MOBILE POS: Historic and current trends in payment processing

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1 MOBILE POS: Historic and current trends in payment processing

2 TABLE OF CONTENTS 2 Introduction 3 The history of mobile POS 4 Merchants are adopting mpos at rapid rates 5 Mobile POS is no fad, it s here to stay 6 Conclusion: Total mobility for the win

3 Smartphones have not only changed our way of communicating, they have impacted how we shop for products and make purchases. As mobile technology enters the payments landscape, businesses will need to adopt new ways of meeting consumer demand. While smartphone use continues to rise, mobile POS systems are becoming more attractive to merchants in a variety of industries. Local businesses are beginning to realize the positive impact mpos solutions can have on the success of their business. And more merchants are investing in mobile POS technology. According to market research firm Javelin Strategy & Research, mobile POS proximity payments could reach as high as $5.4 billion by 2018, capping three years of exponential growth and a stark increase from the $1.6 billion forecasted to occur in The growing popularity of digital technology in the local business landscape is catapulting mobile POS to the forefront of near-future business initiatives. 2 MOBILEPOS: Historic and current trends in payment processing

4 The history of mobile POS Adopting mobile POS provides small businesses several benefits, including improved visibility into payment operations, flexibility of the user interface, and the ability to adopt new payments in the future. How did mobile payment solutions grow to where they are now? Let s take a look back to the invention of the mechanical register. 1883: James Ritty invents and patents the first mechanical register, with its all-too-familiar bell sound. 1906: Charles Kettering invented a cash register with an electric motor. 1970: The barcode reading register was introduced in 1970 when Logicon Inc standardized it across multiple industries by developing the Universal Grocery Products Identification Code. Late 1980s s: Gene Moshel designed the first touch-screen POS system. Color screens soon followed in 1995, ushering in the digital era. Present day: Mobile phones and tablets are now becoming commonplace across a wide variety of industries, and mobile POS (mpos) operates securely through the cloud 2. 3 MOBILEPOS: Historic and current trends in payment processing

5 Merchants are adopting mpos at rapid rates 46 PERCENT OF MARKET SHARE PENETRATION WILL BE OWNED BY MPOS SYSTEMS BY 2017 Mobile payment solutions have had a significant impact in the consumer space in recent years. Apple Pay has perhaps been the most visible mobile payment solution driving merchants to integrate mobile POS systems to meet customer demands. A recent Mobey Forum study found 46 percent of market share penetration will be owned by mpos systems by 2017, a stark increase from the 17 percent market share possessed by mpos terminals in Consumers are embracing mobile technology more so than ever before, and businesses that don t adapt to consumer demands face potential lost revenue and market share. As consumers are embracing mobile technology, merchants are increasingly realizing the value in mpos systems. New industry innovations such as mobile proximity payments are driving consumers toward smartphone payments technology. Local businesses that embrace mpos have a massive opportunity to connect with their customers. 4 MOBILEPOS: Historic and current trends in payment processing

6 Mobile POS is no fad, it s here to stay Consumer adoption of smartphone technology is not happening by chance. Apple Pay and other mobile wallet technology have burst onto the scene, and consumers are ready to make the jump to a more mobile-centric payment ecosystem. BY 2018, MOBILE POST PROXIMITY PAYMENTS COULD REACH AS MUCH AS $5.4 BILLION Javelin Strategy & Research data predicts mobile payment volume will exponentially increase in the next year. By 2018, mobile POS proximity payments could reach as much as $5.4 billion, or close to 1 percent of total retail POS purchases. The popularity of mobile payments is growing fast in part because of their ease of use and convenience. If merchants don t implement the right payment infrastructure soon, they ll be left behind in their respective marketplaces. Merchants in the retail and restaurant industries especially can use mpos systems to stand apart from the competition. Local businesses keep up with the latest payment technology trends gain customer trust and demonstrate they value what their customers want: a seamless and convenient payment experience. 5 MOBILEPOS: Historic and current trends in payment processing

7 CONCLUSION: Total mobility for the win New technology innovations are impacting a wide variety of verticals. Mobile technology in particular is driving a significant trend in payments. Consumers want to use their mobile devices for more than calling, texting and accessing the Web. Now they have the power to make a purchase with their phones. Although keeping pace with each new technological advance may seem like a daunting task, embracing mobile solutions gives merchants the opportunity to scale at their own pace in today s mobile-centric marketplace. Mobile payments technology is poised to help merchants of all sizes improve the customer experience, drive sales and streamline operations. 6 MOBILEPOS: Historic and current trends in payment processing

8 CONTACT US 150 Mercury Village Dr. Durango, CO mercurypay.com Sources 1 Javelin Strategy & Research, (Apr. 2013) 2 Spencer Technologies, (Apr. 2013) 3 Mobey Forum, Nov. 2013