mPOS Terminal Market Analysis

mPOS Terminal Market Analysis

Based on product, the market is categorized into handheld terminal and tablet. The handheld terminal segment is projected to hold over 45% by 2032. Handheld terminals provide integration capabilities with business management systems, including inventory tracking, customer relationship management (CRM), and enterprise resource planning (ERP) systems Emerging markets show strong adoption of handheld terminals due to increasing digital payment acceptance and government initiatives promoting cashless transactions. It supports various payment methods, including EMV chip cards, contactless payments, and mobile wallets.
 

Technological advancements in handheld terminals include better connectivity options, longer battery life, and enhanced user interfaces, making them more efficient and user-friendly. Handheld terminals are in high demand due to their portability, allowing businesses to process transactions and manage operations on the go. In February 2024, VeriFone launched the Engage e285, a handheld POS terminal designed for portability with features like Wi-Fi and Bluetooth connectivity. It caters to retail environments requiring mobile checkout solutions. These devices are particularly useful in retail and hospitality for line-busting, in-aisle checkout, and table-side payments.
 

Based on component, the mobile POS terminal market is divided into hardware, software, and software. The hardware segment accounted for a market share of around 80% in 2023. Hardware-based mPOS solutions cater to businesses that require additional peripherals to handle diverse payment methods, including credit/debit cards, mobile wallets, and contactless payments. It offers robustness and reliability in environments with high transaction volumes.
 

Hardware-based mPOS systems integrate seamlessly with broader retail ecosystems, including inventory management, CRM, and e-commerce platforms. It supports a wide range of payment methods, including EMV chip cards, NFC contactless payments, and QR codes. It offers customization options to cater to industry-specific requirements, such as those in hospitality, retail, or transportation, providing tailored features to meet specific operational needs.
 

Hardware-based mPOS solutions often come with advanced security features, such as encrypted card readers and PIN pads. In March 2024, Square updated its contactless card reader to include enhanced encryption technology and support for biometric verification. It improves transaction security and compliance and helps to comply with stringent security standards like PCI-DSS (Payment Card Industry Data Security Standard).
 

Asia Pacific mPOS terminals market held around 30% of the revenue share in 2023 and is expected to cross USD 36 billion by 2032. The demand for mPOS terminals in the APAC region is surging, driven by the rapid adoption of digital payments, notably in emerging economies such as India, China, and Southeast Asia. These markets are swiftly adopting contactless payments and mobile wallets, bolstered by strong mobile network infrastructures and soaring smartphone penetration rates. Governments in APAC are actively promoting cashless transactions through regulatory frameworks and policies, encouraging the adoption of mPOS terminals among small and medium enterprises (SME) and micro-merchants.
 

In July 2023, India's Ministry of Electronics and Information Technology extended subsidies and incentives for businesses adopting mPOS terminals. It aimed to boost digital financial inclusion and digital payment acceptance. It helps to drive the demand for secure and efficient payment solutions across the retail, hospitality, and transportation sectors.

Businesses in the U.S. and Canada are increasingly integrating mPOS terminals with comprehensive retail management systems, including inventory management, CRM, and e-commerce platforms, to streamline operations and improve customer engagement. The regional mobile POS terminals market is driven by widespread adoption in retail, food services, and entertainment sectors. The region sees continuous innovation in payment technologies. In March 2024, Square launched its latest mPOS solutions tailored for small businesses in North America. It integrates advanced features like contactless payments and real-time analytics. It focuses on enhancing customer experience and operational efficiency.