Boston, MA
November 2005



This report is the second of a two-part series concentrating on virtual point of sale.  In this report, Mercator Advisory Group examines growth and market adoption in the vPOS market.  vPOS penetration has gone well beyond traditional retail environments, extending card-present payment processing capabilities to among others: professional services offices, local municipalities and hospitals.  

“Competition is fierce at the point of sale.  However, vPOS solutions are gaining acceptance in the market as a solution that works with minimal effort,” according to Melanie Broad, Research Analyst for Mercator Advisory Group’s Emerging Technologies Service and principal analyst on the report.  “Growth in vPOS adoption has been increasing steadily and we expect that trend to continue.  The ability to leverage payment processing from a PC is invaluable for businesses and organizations and we expect to see vPOS further extend its reach into new markets.”

In Virtual Point of Sale Markets and Growth, Mercator Advisory Group examines the current state of the vPOS market and also considers the potential for growth in the point of sale space.  The report discusses the applicability of both in-house and hosted vPOS solutions to various market segments by pointing out specific characteristics that might benefit different merchant types.  The report goes on to highlight both retail and non-traditional payment environments in which vPOS has found increasing adoption.

The report discusses factors that will lead to adoption of vPOS including aggressive marketing and competition among new entrants in the point of sale market.  In addition, Mercator Advisory Group’s latest report explores macro trends in an effort to identify factors that will indirectly influence vPOS, such as increased access to broadband, falling PC prices and the convergence of legacy ECRS.  Finally, the report touches upon some ways that vPOS growth might manifest in the future.

                          One of four exhibits included in this report

The report contains 21 pages and 4 exhibits.


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