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March 28, 2008

Mercator Releases New Report On U.S. Wireless POS

By Calvin Azuri, TMCnet Contributing Editor

According to the latest report from Mercator Advisory Group, "US Wireless POS: Gets Up from the Table and Runs Out the Door,” C-level and operational leadership at ISO’s, merchants, payment processors and others planning to implement wireless point of sale solutions, will find that U.S. deployments of pay-at-table solutions do not live up to the expectations set.




According to the report, a struggle between finding beneficial business solutions and barriers is affecting both the merchant who buys the gear, and the distributors trying to sell it.

The report notes that wireless POS for the mobile merchant using cellular networks is the current leader in the wireless segment and has close to 20,000 units which also include legacy systems.

Proximity-based wireless POS such as pay-at-table have had less than 20,000 units shipped in 2007 and are in the very early stages of deployment. 

Also, the report notes that over 50 percent of wireless terminal related revenues will be comprised of managed services such as data communications, payment transaction fees, gateway services and advertising placement by 2010, which in turn will boost margins considerably.

George Peabody, Director of Mercator Advisory Group's Emerging Technologies Advisory Service said, "Several years ago, the pay-at-table wireless point of sales proposition looked like a slam dunk winner. Today, a balance of barriers and benefits continues to stall growth.”
 
Calvin Azuri is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page .
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