Underestimate your point of sale (POS) strategy at your peril. It’s here that most businesses fall short, losing return clients right when their loyalty is most accessible. Your POS plays a core role in your sales process, and when it’s handled poorly, it can result in chaos if you’re in the midst of your busiest season. Even so, 55% of small businesses don’t accept credit cards. The world is steadily edging towards a payment revolution. A truly cashless society is just around the corner, and the first step to ensuring you can participate begins today. A contactless card reader competent enough to connect to smartphones and tablets prepares you for the day when payments will be made via mobile device instead of card. It’s estimated that a mere 23% of POS transactions will be cash by 2017.
Contactless Card Reader Cost Benefit Analysis
69% of Generation Y refuse to shop at companies that don’t accept credit cards. Resisting the cashless revolution only shrinks your client pool, but when it comes to cost benefits, some chip and pin machines are better than others. Your typical old fashioned card terminal charges you about 4% of each transaction alongside implementation costs and chargeback fees. That’s precisely why so many businesses avoid credit card payments for as long as they can, a habit that’s no longer necessary.
Your bank can handle your contactless payment transactions. The question is do you want to pay their exorbitant fees? An NFC card reader like SumUp charges a fixed 1.69% and eliminates all ongoing fees. In exchange, you serve the 66% of the population who prefers paying by card and benefit from the extra 12 – 18% that consumers spend on card over cash. Credit card payments increase impulse buying, typically raising revenue while giving customers a safer shopping experience. As the first mPoS to integrate BitPay, SumUp also supports alternative payments that can win over a niche that was previously inaccessible to you.
EMV stands for Europay, Mastercard, and Visa, although SumUp’s Air machines accept a huge array of payment options. Powered by battery rechargeable via Micro-USB port, it connects via Bluetooth to mobile phones and tablets. The contactless payment machine is small and slim enough to fit into your pocket and supports chip and pin cards and bitcoin.
EMV Migration and Analytics
A contactless card machine doesn’t only migrate you to the brave new world of EMV, but into the age of big data, too. Your customer information is automatically gathered by your NFC card reader, which provides the infrastructure for more responsive analytics platforms. SumUp can help you improve your overall business strategy this way, letting you gather data about your most profitable products, times of day, and demographics. SumUp’s app has an Advanced Mode function that lets you control your product management so that you can refine your stock control systems to suit your unique needs. If your company is mobile or does deliveries, this means instant connection with your business headquarters via NFC payment fed directly to the same system you use to cash up.
Today’s contactless card machine doesn’t take minutes to dial up so, in exchange for reduced processing fees, your PoS is lightning fast. Where multiple sales people or service staff are accepting NFC payment, this lets every employee serve clients on the fly. Welcome to the world of streamlined service excellence.
Your Long-Term Strategy
Ideally, you want to invest in an NFC credit card reader that will serve you for a decade or more. This means the business that distributes your reader is as important as the reader itself. Without an inquisitive and forward-thinking team of developers and strategists, your POS will remain static while the world races ahead of you. SumUp’s developer, Gustav Simonsson, explains, “We realized that since BitPay charges no fees at all, we had a unique opportunity to also charge no fees, in turn passing this on to our merchants.” This level of adaptation is critical in today’s society because technology marches on at an ever-quickening pace.
Since the world is shifting to the cloud, the evolution of chip and pin readers has become easier to navigate. You don’t need a new machine to leverage new modes of payment, but you do need a reader that supports contactless payment so that you can move into the future ahead of your rivals. Competitive advantage is finally within your reach.