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Consumers have an expectation, and that’s to use their electronic payments everywhere. Paying with smart devices and credit cards has never been bigger and is projected to grow through 2021. The former all falls under mPOS, which is gaining traction in retail and hospitality everyday due to market competitiveness. Falling prices for bottom-tier tablets with payment solutions attached have turned these cheap little gadgets into competent machines for light retail usage.
The higher-grade, enterprise mPOS tablets are also gaining market share. These machines are robust, containing cutting edge chipsets, software tailored for a specific niche, and high end peripherals. Sales of these products are powered by the professional retailer-established shop owners and retail chains that need support and value-added elements to prevent downtime, while reaping the benefits of premium service and software to go with the solution.
What kind of mPOS solution to sell to an end-user comes down to the kind of business they have. If they’re simply swiping a few cards per day for larger transactions, the more cost-effective tablet with a payment attachment may fit the purpose. On the other hand, these are not geared for support or modularity for growth. They can also be underpowered, and are not typically rugged enough for most retail chains or hospitality applications.
Recently, the traditional, large-scale retail and mobile POS manufacturers are revamping their business model to fill the gap spawned by falling prices. They must target an emerging, large segment of resellers catering to entry-level customers with inviting price points, then turn these successful businesses to more capable product with services attached. Solutions as a Service (SaaS) or Device as a Service (DaaS) business models are generating interest day in and day out. These programs contain the value-added benefits to help assist in working capital, involving larger manufacturers and banks to assume financial risks for the reseller. This opens up new revenue frontiers to the reseller while supporting the end-user customer.
Currently, and for the near future, retailers are driving the market growth for POS systems. The recent rush to upgrade to EMV readers and POS systems will soon decline when it becomes fully adopted by the industry. The mainstream retailer who upgrades hardware every three to five years is the customer truly driving the industry.
Ultimately, value-added services will win out and prove to be the most lucrative route due to loyalty benefits and subscription-based rental models, keeping everything fresh and relevant for all parties involved. This fosters loyalty and more services, producing new revenue streams.