More and more retailers are switching to mobile point-of-sales solutions due to benefits in the areas of billing, inventory, delivery, and consumer experience
New Delhi: At many stores across the country, billing is done on wireless or hand-held devices such as a smartphone or a tablet known as a mobile point of sale (POS) terminal or an mPOS. The rise of mobile apps and smartphones, along with the merging of mobile and online payment methods, is driving the adoption of mobile POS terminals, said experts.
“The current market for mobile POS in the country is witnessing significant growth driven by factors such as the proliferation of smartphones, increased internet usage, and the adoption of e-commerce,” said Varun Tangri, founder and chief executive officer, Queuebuster, a Noida based POS company.
With a shift towards cashless transactions, fintech players are increasingly focusing on the point-of-sale (PoS) segment, which functions as a bridge for merchants to accept electronic payments seamlessly.
“Furthermore, the Indian government’s push for digital payments to promote financial inclusion and reduce cash dependency has further boosted this trend,” added Tangri from Queuebuster.
Gone are the bulky machines taking up much of the counter space. But space saving is not the main reason for the rapid rise in the adoption of mobile point of sale (POS) solutions by retail businesses—it has benefits in several areas adding to efficient operations and improving customer experience.
The benefits
Simpler, faster billing: With the MPOS solution, the billing process has become faster, and more simplified.
Improved inventory management: The integration of mobile POS solutions provides enhanced tools for real-time monitoring of stock levels and stockouts, said Vikas D Nahar, founder and chief executive officer (CEO), of Happilo, a Benglauru-based gourmet healthy food brand.
The integration of the software has effectively reduced stock wastage. Bengaluru-based product trials and discovery platform Smytten also benefits from its inventory monitoring.
“The POS system has simplified control, providing a more straightforward and effective management tool. The integration has streamlined the billing and inventory processes, making them more efficient and responsive,” said Siddhartha Nangia, co-founder of Smytten.
Deeper consumer insights: MPOS solutions not only help simplify payments but also help understand customers better. “It has helped in gathering insights into customer preference and purchasing behaviour, improving the customer experience,” Nahar added.
The customer relationship management (CRM) capabilities offered by MPOS have enabled companies to establish effective communication strategies, leading to improved customer retention and satisfaction.
Affordable: In recent years, mobile POS solutions have become cost-effective. A compact mobile POS solution ranges between Rs 5,000 and Rs 25,000 on average online with some variants being costlier. So, it does not require substantial investment. “We have invested only 4% of our store’s total operational expenses in the POS software,” said Nangia of Smytten.
Other benefits include:
- Minimising manual interventions
- Bolstering inter-store connectivity
- Reduced training time and costs
The market
The global mobile POS terminals market size is estimated to expand at a compound annual growth rate (CAGR) of 11.1% over the forecast period 2023 to 2030, according to the data from Grand View Research, an India & U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco.
According to Statista, by 2024, the transaction value in mobile POS payments in India is expected to reach $40.84 billion. The number of users of mobile POS in the country is expected to reach 427.80m by 2028.
