23% of the global population to use Mobile POS payments by 2024

23% of the global population to use Mobile POS payments by 2024

Mobile Point of Sale system is gaining popularity among small- and medium-sized retailers thanks to the benefits it brings to the table. Based on these POS benefits, for both customers and merchants, the uptake is expected to keep rising in the coming years.

Data gathered by Buy Shares indicates approximately 1.75 billion mobile users or 23.05% of the global population will be using Point of Sale systems payments by 2024. The 2024 users represent growth of 49.57% from the 2020 figure of 1.17 billion. Next year, mobile POS payment users will stand at 1.36 billion and later grow by 11.76% to 1.52 billion in 2022. By 2023, the users will keep growing to 1.64 billion.

Our research also overviewed the estimated total transaction value in the Mobile POS Payments segment between 2020 and 2024. After adjusting revenues for the expected impact of the COVID-19 pandemic as of June 2020, the figure stands at $1,479.69 billion for this year. The figure is expected to grow by 180.15% to $4,145.36 billion in 2024. By next year, the transaction value will rise by 39.41% to $2,062.98 billion. In general, the value will keep growing in the coming years. By 2022, the figure is estimated to stand at $2,703.83 billion and later undergo an increase of 26.01% to $3,407.31 billion in 2023.

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China leads in mobile POS transaction values

Our research also carried out a global comparison of mobile POS payments transaction value in 2020 based on countries. From the data, China has the highest transaction value at $755.5 billion as of June 2020. The United States transaction value is at least half the value of China at $357.5 billion.

The United Kingdom comes a distant third with a value of $45.8b while Brazil is fourth with a figure of $22.3b. South Korea has the fifth-highest transaction value of $17.6 billion. In total the top countries have witnessed a transaction of $1.19 trillion.

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The mobile point of sale payment system refers to transactions processed through digital devices like smartphones. All the payments are done through contactless interaction of the smartphone app with a suitable payment terminal belonging to the merchant. Some of the popular providers for the POS system include ApplePay, Samsung Pay, and Google Wallet. A Mobile Point of Sale system performs the same functions as a traditional cash register but it is portable.

In the wake of the coronavirus pandemic, the mobile Point of Sale systems is expected to gain further popularity. The nature of the virus calls contactless translation as a precautionary measure of curbing the spread.

Factors that will fuel mobile POS growth

The projected growth of POS can be tied to the fact that major economies like China are heavily investing in eCommerce supported by the government. Most Asian countries have placed their focus on digitalization and building a cashless economy. This factor will definitely spur the growth in the market for POS systems during the period. Furthermore, the increasing use of debit and credit cards is creating an opportunity for POS systems.

Industry experts project that the dropping price of Point of Sale terminal devices will spur adoption globally. The affordability will make them more attractive for smaller and cash-driven businesses that struggle to retain customers due to singular payment alternatives.

However, the growth might be curtailed by the high maintenance cost in the near future. Furthermore, the slow adoption rate in emerging economies might hinder the adoption of POS globally.

With small businesses on the rise, the use of POS can be easily tailored to suit the unique needs of emerging businesses. POS systems can be synchronized according to the specific needs of small businesses. Additionally, POS systems come with cost-saving benefits offering businesses with the possibility of turning into profits. It also gives businesses the golden chance to understand customers. Records of customers can easily be recorded allowing businesses to understand the potential customer segment and design offers, gifts, discounts, and even promos.

It worth noting that POS continues to witness new trends emerge like the use of biometrics. Businesses are using fingerprint and facial recognition to confirm identities during payments. Biometrics is considered a secure authentication method.