New data from Juniper Research (www.juniperresearch.com) finds that the the adoption of mPOS (mobile Point-of-Sale) devices connecting wirelessly or via mobile devices, such as those from iZettle and Square, will drive annual mPOS transactions to over 87 billion by 2023. This will represent a threefold increase over an estimated 28 billion transactions in 2018.
The research group says that mPOS devices will drive an increased usage of payment cards in emerging markets, such as India. The digitization of payments, spurred on by the policy of demonetization, means that growth in the number of mPOS devices in India will be the fastest of any global region, at an average annual growth rate of 46% over the next five years.
Juniper Research finds that the average price of an mPOS device will drop from $40 in 2018 to approximately $33 by 2023. This affordability, coupled with the simplicity of mPOS devices, will make them highly attractive to smaller, previously cash-driven businesses, adds the research group. Established POS vendors such as Verifone and Ingenico will therefore increasingly look to mPOS as an area for future growth, expanding their market reach to previously unaddressed markets.
“As a result of the popularity of Square and iZettle, traditional POS manufacturers have identified mPOS as an important way to diversify revenue streams, at a time when established revenue streams are losing momentum,” says research author Nick Maynard.
Juniper Research also forecasts that biometrics will become an increasingly common part of mPOS offerings. It cited national identity schemes using biometrics, such as Aadhar in India, as a mechanism for card-free authentication, giving merchants the opportunity to avoid card network charges. This will drive biometric-enabled mPOS devices to reach almost two million globally by 2023, just under 4% of total mPOS terminals in use by then.
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