 2023

Mobile Card Reader Market size is primed to surpass USD 65 billion by 2032, according to a recent research report announced by Global Market Insights Inc.

Positive outlook of the e-commerce business globally will bolster the demand for cashless modes of payment, which, in turn, will push the adoption of mobile card readers. According to July 2022 estimates by the International Monitoring Fund (IMF), the total mobile transactions volume reached USD 1.7 billion in FY2021, witnessing a 27% growth from 2020. The visible uptick in online transactions worldwide and the introduction of consumer-friendly payment methods across several online platforms will further augment product sales over the next ten years.

The increased adoption of products made of eco-friendly and recyclable materials due to heightening environmental concerns may, however, impact the mobile card reader market dynamics. Governments and administrative authorities have been implementing measures to minimize plastic usage. Since payment cards or keys are made using plastic, these regulations may impede industry growth during the forecast period.

Introduction of improved new features to push the demand for software solutions

Software segment accumulated over 20% market share in 2022. Software solutions, including PoS software, billing & invoice software, and payment processing software, are increasingly embedded in mobile card readers to store product information and speed up the checkout process. Besides, their ability to offer services, such as quick billing, accurate inventory management, and fast accounting, will further spur product demand over the coming years.

Cloud-based mobile card readers to gain traction due to lower maintenance costs

In terms of deployment, the cloud segment will expand at over 15% CAGR from 2023 to 2032, aided by the rapid adoption of cloud-based solutions and services across several end-use verticals. The cloud deployment model offers higher convenience, customization, security & privacy, scalability, and reliability, which helps reduce additional maintenance costs and eliminates downtime. In addition, cloud-enabled mobile card readers effectively utilize IT resources, thus, minimizing investments in costly infrastructure and reducing data breaches.

Browse key industry insights spread across 288 pages with 372 market data tables and 31 figures & charts from the report “Mobile Card Reader Market Size By Solution (Hardware, Software), By Deployment (On-Premise, Cloud), By Technology (Chip and Pin, Magnetic Stripe, Near Field Communication (NFC)), By Application (Entertainment, Retail, Healthcare, Hospitality, Restaurant, Warehouse), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 - 2032”, in detail along with the table of contents:

Increasing demand for faster and more secure payments to push the penetration of NFC technology

Regarding the technology, NFC segment amassed over 30% market share in 2022 and is slated to witness lucrative growth through 2032. The NFC (Near Field Communication) technology lets customers use a payment card on their smartphones, enabling them to initiate payment transactions for fast & convenient payments via a tap on the card. NFC-supported smartphones allow a contactless exchange of information between smart cards and smartphones. The increasing smartphone penetration, in tandem with the noticeable surge in contactless payments globally, will complement mobile card reader market share through the ensuing years.

Increased adoption of contactless payments to drive product demand across the healthcare vertical

Speaking of the application landscape, the overall market from healthcare segment is poised to account for more than 10% revenue share by 2032. The segment growth can be credited to the proliferating digital payment trends across the healthcare sector. Several healthcare service providers have been accepting and adopting cashless payments to streamline the treatment and diagnostic process while eliminating the hustle of managing long queues. This, in turn, will complement market expansion over the projection timeframe.

Increasing technological advancements to boost market demand across North America

North American mobile card reader market was valued at over USD 5 billion in 2022. The improving technological landscape in countries such as Canada and the U.S., coupled with the increasing usage of digital services, will boost regional trends. Furthermore, the massive surge in contactless and cashless payments among customers & businesses to lessen cash handling and contact with communal surfaces will further amplify the mobile card reader demand in the region.

Partnerships and collaborations remain the key growth strategy

Mobile card reader market has players such as Advanced Card Systems Ltd., Electronic Merchant Systems, Ingenico, Stripe Inc., Revolut, Verifone Inc., and others.

Companies operating in this business vertical have been undertaking strategic initiatives to gain a strong foothold in the global markets. For instance, in November 2022, Square teamed up with American Express to launch a credit card for Square sellers. The credit card offers its small business users the chance to integrate directly with the firm’s broader ecosystem, which helps sellers to organize and manage their finances & cash flow on the same platform. The card runs on the AmEx network, is powered by i2c, and is issued by Celtic Bank.

Authors: Preeti Wadhwani, Anish Pathak