With the gradual replacement of hard cash with virtual currency in an era of digital disruption, the mobile point of sale (mPOS) terminals market has rapidly gained traction in the electronics space. One of the most prominent drivers responsible for the growth of this vertical is the increasing realization among businesses that using cash is a highly expensive option. Businesses, especially those in the tight margin retail industry, have come to realize how cost efficient mPOS terminals can be in addition to contributing toward a more fulfilling customer experience.
Currently, close to $17 trillion transactions are still cash and check based, therefore it is obvious that cash or paper checks are nowhere near to being extinct anytime. Nonetheless, experts have come to acknowledge that using mPOS terminals can revolutionize myriad end-use domains, and the mPOS terminals market is likely to register a significant growth rate in the ensuing years in response to this massive adoption rate.
Government efforts to accelerate and promote cashless transactions through digital payments serve as a key driving factor for mPOS terminal market growth. For instance, in 2016, the demonetization in India resulted in the conversion of payment modes from cash-based payments into card transactions. In addition, the universal acceptance and transition toward EMV (MasterCard, Visa, EuroPay) chip card aids in improving the reliability and security of a cashless transaction. A Federal Reserve study across the U.S. estimated that over USD 178 trillion non-cash payments were made in the country in 2015. The rise in the number of cashless transactions is expected to serve as a key driving force for the global mPOS terminals market.
As the payment landscape continues to evolve, the presence of an omnichannel is becoming much more of a reality and can become one of the determining factors for the future growth potential of a business. Mobile POS is the natural next step in a multi-channel payment distribution system to provide customers with a seamless shopping experience across all retail networks. The methodology offers a tangible approach for retailers to create points of connection with customers at the right time and place to build a more robust relationship. In fact, a report from Global Market Insights, Inc., claims the mobile POS terminals market size is anticipated to surpass $55 billion by 2024.
Pankaj Singh, an accomplished writer, currently develops content for a variety of portals pertaining to market research. Endowed with a post graduate degree in management, Pankaj worked as a content contributor for websites adhering to the UK insurance industry.