Top Predictions for Mobile POS Technology in 2015
Apple Pay will speed up the deployment of mPOS technology in 2015 because Apple Watches and iPhones can also be used if retailers use NFC-equipped mPOS terminals. A strong competitor to mPOS devices are QR code solutions like PowaTag that allow consumers to take a photo of a QR code, order and pay with their phone. However, QR code solutions use online payments that are slightly more expensive for retailers than card-present payments on a mPOS terminal. That might become an issue when in-store mobile payment volumes grow.
2015 could also see smart merchants cutting significant costs for their PCI data security. Using mPOS terminals has the benefit of the mandatory security requirements of Visa and MasterCard: mPOS devices and payment providers need to use high encryption standards (DUKPT) and comply with P2PE standards. That's the reward. By using this secure technology, retailers avoid any PCI DSS security responsibility themselves, which for international retailers can save costs in the range of millions.
This technology will also mean that anonymous in-store consumers will grow to be known, repeat customers who can be rewarded. When sales associates order online products to be sent to customers, they're identified even without a loyalty card scheme. With access to a customer profile, sales associates will get a lot of flexibility to provide instant rewards.
The technology is already available, however, 2015 will be the year of adoption.
Ralf Gladis is CEO of Computop, a global payment service provider.