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The mobile card reader market size is estimated to grow at a CAGR of 18.65% between 2022 and 2027. The market size is forecast to increase by USD 15,853.17 million. The growth of the market depends on several factors, including an increased adoption of contactless payments, the growth in demand for PoS terminals from end-users, and the increased penetration of smartphones. Mobile card readers are defined as devices that are connected to laptops, tablets, and smartphones for acceptance of payments by credit and debit cards. They are small in size and are able to do transactions using various methods, such as contactless, card swipe, and chip payments. Mobile card readers come with several features, such as a receipt, invoice, and tax calculation. These devices are economical and charge a small fee per transaction to users.
This mobile card reader market report extensively covers market segmentation by application (chip and pin, near field communication, and magnetic stripe), end-user (large enterprises and MSMEs), and geography (North America, APAC, Europe, South America, and Middle East and Africa). market data from 2017 to 2021.
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Growth in demand for PoS terminals from end-users is the key factor driving the growth of the market. The growing demand for advanced technologies for managing payments in large end-user industries, such as retail, healthcare, hospitality, and warehouse and distribution, is a major factor that drives the growth of adoption of PoS terminals, which, in turn, will drive the growth of the market. Many small-sized retailers in various developing countries, such as China and India, are also adopting PoS terminals for secure and convenient payments.
Furthermore, some of the market players in PoS terminals are focusing on offering products with advanced features. For instance, Ingenico Group offers a Telium TETRA range of smart PoS terminals. It features a touchscreen that allows business owners and their customers to access retail applications on the terminal itself. The availability of such products is likely to increase the demand for PoS terminals and, hence, will drive the growth of the global mobile card reader market during the forecast period.
The rise in mobile biometrics for payment is the primary trend shaping market growth. As per the current market scenario, the use of mobile devices for conducting financial and e-commerce transactions has increased significantly. Thus, this increasing trend is leading toward the rapid innovation of biometrics technologies, such as fingerprint recognition, voice recognition, iris recognition, signature recognition, keystroke recognition, and facial recognition. These biometric technologies are being integrated into mobile devices nowadays, which ensures authorized access to personal data.
Additionally, multimodal biometrics are being used on mobile devices for individual identification and verification. These technologies are being used to make more secure and safe mobile payments in the retail sector. Therefore, a rise in mobile biometrics for payment will drive the growth of the global mobile card reader market during the forecast period.
Lack of awareness of online payment in developing economies is a challenge that affects the growth of the market. The usage of online payments is still in its development stage in many developing economies. LTE technology is still in its developing stage in these Asian countries, and its adoption in these countries has been modest. These technologies are an important component of network infrastructure to ensure error-free and uninterrupted telecom services; the lack of availability of these mobile payment transactions will hinder the penetration of the global mobile card reader market in these countries during the forecast period.
Moreover, many rural and remote areas in APAC are still not equipped with 2G and 3G network connections, and many areas in developing countries still lack telecom networks. Inferior telecom infrastructure in several developing countries in APAC has resulted in issues such as call drops, poor voice quality, and cross-connection. This, in turn, will negatively affect the growth of the global mobile card reader market during the forecast period.
The market share growth by the chip and pin segment will be significant during the forecast period. Chip and pin technology is a method for the payment of goods and services by card. It was initially introduced in the UK in 2006, to cope with the rising levels of fraud on lost and stolen credit and debit cards. Many credit and debit cards have a small built-in chip, and this microchip contains user details about the card and account, including their name, account number, and card expiry date.
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The chip and pin segment showed a gradual increase in the market share of USD 2,302.87 million in 2017. A chip and pin technology reads this information and asks the user to enter their secret 4-digit personal identification number (PIN), which allows the payment to be completed. Governments from all over the world are promoting the use of payment gateways and promoting digital payments. Hence, such factors are expected to propel the growth of the chip and pin segment of the global mobile card reader market during the forecast period.
There is a very high adoption of payment gateway among large enterprises due to the generation of many transactions. Companies operating in the BSFI, IT, and manufacturing sectors are the major contributors to this segment. There are also several expansions of BFSI enterprises. Intraregional cross-border banking activity is also intensifying globally. This leads to an increase in the need for payment gateways. This, in turn, leads to an increase in the adoption of payment gateways which will drive the growth of the market segment during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The mobile card reader market in the region is projected to post the highest growth potential, mainly due to the increasing number of smartphone users. Additionally, the strong presence and penetration of the key market players increase overall market growth in the region.
Furthermore, the integration of physical card characteristics with smartphone functions is moving the future of card payments ahead. As a result, it will drive demand for mobile card readers in retail settings for shopping experiences. Therefore, the rising adoption of smartphones for digital payments is driving the demand for mobile card readers, which will drive the growth of the mobile card reader market in North America during the forecast period.
The COVID-19 pandemic had a negative impact on the regional mobile card reader market in 2020. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Furthermore, in the US, multinational retail corporations and operators of hypermarkets, discount department stores, and grocery stores entered into partnerships with market players in the regional mobile card reader market. Through such collaborations, retail corporations were able to offer better digital payment services. Such factors are expected to drive the growth of the mobile card reader market in the region during the forecast period.
The Mobile Card Reader Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Mobile Card Reader Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The mobile card reader market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Mobile Card Reader Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.65% |
Market growth 2023-2027 |
USD 15,853.17 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.23 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, India, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adyen NV, Block Inc., Electronic Merchant Systems, Global Payments Inc., Ingenico, Intuit Inc., Leadway Tech, LIFE PAY, Miura Systems Ltd., Mswipe Technologies Pvt. Ltd., North American Bancard LLC, PayPal Holdings Inc., Razorpay Software Pvt. Ltd., Revolut Ltd., Shopify Inc., Stripe Inc., SumUp Inc., VeriFone Inc., Wise Payments Ltd., and Xero Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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