Mobile payment systems are catching on massively, with MPOS devices having grown significantly over the last year.
According to a recent report available through ReportsNReports, the global MPOS industry ballooned between 2011 and 2012 – growing from 4.5 million terminals to 9.5 million. That's a compound annual growth rate of 111 per cent.
This is due to many MPOS device platforms becoming available, with many – such as Square, iZettle, PayPal Here and VeriFone to name a few – making it far easier for small enterprises to pick up the card-reading technology.
Over the forecast period of 2011 – 2017, MPOS terminal adoption is expected to increase from 4.5 million to a staggering 38 million by 2017 – with a forecast CAGR of 42.7 per cent, largely driven by growth in the retail sector, increased online trade and more smartphone and card users.
The report also forecasts that by 2017, the adoption of MPOS terminals over standard POS terminals will be 46 per cent – as opposed to the 17 per cent that was seen in 2012.
Most countries that make use of MPOS devices utilise Square, iZettle, SumUp, Payleven, Paypal Here and Intuit. However outside of the US, Canada, UK, Germany and France, Ezetap, 99Bill and PayPOS are industry leaders in China and India.
Many large retailers such as The Home Depot Inc., Best Buy, Future Shop and Nordstrom have embraced the MPOS platform, but many restaurants, pubs, hotels, transit and taxi services have too.
There is a little trepidation around just how secure and regulated MPOS is though, Visa recently pulled support for payments made through iZettle as it failed to meet their European security regulations as it only authenticated cards through digital signatures instead of PIN.
It does raise the question of just how big a slice of the payments pie MPOS devices could have by the end of this year, let alone 2017 – especially with the rise of NFC in the UK.
The topic of mobile POS devices and there relevance in the future of payments will be a topic of discussion at Cards & Payments Middle East, as well as Future Bank Middle East – which both take place in Dubai's International Convention and Exhibition Centre on the 14th and 15th May. You can download a brochure for more information for free too.