MPOS MARKET DYNAMICS WILL REDUCE TRADITIONAL POS SALES BY 10 MILLION UNITS

MPOS MARKET DYNAMICS WILL REDUCE TRADITIONAL POS SALES BY 10 MILLION UNITS ACCORDING TO SMART INSIGHTS REPORT

MARSEILLE, FRANCE, May 12, 2014 – Intelling is publishing a new Smart Insights Report “mPOS expansion shakes the Point of Sales industry,” that analyzes in detail the dynamics and the specificities of the mPOS business. Mobile POS are a relatively recent addition in the payment ecosystem. After targeting only micro-merchants, mPOS developers are now expanding their offer to target all types of merchants, thus becoming a threat to the traditional POS vendors.

According to the Smart Insights Report “mPOS expansion shakes the Point of Sales industry,” mPOS shipments are expected to keep growing in the next years at a CAGR of 40% between 2013 and 2018, leading to 52.1 million mPOS units to be shipped in 2018. The US market has been driven by Square, the company that made the mPOS business take off. Square has now been followed by many other pure mPOS vendors, and is also facing offers from other companies coming from various backgrounds including Verifone and Ingenico, PayPal, Intuit, First Data and more …

Expanding mPOS on the European market is more complex, as this totally EMV-driven market requires mPOS to be able to read smart cards in a secure manner, thus increasing dramtically the complexity and unit cost. However, the European mPOS market is anticipated to grow at 68% CAGR over the study period (2013-2018).

Thanks to the dynamic of the region and the size of the Chinese market, currently undergoing tis EMV migration, ASPAC will be the region experiencing the fastest growth throughout the study period (2013-2018).

In the mid-term, mPOS solutions will become viable solutions for merchants willing to completely replace their traditional POS terminal solutions. The growth of mPOS will lead the traditional POS industry to lose 9.7 million units in shipments in 2018, representing a 30% attrition. mPOS shipments are forecasted to pass the number of POS shipments for the first time in 2016. And, in 2018, the installed base of mPOS will be larger than the installed base of POS terminals worldwide.

Thierry Spanjaard, CEO of Smart Insights declares: “the mPOS industry has been attracting numerous new entrants, who propose a wide palette of services and business models. However, we believe restructuring will happen soon, and the number of mPOS vendors is bound to shrink while the mPOS market develops. This will lead to stronger mPOS vendors, who will represent a growing threat to the traditional players.”

Silvana Pintão, industry analyst for Smart Insights and author of the report adds: “the mPOS vendors act as a shock to the traditional POS industry. Traditional POS suppliers will have to adapt fast, to limit the share of their business endangered by these new entrants.”

This Smart Insights Report, titled “mPOS expansion shakes the Point of Sales industry,” explores in detail the business models of the various mPOS vendors, and establishes a segmentation of this nascent market. The research has been conducted combining Smart Insights long-standing experience in the secure transactions industry with interviews with key players in the mPOS and POS industry, as well as stakeholders from financial institutions, test companies, and systems integrators, specializing in this area.

Source: http://www.smartinsights.net/Company/Our-news/mPOS-market-dynamics-will-reduce-traditional-POS-sales-by-10-million-units-according-to-Smart-Insights-Report