Is mobile POS simply becoming POS?
November 15, 2014

When it comes to payments technology, the rise of mobile point of sale solutions has been quite rapid. Consider that the first smart mobile device, the Apple iPhone, was only released seven years ago in 2007. Now, mobile devices account for more than half the Internet activity in the United States alone. When it comes to POS terminals, the use of mobile terminals has risen, presenting many new opportunities for not only storefronts but non-traditional retail such as pop-up shops as well as businesses that need different forms of payment processing. The question is becoming less of whether mobile POS is a good idea, but whether mobile POS is becoming the primary form of POS solution.

They are everywhere
The growth rate of mPOS over the last several years has been nothing short of astounding. According to a report from consulting firm Smart Insights, the expected annual rate of growth for the market between 2013 and 2018 is 40 percent. That means in the year 2018, at least 52.1 million mPOS units will be shipped to businesses around the world. In return, traditional POS terminal shipments will decline by 9.7 million by 2018, a loss of about 30 percent. With mPOS outpacing traditional POS already, it's very likely that the mobile format will become the dominant form of payment processing in the coming years.

There are very good reasons to consider the success of mPOS. For one thing, it's become ubiquitous among smaller retailers that may lack the resources to use traditional POS solutions, but would like to accept credit card payments. More importantly, it allows storefronts to take their businesses anywhere through creating pop-up shops and making appearances at farmers' markets and fairs. This creates the potential for sales in more places.

More importantly, the utility of mPOS exceeds transactions, according to Host Merchant Services. For example, retailers can employ the use of customer relationship management, which allows them a greater chance to develop a way to engage with store visitors. They can use the information to figure out what products are selling strongest, what the best places are for certain items and what types of things people are purchasing together to better strengthen sales. This information can be incredibly useful in boosting reach to customers as well as developing stronger business overall. Overall, the signs are becoming clear that mobile POS is becoming simply POS itself.

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