The mPOS market continues its progression within its establishment into the digital payments market. Long has gone the day, where mPOS solutions were targeted towards small to medium sized merchants, now beginning to flex its muscles in an effort to increase mPOS penetration across all sectors, including tier 1 merchants in an attempt to distrust the dominance of traditional counter top POS terminals which we are all so used to interacting with today.
Additionally as the mPOS market grows and further interest is generated the competitive nature of the market begins to heat up. 24 months ago only a handful of vendors were active within the mPOS market, but this number has rapidly increased as new start-ups looking to take advantage of the hype and potential mPOS uptake to establish themselves in a market still evolving and in its infancy.
As the mPOS market has developed we are beginning to see two vendor types. Initially most were coming to market with the ideal of generating revenues through transaction fees. As the market has progressed some of these vendors have pulled out of the transaction side of the market, opting to focus upon hardware development and deployment to directly complete with the likes of Ingenico and VeriFone, leaving the transaction side to the traditional processors that know the payments market so well. With this in mind, ABI Research took the liberty of including both mPOS hardware manufacturers and those dedicated mPOS payment facilitators within this study. Please note that although ABI Research endeavoured to include each mPOS vendor within wither a hardware or service provider category, there does remain some cross over. Some vendors are active on both sides of the market and as the market continues to develop each individual vendors circumstances and strategies may alter and change, meaning a possible shift from one aspect of the market to another.
This Competitive Assessment presents first half 2013 market shares based on the installed base of users/devices for service providers and shipments for mPOS hardware manufacturers. Also included is an mPOS vendor matrix where companies were judged and scored under both an implementation and innovation category with a set of criteria and score weightings set out for each. This report provides ABI Research’s opinion on which vendors have the most relevant pricing strategies, innovative product lines, and future proof strategy in place to win out in a market which is rapidly evolving.