Global mPOS Terminal Market Report By Component (Hardware, Software, Services), By End-User (Retail, Hospitality, Healthcare, Entertainment, Transportation, Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global mPOS Terminal Market size is expected to be worth around USD 106.8 Billion by 2033, from USD 38.3 Billion in 2023, growing at a CAGR of 10.8% during the forecast period from 2024 to 2033.

Mobile Point of Sale (mPOS) terminals have revolutionized how businesses handle transactions. These devices are portable, allowing merchants to accept payments anywhere, enhancing customer convenience. The rise in digital payments and the need for flexibility in retail have driven mPOS adoption. Businesses benefit from the low cost, ease of use, and scalability of these systems. As contactless payments continue to grow, mPOS terminals are expected to play a crucial role in meeting consumer demands for fast and secure payment options.

The mPOS (mobile Point of Sale) terminal market is rapidly expanding, driven by the increasing demand for flexible and portable payment solutions. The market is growing as businesses seek to enhance customer experience and streamline transactions. In 2020, 46% of retailers did not utilize mobile POS systems for transactions, highlighting significant growth potential. The market’s adoption is particularly strong in regions like the UK, where over 59% of all digital purchases are made using mobile payment methods.

Mobile POS systems are becoming essential in industries such as retail and hospitality, where they facilitate quick and efficient transactions. For instance, restaurants using mobile ordering and payment systems, such as those offered by POS vendor Toast, have reported a 9% increase in average check size. This indicates a direct correlation between mobile POS adoption and revenue growth, making mPOS a strategic investment for businesses aiming to boost sales.

The dynamics of the mPOS terminal market are shaped by technological advancements, consumer behavior, and regulatory support. The global shift towards digital payments is a significant driver, with 57% of consumers globally using digital wallets for online purchases in 2020. This trend underscores the growing reliance on mobile payment solutions, further fueling the demand for mPOS terminals.

Peer-to-peer payment volumes in Mexico, for example, grew by 47% in 2020, reflecting the increasing adoption of mobile payment methods in emerging markets. In China, the number of QR code transactions reached 87.5 trillion in 2020, showcasing the scale of smart payment adoption in Asia.

Several key factors contribute to the growth of the mPOS terminal market. The increasing consumer preference for contactless payments is a major driver. In the U.S., contactless payments have surged by 900% since 2017, with 75% of all POS transactions now conducted at contactless-enabled terminals. This growth is supported by both consumer demand and merchant readiness, with major U.S. retailers integrating contactless payment options.

Government initiatives also play a crucial role in the expansion of the mPOS market. For instance, the U.S. government’s push for contactless payments in urban transit systems has significantly increased adoption. In New York City, some areas have seen 25% penetration for contactless transactions, driven by the Metropolitan Transportation Authority’s (MTA) adoption of contactless payments for subway and bus fares.

The mPOS terminal market is set for continued growth, driven by technological advancements, consumer preferences, and supportive government policies. The increasing adoption of mobile payment methods globally presents significant opportunities for market expansion. As businesses increasingly recognize the benefits of mobile POS systems, including increased sales and improved customer experience, the market is expected to see sustained growth in the coming years.

Key Takeaways

• mPOS Terminal Market was valued at USD 38.3 Billion in 2023, and is expected to reach USD 106.8 Billion by 2033, with a CAGR of 10.8%.
• In 2023, Hardware dominated the component segment with 70.5% due to the necessity of portable devices for transactions.
• In 2023, Retail led the end-user segment with 24.9%, reflecting widespread adoption in small businesses and shops.
• In 2023, Asia-Pacific dominated the market with 35.1%, driven by increasing mobile payment adoption.

Component Analysis

Hardware sub-segment dominates with 70.5% due to its crucial role in enabling the core functionality of mPOS systems.

The mPOS (mobile point of sale) terminal market is segmented into hardware, software, and services, with hardware taking a leading position, accounting for 70.5% of the market. The predominance of the hardware segment can be attributed to its essential role in the operational functionality of mPOS systems. Hardware components such as smartphones, card readers, docking stations, and printers are fundamental for the deployment of mPOS solutions across various industries.

The software segment, while smaller in proportion, plays a critical role in ensuring the seamless operation of these systems by providing necessary interfaces, processing capabilities, and security measures. Services complement both hardware and software by offering support, maintenance, and updates crucial for the long-term sustainability and security of mPOS solutions.

This segment’s growth is driven by the rising demand for flexible, cost-effective, and scalable point-of-sale solutions across industries. Retailers, hospitality providers, and even healthcare facilities are increasingly adopting these solutions to improve customer interaction and operational efficiency.

The shift towards digital payment methods and the increasing penetration of smartphones and wireless technologies are additional catalysts propelling this segment’s expansion. While hardware remains dominant, ongoing innovations and software improvements are expected to further integrate and potentially shift market dynamics within the mPOS terminal landscape.

End-User Analysis

Retail sub-segment dominates with 24.9% due to its extensive adoption of mPOS systems for enhanced customer service and operational efficiency.

In the mPOS terminal market, various end-user segments such as retail, hospitality, healthcare, entertainment, transportation, and other sectors leverage these systems, with the retail sector leading at 24.9%. This dominance is primarily due to the retail industry’s rapid adoption of mPOS systems to enhance customer service and streamline sales processes.

Retailers utilize mPOS solutions to conduct sales transactions quickly and efficiently, manage inventory, and engage customers directly on the shop floor, which helps in increasing sales and improving the customer experience.

The hospitality sector also significantly employs mPOS systems to improve service speed and transaction efficiency in restaurants point of sale terminals, hotels, and leisure facilities. In healthcare, mPOS devices facilitate mobile payments and support the management of medical supplies and patient data, enhancing operational efficiency. Entertainment and transportation sectors benefit from mPOS by enabling easy ticketing and on-the-go transactions.

Each of these end-user segments contributes to the overall growth of the mPOS market, but retail’s substantial share highlights its pivotal role. As technology advances and consumer behaviors evolve, the integration of mPOS systems across amedical suppliell these sectors is expected to deepen, driven by the need for better customer engagement and operational agility. The ongoing expansion of digital payment platforms and increasing smartphone penetration are anticipated to further boost the adoption of mPOS solutions across these industries.

Key Market Segments

By Component

• Hardware
• Software
• Services

By End-User

• Retail
• Hospitality
• Healthcare
• Entertainment
• Transportation
• Other End-Users

Driver

Increasing Mobility and Digital Payments Drive Market Growth

The mPOS terminal market is experiencing rapid growth, driven by several key factors. The increasing demand for mobility in retail operations is a significant driver, as businesses seek to offer flexible and convenient payment solutions that can be used anywhere within the store or even outside it. This need for mobility is particularly crucial for small and medium-sized businesses that require cost-effective and portable payment systems.

The rise of digital payments, especially mobile wallets, is another major factor driving the market. As consumers increasingly favor contactless and mobile payment methods, businesses are compelled to adopt mPOS solutions to meet these changing preferences. This shift not only enhances the customer experience but also increases transaction speed and efficiency.

Additionally, the growing acceptance of mPOS terminals in sectors beyond retail, such as hospitality and healthcare, is expanding the market’s reach. These sectors are adopting mPOS systems to streamline operations, improve customer service, and manage transactions more efficiently.

Furthermore, the continuous innovation in mPOS technology, including integration with other business systems and enhanced security features, is driving adoption. Businesses are increasingly recognizing the benefits of upgrading to modern mPOS systems to stay competitive, improve operational efficiency, and reduce costs.

Restraint

Security Concerns and Integration Issues Restrain Market Growth

Several factors are restraining the growth of the mPOS terminal market, with security concerns being a major barrier. As mPOS systems handle sensitive customer data, including payment information, businesses must invest in robust cybersecurity measures to prevent data breaches. These security concerns can deter smaller businesses from adopting mPOS systems, limiting market expansion.

Integration issues also present a significant challenge. Many businesses struggle with integrating mPOS systems into their existing infrastructure, particularly when dealing with legacy systems. This lack of seamless integration can lead to operational inefficiencies, data discrepancies, and increased costs, making businesses hesitant to adopt mPOS solutions.

Moreover, the high initial cost of mPOS systems and the ongoing maintenance expenses can be prohibitive for small and medium-sized enterprises. These financial barriers can slow down the adoption rate and restrict market growth, particularly in price-sensitive markets.

Finally, the lack of standardization across different mPOS systems can create compatibility issues, complicating the integration process and further restraining market growth. Businesses may face challenges in ensuring that their mPOS systems work harmoniously with other business tools, leading to potential disruptions in operations.

Opportunity

Cloud Integration and Data Analytics Provide Opportunities

The mPOS terminal market presents significant opportunities for growth, particularly through the integration of cloud-based solutions. Cloud integration offers businesses the flexibility to manage transactions and access data remotely, reducing the need for expensive on-site hardware and IT support. This trend is creating opportunities for mPOS providers to offer scalable solutions that cater to businesses of all sizes.

Another opportunity lies in the growing emphasis on data analytics within mPOS systems. By incorporating analytics tools, businesses can gain valuable insights into customer behavior, sales trends, and inventory management. This data-driven approach allows retailers to optimize operations, personalize customer experiences, and ultimately drive sales growth.

The expansion of mPOS applications into new industries, such as logistics and transportation, also presents a significant opportunity. These sectors are increasingly adopting mPOS systems to streamline payment processes and improve service delivery, creating new market segments for mPOS providers to target.

Additionally, the rising demand for integrated loyalty programs within mPOS systems offers another avenue for growth. Retailers can leverage these programs to enhance customer engagement and increase repeat business, creating a competitive edge in the market.

Challenge

Technical Challenges and User Training Challenges Market Growth

The mPOS terminal market faces several challenges that hinder its growth, with technical issues being a significant concern. One major challenge is the frequent need for software updates and maintenance, which can disrupt business operations and require ongoing technical support. Businesses, particularly smaller ones, may find it challenging to keep their mPOS systems up to date, leading to potential downtime and operational inefficiencies.

User training also poses a considerable challenge. mPOS systems often come with advanced features that require specialized knowledge to operate effectively. Ensuring that staff is adequately trained to use these systems can be time-consuming and costly, particularly for businesses with high employee turnover. This can slow down the adoption of mPOS systems and reduce their effectiveness in improving business operations.

Another challenge is the integration of mPOS systems with other business tools. Businesses often struggle with ensuring seamless communication between their mPOS systems and inventory management, customer relationship management (CRM), and e-commerce platforms. This lack of integration can result in data silos, operational inefficiencies, and increased costs.

Lastly, the rapid pace of technological advancements in the mPOS market can be overwhelming for businesses. Keeping up with new features and updates requires significant resources, and failure to do so can result in outdated systems that fail to meet customer expectations.

Growth Factors

Mobility and Contactless Payments Are Growth Factors

Several growth factors are driving the expansion of the mPOS terminal market. The increasing demand for mobility in payment solutions is a primary driver. Businesses, particularly in retail and hospitality, are adopting mobile POS systems to offer flexible payment options, enabling staff to complete transactions anywhere within the store or at remote locations. This mobility enhances customer service and operational efficiency.

The rise of contactless payments is another significant growth factor. With consumers increasingly preferring contactless payment methods for convenience and safety, businesses are upgrading their POS systems to accommodate these transactions. The widespread adoption of contactless payments is driving demand for mPOS systems that can efficiently process these transactions, contributing to market growth.

Additionally, the integration of mPOS systems with customer loyalty programs is gaining traction. Businesses are leveraging these integrated solutions to enhance customer engagement, offering personalized rewards and promotions that drive repeat business. This trend is particularly strong in sectors like retail and dining, where customer retention is critical.

Furthermore, the expansion of mPOS applications beyond traditional retail settings, into areas such as events, transportation, and healthcare, is broadening the market’s scope. These sectors are adopting mPOS solutions to improve service delivery and streamline payment processes, contributing to overall market growth.

Emerging Trends

AI Integration and Omnichannel Support Are Latest Trending Factors

The mPOS terminal market is being influenced by several trending factors that are shaping its growth. One of the most prominent trends is the integration of artificial intelligence (AI) into mPOS systems. AI is being used to enhance transaction security, offer personalized customer experiences, and provide real-time analytics, allowing businesses to optimize operations and improve decision-making.

Another key trend is the growing demand for omnichannel support in mPOS systems. As businesses increasingly operate across multiple sales channels—online, in-store, and mobile—there is a rising need for POS systems that can seamlessly integrate and manage transactions across these channels. This trend is driving the development of mPOS solutions that offer comprehensive omnichannel capabilities.

The adoption of biometric authentication in mPOS systems is also gaining momentum. Businesses are integrating fingerprint and facial recognition technologies into their mPOS terminals to enhance security and streamline the payment process. This trend is particularly relevant in sectors like retail and hospitality, where quick and secure transactions are crucial.

Lastly, the trend towards sustainability is influencing the mPOS market. Businesses are seeking eco-friendly POS solutions, such as paperless receipts and energy-efficient devices, to reduce their environmental footprint. This focus on sustainability is driving innovation in the mPOS market, with providers developing solutions that meet these evolving needs.

Regional Analysis

Asia-Pacific Dominates with 35.1% Market Share

Asia-Pacific leads the mPOS terminal market with a 35.1% share, representing USD 13.44 billion. This dominance stems from increasing digitization, rising small business numbers, and strong consumer adoption of mobile transactions. The push towards cashless transactions in this region significantly boosts the mPOS adoption rates.

In Asia-Pacific, the mPOS market benefits from a tech-savvy consumer base and widespread mobile connectivity. Local governments promoting digital payments and financial inclusion initiatives also contribute to the market’s strength. Enhanced payment security features and the integration of loyalty programs in mPOS systems make them attractive to both businesses and consumers.

Looking ahead, Asia-Pacific’s influence in the mPOS terminal market is poised to grow. As technology continues to evolve and regional economies expand, more small to medium-sized enterprises (SMEs) are expected to adopt mPOS solutions. This trend, alongside increasing consumer demand for seamless payment experiences, will likely drive further market expansion.

Regional Mentions:

• North America: North America remains a major player in the mPOS market, driven by high technological adoption and innovative payment solutions. The region’s focus on secure and convenient customer payment options continues to propel market growth.
• Europe: Europe’s mPOS market is robust, underpinned by stringent regulations for payment security and consumer data protection. The adoption of mPOS systems across various service sectors supports a dynamic market landscape.
• Middle East & Africa: The Middle East and Africa are witnessing a rise in mPOS adoption, spurred by increasing mobile penetration and retail sector modernization. The market’s growth is further aided by efforts to enhance financial accessibility.
• Latin America: Latin America’s mPOS market is gaining momentum, with growing digital transformation and the retail sector’s expansion. Increasing smartphone usage and the push for financial inclusion are key growth drivers in the region.

Key Regions and Countries covered іn thе rероrt

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The mobile Point of Sale (mPOS) terminal market is highly competitive, with several key players leading the way through innovation, strategic positioning, and market influence. The top three companies—VeriFone, Inc., PayPal Holdings, Inc., and Ingenico—are the most influential in shaping the future of this market.

VeriFone, Inc. is a leading player in the mPOS market, known for its extensive range of secure and reliable payment solutions. VeriFone’s strong presence in both developed and emerging markets, combined with its focus on innovation and security, makes it a dominant force. Its ability to serve businesses of all sizes enhances its market influence.

PayPal Holdings, Inc. has established itself as a key player by integrating its mPOS solutions with its vast digital payment network. PayPal’s strategic focus on small and medium-sized businesses, combined with its global reach, has significantly impacted the mPOS market. Its user-friendly products and seamless integration with PayPal’s broader services make it a preferred choice for many businesses.

Ingenico is another major player, recognized for its cutting-edge technology and global reach. Ingenico’s mPOS terminals are known for their versatility and security features, making them popular among retailers and service providers worldwide. Its strategic partnerships and focus on expanding into new markets further solidify its position as a market leader.

These companies lead the mPOS terminal market through their strategic innovations, strong global presence, and focus on customer needs, setting the benchmark for the industry.

Top Key Players in the Market

• VeriFone, Inc.
• Oracle Corporation
• PayPal Holdings, Inc.
• Ingenico
• Fiserv, Inc.
• Zebra Technologies Corporation
• Lightspeed POS Inc.
• NEC Corporation
• BBPOS Limited
• BNA Smart Payment Systems Ltd.
• Other Key Players

Recent Developments

• Renesas and Panthronics Collaboration: On November 24, 2021, Renesas Electronics Corporation and Panthronics AG introduced a new design for secure mobile Point-of-Sale (mPoS) terminals. This design aims to reduce both the size and the bill-of-materials (BoM) costs for manufacturers without sacrificing performance or security. The solution uses Panthronics’ PTX100R NFC Reader IC and Renesas’ RA6M4 secure microcontroller, which integrates advanced cryptographic and key management features, eliminating the need for a discrete Secure Element.
• Nidec Corporation’s Product Development: On November 24, 2023, Nidec Corporation announced advancements in its semiconductor solutions designed for PoS systems. The company is focusing on integrating technologies such as silicon carbide (SiC) and gallium nitride (GaN) into PoS devices, which are expected to enhance power efficiency and reduce the physical footprint of these systems.

Report Scope