How to Manage Cash in a Mobile POS (mpos) Environment

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1 White Paper How to Manage Cash in a Mobile POS (mpos) Environment There is no denying that the use of mobile devices in the retail and restaurant industries is growing at a rapid pace. As mobile devices and wireless networks become more secure and reliable not to mention, more cost-effective to implement increasing numbers of businesses are deploying mobile device-based point of sale (mpos) solutions as an alternative to traditional, stationary point of sale systems. While such a move can clearly benefit retailers and restaurant operators alike, it can also pose challenges. This ebook will explore the benefits of migrating to mpos, as well as provide a blueprint for using technology to handle the challenges of accepting cash in an mpos environment. Unprecedented Growth Statistics underscore a significant shift from traditional POS to mpos configurations. For instance, IHL Services, in a recent report entitled Mobile POS: Reaching Escape Velocity All Systems Go, pegs the global market for mobile retail technology at $7.8 billion. Tablet sales are especially strong, the report indicates, with double-digit growth in shipments expected to continue for the foreseeable future. Similarly, in its POS Terminals and mpos Solutions report (May, 2014), ABI Research slates the installed base of traditional POS terminals as increasing by 11.6 million units, or 25 percent, between 2014 and By contrast, the report states the installed base of mpos devices will trend upward at breakneck pace, from 8.9 million devices in 2014 to 51 million devices in Moreover, Boston Retail Partners 15th Annual POS/Customer Engagement Benchmarking Survey (January2014) characterizes mobile technology as playing a major role in the future of retail checkout. More than 50 percent of study participants said they anticipate a push to a platform that includes a mobile solution. In some cases, at least half of their in-store customer touch points will be mobile.

2 The Whys of mpos What s behind this move to mpos, and what s in it for retailers and restaurant operators? Consumers continue to acquire and use mobile devices (including tablets and Apple ipads ) and have come to expect retail stores and restaurants to do the same. Such adoption of mobile technology means new associates are bound to be familiar with the mobile platform, rendering them easier to train and mitigating the effect of frequent turnover in retail and restaurant businesses. An mpos platform yields increased functionality at a far lower cost than would be incurred for a traditional, stationary POS system. The former requires only a mobile device, a POS printer, and an app for a total of about $1,500 to $2,000. The latter which does not offer the flexibility of mobility can carry a price tag of at least $5,000. Going mpos leads to improved customer service and engagement, as well as opportunities for add-on sales and faster throughput at the POS. In retail stores, associates equipped with mobile devices can quickly ring up transactions, eliminating the need for customers to wait in long queues at checkout counters. This gives employees more time to assist customers, and it opens doors for suggestive selling. Similarly, accepting restaurant orders and transmitting them to kitchen printers via mobile devices supports greater order accuracy, speeds up preparation time and enables waitstaff to focus on patrons needs from the table or sales floor.

3 The Cash Challenge However, with these benefits, some challenges arise, including that of managing cash in an mpos environment. While some wireless peripherals make it easy for retailers and restaurant owners to process debit and credit card transactions in mobile mode, the same cannot be said of cash transactions; a cash drawer is traditionally a fixed peripheral placed in tandem with a POS system. Additionally, although stationary receipt printers are typically configured to pop cash drawers open when appropriate, this is not practical with portable receipt printers. Unless the cash drawer can be operated via the mpos software, a manual, key-locked model is needed. This is neither a secure option, nor a manageable one. Taking a step backward, solving the mpos cash management problem begins with an understanding of the two popular mpos configurations. Stationary mpos: In a stationary mpos configuration, mobile devices used to process transactions remain in the same location within the store or restaurant. Receipt printers integrated with these devices not only generate receipts on the spot, they can also trigger the cash drawer to open. Consequently, providing receipts and handling cash is a simple, hassle-free process. Mobile mpos: Here, associates and servers use wireless hand-held mobile POS devices, such as tablets, to accept payments from customers anywhere in the store and at restaurant tables. These devices have integrated magnetic stripe readers, and receipts are provided using portable printers worn around employees waists. In a portable printing environment, the printer cannot pop the cash drawer unless wireless technology is part of the solution. Weighing the Options Now that the differences between stationary and mobile mpos configurations are clear, the time is ripe to consider options for integrating POS peripherals, such as receipt printers and cash drawers, to more securely manage cash in either scenario. Options, each of which has benefits and drawbacks, include:

4 Replacing existing cash drawers with wireless cash drawers. Retailers and restaurant operators may assume that replacement is the more expensive and time-consuming path to follow. This can be so, but not necessarily. Some manufacturers now offer more ergonomic, smaller-footprint cash drawers designed specifically to work with tablets- or other mobile device-based POS solutions. These cash drawers are configured so that the printer can wirelessly trigger the cash drawer to open. Upgrading existing cash drawers to incorporate wireless compatibility. For some enterprises, this is a less costly course of action than ripping out and replacing an existing POS infrastructure. To minimize headaches and keep the budget in check, consider affordable options like MFi Certified Bluetooth or Ethernet adapters. Either of these will make cash drawers wireless-compatible with mpos devices that run on the Android, Windows, and ios platforms. There is one caveat to keep in mind, regardless of whether wireless cash drawers are replacement units or have been re-configured to operate in wireless fashion: A secure enclosure is a must for cash drawers installed in an mpos environment as opposed to deployed in a traditional cash wrap. Connection cables should be carefully concealed from customers. Final Considerations mpos comes in a variety of formats and not every format is appropriate for every retailer or restaurant operator. Developing an understanding of individual mpos needs is necessary to determine what type of configuration a particular business requires. For example, what are the objectives of moving to mpos? What benefits are most desired? What is the budget? Once these needs have been identified, carefully shop for the appropriate complementary POS peripherals, like receipt printers and cash drawers. Insist on mobile-friendly configurations to avoid integration headaches and streamline mobile and traditional POS operations while simultaneously achieving efficient, secure cash management.

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