Capitalizing on the increased demand for mobile POS
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1 Capitalizing on the increased demand for mobile POS
2 2 Introduction The use of the tablet as a point-of-sale solution The real benefits of tablet POS systems Using the PaymentsDrawer / IPTran LT Mobile for a mobile POS solution
3 Mobile devices have had a profound effect on the business landscape. Customers are increasingly using these tools as a means to research purchases, read promotional messages, engage with brands on social media and even conduct transactions directly at the POS. Companies across all industries have begun paying attention to mobile activities and refining their operations to cater to people utilizing these devices. However, consumers are not the only ones making use of handheld smartphones and tablets. On the other side of the fence, organizations are implementing these tools as enterprise solutions that can help them accomplish any number of goals. Some businesses may use them to give presentations while in the field, while others may leverage them as customer service aids, allowing employees to look up information on the fly. There are numerous applications for these versatile pieces of hardware. One study conducted by Vertic illustrated the copious advantages that mobile devices bring to the table. They allow for greater mobility of business operations, enabling corporations to set up shop and accomplish numerous business objectives no matter where they stand. They are also intuitively easy to use people are familiar with how to operate tablet devices, as many consumers own and leverage them daily in their personal lives. Additionally, many software providers have even begun the slow but steady rollout of enterprise-level apps that will help companies capitalize on all of these great benefits. By next year, Vertic anticipates mobile app development will outnumber PC-based projects by as much as four-toone, illustrating the growing interest in tablets for enterprise purposes. 2
4 Tablets first started cropping up in the enterprises widely in 2011, shortly after the launch of Apple s ipad. While Vertic found only 13.6 million units had made their way into corporations that year, that number is expected to hit 96.3 million tablets by the end of 2016 a compound annual growth rate of nearly 50 percent. Now, tablets from a variety of different manufacturers have made their way into businesses across numerous industries and sectors. The use of the tablet as a point-of-sale solution One of the leading uses of the tablet as an enterprise solution is as a point-of-sale system. Traditionally, POS systems have been big, unwieldy pieces of equipment that take up considerable counter and floor space. Not only does this result in less space for selling merchandise, it also limits what retailers can do for example, if they wanted to set up a station outside at some sort of event, it would be very difficult to do so. While only 26 percent of retailers said they were using mobile POS solutions as of 2013, more than half of retail executives anticipate investing heavily in this technology by Numerous retailers see the advantage of utilizing tablet devices as their go-to POS solution. In fact, one recent report from Infogroup Targeting Solutions suggests the deployment of mobile POS systems is expected to accelerate significantly over the next few years. While only 26 percent of retailers said they were using mobile POS solutions as of 2013, more than half of retail executives anticipate investing heavily in this technology by
5 A separate study conducted by the IHL Group also found growth in the mobile POS market. Last year, tablet shipments to retailers increased by 38 percent and by 2016, mobile POS devices are expected to cannibalize approximately 12 percent of traditional POS shipments across North American retail businesses. If firms do not currently utilize tablets and mobile devices as a part of POS operations, now is the time to consider it leveraging these solutions could unlock several key benefits for retailers and other lines of business moving forward. The real benefits of tablet POS systems There is a reason that so many merchants are implementing tablet-based POS solutions and it is not just down to the rampant mobile device hype. These systems bring a number of key benefits to the table, such as: MOBILITY: One of the core advantages of tablets is the fact they are holdable devices that can be moved around with ease. Whether businesses want to set up temporary points of sale outside of the business or if sales clerks want to roam the aisles of retail stores assisting customers, this added mobility can be a huge perk. Additionally, retailers can free up extra floor space when using mobile POS, which is a core selling point for many companies. This means they could sell more products or utilize the newly available room for other mission-critical activities. 4
6 COST: Another big perk for tablet-based POS systems is the lower investment cost into a tablet. Enterprise tablets are often much less expensive than their legacy terminal counterparts, which Payments Source noted could cost upwards of $1,000 per station. This is before factoring in additional fees, such as software licenses and security measures. Tablets are considerably less expensive, often costing businesses a few hundred dollars. Although the difference may seem negligible for a single unit, consider how much businesses could save if they use even just five POS systems in retail stores. When the focus is expanded to merchants that run huge, multi-store chains, the cost savings can add up significantly. The trend of BYOD (bring your own device) is also a driver for mpos as smaller merchants looks for ways to utilize their personal tablets in their business environment....state-ofthe-art POS solutions GREATER SUPPORT: As the Vertic study noted, more software developers are shifting their focus to the development of enterprise applications for tablets. This may give retailers more options for updating their systems and running state-of-the-art POS solutions that can be used to tackle any number of vital company tasks. EASE OF USE: Throw most new employees in front of a cash register and they will probably be confused about how to use the terminal unless they have worked at another retailer in the past. Tablets, on the other hand, have become common household devices. One report from the Pew Research Center suggested that as many as 50 percent of all American adults currently have either a tablet or e-reader device, so they know at least the basics of how to use these tools, which may accelerate the training process significantly. 5
7 Using the PaymentsDrawer / IPTran LT Mobile for a mobile POS solution With so much interest in the retail industry and other sectors in tablet-based POS solutions, it is time for developers to look at supporting these systems as well. Datacap s IPTran LT Mobile solution from Datacap Systems drives integrated payments and a variety of widely used POS peripherals on behalf of the mobile POS. Datacap and APG Cash Drawer recently unveiled PaymentsDrawer (APG cash Drawer with embedded IPTran LT Mobile hardware), which can be used seamlessly with mobile POS setups. This gives retailers, restaurants and other businesses a single, simple interface they can use to support virtually all payment processing activities, regardless of the platform being utilized by merchants. Some of the key benefits include: INTEGRATED PAYMENTS FOR ALL PAYMENT PROCESSORS: IPTran LT Mobile comes with support for virtually all payment processors in North America and allows users to integrate these solutions via a single interface at the POS. Instant peripheral support: Regardless of whether businesses leverage cash drawers, receipt printers, PIN pads, pole displays, scanners and weigh scales, IPTran LT Mobile allows for organizations to utilize it all in a seamless, plug and play process without the need for time-consuming individual integration into POS applications. 6
8 OUT-OF-SCOPE INTERFACES: Datacap drives peripherals directly via IPTran LT Mobile, which means no customer cardholder data will come into contact with the POS solution. This is perfect for developers that would rather focus on fostering innovation, than spend development dollars on payments and PA-DSS validation. SMOOTH TRANSITION TO US EMV: Certifications for the POS developer. REMOTE SHUTDOWN CAPABILITY: Perfect for Solution-as-a-Service applications, remote shutdown allows users to cease activity on an off-site terminal in a convenient fashion. The PaymentsDrawer is configured and managed via Datacap s cloud-based product management portal and enables partners to activate and deactivate PaymentsDrawer and all attached peripherals remotely this means if there is an issue with nonpayment or account termination, the service can be shut down quickly and effectively. Mobile technology has become a driving force in the modern business landscape and regardless of whether it is a retailer, restaurant or any other vertical, utilizing a mobile POS solution can be a significant boon to operations. Tools such IPTran LT Mobile and the PaymentsDrawer allow developers to capitalize on increased interest in these solutions and develop innovative systems that serve the individual needs of their clients....perfect for developers that would rather focus on fostering innovation, than spend development dollars on payments and PA-DSS validation. 7
9 100 New Britain Blvd Chalfont, PA Main (215) Fax (215) Source: pewinternet.org/2014/01/16/e-reading-rises-as-device-ownership-jumps/ paymentssource.com/news/interchange/mobile-point-of-sale-tablets-can-greatly-beefitmerchants html 2014.vertic.com/blog/year_of_the_enterprise_tablet_infographic/ retailtouchpoints.com/mobile/2627-ihl-group-dissects-mobile-pos-hype infogrouptargeting.com/about/news/survey-retailers-using-mobile-pos-expected-to-triple-by-2018
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