A new study from Juniper Research suggests that mPOS solutions are going to be a huge growth area over the next few years, driven mainly by demand from India and China.
A major reason is that street vendors and pop up shops will be encouraged by vendors to move to mPOS as a more secure and seamless system for taking payments. The value of mPOS transactions will grow 130% over the next five years to exceed $1.9 trillion.
This growth trend will in itself provide a major opportunity for hardware vendors, supported by cloud providers, as the transition is in progress. 60% of the investment will come from India and China.
One outcome of this rise in mPOS transactions, of course, will be the reduction of cash payments, which plays well into the hands of the Indian Government, who is keen on reducing the amount of cash in the financial system (and has taken radical steps to do so a couple of years ago). China, too, with its vast and sophisticated card system and its major players such as AliPay and WeChat Pay will – you can sure – be supporting the move.
The growth in mPOS will not be confined to the two Asian behemoths but will be reflected around the world, as different elements of mPOS become attractive through innovative apps that promote loyalty and the increasing innovation around payments.
We have said before that payments and the evolving ecosystem that surrounds it will drive the next stage of the internet and computing itself. Another important example is highlighted in another Juniper report and describes the rise and rise of biometrics in the payments ecosystem.
The growth of mPOS will, in turn, be a key element of the payments ecosystem that will reshape an important part of our digital world.
The only caveat we have is that, while this impetus will have a significant impact on cash as a form of payment, the next few years will also see a pause in the full scale advance of technology.
While technological innovations will continue at breakneck speed, the next few years will be about human beings spending quite a lot of time examining how we shape the nexus of technology and human activity.
Progress might well resemble traffic in a major city. Some car crashes, some smooth flowing freeway action and more traffic lights than we reasonably need.