20 December 2014

MPOS set to make up almost half of all point-of-sale installations within five years

14 May 2014  |  10273 views  |  4 Caixabank mpos

The installed base of mPOS devices is set to make up to 46% of all point-of-sale terminals in circulation by 2019, according to forecasts by ABI Research.

The fivefold increase in penetration is not just being driven by micro-merchant adoption, says ABI, as mPOS vendors are increasingly focused on sales higher up the value chain to mid-market and larger department stores.

Senior ABI analyst Phil Sealy comments: "There has been much said about the cannibalisation of the traditional POS market, but ABI Research believes that both traditional POS and mPOS can grow together in tandem, co-existing, expanding the presence of digital payment acceptance."

Separate research published by Visa this week, which questioned 2000 small businesses in the UK, France, Germany, Italy and Poland, suggested that over a quarter of European SMEs are prepared to shake off their initial reluctance to use the technology and try out the devices within the next six months.

Yet, despite the potential, questions remain about the business viability of mPOS and if it can be a profitable and sustainable business. The pioneer in the mPOS space, US-based Square, is currently battling widening losses and a shrinking cash pile as the marginal nature of the revenue returns begins to bite.

There will be casualties. With twenty-five independent mPOS solutions currently jockeying for position across Europe and several key banks preparing to enter the space, a market shakedown appears inevitable.
KeywordsEFTPOS

Comments: (4)

Chris Meggs - Chasm management ltd - Ipswich | 14 May, 2014, 12:10 Well, it's a start! And I will hold off on the "I told you so!"s. Simple POS for POS replacement to accommodate the latest tech junkie "solution" to the whole mobile and mobile security area does not and will not be a scene-stealer. An upgrade making the POS a partner in the value chain COULD. it could open a plethora (look it up) of opportunities and solutions, some to problems we didn't realize we had. BUT - we must be vigilant. Moving competence down the wire nearer to the consumer and out of the reach of the centralized security systems we have implemented (right?) will open up a whole new raft of problems, some of which we didn't realize we had. The solution to the problem is, as it always was, to do proper requirements analysis and follow it up with proper system design (provide a solution the meets the stated requirements, not exceed all the supposed requirements).
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Gerard Hergenroeder - IBM - New York | 14 May, 2014, 15:54

It is a great time to be in the payments business. Lots of change and uncertainty will only make the consumer value proposition stronger in the end!  I agree there will be a lot of fallout in the next 5 years. Those companies that have capital and can create value for consumers and the retailers will WIN. There are a lot of disrupters that we think are really COOL, but in the end they are probably at the highest level of risk of failure since their value propositions will not stand up to the realties of the marketplace.

 

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Geoffrey Barraclough - Barraclough and Co - London | 15 May, 2014, 08:46

The authors have clearly never visited Asda on Saturday afternoon. M-POS has plenty of uses but the form factor (two devices, small buttons etc) doesn't work in most retail applications.

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Alexander Peschkoff - TEDIPAY - London | 15 May, 2014, 11:03

I agree with Geoffrey: Apple uses mPOS too, but it's a different animal. One must not confuse a dedicated application-specific tool with a dongle...

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