[1] In its most specific use, it usually refers to merchant processing services that enables a business to accept a transaction payment through a secure (encrypted) channel using the customer's credit card or debit card or NFC/RFID enabled device.
More generally, the term may include: Merchant service providers work as an intermediary between the bank, a person or organisation wanting to receive funds and the person or organisation looking to purchase goods or services.
The merchant service provider will provide businesses and individuals with the requirements to accept credit cards, debit cards, and other forms of electronic payment for the transaction to take place.
This system does not require a merchant account although the companies that offer this type of service will still have a relationship with an acquirer.
The cost of payments made through mPOS are significantly higher so it is more suitable for businesses that do not put through many card transactions.