Wednesday, January 31st, 2018
Fintech is becoming one of Europe’s leading tech sectors. Technology companies are now working to come up with services and gadgets that will ensure entrepreneurs enjoy better and more straightforward ways of taking payments and handling their finances.
Mobile Point of sale a.k.a mPOS is one of Fintech’s noteworthy achievements. As the use of smartphones in EU markets draws near to 60%, grown businesses and retail stores are now working to augment their point of sale (POS) systems with mobile POS devices.
How Mobile POS made their way to the payment market
It is important to notice that there’s a significant difference between making payments using your Smartphone and accepting them using mPOS gadgets. If by 2014 eMarketer had predicted that the number of people who purchase merchandise through digital channels would grow to 190 million, then we expect that the use of mPOS may have shot even further due to the increasing popularity of Smartphones.
Disappointingly, merchants and customers in Europe have not widely adopted the use of mPOS systems. A 2014 VISA study revealed that only 25 percent of Europe’s SMBs were mobile POS system savvy. But how many use these gadgets?
Why use mPOS?
Adding mPOS systems to your business has one significant advantage to both parties. The merchant can take payments digitally, and the consumer must not physically be at a given location. Integrating such systems into your store also allow you to better understand who your customers are, their amount spent per visit, how regular they visit and the best discounts to offer them.
Competition from established payment providers
In spite of this, mPOS are still competing in the whole of Europe with POS systems issued by merchant account providers UK that in most cases offer a way lower cost per transaction compared to SumUps or iZettles (the two leading mPOS service providers).
Some growing vendors have tried to better the face of mPOS by addressing merchants’ needs and are now offering affordable and flexible fees. However, the mPOS are still not well accepted by retail stores and customers that evidently need to add in a mobile solution to increase their sales per day.
Plus, consumers don’t seem to be noticing any remarkable advantages mPOS have over the traditional cards which have been there for decades and are known for comfortable and secure completion of transactions.
The ability to take payments digitally and while on the move will give your startup an edge compared to other systems. But you should provide several solutions based on customer needs. Failure to do so means you’ll only be equipped enough to accommodate a handful of customers.