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5 Major Trends Transforming mPOS Terminals Market Outlook Over 2021-2027


5 Major Trends Transforming mPOS Terminals Market Outlook Over 2021-2027

Growing penetration of smartphones in conjunction with increased consumer proclivity towards UPI payment methods has led to the transformation of the payment landscape. The increasing card transactions across the globe are driving the adoption of mPOS payment solutions across various sectors including, hospitality, retail, healthcare, entertainment, etc. In March 2021, over 1.5 billion debit card transactions were recorded in the UK which represents an increase of 21.4% as compared to February 2021. A notable rise in the usage of card payments is expected to give a major impetus to mPOS terminals market over the upcoming years. The market size is projected to surpass USD 70 billion by 2027, cited the latest report by Global Market Insights Inc.

The industry growth is being further stimulated by the pivotal trends mentioned below:

Development of innovative solutions by market players

Various major players operating in the industry are inclined on developing advanced solutions that can suit the customer requirements and offer an enhanced experience. For instance, in 2021, Mastercard partnered with Global Payments Inc. and NMI to roll out the pilot of its first live Cloud Tap on Phone with Computer Engineering Group. This product is apparently Mastercard’s next-generation acceptance product, where the software is hosted on Microsoft’s Azure cloud platform.

Increasing consumer preference for cloud-based mPOS

Cloud-based mPOS terminals are observing mounting demand especially among small stores and restaurants owing to their low cost of installation and maintenance. These terminals require an efficient internet connection for carrying out payment transactions which reduce the need for costly infrastructure. The cost-effectiveness and space constraints encourage small merchants to deploy cloud-based mPOS systems.

Growing popularity of contactless payments

The massive popularity of contactless payment transactions due to the expansion of e-commerce sector and the emerging trend of card-on-delivery has accelerated the deployment of mPOS terminals. Consumers are now preferring contactless payment methods owing to more convenience and safety while performing transactions. Besides, the COVID-19 pandemic has also expedited the trend of contactless payments globally. For instance, effective from May 2020, the France government increased the limit on contactless payment from USD 35 to USD 59, on the recommendation of the European Banking Authority (EBA).

Increasing adoption in restaurants

Restaurants are increasingly adopting the mPOS terminals as they intend to enhance the customers’ dining experience. A large number of cafes, restaurants, bars and pantries are now investing in innovative POS devices to facilitate faster transactions during peak hours. For instance, in 2020, Shift4 Payments launched a contactless QR code ordering solution for restaurants. According to the company, this system provides restaurants with a customized QR code that can be displayed on placemats, table tents, etc. The customers can scan the code using their phone to access the menu and place an order. The order is then sent directly to the restaurant’s POS system.

Burgeoning demand in the hospitality sector of North America

mPOS terminals industry is witnessing significant growth in North America owing to the increasing adoption of POS terminals in the regional hospitality sector. The thriving travel & tourism industry has impelled the construction of various luxury hotels and resorts in the region. Citing an instance, in 2021, Wyndham Hotels & Resorts, Inc. announced the launch of a luxury hotel brand amid the recovery of the luxury sector from the pandemic. Several independent casinos, hotels, and resorts owners use mPOS solutions for providing the guests with a seamless experience and convenience while paying bills.

The industry will grow exponentially over the ensuing years as people around the world are showing great interest in more innovative and convenient ways of payments. This is indeed prompting numerous industrial sectors to invest in innovative POS solutions to meet customer demand. Increasing penetration of the internet and smartphones will further strengthen the mobile POS terminals industry landscape.

smart card

Demand for Contactless Smart Card Materials to Remarkably Expand

The market for smart card materials is expected to see tremendous potential in the coming years with the influx of various chip-based technologies given the increasing requirement to curb security risks across the financial and banking sectors.

The expansion of the retail, BFSI, and hospitality industries has also stirred the need for easy and quick operations along with cashless payments; which stands to be an ideal factor supporting the demand spurt for contactless smart cards.

Smart cards are witnessing higher demand in current times in the form of payment cards such as debit and credit cards, as well as electronic benefits transfer (EBT) cards which are used in the allotment of government benefits. They are configured for access control across government & educational institutions and are employed for patient identification and detailing in hospitals.

Smart card materials, like polyvinyl chloride, acrylonitrile butadiene styrene, and polycarbonate, among various others are mainly incorporated in the manufacturing of these cards, as they possess application-specific performance attributes. They are extensively used to resist impact, UV rays, and chemical substances for the longer shelf life of the cards.

Looking at these factors, it would be safe to declare that the global smart card materials market size could be worth a substantial remuneration by 2027.

PVC and ABS as major materials

The demand for polyvinyl chloride (PVC) smart card materials is anticipated to rise substantially as they can be regarded as the commonly used components in the card bodies. On account of lower prices, they are preferred in both contact and contactless cards. However, these materials offer depleting resistance to heat, UV, and bending stress, which results in the lost quality finish over time. They are also believed to exhibit a shorter life expectancy in comparison to other materials with the gradual peeling of the lamination and finishing layers.

Meanwhile, the acrylonitrile butadiene styrene (ABS) smart card materials will also see significant penetration on account of their higher resistance to heat and chemicals. As these materials possess optimum print quality-making attributes, they are suitable for graphics-heavy card applications like branded access cards and ID cards used in universities and high-end organizations.

The smart card materials market is currently being fueled by the prominence of the latest trends and developments made by the industry conglomerates. Given below is a gist of the trends that would potentially augment the smart card materials market strata in the years to come:

Growing preference for contactless cards

Contactless smart card materials are pegged to see a higher preference in the coming years. This is due to the extensive usage of these cards in securely managing, storing, and providing access to data while performing other on-card functions. Various international standards have been introduced to comply to contactless smart card technology and applications. Furthermore, contactless smart card materials are largely used in plastic cards, key fobs, watches, documents, and handheld devices.

Strong uses in retail and telecommunication

The application of smart card materials in the retail sector will gain prominence with the increasing need to store customer information, such as account data. This is because the transaction details fit in as a credit card while online good purchases are made. More to this, several retailers are also leveraging the advantages of smart cards to store points for specific customers as well as render necessary incentives to recurring clients.

Likewise, what makes smart card materials popular in telecommunication applications is their extensive role in the development of SIM or Subscriber Identity Module cards.

Developments by the ‘who’s who of the industry

Numerous innovations by leading industry participants as well as inorganic strategies, such as acquisitions, mergers, and partnerships are playing an important role in the development of smart card materials.

Apart from this, the firms are focused on extending their global presence across the world while catering to the increasing product demand, even in this stretching COVID-19 pandemic. For instance, in March 2021, IDEMIA, partnered with BBVA to roll out its first-ever payment card made of recycled PVC in Spain.