Mpos Tracker™ Report AUGUST 2017
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a mPOS Tracker™ report AUGUST 2017 MASTERCARD’S MPOS SHOT AT THE OPEN CHAMPIONSHIP Debuting in-seat delivery at the Open Championship, GASTROFIX achieves Find the top providers in powered by mPOS €15 million in funding the latest Tracker Scorecard – page 5 (Feature Story)5 – page 8 (News and8 Trends) – page 16 16 mPOS Tracker™ © 2017 PYMNTS.com all rights reserved Table of Contents PAGE What’s Inside A look at the quickly evolving mPOS space, and the latest news on expansion 03 efforts from mPOS providers. PAGE Feature Story Elliott Goldberg, head of digital payments for Mastercard U.K., on how the 05 company made mobile payments work at last month’s Open Championship. PAGE News and Trends 08 The latest headlines and trends from around the mPOS world. PAGE Top 25 Providers | Scorecard The results are in. See this month’s top scorers and a provider directory 15 featuring 283 major players in the space. PAGE About 155 Information on PYMNTS.com mPOS Tracker™ © 2017 PYMNTS.com all rights reserved August 2017 | 2 What’s Inside hile smartphones and other mobile devices are Also on the expansion front, California-base credit card a staple of American life in the 21st century, processor Square is continuing international efforts they’re even more popular abroad. That is in the U.K., where it recently celebrated the addition Wcertainly the case when it comes to the usage of mobile of partners TouchBistro and Vend to the Square U.K. wallets. Adoption rates in Europe and Asia far outpace platform. those in the U.S., thanks to consumers who are eager To read the rest of the latest news from around the for more modern payment methods in those regions. In mPOS world, check out the Tracker’s News and Trends China, for example, the mobile wallet market is four to section on page 8. five times the size of the market in the U.S., and usage rose by 200 percent from 2015 to 2016. mPOS at the Open Championship With so much international acclaim and adoption for The power of mobile payments was recently on display mobile payments products, it should come as no surprise in the U.K. at the Professional Golf Association’s (PGA) that providers are eager to capitalize on this popularity. British Open Championship. PGA tournament organizers Over the past month, several providers looked to partnered with Mastercard to bring the company’s Qkr! widen their customer bases and boost revenue through mobile payments and mPOS system to concessions and international expansion efforts. merchandise sales at the event, held at Royal Birkdale Golf Course in Southport, England. Here’s a quick snapshot of notable mPOS news from the past month: For this month’s Tracker Feature Story (p. 5), Mastercard’s head of digital payments in the U.K., Elliott German restaurant POS system GASTROFIX has had its Goldenberg, discussed the use of mobile payments at aim on international expansion, but it needed the funding the Open Championship and other largescale events. to make it happen. The company recently reported the In fact, Goldenberg told PYMNTS, the company rolled closing of €15 million in a Series B financing round led out new features at the tournament — including in-seat by the Radeberger Group, which will cover the costs of delivery — that it hopes to bring to other large events in international market expansion. the U.K. Meanwhile, Chinese mobile payments and mobile wallet app WeChat Pay is on the hunt for new customers. August Tracker updates The company recently announced it would partner This issue of the mPOS Tracker features 283 global with Wirecard AG to enable more European retailers providers in the Scorecard, highlighting players from to accept payments via the app. The collaboration will around the space. Four companies have been added this target increased spending by Chinese tourists through month to the ever-expanding provider directory: Elavon, European retailers. GASTROFIX, NetSecure Technologies and ProPay. mPOS Tracker™ © 2017 PYMNTS.com all rights reserved August 2017 | 3 What’s Inside $24.5 Billion Projected value of the global mPOS market by 2021 $3 Billion 11.5% Projected value of the POS market in India by 2024 Projected growth for the global POS terminal market through 2025 Five Fast 87.3% Facts5 of U.S. purchases still made with cash rather than modern payment methods 155% Growth in the number of mPOS systems delivered to retailers in 2016 mPOS Tracker™ © 2017 PYMNTS.com all rights reserved August 2017 | 4 FEATURE STORY Mastercard’s mPOS Shot At The Open Championship he recent Open Championship — the British PYMNTS recently caught up with Goldenberg to discuss Open — delivered an epic comeback for Jordan Mastercard’s recent mobile payments efforts at the Open Spieth, who overcame bad lies (the golf kind) and Championship as well as other large-scale events — and Tbad luck to become the youngest golfer to win multiple about the company’s future mPOS plans. majors. And, in surrounding concessions activity, it was a momentous event for fans of mPOS scorecards. Connecting at a championship (or concert) Mastercard debuted Qkr! in partnership with U.K.- Mastercard brought its mobile wallet and payments based restaurant chain Wagamama to help the company system Qkr! to the Open Championship held at Royal move customers in and out of restaurant locations more Birkdale Golf Course in Southport, England, in an effort rapidly. After being deployed in 2014, the system quickly to cut down on lines — or queues, for those preferring found success by allowing guests to pay bills faster, and U.K. parlance — at concession locations throughout the Mastercard’s researchers and developers saw other use venue. Mastercard U.K.’s head of digital payments, Elliott cases begin to emerge. Goldenberg, said it was part of a larger effort to get the mPOS system into the hands of fans at large-scale In fact, Goldenberg said he could see the possibility events, like sporting events or concerts. of using the mobile platform to serve large crowds at games, concerts and other big venue events. But while Qkr! may not have been making its grand debut, there were new features on display at the Open Using the same mobile technology that allowed users to Championship. For the first time, the system was used pay bills and leave restaurants expeditiously, Mastercard not just to speed up service or bust food lines, but also turned its focus on helping move event merchandise and for concessions delivery, which posed new challenges concessions lines, giving fans better ability to get back to and opportunities for the mobile payments system. the action. The system was rolled out at sporting events mPOS Tracker™ © 2017 PYMNTS.com all rights reserved August 2017 | 5 Feature Story — including soccer games across Europe and baseball games in the U.S. — along with concerts and festivals in the U.K. and abroad. UNDER THE HOOD But while there were some obvious advantages to using the mobile payments system at large-scale events like ELLIOTT GOLDENBERG of Mastercard the Open, there were challenges that went with it as on building a multiuse mPOS system well. These included making sure the mobile payments When Mastercard first created its Qkr! mobile system could reliably connect to the internet, an commerce platform, the company was hoping to especially difficult challenge in a large and spacious fill a specific need for a company with which it had environment like a golf course. To that end, Goldenberg partnered. In a recent interview with PYMNTS, explained the company does not even consider using the Elliott Goldenberg, Mastercard U.K.’s head of digital mobile payments system at venues that do not meet a payments, explained how the mobile payments minimum threshold of connectivity. But, even if internet system grew to be used in an array of applications around the world. connectivity isn’t an issue, Goldenberg said, there are other pitfalls that can hurt the effectiveness of mobile “It was built by our R&D business function and born out payments. of the Dublin office. We worked with a restaurant brand called Wagamama. We were working through a specific “It’s great to bust a queue and all that, but these problem with Wagamama: It took customers too long merchants have to be ready to get a rush of orders at to get out of the restaurant when they’d decided they one time, because there’s no line regulating how fast wanted to pay the bill. We were already working on a people can put orders in or anything like that,” he said. commerce platform we called Qkr! which we though “So, we go through quite an intensive [trial] period with would be a pretty useful solution. In 2014, we got to work on that, and we were up and running in six to the merchant to make sure they are ready to deal with eight weeks and able to deploy some flagship trials the demand that may come.” in London. It became clear pretty quickly that it worked very well. It was integrated through their POS system, and it complemented the user flow really neatly. From ...when it’s done correctly, this saves a huge a consumer perspective, a consumer was now able amount of time and effort for the consumers, to pay for a bill without having to ask for it from the but when it isn’t, it’s a real source of friction. server. That was the proposition that underpinned it, I guess you would say, but as we worked closely with Wagamama and other restaurants, it became clear that there were other features and functionality built within that commerce platform — and there were new ones That trial period includes introducing new technology to that we could add along the way.