Smartphone and tablet-based mobile point-of-sale (mPOS) terminals will handle four per cent of all retail transactions this year. By the time we reach 2021, this percentage will have jumped to 20 per cent.
Those are the predictions of Juniper Research, suggesting mPOS will account for one in three POS terminals by that time. It shows the importance of mobile-based payment systems, and suggests that larger retailers will adopt mPOS as part of an array of point-of-sale options.
The solution will help reduce in-store queues, reduce lines and develop more 'targeted and situational' campaigns.
“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 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.”
Smaller merchants, especially those in emerging markets such as India, Southeast Asia and Latin America, should see mPOS as an opportunity to grow, Juniper adds.
"Much of the growth in these regions being supplied mostly by local vendors, such as Banamex, Digio, PagSeguro and SmartPesa,” the researchers said.
These vendors offer low transaction charges, a trend which is set to continue – giving incumbents a slight advantage over new entrants.
As rates go down, those who cannot offer personalised services will be driven out.
The full report, entitled ‘mPOS ~ Payments Outside the Box’, can be found on this link.
EDIT: Fixed incorrect numbers. Juniper's initial research said mPOS will handle 40 per cent of transactions by 2021, up from 12 per cent this year.
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