Point of Sale (PoS) experiences in brick and mortar stores are changing drastically. Sparked by COVID-19 and social distancing measures, retailers are looking to maximize flexibility and contactless functionality in transactions. This shift has brought about new approaches to PoS infrastructure; during 2020, almost a quarter of business leaders had plans to upgrade or invest in new PoS systems.
As retailers reset and evaluate their systems, PoS providers must observe current trends to remain relevant. Below, we list 5 things for PoS device vendors to consider so they can best serve merchants in 2023.
PoS devices must be flexible to remain relevant in today’s highly competitive market. Newer, innovative systems automate the checkout process, track sales, and integrate with other business applications. They can also manage customer interactions and issue alerts on low-stock items. Not only are they rich in features, modern-day PoS systems are also mobile. Merchants can move their transactions away from stationary cash registers and into the hands of employees.
As we entered a global pandemic, PoS flexibility made it easier to follow sanitization and social distancing protocols. Today, merchants want PoS devices that can move around easily, and are not hard-wired into an ethernet port, or bound by WiFi range.
2. Checkout experience
Another way PoS providers can serve their customers in 2023 is by providing seamless checkout experiences. Major retailers like Amazon have already implemented this feature.
Founded in 2018, Amazon Go is a chain of cashierless convenience stores backed by ‘Just Walk Out’ technology.
According to Amazon, the technology “automatically detects when products are taken from or returned to the shelves and keeps track of them in a virtual cart.” Once a customer is finished shopping, they can “just walk out.” They’re then charged and issued a receipt on their Amazon account.
Scan-and-go is another checkout-less experience gaining steam. In this scenario, customers can scan items in-store and complete payments through a downloadable app. They move through aisles with handheld scanners, some of which require Internet connectivity. Found in stores like Kroger and M.J’s Wholesale Club, scan-and-go has expanded as retailers search for ways to make shopping more convenient.
Customers are growing accustomed to innovative checkout experiences and it’s time for PoS providers to follow suit. Modern Electronic Benefits Transfer (EBT) PoS systems that simplify checkout processes save valuable counter space, which leads to better customer experience and staff retention.
3. mPOS is the flavor of the month
Mobile Point of Sale (mPOS), an alternative to PoS hardware, is making waves in the industry. mPOS allows merchants to accept and log digital payments through a smartphone app. Sleek and efficient, mPOS devices are commonly used by small to medium-sized businesses due to their relatively low cost.
mPOS enables merchants to use their own devices for connectivity. In some cases, merchants adopt a hybrid model where they plug into PoS-provided hardware to accept payment methods.
Since mPOS devices maximize flexibility and streamline checkout experiences, they’re becoming attractive options for merchants. PoS providers who don't integrate efficient solutions run the risk of delivering outdated customer experiences and ultimately losing business to providers who do.
4. Tech giants are closing in on PoS
When the COVID-19 pandemic began, contactless payments became a necessary way to reduce social contact. No-touch payments increased for 69% of retailers, according to a National Retail Federation survey. Though the number of shoppers declined, Apple Pay, Samsung Pay, and Google Pay grew in popularity as customers turned to mobile payments.
Now, Apple is capitalizing on this trend by joining the PoS space. In February 2022, Apple announced Tap to Pay, a new feature that'll allow merchants to accept Apple Pay payments with just an iPhone. Tap to Pay on iPhone will be available to payment platforms and developers, and act as an alternative to PoS hardware and payment terminals.
As Big Tech closes in on mPoS, manufacturers of dedicated PoS devices must adopt innovative practices to remain competitive.
5. mPOS has some glaring security concerns
mPOS allows for smooth, fast transactions but it’s not without its issues. Unlike closed payment systems, the security of mPOS is contingent on the merchant’s device and the app on which it runs. This means that if a merchant’s device or downloadable app is not secure, hackers could potentially access confidential and sensitive information.
Without proper safeguards, malicious actors can view customers’ card numbers and PINs. mPOS providers can reduce and control potential security risks, but it’s ultimately dependent on the merchant’s protocols.
Elevate your PoS devices with multi-carrier connectivity
Trends in PoS are driving consumer and merchant demands for flexible, seamless checkout experiences. As a result, merchants are adopting mPOS solutions and Big Tech is racing to capitalize on the opportunity. PoS providers who don't adapt to changing trends will lose customers to those who do. Providers are better served in 2023 by owning their niche and supplying integrated systems with end-to-end security.
The Telnyx IoT SIMs elevate PoS devices by redefining connectivity—making it quick and straightforward to deploy your devices across the globe. Telnyx offers triple size (Mini, Micro and Nano) SIM cards and embedded MFF2 SIM form factors. With an intuitive Mission Control Portal and Telnyx’s Wireless API, you can manage and control your SIM cards with code.
Thanks to our private network, data flows from the point of sale to your payment processor with fewer hops on the public internet, minimizing security risk. It’s also easier to create fully privatized connections between your SIM cards and corporate environment for even greater security.
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