Consumers like to use their mobile phones for everything, from texting their friends to buying retail products. Now, many retailers are starting to make use of the devices themselves, by installing mobile point of sale terminals around their brick-and-mortar stores.
The electronic funds transfer point of sale terminals market is expected to grow rapidly in coming years, with many thanks due to the emergence of mobile point of sale payment-based solutions, according to a recent analysis released by Frost & Sullivan. The firm expects that market revenue will grow from the $2.53 billion recorded during 2012 to more than $3.5 billion in 2017 at a compound annual growth rate of 6.6 percent.
Jean-Noel Georges, global program director at Frost & Sullivan, made it clear that businesses and consumers alike are benefiting from the ability to pay for their transactions at mobile credit card processing terminals.
“Mobile point of sale payment-based solutions have become a viable option for small enterprises and direct sellers owing to its cost-efficiency, security and easy-to-use features,” Georges said. “This niche market is also the perfect entry point for new challengers to deploy their innovative payment systems based on a cost-effective business model.”
Georges went on to note that businesses would be able to capitalize on the growing credit card processing market and improve their bottom lines. He suggested that retailers would be able to increase sales by personalizing customer experience. For example, he said that accepting gift card applications as a form of transaction or offering loyalty programs could open up new avenues toward revenue generation.
This follows previous news that suggested many consumers were more than ready to move on from traditional credit card terminals. More than half of U.S. consumers think that traditional cash registers are outdated, according to a report released last month by I Love Velvet. Many consumers noted that they preferred mobile payment terminals, which can often allow shoppers to complete their transactions from many different positions on a store’s floor.
One fact is certain: Consumers are likely motivated to migrate all of their current transaction and payment processing technologies to mobile devices. Clinkle, an upcoming mobile application rumored to allow consumers to make payments between personal devices, has already attracted a waiting list of more than 100,000 prospective users, according to a report from Mashable.Back To Blog