Global Mobile Card Reader Market to Increase Over 50% in Next Four Years
The global mobile card reader market is expected to grow at an impressive rate of 54% from 2017 through 2021, according to research from Technavio.
The report also found people are mostly likely to pay with magnetic stripe, chip-and-PIN and near field communication (NFC) at mobile card reader terminals, and the magnetic stripe was the most used in 2016 (53% versus 41% for chip-and-PIN technology).
“With governments across the globe looking to improve infrastructure in terms of the Internet and mobile devices, the demand for contactless payment systems is also likely to improve. This will aid vendors to penetrate markets in India, China, Brazil, and other developing economies, which are considered difficult to penetrate,” says Chetan Mohan, a lead analyst at Technavio for computing devices research.
Mobile card reader use in on the rise, in part, because micro, small and medium enterprises can use them in lieu of traditional payment systems to avoid complex banking procedures and high transaction costs. Most mobile card readers charge only 2% to 3% of the transactional value, and the point-of-sale (POS) system itself is much less expensive.
Technavio’s research also indicates the number of debit and credit cards is on the rise, and this has, in turn, increased the number of transactions taking place globally. The number of transactions completed with Visa, UnionPay, MasterCard, JCB, Diners Club/Discover, and American Express was 230 billion this year, and the number of cards in circulation was just over 12 billion. These numbers are good news for the mobile card reader market, as the adoption of mobile card readers will increase faster than traditional POS terminals.