Mobile POS systems are projected to reach a 46% share of the market by the year 2017, which is a massive 17% higher than their current share of the point of sale terminal industry. This report was released by Mobey Forum which is an industry leader in analytics, demographics, and trends relating to the rise of mobile solutions throughout the globe.There are several reasons for this massive surge; the first being that it is much cheaper and easier to buy a tablet such as an iPad versus a large and bulky traditional style POS system. With companies such as PayPal and Square offering free credit card swipers and register apps, small businesses have big incentives to skip buying items such as touchscreens, printers, and cash drawers.
The high cost of merchant accounts is also playing a major role in the shift. Instead of getting into a long-term contract that usually requires either purchasing or leasing an expensive piece of hardware, paying a monthly fee, and a fee for each credit card transaction, the “pay per swipe” price format that the mobile payment providers offer is much more appealing to small businesses who don’t move as much inventory through their terminals as the big box stores.
Yet another big player in the market share is the acquisition of new users that otherwise weren’t in the market for a point of sale system. New users such as babysitters and taxi drivers are driving the demand for this type of system because they can be operated right from their phones. Scenarios like garage sales are also a popular new frontier in this area, along with any other service that would normally only accept cash.
The final factor is the simple fact that they’re completely mobile. Instead of being tethered to a physical location in a store, clerks can now bring the POS to the customer. With more and more customers paying with plastic, the need for cash drawers and receipt printer is quickly becoming extinct. The mobility factor is also very useful for larger items such as lawnmowers, grills, or any other item that is either difficult or impossible to bring to a checkout station.