SoftPOS has been a very hot issue in the payment industry in recent years. Will the future of SoftPOS continue to be fast-growing and dynamic in 2023? According to my prediction, the answer is yes.
My answer is not groundless. There are many signs supporting my prediction.
Evidence A: Visa and Mastercard are actively participating in SoftPOS development.
Visa and Mastercard are the two largest credit card brands in the world, and both of them actively develop Tap on Phone Solution following the trend of using Software POS.
Back in 2019, Visa teamed up with Samsung (a leading mobile terminal provider) and Fiserv (a leading payment terminal provider) to create the Software Point-of-Sale Solution. This Tap-on-Phone solution turns Samsung smartphones with NFC built-in into mobile POS terminals to accept contactless payments.
Mastercard has launched a detailed guide for Tap-to-Phone solution developers, which contains tap-on-Phone PCI standards, certification step details, and other content concerned developers. Besides, recently, Mastercard partnered with Qatar Islamic Bank and launched a new QIB SoftPOS app accepting any transaction from contactless methods.
The promotion from world-renown credit card brands will greatly facilitate the Software POS market, and there will be more acquirers to participate in 2023.
Evidence B: Apple introduces SoftPOS function
Before Apple launches the Tap-to-Pay function last year, the development of Software Point-of-Sale is limited to the Android system. Now Apple has become another key participant, which is strong proof that the SoftPOS market is fast-growing. The Tap-to-Pay function makes iPhone users accept contactless payments and digital wallet payments with their mobile devices.
Evidence C: Ingenico acquire a SoftPOS provider
Ingenico is a world-leading payment terminal and solution provider, and it acquired Phos (a Software-only Point-of-Sale provider). This acquisition of Ingenico corroborates that Software POS is receiving more attention in the payment industry.
As mentioned above, more evidence is showing that the Tap-on-Phone solution is growing rapidly.
What is SoftPOS?
It’s not difficult to understand. As its name indicates, SoftPOS is a software-based solution, and allows users accept contactless payments using their existing mobile devices like smartphones and tablets, instead of purchasing additional payment-acceptance hardware. In other words, what Tap-to-Phone relies on is software rather than hardware. How Much Do You Know About SoftPOS?
Why is SoftPOS becoming a hot issue?
Popularity of contactless payments
For its ease of use and high processing speed, the contactless payment method is winning the favor of the majority of people in the world. The growing use of NFC cards and digital wallets pushes business operators to introduce payment-acceptance terminals.
Lower hardware costs
The Tap-on-Phone solution is the perfect choice for business operators who wouldn’t like to spend a lot in purchasing POS hardware. The Tap-to-Phone solution let users take advantage of their existing smartphones and tablets and its cost is much lower than a mobile POS terminal.
All in one
Users’ smartphones are used as payment-acceptance devices, which are friendly to street businesses, on-the-go micro-merchants, etc. When they are going out, they don’t have to bring an additional POS terminal and gain more convenience.
Used as an auxiliary payment-collection method
When the waiting line is long in peak hours, waiters and waitresses can use their smartphones to check out for customers. This auxiliary payment-collection method can help speed up checkout and enhance customer satisfaction.
What are the Features of SoftPOS Solution?
A basic SoftPOS solution enables merchants to accept and refund Visa and Mastercard transactions while connecting to the acquiring platform. Instead of using physical printers, receipts are delivered to customers through alternative channels like email or SMS.
To enhance security, SoftPOS solutions incorporate authentication, monitoring services, and key management. Device and merchant management services are also integrated to ensure a secure environment.
SoftPOS solutions have evolved to meet merchant needs. Many now support PIN entry for secure processing of higher-value transactions, and some offer App2App integration for seamless operation of EPOS and payment applications on smartphones.
Who Can Benefit from SoftPOS solution?
SoftPOS products seem to be primarily targeted towards micro-merchants such as taxi drivers, traders, street vendors, charity collectors, and individual sales agents. These micro-merchants require a basic solution that supports Visa and Mastercard payments, without the need for additional payment options or advanced software application features.
In the future, as SoftPOS technology aligns with the payment methods and feature sets offered by Android-based Smart POS terminals, small merchants with higher transaction volumes may also consider adopting SoftPOS as a viable solution. These small merchants typically aim to accept all international payment cards and local payment methods (such as debit cards), along with useful functionalities like tipping, dynamic currency conversion, pre-authorization, and cash advances.
However, at present, SoftPOS products are not suitable for large and medium-sized merchants due to their more complex payment acceptance and system integration requirements. These merchants usually rely on advanced applications tailored specifically for Android-based Smart POS terminals, such as EPOS solutions, loyalty programs, and inventory control.
SoftPOS solution adoption rates are likely to emerge in countries/regions where the contactless payment limit is equivalent to £100 or higher. This includes countries such as the United States, Canada, Japan, China, Australia, Singapore, New Zealand, the United Arab Emirates, Bahrain, and the United Kingdom. Additionally, in countries with lower levels of terminalization for POS devices, merchants may be attracted to low-cost SoftPOS solutions, although this may prove to be a misguided choice in the long run.
Is SoftPOS replacing mobile POS?
It’s still far from when SoftPOS terminal takes over mobile POS completely. The Tap-on-Phone technology is not mature and reliable enough now, and many business operators use it as a temporary solution or to proceed with small transactions. As of now, mobile POS terminals are thought to be a more secure and robust payment collection choice. In a very long time, Software POS and mobile POS will coexist. SoftPOS VS Mobile POS, Will SoftPOS Take Over Mobile POS?
As a smart terminal and solution provider, Telpo has been paying attention to Software POS and Tap-to-Phone solutions. Telpo has launched a GMS-certified mobile POS M1 running on Android 12 OS that is suitable to be used as a SoftPOS.
🔸GMS certifications. Telpo M1 is a GMS-certified mobile POS and users can get access to various Google applications.
🔸High performance. Running on Android 12 OS, Telpo M1 is equipped with a 64-bit processor and smooth operation is ensured.
🔸Superior NFC-swiping and speedy scanning performance. Telpo M1 offers multiple payment options and satisfies customers’ needs.
🔸80mm/s receipt printing. With a high-speed print engine built-in, Telpo M1 satisfies routine printing needs.
It is believed that SoftPOS will continue its rapid growth in 2023 and SoftPOS and mobile POS will coexist for a long time. Telpo has already launched GMS-certified mobile POS terminals M1 and smart POS terminal M8, specifically designed for SoftPOS solutions. Telpo is expected to continue driving the growth of SoftPOS in 2023. Welcome to contact us for more details.