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White Label mPOS Solutions 2020 Outlook

Retailers are increasingly turning Mobile Point of Sale (mPOS) devices to secure payment because of the convenience, cost effectiveness and flexibility they offer. In fact, the mPOS market is reportedly growing faster than the traditional POS industry and, according to some estimates, could comprise some 25% of the overall market within the next three years.

mPOS devices that either connected to mobile devices by wifi, including smartphones and tablets, that smaller retailers and other businesses that want to take advantage of the portable nature of these payment devices are eagerly embracing.

Retailers can use their mPOS devices to process credit and debit card transactions, and, increasingly contactless, near field communication (NFC) and digital wallets are being accommodated  as a methods of payment. mPOS payment providers have also extended their functionalities into invoicing, inventory management and loyalty programmes.

What are the benefits of mPOS payment devices?

mPOS devices offer portability, which means the retailer can take the payment device to the consumers rather than expecting them to queue at a pay-out counter. As such, transactions are much faster and more versatile. For instance, retailers that participate in exhibitions can approach potential buyers while they are browsing and take advantage of their willingness to spend in the moment.

mPOS as a payment mechanism is also far more cost-effective than establishing traditional POS infrastructure. It frees up valuable retail space because you don’t need a dedicated counter for payments and the average price of an mPOS device is decreasing and thus becoming more affordable for even small retailers that are starting out.

A wider range of payment options are offered by mPOS devices and there is scope for greater innovation, including biometrics,  which will make the purchasing process even more seamless and convenient.

These devices also offer robust security because transactions are encrypted and not stored on the phone and they simplify compliance with data and payment regulatory standards because the mPOS service provider takes care of that and benefits from the economies of scale as an industry provider with many customers.

Fast-rising demand for mPOS solutions

Given all of these benefits, researchers are predicting increasingly rapid growth in the mPOS industry during the years ahead. A study by Juniper Research calculated that adoption of mPOS-enabled transactions will reach close to 90 billion by 2023 – three times more than the estimated 28 billion transactions in 2018. The research company also forecast a decline in the average price of an mPOS device from $40 in 2018 to about $33 by 2023. It comments, “This affordability will make them an even more attractive option for smaller and previously cash-driven businesses that lost customers due to singular payment options.”

Juniper Research pinpointed the use of biometrics, including fingerprint and facial recognition as a notable emerging trend, predicting that mPOS devices that incorporate biometric authentication could comprise 4% of terminals by 2023. Biometric-enabled devices offer highly secure authentication methods and, according to the research company, Mastercard are running pilot projects to incorporate biometrics into existing mPOS systems.

Leading mPOS solution providers

We look at how some of the leading players in the mPOS industry are positioned to take advantage of the growing prevalence of mPOS devices as a payment option.

Square, was set up in 2009 and was cofounded by Twitter co-founder Jack Dorsey. The company offers a payments processor and system that can accept mobile payments. Its mobile payments reader, which operates off your mobile device, allows merchants to accept NFC, including the leading mobile wallets, including Apple Pay, Android Pay, and Samsung Pay, as well as credit and debit cards.  

iZettle was founded in Stockholm in 2010. The company created the world’s first mini chip card reader and software for mobile devices. Today, it offers mobile payment services to small businesses in both Europe and Latin America. In 2017, it incorporated invoicing into its offering and opens up for alternative payments such as Swish for Sweden, Vipps for Norway and Mobilepay for Denmark.

Lightspeed is a one-stop payments shop for retailers and restauranteurs that set up its first payment offering in 2013. This year the US and Canadian business partnered with Los Angeles-based global payments platform Stripe to extend the launch of Lightspeed’s payments product. Stripe was founded in 2010 and it offers payments, billing, analytics and fraud prevention software. Users of its payment software include Apple Pay, Google Pay, Shopify, Salesforce and Lyft.

Shopify is one of the largest mobile POS payment providers that offers customisable mPOS solutions that enable in-store and online sales. Its headquarters are based in Ottawa, Canada, and it does business in 175 countries around the world. It’s payment platform was launched in 2006. In October last year, its mPOS services were used by over 1 Million Merchants

Toast, an mPOS payment provider that specialises in servicing the restaurant industry, launched in 2013. It is a leading cloud-based restaurant management payment platform. In addition to its mPOS functionality, it offers analytics and reporting and menu management.

Velmie, is a financial technology provider delivering white-labelm mPOS and mobile wallet solutions for merchants. Its mobile payments platform facilitates instant transactions, POS and QR payments and p2p money transfers. Velmie’s payment solution also supports crypto-to-fiat and crypto-to-crypto payments. 

 

 

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Paul Shumsky

Paul Shumsky

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