A new study from Juniper Research has found that smartphone and tablet-based mobile point-of sale terminals will take on a significant role in businesses, handling 40% of all retail transaction value by 2021, up from an expected 12% in 2016.
Juniper forecasts that the use of mPOS systems will account for more than 1 in 3 POS terminals by 2021, driven by larger retailers adopting mPOS as part of an array of point-of-sale options.
mPOS – Complementing, Not Replacing
The new research, Worldwide mPOS Markets: Devices, Technologies & Growth Opportunities 2016-2021, found that mPOS will enable retailers to 'queue bust' in stores, reducing lines and developing more targeted and situational campaigns as well as offering 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," remarked research author James Moar. "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."
A Hand Up for Emerging Markets
The research has also found that mPOS is playing a key role in enabling smaller merchants in emerging markets, particularly across India, Southeast Asia and Latin America, to accept card payments and grow their businesses. Much of the growth in these regions being supplied mostly by local vendors, such as Banamex, Digio, PagSeguro and SmartPesa.
Many of these vendors offer low transaction charges, and we believe this trend will continue, establishing market share, brand familiarity and stickiness. This gives incumbents a slight advantage over new entrants, but over time the market will tend towards lower and lower rates, driving out those who either cannot offer tailored services or cannot afford to operate at the cut-throat margins general payment processing will require.