Mobile POS - Current Trends

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MOBILE POS:

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While smartphone use continues to rise, mobile POS systems are becoming more attractive to merchants in a variety of industries. Local businesses are beginning to realize the positive impact mPOS solutions can have on the success of their business. And more merchants are investing in mobile POS technology.

According to market research firm Javelin Strategy & Research, mobile POS proximity payments could reach as high as $5.4 billion by 2018, capping three years of

exponential growth and a stark increase from the $1.6 billion forecasted to occur in 20151_.

The growing popularity of digital technology in the local business landscape is catapulting mobile POS to the forefront of near-future business initiatives.

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The history of mobile POS

Adopting mobile POS provides small businesses several benefits, including improved visibility into payment

operations, flexibility of the user interface, and the ability to adopt new payments in the future.

How did mobile payment solutions grow to where they are now? Let’s take a look back to the invention of the mechanical register.

● 1883: James Ritty invents and patents the first

mechanical register, with its all-too-familiar bell sound.

● 1906: Charles Kettering invented a cash register with an electric motor.

● 1970:The barcode reading register was introduced in 1970 when Logicon Inc™ standardized it across multiple industries by developing the Universal Grocery Products Identification Code©.

● Late 1980s - 1990s: Gene Moshel designed the first touch-screen POS system. Color screens soon followed in 1995, ushering in the digital era.

● Present day: Mobile phones and tablets are now becoming commonplace across a wide variety of industries, and mobile POS (mPOS) operates securely through the cloud2_.

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Merchants are adopting mPOS at

rapid rates

Mobile payment solutions have had a significant impact in the consumer space in recent years. Apple Pay® has perhaps been the most visible mobile payment solution driving merchants to integrate mobile POS systems to meet customer demands.

A recent Mobey Forum™ study found 46 percent of market share penetration will be owned by mPOS systems by 2017, a stark increase from the 17 percent market share possessed by mPOS terminals in 20123_.

Consumers are embracing mobile technology more so than ever before, and businesses that don’t adapt to consumer demands face potential lost revenue and market share. As consumers are embracing mobile technology, merchants are increasingly realizing the value in mPOS systems. New industry innovations such as mobile proximity payments are driving consumers toward smartphone payments technology. Local businesses that embrace mPOS have a massive opportunity to connect with their customers.

4 MOBILEPOS: Historic and current trends in payment processing

46 PERCENT

OF MARKET SHARE

PENETRATION WILL

BE OWNED BY MPOS

SYSTEMS BY 2017

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Mobile POS is no fad, it’s here to stay

Consumer adoption of smartphone technology is not

happening by chance. Apple Pay® and other mobile wallet technology have burst onto the scene, and consumers are ready to make the jump to a more mobile-centric payment ecosystem.

Javelin Strategy & Research™ data predicts mobile payment volume will exponentially increase in the next year. By 2018, mobile POS proximity payments could reach as much as $5.4 billion, or close to 1 percent of total retail POS purchases.

The popularity of mobile payments is growing fast in part because of their ease of use and convenience. If merchants don’t implement the right payment infrastructure soon, they’ll be left behind in their respective marketplaces. Merchants in the retail and restaurant industries especially can use mPOS systems to stand apart from the competition. Local businesses keep up with the latest payment

technology trends gain customer trust and demonstrate they value what their customers want: a seamless and convenient payment experience.

BY 2018, MOBILE

POST PROXIMITY

PAYMENTS COULD

REACH AS MUCH AS

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CONCLUSION:

Total mobility for the win

New technology innovations are impacting a wide variety of verticals. Mobile technology in particular is driving a significant trend in payments. Consumers want to use their mobile devices for more than calling, texting and accessing the Web. Now they have the power to make a purchase with their phones.

Although keeping pace with each new technological

advance may seem like a daunting task, embracing mobile solutions gives merchants the opportunity to scale at their own pace in today’s mobile-centric marketplace.

Mobile payments technology is poised to help merchants of all sizes improve the customer experience, drive sales and streamline operations.

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800.846.4472

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