According to the report from Juniper Research, the growth in mPOS transaction values will be driven by service adoption from new business users, including pop-up stores and street vendors, for who the acceptance of card payments was previously inaccessible.
The new research - POS Hardware and Software: Market Innovation, Vendor Analysis & Market Forecasts 2019-2024 - identified India and China as countries primed for the expansion of POS adoption, assisted by high smartphone penetration rates and the growing acceptance of cashless payments.
And it urged POS software vendors to leverage the opportunities presented by the shift to cloud-based systems by developing one-stop-shop solutions through platform tools, such as app integrations.
The research forecast that China and India would offer significant opportunities for POS software vendors, with 60% of POS software spend attributable to these two markets by 2024 - and cash transactions in the two countries will decrease over the next 5 years, driven by China’s dominant share of global cards in issue and government incentives to reduce cash transactions in India.
Juniper Research also forecast that popular digital payment services, such as Alipay and WeChat Pay, will be compatible with an increasing number of POS terminals and will play significant roles in the growth of mPOS and contactless transactions in India and China.
In addition, it forecast that strong growth of mPOS adoption and contactless usage in the US will contribute to the global growth of POS transactions following the completion of EMV (Europay, MasterCard and Visa) rollouts.