Brad Hyett, CEO of phos, writes for Payment Expert on the upward trajectory of software point-of-sale (SoftPOS) and why payment companies should be taking in mind the future of the industry when doing so.
As more and more modern fintech and payment companies have begun to integrate SoftPOS, Hyett explores why this solution provides so many customer benefits, and why embracing SoftPOS will enable companies to stand out and be successful in an industry that is “more saturated than ever”.
Cashless payments have been on a steady upward trajectory for some time now, and businesses need to find ways to keep up with this change in consumer behaviour.
Fortunately, the rise of tech startups in the UK has ensured that new technologies continue to emerge at an unprecedented rate. This includes various innovations that enable enterprises to accept cashless payments.
As competition in the market increases, it’s become more important than ever to match pace with this rate of technological advancement. However, many firms still use outdated technology that puts them at risk of being left behind.
This could be for a multitude of reasons, from businesses being resistant to change to simply not wanting to spend money on specialist training for the workforce. That’s where SoftPoS comes in.
Enables convenient payment touchpoints
With the increase in the popularity of novel touchpoints like pop-up shops, mobile outlets, and festival stalls, the retail sector has become extremely dynamic. This is only set to increase in the years ahead.
These selling points often see heavy footfall and are a great way to bring the brand experience to the customers. However, these temporary means of shopper contact have an expiry date, lasting anywhere from a few days to a few weeks.
With the window being so small, it doesn’t make sense for companies to invest in complex point-of-sale hardware. In such cases, SoftPoS emerges as a cost-effective and convenient solution, since it is easy to deploy and can leverage existing NFC-enabled smartphones and tablets by turning them into payment terminals.
Keeping pace with new payment methods
Merchants need to match the pace with emerging forms of payments, but traditional systems often act as a roadblock to this. Since the process of making a traditional point-of-sale compatible with a novel payment method requires costly hardware upgrades, this is not surprising.
Moreover, with the momentum of technological change gradually building over time, newer payment technology is likely to emerge before a given company even has a chance to fully leverage the upgraded hardware. As a result, the return on the investment is questionable.
In such an economic environment, the most sensible way to ensure that deployed technology is capable of handling the constant developments in payments is to upgrade it via the software, rather than the hardware, as is the case with SoftPoS. The technology can be modernised with a relatively simple software update, thus maximising return on investment for years to come.
Matching growing customer expectations
SoftPoS is expected to grow by 475% in the next three years. The increased adoption will drive a shift in customer expectations. As a result, businesses still relying on traditional payment systems will inadvertently be considered ‘rigid’ and ‘outdated’.
However, the rapid pace of adoption of SoftPoS technology also presents an opportunity. Firms that pioneer this software early are much more likely to be considered ‘modern’ and ‘forward-thinking’, consequently setting themselves up for success in the future by generating a positive image and thus attracting young, tech-savvy professionals.
With an overwhelming number of fintechs constantly working to make their payment processes more effective and convenient for consumers, the industry landscape is more saturated than ever. Only the most efficient and flexible enterprises will find a way to navigate this environment.
SoftPoS is one of the few technologies designed to steer businesses through the changes in technology and consumer behaviour. By embracing SoftPoS technology early, businesses can gain a competitive edge, meet rising customer expectations, and thrive in the dynamic world of modern payments.