The global mobile point-of-sale (mPOS) terminals market accounted for US$ 17.11 Bn in 2021 and is projected to surpass US$ 65 Bn at a robust CAGR of 15.5% by the end of 2031

Market Overview:

The mobile Point-of-Sale (mPOS) terminals market has seen notable expansion in recent years, propelled by advancements in technology, shifting consumer preferences, and the increased uptake of digital payment methods. These portable devices enable merchants to accept card payments anywhere, offering flexibility and convenience compared to traditional Point-of-Sale (POS) systems.

The significance of mPOS terminals lies in their capacity to transform payment processing for businesses across various scales. Small and medium-sized enterprises (SMEs), in particular, reap benefits from the affordability and scalability of mPOS solutions, facilitating customer base expansion and operational enhancements. Moreover, mPOS terminals empower merchants to deliver seamless and secure payment experiences, thus enriching customer satisfaction and fostering loyalty.

The market for mPOS terminals is propelled by several key factors. The proliferation of smartphones and tablets has made it easier for merchants to adopt mobile payment solutions, while advancements in wireless connectivity technologies have facilitated reliable and fast transactions. Furthermore, the rise of contactless payments and the transition towards cashless societies have created a favorable environment for the widespread adoption of mPOS solutions.

In terms of market dynamics, competition among mPOS terminal providers is intensifying, leading to innovations in hardware design, software functionality, and value-added services. Moreover, regulatory initiatives aimed at promoting electronic payments and ensuring data security are shaping the landscape of the mPOS market, driving compliance requirements and technological standards.

The mPOS terminal market is poised for continued expansion, fueled by emerging trends such as omnichannel commerce, integrated payment ecosystems, and the integration of artificial intelligence and data analytics. As businesses seek to adapt to evolving consumer preferences and market demands, mPOS solutions will remain integral to the future of retail and commerce worldwide.

Market Dynamics:

Drivers:

1. Rising Demand for Contactless Payments: The increasing preference for contactless payment methods due to their convenience and hygiene benefits is driving the demand for mPOS terminals equipped with NFC (Near Field Communication) technology.
2. Expanding Small and Medium-sized Enterprises (SMEs) Sector: SMEs, including independent retailers, food trucks, and service providers, are increasingly adopting mPOS solutions to streamline payment processing, improve customer service, and compete with larger retailers.
3. Regulatory Initiatives Promoting Electronic Payments: Government regulations aimed at promoting electronic payments and reducing cash transactions are driving the adoption of mPOS terminals, with incentives such as reduced transaction fees and tax benefits for merchants.

Restraints:

1. Rising Demand for Contactless Payments: The increasing preference for contactless payment methods due to their convenience and hygiene benefits is driving the demand for mPOS terminals equipped with NFC (Near Field Communication) technology.
2. Expanding Small and Medium-sized Enterprises (SMEs) Sector: SMEs, including independent retailers, food trucks, and service providers, are increasingly adopting mPOS solutions to streamline payment processing, improve customer service, and compete with larger retailers.
3. Regulatory Initiatives Promoting Electronic Payments: Government regulations aimed at promoting electronic payments and reducing cash transactions are driving the adoption of mPOS terminals, with incentives such as reduced transaction fees and tax benefits for merchants.

Opportunities:

1. Emerging Markets: Untapped markets in developing regions present significant growth opportunities for mPOS terminal providers, as increasing smartphone penetration, expanding retail sectors, and supportive regulatory environments drive adoption.
2. Value-added Services: Offering value-added services such as inventory management, customer relationship management (CRM), and analytics capabilities can differentiate mPOS solutions and create additional revenue streams for providers.
3. Vertical-specific Solutions: Developing vertical-specific mPOS solutions tailored to hospitality, healthcare, and transportation industries can address unique market needs and unlock new revenue opportunities.

Challenges:

1. Competition from Traditional POS Systems: Traditional POS systems still dominate certain market segments, posing a challenge to mPOS terminal adoption, particularly among larger retailers and enterprises with established infrastructure and workflows.
2. Compliance with Regulatory Requirements: Adhering to evolving regulatory requirements related to data privacy, consumer protection, and payment security imposes compliance burdens on mPOS terminal providers, requiring continuous investment in regulatory compliance measures.
3. Fragmented Market Landscape: The presence of numerous players offering diverse mPOS solutions with varying features, pricing models, and service levels contributes to market fragmentation and complexity, making it challenging for merchants to evaluate and select the most suitable solution for their needs.

• Cisco Systems Inc.
• Equinox Payments LLC
• Ingenico S.A.
• iVeri Payment Technologies (Pty) Ltd
• Micros Systems Inc.Miura Systems Ltd.
• NCR Corporation
• Panasonic Corporation
• Verifone System, Inc
• Square, Inc
• Others

Market Segmentation:

By Product

• Fixed POS Terminals
• Mobile POS Terminals

By Component

• Biometric
• Traditional
• POS Terminal Hardware
• Software
• Services
• Mining
• Metal Fabrication

By Application

• Restaurants
  • FSR
    • Fine Dine
    • Casual Dine
  • QSR
    • Drive-Thru
    • Others
  • Institutional
  • Fast Casual
    • Drive-Thru
    • Others
  • Others
• Retail
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Grocery Stores
  • Specialty Stores
  • Gas Stations
  • Others
• Hospitality
  • Spas
  • Hotels
  • Resorts
• Healthcare
  • Pharmacies
  • Others
• Warehouse
• Entertainment
  • Cruise Lines/Ships
  • Cinema
  • Casinos
  • Golf Clubs
  • Stadiums
  • Amusement Parks
• Others

By Deployment

• On-Premise
• Cloud-based

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East

Covid 19 Analysis:

The COVID-19 pandemic has significantly impacted the mPOS terminals market, both positively and negatively. On one hand, the increased emphasis on contactless payments and reduced physical interaction has accelerated the adoption of mPOS solutions, particularly in retail and hospitality sectors seeking to minimize the risk of virus transmission. Furthermore, government regulations promoting cashless transactions and the closure of traditional retail outlets during lockdowns have further propelled the demand for mPOS terminals.

However, the economic downturn resulting from the pandemic has dampened consumer spending and business investments, leading to budget constraints for merchants and delaying the adoption of mPOS solutions. Moreover, disruptions in supply chains and logistical challenges have hindered the production and distribution of mPOS hardware and software, impacting market growth.

Overall, while COVID-19 has presented both challenges and opportunities for the mPOS terminals market, the long-term trajectory remains positive as businesses adapt to the new normal and prioritize digital payment solutions.

Regional Analysis:

North America leads the mPOS terminals market, driven by robust technological infrastructure, high smartphone penetration, and a strong inclination towards cashless transactions. The region's mature retail sector, coupled with favorable regulatory frameworks promoting electronic payments, further propels market growth. Europe follows closely, with countries like the UK, Germany, and France witnessing significant adoption of mPOS solutions, particularly among small and medium-sized enterprises (SMEs) and the hospitality sector.

Asia Pacific emerges as a lucrative market for mPOS terminals, fueled by rapid urbanization, expanding retail chains, and the proliferation of mobile payment platforms, especially in countries like China, India, and Southeast Asian nations. However, challenges such as diverse regulatory environments, varying levels of technological infrastructure, and security concerns hinder market penetration in certain regions.

Latin America and the Middle East & Africa exhibit promising growth opportunities, driven by increasing smartphone penetration, government initiatives promoting financial inclusion, and the emergence of digital payment ecosystems. Despite these opportunities, market growth is tempered by challenges such as economic volatility, infrastructure limitations, and regulatory complexities. The global mPOS terminals market is poised for steady expansion, with regional variations reflecting diverse market dynamics and growth drivers.

Key trends:

1. Rise of Contactless Payments: The growing preference for contactless payments, accelerated by the COVID-19 pandemic, is driving the integration of NFC technology in mPOS terminals, enabling quick and secure transactions without physical contact.
2. Integration of Mobile Wallets: mPOS terminal providers are increasingly incorporating support for popular mobile wallets such as Apple Pay, Google Pay, and Samsung Pay, catering to the growing demand for mobile-based payment solutions among consumers.
3. Omnichannel Commerce: Businesses are adopting mPOS solutions to enable seamless integration between online and offline channels, allowing customers to make purchases and payments across multiple touchpoints, enhancing the overall shopping experience.
4. Focus on Data Security: With rising concerns about data breaches and cyber threats, mPOS terminal providers are prioritizing data security features such as end-to-end encryption, tokenization, and compliance with industry standards like PCI DSS to safeguard sensitive payment information.
5. Emergence of Integrated Ecosystems: Integrated payment ecosystems that combine mPOS terminals with value-added services such as inventory management, loyalty programs, and analytics are gaining traction, offering merchants a comprehensive solution to manage their businesses more efficiently.