Enterprise Retail / Mobile Payments / mPOS

The Proliferation of mPOS

Verifone

Editorial Team

By Verifone

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Executive Summary

The Proliferation of mPOS

From line busting to clienteling, the mobile point of sale (mPOS) has changed the retail experience for all— and the evolution has only just begun.

Walk into an Apple Store and you’ll notice something missing—the checkout counter. Traditional POS stations have been replaced by store-roaming, mobile-devicewielding sales associates ready to process your payment anywhere, in an instant. Whether via a smartphone, tablet, or integrated payment device, mPOS is quickly taking over the way people, especially younger generations, do retail.

With mPOS, the point of sale has expanded from the checkout counter to any square foot of the store where a consumer is ready to buy. Merchants can accept a variety of cashless payment options on the spot, while also providing value-added services to drive revenue and build customer loyalty like never before.

In a highly competitive retail space, an mPOS solution for brick and mortar businesses is now more than just an added luxury—it’s a necessity. Consumers live in their smart devices, and in doing so, they aren’t just more diversified shoppers, they’re more informed shoppers. Consumers can search reviews and compare prices in an instant, in addition to accessing apps for all their favorite brands and retailers. As shoppers and their mobile technology continue to evolve, the same must go for the payments industry.

One way mPOS has changed payments through its technology is line busting.

One way mPOS has changed payments through its technology is line busting. The use of integrated, mobile devices enables merchants and their employees to take customer orders and process transactions while they’re waiting in line. This has become a common practice in quick-service and fast casual restaurants, both expediting customer service and creating added revenue streams; beyond increased table turnover, line busting creates opportunities for upselling and cross-selling.

Another benefit of mPOS comes via the art of clienteling, which enables sales associates to match (and exceed) wits with today’s informed consumers. Consumers crave information—and want their sales associates to be equally informed on everything from their clothing size to purchase history to their likes and dislikes. Mobile POS devices can help merchants access information instantly to address any questions or needs; they can also use branded apps to send personalized messages to customers about upcoming sales, employ loyalty programs, and utilize other value-added services.

While the growth of mPOS is evident across every age demographic, it’s inherently baked into Generation Z. As the first generation born in the internet era (circa 1995), they have little to no recollection of a time before cell phones and the web. As such, it is a generation of early adopters. Not only are these young consumers less likely to carry cash, they may also rely on in-app purchases, mobile wallets, and other contactless, mPOS-friendly payment methods.

The current growth of mPOS is evident across the global commerce landscape. The installed base of mPOS devices has grown from 5.8 million in 2013 to 15.6 million in 2016, and is projected to hit 31.4 million by 2020, according to a forecast report by ABI Research.

Verifone has led the charge in the mPOS revolution with our e Series, which was named Best in Category for mPOS solutions at the 2016 Pay Awards. “Verifone is solving a key problem in the mPOS space—future-proofing,” the judges remarked. “Add to that the company’s reach, and you get widespread adoption of the mPOS readers that help retailers reinvent the in-store shopping experience for their customers.”

With many retail giants already incorporating mPOS, the revolution has clearly begun. But where will it go? The future is bright, as geo-tagging and cloud computing continue to strengthen the bridge that is connected commerce.