The payments landscape is undergoing a seismic shift, driven by the rapid evolution of mobile point-of-sale (mPOS) and software point-of-sale (SoftPOS) technologies. Juniper Research’s whitepaper, From Hardware to Everywhere: The Rise of mPOS & SoftPOS, provides a comprehensive analysis of these transformative systems, detailing their impact across industries and forecasting the global value of SoftPOS transactions by 2030.
As businesses and consumers increasingly embrace digital and mobile payment solutions, mPOS and SoftPOS are redefining how transactions are conducted, moving away from traditional hardware-dependent systems to flexible, software-driven alternatives.
Traditional point-of-sale (POS) systems, reliant on bulky hardware like card readers and fixed terminals, have long been the backbone of retail transactions.
However, their high costs, lack of mobility, and complex setup have posed challenges, particularly for small and medium-sized businesses (SMBs).
Enter mPOS, a portable solution that pairs smartphones or tablets with external card readers, enabling merchants to accept payments anywhere.
Companies like Square popularized mPOS, offering flexibility for businesses like food trucks, pop-up shops, and freelancers who need to process payments on the go.
Yet, mPOS still requires additional hardware, which can be a barrier due to costs and maintenance.
SoftPOS takes this evolution further by eliminating the need for external hardware entirely.
By leveraging near-field communication (NFC)-enabled smartphones or tablets, SoftPOS transforms these devices into fully functional payment terminals through software applications.
Merchants can accept contactless payments—via cards or digital wallets like Apple Pay and Google Pay—by simply installing an app.
This innovation, as highlighted in Juniper Research’s whitepaper, reduces upfront costs, enhances scalability, and maintains high security standards, making it an attractive option for businesses of all sizes.
The rise of mPOS and SoftPOS is reshaping industries by enabling new use cases and improving operational efficiency.
In retail, SoftPOS empowers micro-merchants and SMBs to accept cashless payments without investing in expensive hardware, leveling the playing field with larger competitors.
For example, a street vendor can now process transactions using only a smartphone, enhancing customer convenience and boosting sales.
In hospitality, SoftPOS enables servers to process payments tableside, reducing wait times and improving the customer experience.
The transportation sector also benefits, with taxi drivers and ride-sharing services using SoftPOS to accept payments seamlessly, enhancing mobility and flexibility.
Beyond retail and hospitality, SoftPOS is gaining traction in sectors like healthcare, where mobile payment solutions streamline billing for home visits or pop-up clinics, and in events, where organizers can process tickets and merchandise sales on-site without bulky equipment.
The whitepaper emphasizes that the versatility of SoftPOS is driving its adoption across diverse markets, from developed economies to emerging regions where access to traditional POS infrastructure is limited.
Juniper Research’s whitepaper provides a forecast summary projecting significant growth in the global value of SoftPOS transactions by 2030.
As consumer preference for contactless payments surges—accelerated by the COVID-19 pandemic and the proliferation of NFC-enabled devices—SoftPOS is poised to capture a substantial share of the POS market.
The report predicts that the low cost and ease of deployment will drive adoption among SMBs, while large retailers are expected to integrate SoftPOS as part of a multi-channel payment strategy.
This growth is further fueled by advancements in security, such as device-based attestation and secure software environments, which address concerns about fraud and data protection.
Despite its promise, the SoftPOS market faces challenges.
Security remains a critical concern, as merchants and consumers demand assurance that software-based systems are as secure as traditional chip-and-pin terminals.
Innovations like trusted execution environments (TEEs) and cloud-based security solutions are addressing these concerns, but widespread adoption requires ongoing education and standardization.
Additionally, regulatory hurdles and varying certification requirements across regions can complicate deployment for global providers.
However, the opportunities outweigh the challenges.
SoftPOS’s affordability and accessibility make it a game-changer for emerging markets, where traditional POS infrastructure is scarce.
Its ability to integrate with digital wallets and support a range of payment types positions it as a future-proof solution.
As the whitepaper notes, partnerships between payment providers, software developers, and device manufacturers will be key to scaling SoftPOS adoption and unlocking new use cases.
The transition from hardware-heavy POS systems to mPOS and SoftPOS marks a pivotal moment in the payments industry.
Juniper Research’s whitepaper underscores the transformative potential of these technologies, highlighting their ability to empower businesses, enhance customer experiences, and drive financial inclusion.
By 2030, the global value of SoftPOS transactions is expected to soar, reflecting its growing role in a cashless, mobile-first world.
As SoftPOS continues to evolve, it aims to make payments not just accessible but truly ubiquitous—moving from hardware to everywhere.