The Unprecedented Growth of mPOS Across the Globe
Mobile Point of Sale (mPOS) solution has taken a significant role in today’s business. Right from accepting payments anywhere, anytime to monitoring the growth of the business, all can be seamlessly done using a smartphone or a tablet.
mPOS emerged as a distinct category of payments in 2013 and the global mPOS industry is now witnesses exponential growth since then. Globally, the number of mPOS terminals grew from 4.5 million in 2011 to 9.5 million by 2012, representing a compound annual growth rate of 111%. The adoption rate by many business verticals is very high across the globe.
Recent forecasts suggest that 1 in every 3 POS terminal will be mPOS solution by 2021, as more and more large retailers are adopting mPOS as part of their point of sale option. mPOS will handle 20% of all retail transaction value by 2021, up from an expected 12% in 2016.
There is a huge demand especially from small and medium sized businesses for multiple modules, including card payments, inventory management, bill printing, and the provision of loyalty programs. Furthermore, ease of use and low cost are major factors influencing merchants across different industry verticals, such as restaurants, hospitality, retail, entertainment, transport, government, health care, warehouse/distribution, and consumer utility services, to adopt mPOS solutions
The global mPOS market is projected at $55billion with +70% transaction growth in 2014
mPOS is playing a key role in enabling small merchants in emerging markets such as India, Southeast Asia and Latin America to accept card payments and grow their businesses. Retailers get to tackle the long customer waiting lines, develop more targeted and situational campaigns as well as offer automatic ordering systems in their stores using mPOS solutions. In the Middle East and Africa, for instance, mobile penetration is increasing faster than in any market, growing from1.34 billion in 2015 to 1.71 billion in 2019.
The mPOS shipments market is also are expected to grow in the next years at a CAGR of 40% between 2013 and 2018, leading to 52.1 million mPOS units to be shipped in 2018. This growth will be driven primarily by a large number of merchants adding mPOS solutions to their existing POS solutions. As the technology evolves and becomes more mature, mPOS solutions will become viable solutions for merchants willing to completely replace their solutions.
The mPOS market is expected to reach US$38.38 billion in revenue by 2024, rising from US$2.08 billion in 2015. In terms of revenue, the market is estimated to expand at a CAGR of 38.0% during the forecast period from 2016 to 2024.
Over the forecast period of 2011 to 2017, mPOS terminal adoption is expected to increase from 4.5 million to a staggering 38 million by 2017, with a forecast CAGR of 42.7%, largely driven by growth in the retail sector, increased online trade and more smartphone and card users. By 2017, the adoption of mPOS terminals over standard POS terminals will be 46%, as opposed to the 17% that was seen in 2012.