SoftPOS Secures Its Place in the New World of Commerce
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Analysts expect the global softPOS market, valued at USD 255.4 million in 2022, to grow at a phenomenal 22.3% compound annual growth rate (CAGR). If that prediction is on target, the market value will rise to USD 12,783 million by 2030. However, interestingly, this technology poised to disrupt payments and longstanding commerce practices isn’t well-known or understood.
What is SoftPOS?
“SoftPOS” is a shorthand term for “software point of sale.” Because it’s software-based, the device used in the transaction becomes less important. This is a major departure from traditional payment solutions, which require a payment terminal or PIN pad to accept card payments. With softPOS, the retailer can take contactless payments directly on a smartphone or tablet, with no additional device required.
A practical, secure softPOS solution (sometimes called tap on mobile or tap on phone) that allows accepting payments on a consumer off-the-shelf (COTS) device has been in the works for more than a decade. Then, a pivotal event occurred in 2022. The Payment Card Industry (PCI) published the Mobile Payments on Consumer Off-the-Shelf (MPoC) Standard. It built upon previous standards to provide a modular, objective-based approach to softPOS security when taking payments on COTS devices. Notably, it overcame the challenge of securely accepting PIN and contactless payment card data on the same device.
Upon the publication of the MPoC standard, interest in softPOS grew among mobile device manufacturers, Fintechs, acquirers, and retailers. The idea of accepting payments by opening an app on a consumer device, allowing a customer to tap or wave a contactless card or mobile wallet, and accepting payments anywhere with network connectivity.
Considering that consumers have embraced contactless payments worldwide, the demand for payment solutions capable of accepting them will continue to grow.
Who Benefits from SoftPOS?
A group that will obviously benefit from softPOS is micro-merchants and small businesses that currently don’t have the capability to accept contactless payments. SoftPOS removes barriers to contactless payment acceptance, giving these merchants a convenient and cost-effective way to provide consumers with the payment experiences they prefer.
However, Brad Hyett, CEO of Phos by Ingenico, pointed out that merchants of all sizes benefit from softPOS. Because this technology works in conjunction with – not in place of – traditional payment technology, it helps businesses streamline processes and enhance customer experiences.
In a recent blog, Brad wrote, “SoftPOS presents a unique proposition, offering significant advantages to everyone involved in the payment process. Large retailers can streamline operations by accepting contactless payments anywhere, augmenting existing countertop terminals to bring transactions closer to the consumer. They can also leverage smartphones or other compatible devices for payment processing in aisles, pop-up shops, or when facilitating additional purchases for online pick-up customers.”
SoftPOS also deploys quickly to add pay-at-the-table capabilities for restaurants and mobile commerce solutions for food trucks. It also gives retailers a convenient line-busting tool and is an integral part of a total endless aisle solution that allows sales associates to check inventory company-wide, place an order for in-store pickup or home delivery, and accept payment on the same device. Merchants can also use softPOS as a failover to continue to accept card payments during a network disruption.
Transition from a Payments Solution to a Next-Generation Commerce Solution
Retailers must recognize that softPOS is doing more than disrupting the payments space. It’s disrupting commerce. How you do business will increasingly be customer-centric and frictionless to meet demands and stay competitive. SoftPOS in combination with other point of sale and payment technologies will enable you to craft the right solutions for your business and your customers with fewer constraints.
Ingenico is committed to this new world of commerce. Our focus is on more than payments – it’s on our clients’ success. Phos by Ingenico is live and available. See how it can propel your business into the future. Contact us to learn more about Ingenico’s softPOS solution and how your organization can transform payments with your mobile device and allow easy acceptance in a secure environment.
