One of the most significant payments trends in 2019 is mPOS. If you have a physical retail space or a pop-up shop, or work in a service-oriented business where you can offer on-site payment as a convenience, then you’ll want to know what the rise of mPOS means for you.
What is mPOS?
If you haven’t heard of this type of point-of-sale (POS) system, it involves a portable or mobile device that is used in place of the traditional cash register. The mPOS device is typically a smartphone or tablet that uses WiFi or cellular signal to complete the transaction.
It’s been ten years since the first mPOS device appeared, and many more options have entered the market as the technology has developed and demand has increased for this type of payment experience. The growth in the mPOS market has been driven by advancements in NFC technology, the increased use of wearable devices, and the desire to improve the customer experience.
Benefits of mPOS
The global mPOS market is set to expand in value. Global Market Insights projects it will be worth more than $55 billion by 2024. The growth in mPOS has been attributed to key benefits that include the ease of transaction processes and cost-efficiency gains.
Customers like the ability to enjoy a faster purchase experience because the mobile devices allow retailers to bring the register to the customer wherever they are in the store rather than having them stand in long lines. This ability to move throughout the store and decentralize the checkout process also means that retail staff can engage more directly with customers, providing product information, on-site inventory checking and ordering, and even instant offers.
Other benefits derived from mPOS include a vast reduction in human errors during transactions and near elimination of certain types of retail transaction manual processes that involve paperwork. Accurate records are automated and deliver data about sales volume, inventory, and transaction rates.
Customer data can also be collected about these transactions and integrated with CRM platforms to personalize further experiences with them. Additionally, employee data, including timesheets and schedules, can also be integrated into the mPOS platform for operational efficiencies.
Other Insights on mPOS Adoption
The growth of mPOS appears to be a global phenomenon as more consumers are switching to EMV cards that work specifically for cashless and e-commerce transactions. Small business owners in developing countries also have an easier way to get paid through the smartphones they rely on. Additionally, other industries and service segments are beginning to see the opportunities mPOS yields, including airlines or food trucks that can use it the payment platform for food and drinks, service companies like cleaners and pool techs that can accept monthly payments from homeowners, and insurance companies that can collect deductibles on-site.
However, there are some trends that may inhibit some further growth in this payment segment. This includes the use of other digital payment choices that include United Payment Interface services, internet banking platforms, and digital payment apps. And, since many of these alternative payment services are freely available on the internet and for download, consumers often choose these over waiting for a retailer to adopt mPOS.
The Focus on mPOS Security
As with all digital payment systems, security takes center stage as mPOS usage rises. In using mPOS systems, PCI compliance is a must, including following stringent restrictions on how to accept encrypted chip card payments or NFC-based payments like Google Pay or Apple Pay. The current security trend involves more mPOS device solutions that come with pre-installed security software to address fraud concerns and encourage more retailers to invest in this payment technology.
What mPOS Means For Your Business
In offering the ability to improve the customer experience while simultaneously enjoying enhanced productivity as well as operational and cost efficiency gains, mPOS is a payment platform to be seriously considered in 2019. Businesses of all sizes from a range of retail and service segments can immediately realize a return on investment in such payment devices this year and beyond.