Mobile Card Reader Market Dynamics 2021-2031
[Research Report] The mobile card reader market is anticipated to grow from US$ 12.29 billion in 2022 to US$ 42.33 billion by 2031, estimated at a CAGR of 16.7 % from 2022 to 2031.
Analyst Perspective:
A mobile card reader is an apparatus that connects to your tablet, laptop, or smartphone and accepts credit and debit card payments. It is small and allows transactions to be carried out using a variety of methods, such as card payments, contactless payments, and tip payments. Mobile card readers also have various functions, such as invoices, receipts, and tax calculations. These devices are cost-effective and charge users a small fee for each transaction. Such instances propel the growth of the market.
Increasing usage of debit cards, credit cards, and smart cards among consumers is the key factor driving the growth of the global mobile card reader market. Increasing digitalization and increasing preference for cashless payments around the world are key trends thrusting the growth of the target market. Mobile card reader reduces paperwork and eliminates the need to stand in line at checkout. This process also tracks transactions that result in the loss of funds for which you are not responsible. Moreover, it is affordable and easy to use. Increasing usage of mobile card readers by businesses to expand their consumer base is also a factor expected to drive the expansion of the market in the future.
Additionally, the development of the e-commerce sector in emerging markets is another factor expected to drive the expansion of the global mobile card reader market. However, security concerns in mobile card readers and instances of identity theft may hinder the growth of the global mobile card reader market. The existence of a cash-based economy is a challenging factor that can affect the growth of the global market.
The acceptance rate of payment gateways among large enterprises is very high as many transactions take place. The largest contributors to this segment are companies from the BFSI, IT, and manufacturing sectors. There are also some extensions of BFSI companies. Intra-regional cross-border banking is also increasing around the world. For instance, as of October 2021, JP Morgan released its card payment provider, QuickAccept, which is a mobile contactless card reader. This will offer same-day deposits without any fee to those with Chase bank accounts.
Thus, the increase in the need for payment gateways will increase the adoption of payment gateways and drive the growth of the mobile card reader market segment during the forecast period.
Mobile Card Reader Market Overview:
A mobile card reader is a small device that connects to a phone or tablet to collect payments from a cardholder's credit card. The versatility of this device allows for card swipe, chip card, and contactless payment transactions. These helps speed up and simplify the payment process.
The increasing adoption of smartphones in digital payments is expected to drive the growth of the mobile card reader market. According to the phone Pay, as of 2021, more than 300 million Indian smartphone users now use digital payments. Also, in North America, 32% of customers use smartphones for the transaction. A smartphone is a mobile phone that is connected to the Internet and has software similar to a laptop. Digital payments are operations that take place online or through digital channels without any physical interchange of funds. This implies that both the payer and the payee exchange money electronically.
The integration of physical card functionality and smartphone functionality will drive the future of card payments and increase the demand for mobile card readers in the retail shopping experience. For example, according to US-based media company Comscore, as of June 2021, nearly 50% of internet transactions worldwide are conducted on mobile devices. It reached 28.6% of transactions or more than US $13.3. Trillion. Therefore, the increasing penetration of smartphones for digital payments is increasing the demand for the market.
As payments become increasingly electronic, NFC payments using contactless IC cards and mobile phones are rapidly becoming popular, and there is a growing need to equip POS terminals with NFC readers. However, it has always been difficult to find additional space for an NFC card reader inside the device housing, as the NFC card reader must maintain the functionality of traditional magnetic cards or contact IC cards. To solve this problem, several players across the globe are launching mobile card readers. For instance, in May 2023, Nidec Instruments developed this new NFC-integrated card reader. Thus, such instances propel the growth of the mobile card reader market.
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Mobile Card Reader Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Mobile Card Reader Market: Strategic Insights
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Market Driver:
Increasing Need for Portable and Cheaper Devices for Payment Driving the Mobile Card Reader Market Growth
For small and medium-sized businesses (SMBs) wanting to accept credit and debit card payments, mobile card readers are an effective and low-cost choice. A little card reader that connects to your mobile device either directly or remotely. Customers use this attachment when swiping, dipping, or waving their plastic, just like they would with a regular POS machine. The hardware costs are minimal for mobile card readers (especially if one already has a phone). Moreover, the advancement of mobile credit card processing technology provides users with new payment options. Whether one uses a mobile card reader with their phone or a terminal, using mobile readers for business transactions can help streamline the payment process.
The majority of mobile card readers are user-friendly and may be combined with an organization's current point-of-sale (POS) system to create mobile POS solutions. They can be paired over Bluetooth or a conventional headphone socket with a smartphone, tablet, or other mobile device. The merchant uses a portable card reader to receive payment from the buyer after a few easy steps are followed. The growing need for portable and cheaper payment devices is driving the growth of the mobile card reader market.
Segmental Analysis:
The mobile card reader market is segmented into components, technology, and end-use. Based on the component, the mobile card reader market is segmented into hardware and software & services. The hardware segment is further bifurcated into integrated card readers and accessories. Additionally, the hardware segment held the largest share of the mobile card reader market. In contrast, the software & services segment is anticipated to register the highest CAGR in the mobile card reader market during the forecast period. The technology segment of the market is segmented into EMV chip & pin, hybrid readers, magnetic Stripe, and near field communication & biometrics. The end-user segment of the mobile card reader market is segmented into arenas & entertainment, healthcare, HoReCa, retail stores, and others.
Regional Analysis:
The North American mobile card reader market is expected to grow at a CAGR of xx during the forecast period. North America dominated the global market. The mobile card reader market in this region is anticipated to have the highest growth potential, mainly due to Internet penetration. Additionally, the strong presence and penetration of key market players boost the overall market growth in this region. Additionally, the integration of physical card and smartphone functionality is driving the future of card payments. This factor will increase the demand for mobile card readers in the retail shopping experience. Therefore, the increasing use of smartphones for digital payments is expected to increase the demand for mobile card readers and drive the growth of the North American mobile card reader market during the forecast period.
Additionally, US multinational retail companies and operators of hypermarkets, discount department stores, and grocery stores have entered into partnerships with market participants in the regional market. These collaborations have enabled retailers to offer better digital payment services. Such factors are expected to drive the growth of the mobile card reader market in this region during the forecast period.
Key Player Analysis:
The mobile card reader market analysis consists of players such as Fujian Newland Payment Technology Co Ltd, Ingenico, Intuit Inc., Mswipe Technologies, PAX Technology, PayPal Holdings Inc., Revolut Ltd, SumUp Inc, Verifone Systems Inc., and Wuhan Tianyu Information Industry Co Ltd are among the players in mobile card reader market. Fujian Newland Payment Technology Co Ltd and PAX Technology are the top two players owing to the diversified product portfolio offered.
Recent Developments:
Inorganic and organic growth strategies such as product launches and mergers and acquisitions are highly adopted by mobile card reader market players. A few recent key market developments are listed below:
- In January 2023, Advanced Card Systems Ltd. (ACS) launched the ACR40T USB contact smart card reader in SIM format. The reader is compact and effortless to use via a sliding smart card input slot.
- In May 2023, Nidec Instruments Corporation launched the industry's first card reader with integrated NFC (near-field communication) functionality.
- In May 2023, Stripe, the enterprise financial infrastructure platform, introduced the Stripe Reader S700 to help businesses connect online and in-person payment experiences more closely than ever before. The new Android-based smart reader is part of Stripe Terminal, a variety of developer interfaces, pre-qualified card readers, and logistics management tools. The Stripe Reader S700 is the latest demonstration of Stripe's commitment to personal payments.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
- Fujian Newland Payment Technology Co Ltd
- Ingenico
- Intuit Inc.
- Mswipe Technologies
- PAX Technology
- PayPal Holdings Inc.
- Revolut Ltd
- SumUp Inc
- Verifone Systems Inc.
- Wuhan Tianyu Information Industry Co Ltd
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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