The future of payment is going mobile. Over the past few years, we are seeing a steady decline in cash transactions with two-thirds of payments made by card. With the introduction of contactless, it is much easier for customers to tap and go rather than take cash out of the bank. The introduction of mPOS makes it easier for small businesses to take card transactions but what does it mean for the future of CASH? E-commerce revolutionised how we shop today, is mPOS the next big thing for start-ups and young enterprises.
The past decade has seen technology radicalise the retail industry in a way that we could only imagine. Consumers have options on how they choose to shop that they did not have to say ten years ago. E-commerce has made online shopping a convenient solution where retail outlets are open 24 hours. Online purchases are driving sales and any respectable retailer will have a strong online presence. Online purchases have eliminated the need for cash which has also had a knock-on effect on shoppers that do make it to the High Street or Shopping centre by making payments by card.
Cash is gradually fading. Banks are feeling the effects of technological advancement as they go through a series of branch closures due to the popularity of online banking. Like retailers, they have seen a sharp decline in customers visiting the bank. The disappearance of banks mean that ATM machines are also going out. With limited access to cash customers are now relying on their cards to make purchases, with contactless it is now easier to pull out a card, tap and go. Two thirds of payments are made by card.
The technological environment has changed consumer behaviour as they now look to convenience and will gravitate to those stores who will meet their immediate expectations. Businesses need to prepare that at some point retailers will enter into a cashless society. Those that operate on a cash only basis such as a nail salon, pop up stalls, and independent traders in the hospitality sector like cafes, bars and restaurants need to rethink how they transact with their customers if they want to survive in this fast-changing environment.
Progressively more businesses are using mPOS as it allows them to take payment in a far more efficient way as opposed to having a POS fixated in some part of the building. Mobile POS or the abbreviated term mPOS is a payment system that allows businesses to capture card transactions on a business mobile.
Presently, the market size of Global Mobile POS Systems is valued at 170 million USD. According to recent published report Global Mobile POS Market 2019 forecasts that this figure will accelerate to 660 million USD by 2025.
Established retailers such as Apple Store have adapted this innovative method for a few years now. Always buzzing with customers, there is never a large queue as advisors are walking around with a portable mPOS.
For those entering the retail market cost is always a huge factor. A fully integrated and sophisticated EPOS system is affiliated with a heavy cost as well as committing to a contract and licensing fees. To survive in a competitive market and with no cost effective alternative many outlets choose to operate on a cash only basis. There is now a solution to that problem as smaller businesses who operate in an agile environment are now catching onto mPOS. They see the benefits from going to cash only to cashless only. There are considerations to take on board when handling cash on a business premise. For one there is the cost of insurance. It eliminates time and manpower spent cashing up at the end of the day. Rapid bank branch closures have made an impact on businesses who struggle to bank cash and are left with no choice but to use the services of a cash courier which is another cost to manage.
Start-Ups and Young Enterprises are attracted by the many incentives offered by mPOS providers. Most offer no contracts, no setup fee and instant activation. This kind of flexibility allows them to set up very quickly.
A1 Comms a specialist in business communications advises anyone thinking of going cashless to ensure that they are protected from cyber threat. This is a huge issue for businesses who choose to go online or cashless. It is important to take time to find the right business solutions such as ensuring a strong broadband connection. Using mPOS as a method to accept payment means that businesses need continuous connectivity as failure can lead to loss of sales which can subsequently lead to losing customer confidence. It is imperative to join a service provider that can meet the needs of the business and essentially have a strong support team to trouble shoot issues as they arise in a busy retail environment. A1 Comms, have seen an increase in the purchase of business mobile phones especially amongst independent cafes, restaurants and market/stall holders. As the ventures are independent in nature, they want to minimise overhead costs. Due to the agile nature of the business in which they operate, they are looking for cloud-based solutions to help support with the continuous changing dynamics.