What would you have said if 10 years ago, we told you that one day you would be able to fit a point of sale register and card machine into your pocket?
You’d probably think we were crazy people with wild imaginations or ridiculously large pockets. Luckily for us, the rapid advancement of technology has saved our reputations and made pocket-sized payments a reality. Allow us to present to you mPOS – card payment acceptance and point-of-sale functionality all built into one mobile solution that’s small enough to carry with you wherever you need it.
What is mPOS?
In its most simple form, mPOS is the ability to allow a smartphone or a mobile device to accept credit card transactions. As a business using mPOS to accept payments, you would use an existing smart device paired with additional technology such as a card reader. mPOS also allows you to sell goods and services, which means it goes beyond simple card acceptance and also functions as a Point of Sale (POS).
Why is it relevant? The Acceptance Gap
South Africa has more bank cards than people. This means that there is a large demand in the market to pay by card – which is not being met. Think of how many customers or sales this means your business could lose out on if it doesn’t accept card payments.
75% of adults own at least one credit card but only 6% of retailers have card acceptance facilities.
Acceptance has not kept up with the popularity of cards for a number of reasons. A main factor is that with traditional payments providers, the cost to service a customer is quite high. Traditional card machines are costly to finance because they have fairly advanced hardware and software built into them. Because businesses can’t afford to buy these machines outright, payments providers are taking risks when selling them card terminals. This means that traditional payments providers have focused mainly on larger businesses who they are more certain can afford the card machines.
mPOS changes this – it drops the cost to serve because the sophisticated and expensive hardware is now on the smart device that you as a business owner already have. This makes the card reader component fairly basic, and cheaper to manufacture and sell. The result is that your business, which previously would not have had access to card facilities, is now able to afford the technology.
How does it work?
As a business, once you sign up with an mPOS provider you receive a card reader which connects to a smart device. You will have to install some form of software on the device, usually in the form of an app. This combination then allows you to accept credit card transactions, accept other forms of transactions (debit and cash), track those payments, as well as track your goods and services.
If you’d like to get set up with your very own mPOS device to accept card payments in your business, visit our website for more information.