Sim said the mPOS service’s low subscription cost is expected to appeal to retailers who have yet to adopt cashless payment methods. According to Sim, a typical credit card payment terminal which conducts transactions over a fixed line would cost retailers some S$50 – S$60 monthly.
Retailers signed up to the mPOS service include Cake Inspiration, Swee Lee Music, Dressing Room Salad Bar, Mobile Matrix, New Everyday Keropok.
According to Cake Inspiration’s Yian Koh, the decision to sign-up for the mPOS solution stemmed from staff lacking exact change when delivering goods to customers. “We do a lot of delivery services for consumers, as well as catering for events. While many customers pay us in cash, we do see a trend and preference toward card payment, and want to tap on this trend in our business,” said Koh.
For Swee Lee Music, deploying mPOS signifies greater convenience during roadshows. “The M1 mPOS solution opens up new opportunities for our events team by offering mobile and cashless payment solutions anytime, anywhere,” said MD for Swee Lee Music Kuok Meng Ru.
A May 2013 report from Timetric forecasts that by 2017, the adoption of mPOS terminals over standard POS terminals globally will be 46%, as opposed to the 17% that was seen in 2012. Over the forecast period of 2011 to 2017, mPOS terminal adoption worldwide is expected to increase from 4.5 million to a staggering 38 million by 2017, with a forecast CAGR of 42.7%, largely driven by growth in the retail sector, increased online trade and more smartphone and card users.
In June 2014, MasterCard worked with Vietnam’s Sacombank to equip merchants at Ho Chi Minh city’s iconic Ben Thanh market with mPOS terminals. The same month also saw Mastercard join hands with Telkomsel and Bank Negara Indonesia to provide mPOS payment services to insurance company Equity Life Indonesia.
CIMB Bank and Wirecard announced a partnership earlier this year to offer an integrated banking and e-payment solution suite to Singapore merchants. The collaboration with M1 is expected to further expand CIMB Bank’s merchant banking business.