Mobile POS to spur healthy growth in POS systems, says Frost
Mobile point-of-sale systems will fuel a healthy 6.6 percent compound annual growth rate in electronic funds POS terminal revenues, which will reach $3.51 billion in 2017, according to the latest report from Frost & Sullivan.
"mPOS 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. 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," said Jean-Noel Georges, Frost & Sullivan global program director for ICT in financial services.
To capitalize on market opportunities, electronic funds transfer POS suppliers should personalize the customer experience. "Apart from extending services such as money transfer, bill payment, age verification, mobile top-up and couponing, offering loyalty programs and gift card applications will open up additional avenues for revenue generation," Georges advised.
According to a forecast by TechNavio, the mobile POS system segment will increase at a robust 12 percent CAGR through 2016. TechNavio identified Datalogic, Intermec, Fujitsu, Honeywell Scanning and Mobility and Motorola Solutions as major vendors in the space.
Nick D'Alessio, global retail practice leader at retail solutions provider Zebra Technologies, noted that mobile POS systems can benefit retailers in a number of ways--including speedier checkout lines and providing information on shopper happenings and preferences. "Mobile and analytics converge to show the most optimal place to put inventory in the store, for example. Mobile can really help retailers get the most out of brick and mortar," he said in an interview with Business Solutions magazine.
According to a survey conducted by Zebra, more than 40 percent of retailers have some mobile POS pilot in progress. "What we see now is people starting to choose the solutions they want. In 2014, we're going to see a greenfield of opportunity," D'Alessio predicted.