mPOS Terminal Market Size

mPOS Terminal Market Size

mPOS Terminal Market size was valued at USD 40.2 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. Smartphones are becoming increasingly available and affordable worldwide. This penetration makes it easier for small and medium-sized businesses and individual entrepreneurs to adopt mPOS solutions without investing in expensive traditional POS hardware. Both Android and iOS now natively support mPOS applications, making it easier for developers to create and deploy mPOS solutions.

Modern smartphones come equipped with features like NFC (Near Field Communication), high-resolution cameras, and robust processing power. These capabilities enable them to support advanced mPOS functionalities. In June 2023, Apple added new capabilities to its iPhones. It allows them to function as mPOS devices without additional hardware, using only NFC for contactless payments. These capabilities enable them to support advanced mPOS functionalities, such as contactless payments, barcode scanning, and real-time transaction processing.
 

The global expansion of 4G and 5G infrastructure provides the high-speed, reliable internet connectivity necessary for real-time transaction processing, essential for effective mPOS operation. Investments in telecommunications infrastructure in developing markets improve connectivity, enabling businesses in these regions to adopt mPOS solutions and reach new customers.
 

The increasing availability of broadband and Wi-Fi services, especially in developing markets, ensures that even remote and small-scale businesses can access the internet required for mPOS terminals. According to the World Bank in November 2023, global internet penetration surpassed 60%, with significant growth in regions like Africa and South Asia due to infrastructure investments. This gives rise in internet availability in developing markets, propelling growth in the mPOS terminal market.
 

mPOS systems often process sensitive information such as credit card details and personal data, making them attractive targets for cyberattacks. Security vulnerabilities can arise from inadequate encryption, weak authentication methods, or compromised devices. mPOS   terminals rely heavily on mobile networks and internet connectivity, which can be unreliable in some areas, affecting transaction completion rates and overall reliability.