Mobile point-of-sale transactions are set for massive growth over the next five years, and by 2021 40 per cent of retail point-of-sale interactions will be made using mPOS terminals, according to a new study from Juniper Research.
Forecasts indicate that mPOS systems will account for over a third of point-of-sale terminals by 2021, driven by larger retailers adopting mPOS as part of an array of point-of-sale options that will enable them to ‘queue bust’ in stores and offer automatic ordering systems in restaurants.
“We are seeing several vendors tailor their software to the needs of specific industries, integrating mPOS capabilities as part of broader cloud-based business software,” said James Moar, author of the research. “These additional services can then make use of the sales data directly to manage inventory, monitor staff performance and other functions, which can all add more value to a business and justify a higher margin.”
The research also found that mPOS was playing a key role in enabling smaller merchants in emerging markets, particularly in India, south-east Asia and Latin America, to accept card payments and growing their business.
Local vendors like Banamex, Digio, SmartPesa and PagSeguro were generating most of the growth in these regions, offering low transaction charges to establish market share and brand familiarity. Juniper predicts this trend will continue, with the market tending towards lower and lower rates, driving out those who cannot afford to operate at such low margins while also offering tailored services to customers.