How Mobile Point of Sale (POS) can help the emerging cashless society

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Eileen Gardner
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1 Nigeria Inter Bank Settlement System 20 th Anniversary How Mobile Point of Sale (POS) can help the emerging cashless society Tony Lloyd-Weston Powa Technologies

2 A little background on mpowa MPowa is an end to end platform to enable smartphones and tablets to securely and efficiently accept payments in the physical world Secure, innovative and attractive POS hardware Simplified SDK s to seamlessly integrate secure payments into your mobile and tablet apps Advanced, cloud-based services to handle payments complexity and provide comprehensive POS functionality Reference Implementations of each platform component can be used for production or as components of your own solution Powa Technologies,, all rights reserved. Page 2

3 Is a cashless society a reality? Infrastructure costs of maintaining a cash based economy are huge Consumer psychology and entrenched systems will only hold us back for so long Powa Technologies, 2012, all rights reserved. Page: 3

4 Gartner research says mobile is the key to payments; Worldwide Mobile Payment Transaction Value to Surpass $171.5 Billion Worldwide mobile payment transaction values will surpass $171.5 billion in 2012, a 61.9 percent increase from 2011 values of $105.9 billion, according to Gartner, Inc. The number of mobile payment users will reach million in 2012, up from million in Merchandise purchases will drive transactions Powa Technologies, 2012, all rights reserved. Page: 4

Mobile happened (Global) Smartphone shipments are expected to surpass one billion for the first time ever this year (IDC ) Global mobile traffic now accounts for 15% of all internet traffic.

5 Mobile happened (Global) Smartphone shipments are expected to surpass one billion for the first time ever this year (IDC ) Global mobile traffic now accounts for 15% of all internet traffic. (Internet Trends ) 61% of people have a better opinion of brands when they offer a good mobile experience. (Latitude ) 60% of mobile shoppers use their smartphones while in a store, and another 50% on the way to a store. (Deloitte Digital ) As many as 40 percent of small retail and service businesses (in the USA) are using some form of mobile payment technology As much as 16 percent of respondents said they plan to add mobile payment capability within the next year. (BIA/Kelsey ) Powa Technologies,, all rights reserved. Page: 5

6 Mobile is happening In emerging markets, smartphone adoption is taking off and mobile payment is becoming the first and potentially only means of conducting financial transactions both online and for bricks and mortar shopping. For mature economies there is a risk of losing out due to retaining more traditional methods including cash. Powa Technologies, 2012, all rights reserved. Page: 6

7 How does mobile POS work? 1) Open the app, enter the amount to be charged 2) Insert or swipe the customers card 3) Customer verifies the amount and enters their PIN or signs the screen 4) Once authorized, an address or phone number is captured to provide an electronic receipt of the purchase Powa Technologies,, all rights reserved. Page 7

8 The transition from Cash to Card Track all sales & transactions, Capture consumer details, Marketing by text or , Real-time stock management Cash Card Powa Technologies, 2012, all rights reserved. Page: 8

9 Why should merchants track their transactions? Transaction receipts help drive additional merchant business Helps to drive customers back to merchants 1. Location of transaction 2. Offers 3. Builds loyalty Powa Technologies, 2012, all rights reserved. Page: 9

10 Tracking transactions is a strong business tool for merchants Merchant dashboards easily track their business All sales data is easily exported into popular accounting programs Powa Technologies, 2012, all rights reserved. Page: 10

11 Where can mobile POS be used? mpos POS New business revenue Retail Brands Shopping Mall & on-line P P P P Small Medium Enterprise Micro business 4 5 Powa Technologies, 2012, all rights reserved. Page: 11

12 How do we maximise adoption in the micro merchants? A good approach to micro businesses is to create vertical segments Like taxi drivers, doctors etc. Micro Businesses And create applications specifically for them. Powa Technologies, 2012, all rights reserved. Page: 12

13 How can mobile POS help large organisations? For large organisations mpos can help transform business processes Like the hundreds of thousands of insurance agents across Nigeria filling out paper forms and asking customers to make cash deposits Up to 25% of insurance cash deposits never happen and the business is lost. Imagine how many more contracts would be completed on the spot if the customers were able to pay with a card? Powa Technologies, 2012, all rights reserved. Page: 13

14 Business Process Re-engineering The soft drinks company where 80% of the deliveries change when they get to the cafes/restaurants so they never know what s really on their trucks. All the orders are on paper and the stock update is done at night when the trucks get back to the depot. With mpos the payments processed in real-time through the mobile application so the stock information on the truck is always up to date. Better information means more orders. Powa Technologies, 2012, all rights reserved. Page: 14

15 Who should brand the mpos services? White-Label approach places enables existing trusted brands (like Banks and Telcos) to brand these services Retail Banks, payment service providers, 3 rd party processors, mobile network operators and system integrators are best placed to deliver mpos services to their customers as they are already trusted brands These trusted brands can deliver the services themselves, or work with local service providers Key not to waste valuable resources building new brands Powa Technologies,, all rights reserved. Page 15

17 What are the main benefits of mobile POS units? Small and lightweight Lower cost than traditional POS Portable and flexible Unique encryption key inside each device Tamper proof and doesn t store sensitive data Powa Technologies,, all rights reserved. Page 17

18 What are the benefits of tablet based point of sale? Much lower cost than traditional till systems More flexible can work with multiple app based point of sale software Much better visually so can be used in premium locations like hotels When not taking payments, can be used to run other applications e.g. spa bookings Powa Technologies,, all rights reserved. Page 18

20 Summary Mobile POS can help bring the cashless society closer by serving many segments that traditional POS cannot Mobile POS can help large corporations as well Modern PinPads are portable, lower cost and extremely secure Overall lower cost and lower risk and will have higher merchant adoption Powa Technologies,, all rights reserved. Page 20

Best practices for choosing and integrating a mobile payments platform. A GlobalOnePay White Paper

Best practices for choosing and integrating a mobile payments platform A GlobalOnePay White Paper Mobile commerce (mcommerce) purchases and in-app payments made on mobile devices are rapidly becoming just