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The Move to IP at the POS: The Juggarnaut Gains Momentum


Boston, MA
September 2004

The Move to IP at the POS:
The Juggernaut Gains Momentum...
NEW RESEARCH REPORT BY MERCATOR ADVISORY GROUP

We've become accustomed to the Internet over the last decade, but the Internet as we know it is limited in its reach -- it resides on desktops and a few high-end cellphones.  With IP POS, that is set to change; the POS terminal is unshackled and had been given the bandwith to become a device that truly enhances the customer experience.

Nick Holland, Director of the Emerging Technologies Advisory Service and co-author of the report sees the IP enablement of the POS as having wide reaching repercussions:

"Internet Protocol will provide the transport mechanism for a new dawn of highly advanced, customer centric POS applications.  There will be a wide variety of opportunities, and if the Internet can be seen as a blueprint for how IP at the POS develops, things are likely to happen quickly." 

Stakeholders in the IP POS transition, 2004
One of Ten Exhibits included in this report

While there are plenty of opportunities, there will also be plenty of pitfalls.  Holland sees the IP juggernaut as not being a guaranteed success for all:

"While there is much to be said for being an early participant in the development of products and that this may well prove to be a foot in the door to IP POS market share as the market matures, there will undoubtedly be losers as well as winners.  Competition will be fierce and may well be coming from once trusted allies..."

Hightlights of the report include...

  • The evolution of the 'Pervasive Net' -- detailing key areas of growth and the extension of the Internet beyond the PC environment
  • A comparison of IP vs. Dial-up transactions, highlighting the key advantages provided by transitioning to IP connectivity
  • A discussion on the value propositions for stakeholders
  • A projection for the growth in IP at the POS to 2007 by market segment
  • An analysis of what's happening now for stakeholders including POS vendors, IP Gateways, Processors, Acquirers & Network Systems
  • A discussion on the downside of IP and the issues that might impede the development of IP at the POS
  • A discussion on the Future of IP at the POS

The report contains 10 exhibits and is 28 pages.

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