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.