The payments ecosystem is witnessing groundbreaking changes, majorly influenced by the fast progression of mobile point-of-sale (mPOS) and software point-of-sale (SoftPOS) solutions. A detailed analysis in a recent whitepaper from Juniper Research titled ‘From Hardware to Everywhere: The Rise of mPOS & SoftPOS‘ sheds light on the radical transformation these systems are driving in digital payments.
mPOS devices, by converting smartphones or tablets into card processing systems, have opened up opportunities for small and medium-sized enterprises (SMEs) to receive electronic transactions effectively and economically. These devices, which typically use Bluetooth to connect with a mobile device, have been particularly beneficial in regions where traditional POS systems were cost-prohibitive.
Meanwhile, SoftPOS, also referred to as PhonePOS, operates a step further. These solutions convert a merchant’s smartphone itself into a contactless payment terminal, eliminating the need for additional card reading hardware. Thanks to NFC (Near Field Communication) technology, customers just need to tap their NFC-enabled card or smartphone to complete the payment.
The increasing adoption of mPOS and SoftPOS systems is hardly surprising, considering the current global scenario. As digital payments gain momentum amidst the COVID-19 pandemic, these solutions offer the benefits of minimal contact, ease of use, and reduced hardware costs.
Investment in these technologies is also on the rise. SumUp, a leading mobile payments company, secured $895 million funding earlier this year to amplify its growth. A significant portion of this funding will likely be utilized to further develop their mPOS and SoftPOS services, given the escalating demand.
In conclusion, the proliferation of mPOS and SoftPOS technologies is redefining the digital payments landscape, offering a more accessible, cost-effective, and safe transaction method for businesses, particularly SMEs. As such, stakeholders should anticipate continual innovation and investment in this thriving sector.
