The number of vendors serving the mobile point-of-sale (mPoS) market has increased by more than threefold in the past year. A combination of razor-thin margins, market maturity and the upcoming EMV liability shift will begin to pull the rug out from under
newcomers and established players alike. In the coming year I expect a number of mergers and exits from the market.
The small merchant mPoS market is analogous to the U.S. automotive industry in the early 1920s as high levels of saturation have resulted in unsustainability. On a monthly basis, new vendors jump into the fray with solutions that are by and large undifferentiated
from the scores of existing competitors, and competing on price instead of functionality has been the strategy de jour.
Throughout 2014, I foresee a number of vendors following VeriFone’s lead by cutting their losses and seeking a graceful exit from the mPoS market. This will be fueled by:
© Finextra Research 2014