POS technology has come a long way since the first cash register was invented in 1879 by James Ritty and John Birch (comedically dubbed the incorruptible cashier). POS technology has gone from being a tool to accept credit cards to a tool that enables consumer-focused specializations. Modern POS systems are far more convenient and flexible in allowing businesses to provide more custom solutions and propositions for customers.
Mobile POS (mPOS) allows any smart device such as a phone or tablet to be turned into a POS system. If you’re a business owner and you choose to register your company with a particular app, you’ll receive a card reader that can be attached to your smart device. Some mPOS software providers also offer accessories that can allow for the mobile printing of receipts. Pinpoint Payments has our own mobile POS solution which gives you access to a card reader and mobile printer add on.
The advantage of mPOS is that it changes the entire engagement and checkout experience for customers. This gives sales representatives in many retail stores a lot of flexibility to show customers around and strike while the iron is hot.
Apart from making sales as quick and efficient as possible. It provides a unique opportunity for visual design and store layout. Picture this scenario:
You walk into a store. You’re greeted by the sales rep; they’re built like a Greek statue and have a professional grace that Dale Carnegie himself would be proud of. The rep proceeds to show you around the store, giving you a tour of the place and the merchandise. The moment you find something that appeals to you, he grabs it and says he can check you out right here, right now. You’re standing in the middle of the floor, this has never happened to you. It’s an ambush—a good one though. Because you really did want that item. Impulse shopping is nothing new in the world of sales, but being able to opportunistically capitalize upon those moments is beneficial to any business selling goods and services. You can do that with mobile POS.
Customer Relationship Management (CRM) software is a tremendous boon to businesses all over. CRM software is used to identify and act on trends within consumer behavior to raise customer retention. Many modern POS systems can become integrated with CRM software. Consider how much information can be learned about your customers if every time they purchase with you, that data is captured right at the POS and can be used to make highly informed tweaks to your business.
Not only does this allow businesses to make decisions backed by raw data to improve their bottom line, but it also allows them to provide more individualized experiences to repeat customers. Consider how useful it can be to both parties if a business can aggregate data about your menu choices at a dining establishment and send you a coupon for items you’ve ordered more than three times. This data can also be used to tailor loyalty and rewards cards programs towards a businesses’ most loyal followings.
EMV technology is a payment method that allows for cards to have chip technology that store data on them. It’s an additional safety precaution that is implemented on top of the existing magnetic stripes. Chances are, you’ve seen and already possess a card like this in your wallet. The card must be inserted into a card reader that can accept and read EMV cards.
In 2013, Target was the victim (target) of a data breach which resulted in their paying of $18.5 million settlement—the largest ever for a data breach. The breach was estimated to have affected the information of at least 40 million Americans. The attack was a success due to hackers being able to exploit the weak security of magnetic strip technology. After news of the breach spread far and wide, card issuers stated that they would make the switch to EMV. US-based merchants were handed a deadline by which they had to meet. Any merchant who did not switch to EMV was liable for payment fraud if the source was a POS terminal that had been breached.
Due to the fact that more POS transactions are being carried out digitally and will be increasingly digitized, security is a growing concern that needs addressing. EMV technology is a much-needed security improvement as more small business owners are getting their hands on software-centric POS solutions. However, remember that all methodologies have weaknesses. It’s important to be in business with a good merchant processor that can handle such issues of fraud management when they do unfortunately happen.
The future of POS is almost certainly in the cloud. Cloud-based POS systems have numerous benefits, their drawbacks being the issue of security—which has been mitigated to some degree by EMV technology. The biggest benefit is how quickly cloud-based POS systems can scale with businesses.
While your business is evolving, cloud-based POS systems will allow you to quickly adapt to your new growth with little downtime or loss of opportunity.
Pinpoint Payments is a merchant processor that can service all of your POS system needs. Our POS systems are capable of generating reports, tracking sales, managing inventory and working with employee schedules. Visit our contact page or give us a call at (866)-256-8353 to start accepting credit cards with us today!