Although they might look similar, the offer is very diversified and often segmented by turnover and type of business, as well as the general UX for the customer. Also, some are connected to the cash register better than the others, immediately displaying the amount on the screen, while at the others, the process is slowed down by the cashier having to manually insert the amount, choose the right device based on the credit card and other (unwanted) additional steps.
However, when looking at the complete universe of retail businesses, service providers, and others, we can see that there are segments that still don't use them, and sometimes rightly so.
- Micro merchants– for a small turnover they have, getting a physical POS might be costly, although customers would like to pay cashless
- Or imagine having a business of renting sports equipment on an open field – sometimes that means having no desk at all, so carrying another piece of hardware is not an option
- Selling organic products by the side of the road – also not a picnic for the classical POS setup
Despite the obvious setbacks listed above, these businesses still need to offer contactless payment, simply because their customers demand so. A recent short survey on Linkedin on the preferred payment methods revealed that only 6% of respondents still prefer paying cash, and the vast majority inclines to other means – 39% card payment and 55% any form of contactless payment.
Let's look at what types of POS systems are available and most commonly used today
Standard POS terminal - ideal for large retailers that integrate their cash register application with a small dedicated POS device enabling them to accept any kind of cashless payments.
And while Standard POS works well for many businesses, certain issues are preventing the use of it in the small and micro-segment: high commissions and fees, significant terminal price, fixed monthly costs, requires desk space, etc. This all prompted the development of another POS type – mPOS, which combines a small card reader with an Android device.
The price of mPOS is much more approachable for small merchants, but there are still open issues such as necessary integration between mPOS and Android devices, handling and carrying 2 separate devices, and all that comes with it.
Recently, a third option was made available – and this is a SoftPOS solution, that solves all the above-mentioned issues and can be ideal for micro and on the go businesses.
What is a SoftPOS?
SoftPOS is a solution that turns any Android device to act as a POS, by utilizing NFC technology. Due to its convenience and low costs, it is an ideal tool to onboard neglected merchant segments, so they too can offer contactless cashless payments with no hassle. There are no additional readers or devices of any kind – all you need is an Android device and the application or SDK.
Can other merchants benefit from SoftPOS too?
Having such a solution can also find its use in bigger stores, as a backup that can significantly reduce slow-downs during peak hours, when employees can process payments on their mobile phones anywhere in the store, relieving the pressure on regular cash registers.
To conclude, contactless card and other device acceptance is a trend driven by customers, so no business can ignore it. Thanks to technology development, each segment can now select the most suitable POS solution. Find out more on the SoftPOS solution, a new product by Payten, or contact us for a free consulting call.