Mobile Card Reader Market to Reach $29 Billion by 2020
Reductions in transaction costs will help the global mobile card reader market reach $29 billion by 2020, according to a recent report from Technavio.
The report calculated the market size by considering revenue generated from card reader shipment, transaction fees and other monthly fees charged by vendors.
The largest market for mobile card readers is the Americas, where market leaders such as Square, PayPal, PayAnywhere and Verifone currently make up 57.21% of the global market. Last year, the market was valued at $1.22 billion. Currently, only 22.5% of sellers are using these POS terminals, so there is significant growth potential.
“A major selling point for vendors in the market other than the simplicity of card payment processing is the reduced transaction costs. A majority of vendors in the market only charge a fixed transaction fee for every transaction. The fee varies for swipe and chip and pin, but the average fee per transaction was $2.90 in 2015. This replaces the traditional method wherein merchants are charged a monthly service fee as well as a cut on every transaction. Such complexities in payment transactions are now reduced with the help of solutions provided by vendors,” said Sunil Kumar Singh, one of Technavio’s lead industry analysts for computing devices research.
The fraud liability shift in the United States is also expected to help the mobile card reader market to increase in America, as any entity with an old payment technology system will have to bear the cost of fraud. This means merchants are likely to buy new mobile card readers or update their existing PoS terminals to mobile card readers in the very near future.