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The mobile card reader market size is forecast to increase by USD 28.8 billion at a CAGR of 25.2% between 2023 and 2028. The market is witnessing significant growth due to the increased adoption of contactless payments and the emergence of Near Field Communication (NFC)-based payment technology. Contactless payments offer convenience and speed, making them a popular choice among consumers. NFC technology enables secure and seamless transactions between a mobile device and a payment terminal. However, high operating and maintenance costs of Point of Sale (PoS) terminals continue to pose a challenge to the market growth. Mobile card readers offer a cost-effective alternative to traditional PoS terminals, making them an attractive option for small and medium-sized businesses. Additionally, the increasing popularity of mobile wallets and mobile banking applications is driving the demand for mobile card readers. The market is expected to grow at a faster pace in the coming years, with innovative technologies and partnerships between mobile device manufacturers and payment providers fueling the growth.
The market is witnessing significant growth due to the increasing popularity of contactless payments and the need for secure payment processing on-the-go. These devices enable the read information from various types of cards, including credit cards, debit cards, identification cards, memory cards, and even contactless key cards. The hardware consists of sensors and magnetic heads that read the data from the cards, while software and compatibility with computers, mobile devices, and USB ports facilitate data transfer. Mobile card readers support contactless payments through technologies like near field communication (NFC) and radio frequency identification (RFID). Security is ensured through authentication, encryption, and damage card detection features. Bluetooth connectivity and photos transfer are additional functionalities that cater to the consumer's needs. The market is expected to grow as more businesses adopt mobile payment solutions and consumers demand secure and convenient payment processing.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The chip and pin segment is estimated to witness significant growth during the forecast period. The market encompasses devices designed to read and transfer data from various types of cards, including credit cards, debit cards, identification cards, memory cards, and contactless key cards.
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The chip and pin segment was the largest segment and valued at USD 2.71 billion in 2018. These devices enable data transfer between the card and a mobile device or computer, often through USB port, Bluetooth, or near field communication (NFC) technology. The hardware may incorporate sensors and magnetic heads for traditional card reading, while software ensures compatibility with multiple card types and contactless payments via NFC, radio frequency identification (RFID), or security features such as encryption protocols and authentication. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Mobile payment devices, such as contactless payment systems and Near Field Communication (NFC) technology, are revolutionizing the way transactions are processed on-the-go. These devices offer flexibility and convenience for both customers and merchants, enabling contactless payment and user-friendly interfaces for seamless payment acceptance. Hence, such factors are driving the market in North America during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased adoption of contactless payments is notably driving market growth. Mobile card readers have revolutionized the way we make payment transactions, enabling contactless payments using various types of cards and mobile devices. These devices allow the reading of information from credit cards, debit cards, identification cards, memory cards, and even contactless key cards. The hardware and software integration of sensors, magnetic heads, and compatibility with multiple card types ensures secure and authentic payment processing.
This technology offers convenience and speed, as customers can simply tap their cards or NFC-enabled smartphones near the terminal to complete the payment process. Security is a top priority, with encryption protocols and biometric cards providing an additional layer of protection against damaged cards, clone credit cards, and data breaches. Thus, such factors are driving the growth of the market during the forecast period.
Emergence of NFC-based payment technology is the key trend in the market. Mobile card readers have gained significant traction in recent years due to the increasing popularity of contactless payments and data transfer between various devices. These devices enable the read and write functionality of credit cards, debit cards, identification cards, memory cards, and even contactless key cards.
Moreover, the hardware comprises sensors, magnetic heads, and software for secure payment processing and data transfer. Compatibility with multiple card types and mobile devices, such as smartphones and tablets, is essential. NFC technology facilitates contactless payments through near field communication (NFC), which allows the exchange of data between two devices at a limited distance.
High operating and maintenance costs of PoS terminals is the major challenge that affects the growth of the market. The market has witnessed substantial growth due to the increasing preference for contactless payments and data transfer between various types of cards and mobile devices.
Moreover, these devices enable the read-out of information from credit cards, debit cards, identification cards, memory cards, and even contactless key cards. The hardware and software components of these devices include sensors, magnetic heads, and compatibility with multiple card types and mobile devices such as smartphones and tablets. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Block Inc: The company offers mobile card reader such as Square Reader for contactless and chip packs with a powerful battery in a pocket sized POS and supports all square point of sale solutions.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing popularity of contactless payments and the convenience they offer. These devices enable the read information from various types of cards, including credit cards, debit cards, identification cards, memory cards, and even contactless key cards. These devices connect to mobile devices such as smartphones and tablets via hardware interfaces like USB ports, Bluetooth, or NFC for data transfer. The hardware of mobile card readers comprises sensors and magnetic heads to read data from traditional magnetic stripe cards. Advanced models support contactless payments using Near Field Communication (NFC) or Radio Frequency Identification (RFID) technology. Compatibility with multiple card types, contactless payments, and various mobile devices is a crucial factor driving the market's growth. These devices also offer secure payment processing, data security, and encryption protocols to protect against data breaches and card cloning. Mobile card readers are not limited to payment transactions alone. They can also be used for transferring photos, writing data on memory cards, and even powering external devices. Additionally, biometric cards and encryption protocols add an extra layer of security to these devices. Mobile card readers are an essential hardware component for mobile payment apps and POS systems.
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Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 25.2% |
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Market growth 2024-2028 |
USD 28.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
19.8 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, UK, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adyen NV, Block Inc., Electronic Merchant Systems, Global Payments Inc., Ingenico Group SA, Intuit Inc., Leadway Tech, LIFE PAY, Miura Systems Ltd., Mswipe Technologies Pvt. Ltd., North American Bancard LLC, PayPal Holdings Inc., Razorpay Software Pvt. Ltd., Revolut Ltd., Shopify Inc., Stripe Inc., SumUp Inc., VeriFone Inc., Wise Payments Ltd., and Xero Ltd. |
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Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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