Overview

A research report from Mercator Advisory Group, M-POS: Expanding the Payments Value Chain into New Territories, identifies the new hardware, software architecture that will drive development of the point of sale (POS) over the next decade. The range of factors driving this change includes network regulations demanding new last-inch acceptance devices that will ultimately mitigate security concerns, new technologies in consumer devices that enable new merchandising methods, and new mobile devices that have not just pushed the envelope in lowering device costs but also introduced groundbreaking new features that enable a more productive POS device that operates in a cloud-based architecture.

“The benefits of this new hardware and software paradigm will prove as important as the introduction of the computer chip,” said Tim Sloane, VP, Payments Innovation, and author of report. “While adoption in larger merchants may take decades due to the complexity of the payments infrastructure, the path to adoption will clarify as network implementations further mitigate security risks. As security risks are addressed merchants, acquirers, and banks will focus their energies on delivering greater value to consumers through the smartphone.”

This report is 30 pages long and contains 8 exhibits.

Companies mentioned in this report include: Amazon, American Express, Apple, Apriva, Bank of America, Clover, Discover, Estimote, First Data, Google, MasterCard, Microsoft, NCR, PayPal, Samsung, ShopKeep, Softcard, Square, Starbucks, TSYS, Vantiv, Visa, and World Pay.

Members of Mercator Advisory Group's Emerging Technologies Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

Highlights of the report include:

  • An in-depth analysis of mobile-based architecture’s primary design benefits to the consumer, the merchant, and the associated payment processor

  • Recommendations for recognizing and avoiding implementations that may limit business model flexibility, restrict application and service options, and thus increase average lifetime cost

  • A review of existing implementations in the field that leverage m-POS architecture today

  • A review of how identity is managed in payments today and how control over identity credentials has become the future battleground within this new architecture and identity management will ultimately replace enrollment as the primary point of consumer control 

  • Discussion of technologies and concepts related to M-POS, including Apple iBeacon, Apple iOS, Apple iPad, Apple iPhone, bar codes, Bitcoin, Bluetooth low energy, chip and PIN, cloud computing, check underwriting, digital currencies, EBT cards, EMV, fingerprint recognition, geofencing, gift cards, Google Android Open Source Platform (AOSP), independent software vendors, inventory management, loyalty programs, MCX CurrentC, Microsoft Phone, payroll, PCI compliance, QR codes, recurring payment, Samsung Knox, search by voice, split tender, tokens, Touch ID, virtual cards, voice recognition

Learn More About This Report & Javelin

Related content

June 24, 2025
Global Biometric Pilots Help Smooth the Way for U.S. Adoption

The use of biometrics in merchant payments—such as facial scans and palm scans—has been slow to take root in the United States. But several pilot programs in other global markets, ...

May 13, 2025
Agentic Commerce: The Payments Are Here, but Are the Agents Ready?

Shifting purchase and payment behavior, as agentic commerce stands to do, is a risky business. As the role of agents in purchasing decisions and payments comes to the fore, expect ...

April 29, 2025
Payments in the Arena: Integrated Experiences Are the Winning Play

Identity will constitute the future of experiences at stadiums, ballparks, and other performance venues, giving fans—especially the most loyal ones—a seamless journey from entry to...

Make informed decisions in a digital financial world

Let's Connect