Reduction in transaction costs will significantly augment the global mobile card reader, which is expected to reach close to $29bn in revenue by 2020, according to a research report by Technavio.
Sunil Kumar Singh, one of Technavio’s lead industry analysts for computing devices research, said: "A major selling point for vendors in the market other than the simplicity of card payment processing is the reduced transaction costs.
"A majority of vendors in the market only charge a fixed transaction fee for every transaction. The fee varies for swipe and chip and pin, but the average fee per transaction was USD 2.90 in 2015.
"This replaces the traditional method wherein merchants are charged a monthly service fee as well as a cut on every transaction. Such complexities in payment transactions are now reduced with the help of solutions provided by vendors," Singh added.
The mobile card reader market in the Americas was valued at $1.22bn in 2015. EMEA was the second-largest contributor in the market, with Europe implementing the highest standards of payment. The mobile card reader market in APAC was valued at $0.28bn in 2015.
The report says that APAC is the fastest-growing market for mobile card readers. It had a low adoption rate of mobile card readers in 2015, so multiple local and regional vendors started to market their products aggressively.