Mahindra Comviva and Aite Group have divulged a study on the evolution of mobile point-of-sale (mPOS). The study harps the development of mobile point-of-sale (mPOS) acceptance methods, from their origins, as electronic payment services for small merchants to a channel used by larger enterprises to extend and enhance their customer service.
The study asserted that from the evolution of mPOS capabilities, hardware sales have also shown significant growth. Discussions with leading point-of-sale (POS) vendors indicate that the total sales of mPOS hardware in 2014 amounted to around 10 million devices.
The study indicates that cards will account for 273 billion transactions at a combined value of some US$30 trillion by 2018. However, as mPOS grows, new forms of payment will flourish, including NFC-enabled mobile devices bringing greater flexibility to payment acceptance. The report draws attention to the next generation of mobile based payment services benefiting from mPOS.
NFC capability coupled with flexibility is a powerful aspect of the next generation of mobile payment acceptance devices. Aite Group research indicates that from 2015 to 2018, contactless mobile transactions have the potential to reach 4% to 5% of retail payments with growth in transaction volume accelerating after 2020.
Sharing insights on the study, Srinivas Nidugondi, Senior VP and Head of Mobile Financial Solutions at Mahindra Comviva, said, “In a fast-evolving digital economy, mobility is a critical business enabler. mPOS helps merchants to modernize their business by offering speed of deployment and flexibility to deliver tailored solutions that can transform their relationship with their end customers. We are confident that mPOS will lead to the advancement of payment solutions and would pave the way for mobile payments growth across industries in the years to come.”
The study is based on the analysis of interviews done with various leading organizations active in the payments industry. This also includes primary research done by leading researchers across the globe to understand the evolution and demand patterns of mPOS acceptance methods across industries.
Andrew Copeman, a payments analyst at Aite Group, adds, “The key ingredient that weaves through the rapidly evolving landscape is mobility; the ability to accept payments at the customer’s convenience and at a greater variety of locations than ever before. mPOS is moving from a niche service into the mainstream of modern commerce.”
The findings broached that mobility is the next world of customer engagement for various sectors like healthcare providers, insurance companies, home delivery firms, couriers, and businesses in the transport and leisure sectors etc.