Mobile payment systems are catching on massively, with MPOS devices having grown significantly over the last year.
According to a recent report available through ReportsNReports, the global MPOS industry ballooned between 2011 and 2012 growing from 4.5 million terminals to 9.5 million. Thats a compound annual growth rate of 111%.
This is due to many MPOS device platforms becoming available, with many such as Square, iZettle, PayPal Here and VeriFone to name a few making it far easier for small enterprises to pick up the card-reading technology.
Over the forecast period of 2011 2017, MPOS terminal adoption is expected to increase from 4.5 million to a staggering 38 million by 2017 with a forecast CAGR of 42.7%, largely driven by growth in the retail sector, increased online trade and more smartphone and card users.
The report also forecasts that by 2017, the adoption of MPOS over standard POS terminals will be 46% as opposed to the 17% that was seen in 2012.
Most countries that make use of MPOS devices utilise Square, iZettle, SumUp, Payleven, Paypal Here and Intuit. However outside of the US, Canada, UK, Germany and France, Ezetap, 99Bill and PayPOS are industry leaders in China and India.
Many large retailers such as The Home Depot, Best Buy, Future Shop and Nordstrom have embraced the MPOS platform, but many restaurants, pubs, hotels, transit and taxi services have too.
There is a little trepidation around just how secure and regulated MPOS is though, Visa recently pulled support for payments made through iZettle as it failed to meet their European security regulations as it only authenticated cards through digital signatures instead of PIN.
It does raise the question of just how big a slice of the payments pie MPOS devices could have by the end of this year, let alone 2017 especially with the rise of NFC in the UK.