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ADVANCED PAYMENTS REPORT 2014 – SPONSORED BY

12. mPOS – not just for micro merchants

In less than four years, mPOS (mobile Point-of-Sale) has more than 200 mPOS global providers as of December 2013,
become one of the most promising market segments of the approximately 40% of which are EMV compliant.

payment industry. The number of terminals has grown from Over 70% of this year’s survey respondents anticipate that the
crowded mPOS market will undergo a stage of consolidation. Key
4.5 million to 9.5 million between 2011 and 2013 worldwide. competitive elements are likely to include:

n Security, which is still a signifcant concern for merchants and
One of the reasons for the rapid development of mPOS is that
consumers
mainstream retailers are now adopting mPOS solutions and
n Value added services provided through the mPOS terminal
integrating them into their current POS environment. Over two
n Tiered pricing (e.g. iZettle charges 2.75% for card turnover
thirds of survey respondents concurred that mPOS is not just for
above £2,100 per month in the United Kingdom, reduced to
small retailers but for large retailers as well. Initially, mPOS vendors
1.5% if their monthly card turnover is above £12,830)
targeted small micro-merchants with simple, low cost pricing
models coupled with basic POS features.
“We fnd that most Americans view traditional cash registers as
Vendors have now enhanced their services by ofering full cashier
outdated because more and more retailers that are known for
stations that can be integrated into a retailer’s core systems.
innovations are moving away from cash registers and going
Consequently, companies like Nordstrom, Home Depot and Gap
more towards mPOS,” said Pascale Juan, Chief Operating Ofcer
stores have implemented or are implementing mPOS solutions to
of I Love Velvet. “We do think traditional cash registers are facing
enhance and further personalize the customer sales experience. extinction as more and more of the larger retailers begin to
mPOS is contributing to major changes in the payment industry. implement mPOS and are replacing traditional cash registers.
Since the launch of Square in 2009, there has been a proliferation Smaller retailers will start to adopt the same strategy, and you
of new mPOS initiatives. Edgar, Dunn & Company has identifed will start to fnd less and less traditional registers in retail.”

Perception of mobile POS solutions (% of respondents who agree or strongly agree)

Solutions with mobile as a POS terminal will
become widespread 79%
Too many solutions with mobile as a POS terminal lead
to confusion, there will be a wave of consolidation 72%
Solutions with mobile as a POS terminal will help drive
mobile payment usage 71%
Solutions with mobile as a POS terminal will
increasingly include additional services besides
payments (e.g. marketing, reporting, analytics) 71%
Mobile as a POS terminal is not just for small retailers
but for large retailers as well 68%
Solutions with mobile as a POS terminal will
signifcantly increase the acceptance network
in my market(s) 67%
0%
20%
40%
60%
80%

www.edgardunn.com | www.paymentscardsandmobile.com Edgar, Dunn & Company in association with Payments Cards and Mobile 25