Mobile POS Terminals Market size is set to surpass USD 70 billion by 2027, according to a new research report by Global Market Insights Inc.
The rising incidents of financial fraud coupled with the formulation of stringent regulations for payment processing are fueling the market growth. According to Atlas VPN, financial fraud complaints in the U.S. increased by over 104% in the first quarter of 2020 compared to the first quarter of 2019. Government authorities have directed merchants and issuers to adopt EMV technology to prevent fraud on credit and debit cards. This has driven the demand for EMV-enabled mPOS terminals for faster & secure transactions. The technology enables merchants to authorize credit card payments and comply with security standards.
The coronavirus (COVID-19) pandemic severely impacted the market in FY2020 due to imposition of lockdown and shutdown of manufacturing plants. However, the rise in online shopping has created a demand for mPOS terminals in the e-commerce sector. For instance, online retail sales in Canada increased by 1.3% to USD 55.2 billion in 2020. Also, the pandemic has resulted in faster adoption of digital payments among both buyers and sellers. Around 42% of Indian active internet users shopped online during the COVID-19 pandemic, with around half of those being first-time online shoppers. This is expected to increase the demand for mPOS terminals that accept NFC and card transactions.
Rise in the acceptance of POS software for better accessibility will augment the market expansion
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The POS software is poised to witness significant growth rate through 2027 led by the increasing demand for efficient, fast, effective, and scalable checkout solutions. The advent of mobile applications has further accelerated the demand for software platform for payment transactions. For instance, in March 2021, National Payments Corporation of India (NPCI) partnered with SBI Cards & Payment Services Ltd. to launch RuPay SoftPoS for digitally enabling the merchants to convert their smartphones into a POS terminal. The software offers mobile accessibility, sales automation functions, and seamless integrations and allows merchants to offer multiple discount & scheme options. It also facilitates increased productivity, improved collaborations, and boosted sales performance.
Browse key industry insights spread across 300 pages with 545 market data tables and 30 figures & charts from the report, “Mobile POS Terminals Market Size By Solution (Hardware [Handheld Terminals, Tablet], Software) By Deployment (On-Premise, Cloud-Based) By Application (Entertainment, Healthcare, Hospitality, Restaurant, Retail [Convenience Store, Department Store, Supermarket/Hypermarket, Discount Store, Specialty Store], Warehouse), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Benefits of better security and operability are fostering the usage of on-premise mPOS terminals in the market
The on-premise deployment mode segment held significant revenue share in 2020. The deployment model is more reliable and secure as well as provides complete ownership of operations to merchants compared to the cloud-based model. The rising incidents of data breach are encouraging users to shift toward on-premise model for ensuring security of customers’ financial data.
Acceptance of POS systems in the restaurant sector for improving customer service and increasing sales
The restaurant application segment will dominate the mobile POS terminals market share by 2027 on account of the rise in the establishment of small food outlets. The changing customers’ preferences and interest in food items are encouraging FSRs to expand their outlets and serve different types of items to the customers. In January 2021, Westlife Development Ltd, the owner of Hardcastle Restaurants, announced to continue expansion by opening 25-30 new McDonald's outlets in 2021-22. These restaurant chains are focusing on improving their payment transaction capabilities to maintain a competitive position in the market. To attract customers and increase sales, FSRs are deploying multiple mPOS terminals at every point of interaction.
Growing adoption of digital payment methods will support the growth of European region
Europe mobile POS terminals market is estimated to register growth of over 16% during 2021 to 2027 impelled by the increasing acceptance of contactless payment methods, such as digital wallets and cards, across several industry verticals. According to Barclaycard, nine out of ten card payments in the UK were contactless in 2020. Also, there was 29% increase in the usage of contactless payments in grocery stores across the country. This has encouraged the usage of POS terminals among merchants to accept contactless payments. The regional market participants are offering innovative solutions that accept payments from multiple platforms.
Market players are adapting to the industry specific preferences and introducing advanced POS solutions
Key companies operating in the market include Ingenico Mobile Solutions, First Data Corporation, Zebra Technologies, PAX Global Technology, New POS Technology, SZZT Electronics, Verifone Systems Holding Inc., NCR Corporation, Bitel Co., Ltd, Posiflex Technology, Oracle Corporation, Diebold Nixdorf, Incorporated, Fujian Newland Payment Technology Co., Ltd., Shenzhen Xinguodu Technology Co., Ltd, Square Inc., and BBPOS Ltd. The market leaders are investing in R&D to develop innovative mPOS terminals for several industrial sectors.