Payment Technology News

Mobile POS carving out a larger home in retail

Tue, 22 Oct 2013 17:46:10 GMT

Many retailers have reached a crossroads when it comes to the POS terminal. Over the last few years, the use of cloud-based systems and mobile registers has grown, just as the technology that backs them has evolved. Apple's mobile-based operating system was still a novel concept as little as five years ago. Now it is commonplace.

Scott Lamb, the founder of a Utah-based point of sale solution provider, was recently interviewed in a Business Solution article about the current landscape of the point of sale industry. He covered several topics, but focused heavily on the use of tablet POS and cloud-based systems.

Lamb mentioned that a number of organizations are using a hybrid fixed/mobile environment by keeping at least one traditional POS station. This allows all customers to feel like they have a place to pay and keeps one system as a business hub for more complicated transactions. However, he added that mobile is still the future.

"Several customers are going totally mobile, whereby all the guest sees are mobile POS devices," Lamb said. "When we began deploying these devices in our local database environment, we saw firsthand that the infrastructure is solid. The network is stable, the customer doesn't have to give up any functionality, and the devices don't fail."

Making this switch to a mobile POS system and network can be a complicated process. This is where a payment solution provider can become a valuable resource and help ensure any new system can be optimized and successful.

SAP vending machine shows power of NFC technology

Wed, 16 Oct 2013 20:55:07 GMT

Many organizations are looking for different ways to connect with their customers and provide a more personalized shopping experience. Imagine walking up to a vending machine and finding it stocked with all of your favorite treats. Customers would immediately get drawn in and start looking for those machines.

This is far from being just a marketer's dream, as SAP has created a smart vending machine that allows users to make payments through an NFC link and social profile. Consumers simply tap their smartphone against a receiver on the machine. This actives the machine, which in turn pulls the customer information from the cloud. Funds are taken from a preselected account and the video screen provides information like last purchased items and customized special offers.

Andrew Shriner, SAP's director of technology and innovation marketing, was interviewed in a recent NFC World article about the new machine. He said that aside from the consumer side, businesses are able to gain important information about their customers' lifestyle and preferences.

"Companies can get real-time access to data from machines, predict the optimal assortment for each machine based on analysis of big data, and know when to replenish the machine when stock is low, instead of just sending a truck out once a week like some do today," Shriner said.

NFC is more than just a way to make payments from a mobile device as the technology can be used to transfer more data. It can be a valuable resource and data collecting solution for merchants.

Why are NFC and the payment industry so far apart?

Thu, 10 Oct 2013 12:59:32 GMT

For the last few years, the use of Near Field Communication (NFC) technology in the payment world has been the "next big thing." However, you are more likely to use the chip to send pictures between smartphones or connect a device to a third party peripheral. The question then becomes, why have payments and NFC not been joined in a partnership yet?

A recent article from the Calgary Herald examined the current landscape of NFC technology and attempted to answer this question. According to the news source, the problem is not the technology, but rather the system or solutions around it.

"It starts with the banks and credit companies that need to invest in the new opportunity and bridge consumers and merchants by offering a secure and standard payment system," the article reads. "Then you need to convince merchants that this is a better way of taking payments than what they already have. Merchants have a substantial investment in the terminals, training and technology needed to accept mobile payments."

The piece also mentions that there are already customer options, like the Starbucks payment application, that allows users to have a barcode on their smartphones scanned by a device at the POS terminal and offers a secure connection.

This does not mean that NFC as a payment option is dead. In fact, as more consumers get their hands on smartphones, especially as companies like Apple make them less expensive, incorporating them into the payment process seems like an inevitability. Merchants need to keep an eye on the industry to ensure they do not get bypassed by the trend.

Study: in-store mobile commerce to reach $1.7 trillion by 2017

Wed, 09 Oct 2013 17:09:54 GMT

There was big news in the mobile payment landscape at the end of last month as PayPal acquired Braintree—a company that specializes in mobile transactions. This is another example of the feeling that mobile devices will play a major role in the future of consumer payments.

BI Intelligence released the results of a study that looked at the main reasons for this trend. The numbers show that overall, mobile commerce is still in its early stages as only 7.9 million U.S. consumers have an NFC-compatible system. That equates to less than 9 percent of the market.

Despite that, in-store mobile payments nearly quadrupled last year. On top of that, smartphone and tablet POS systems have penetrated more deeply into the retail sector for both small businesses and larger enterprises. The report forecasts that by 2017, global offline transactions through mobile devices will reach $1.5 trillion, which is up from $120 billion in 2012.

A Business Insider article took a closer look at the results of the study.

"Mobile devices are edging closer to fulfilling their long-delayed promise as digital wallets, and tech and financial services players do not want to be left out," the article reads. "Consumers and merchants are beginning to see the advantage of channeling offline payments through mobile devices, rather than transacting in coins and cash, credit cards — or clunky register systems."

With the help of a retail payment solution provider, any merchant can start moving into the future and implement a mobile commerce solution.

'Internet of Things' pushing tablet POS solutions

Wed, 09 Oct 2013 08:37:36 GMT

The "Internet of Things" (IoT) is one of those terms that many in the tech community have been talking about for some time, but it is just know making its way into popular lexicon. IoT refers to a trend where many gadgets and systems will be connected through wireless technology. For example, a grill thermometer could send an alert to your tablet that your steak is ready or you could access security camera footage on your smartphone.

A recent article from TabTimes examined the IoT through the lens of the retail sector. While the idea has been around since 1999, the technology has only recently evolved to the point that it is financially feasible for any organization to adopt it successfully. On top of that, there are service providers out there that can help any company make this possible.

"When devices communicate instantaneously with each other, businesses can eliminate some of the manual, error-intensive work that goes on every day," the article reads. "[For instance] in a restaurant, the process of taking a customer's order and pushing it to the kitchen and back to the customer is one such clunky process."

The article goes on to lay out a number of scenarios in which merchants can benefit from using a tablet POS system and related applications. They include:

Customers pre-ordering food while in line
Barcode scanner peripheral on devices speeding up checkouts
Receiving inventory numbers automatically updating to front of house.

With the help of a payment solution provider, any merchant can deploy a new point of sale system that is centered on mobile devices.

EMV a hot topic at the PCI SCC meetings

Tue, 01 Oct 2013 14:34:32 GMT

Last week in Las Vegas, the Payment Card Industry (PCI) Security Standards Council (SCC) kicked-off its annual PCI Community Meetings. This is where members of the payment industry come together to discuss the current state of affairs, voice concerns and ask questions. It leads to the third version of the PCI Data Security Standards report which will be out in November.

A recent article from Search Security features an interview with two members of the council, Bob Russo and Troy Leach. According to Leach, one of the hottest topics during the meetings has been EMV technology. An entire session was spent just on this area.

"As EMV migrates to the U.S. market, we're going to see a significant shift in fraud, away from face-to-face retail transactions," Leach said. "EMV is a phenomenal technology for authenticating who the cardholder is and authenticating the transaction, but what we're going to need to do over the next three to five years is educate merchants; there will still be a significant need for security."

He went on to say that the role of EMV is to authenticate transactions, not secure them. Cardholder data is still exposed, so there will be a need for collaboration and an increased understanding of how different standards work in the EMV environment. Specifically, companies need to focus on encryption and keeping card information secure as it is processed through the terminal.

Merchants would be wise partner with a payment solution provider to stay updated on all the changes that could be coming down the pipeline.

Tablet POS systems the 'future of retail'

Mon, 30 Sep 2013 11:01:40 GMT

Earlier this month, we covered Alabama State University, which is becoming the first stadium to have a complete iPad point of sale system. Now, as the system has been put to the test in the middle of a highly competitive football season, the true benefits of the system are starting to be experienced.

A recent Forbes article featured interviews with several officials that were involved with the decision to use an iPad system and how it is helping the university run concessions far more effectively. During the very first home game, the school processed a record 5,721 transaction in just a few hours.

According to Alfred Baker, the executive vice-president of Gourmet Service for the university, the new system saves time while improving revenue and inventory tracking.

"iPad POS runs so much faster than the registers we were using before," said Baker. "In just 30 minutes we had all of our staff trained on the POS. Best of all, we are saving a minimum of five hours a week on inventory."

He went on to say that with the integrated cloud-based nature of the applications they are using, he has the ability to check remaining stock levels from his computer or smartphone, even while the game is in progress. Checking the information from 30 terminals was a time consuming process, but now it is all in one location.

The article declares tablet POS systems to be the future of retail and it is easy to see why. With the help of a payment solution provider, any organization can implement these next generation systems.

McDonald's running NFC payment trials in the select locations

Fri, 27 Sep 2013 09:11:08 GMT

The idea of stepping up to the register, placing an order and tapping your smartphone to an NFC receiver to make a payment is gaining steam in the minds of many merchants. While they may not have plans to roll out a particular system right now, many are watching their industries to see what companies are, and the results of their efforts. For the fast casual eatery industry, all eyes are on McDonald's.

According to a recent report from Nation's Restaurant News, McDonald's is in the process of testing mobile payment devices. In a written statement to the news source, the company did acknowledge that these trials are taking place in Salt Lake City, Utah and Austin, Texas. However, the statement also said it is far too early to speculate as to any future decisions on using the technology in a wider number of stores and did not identify which service it was actually using.

The piece goes on to talk about the reasons why mobile devices are becoming such a popular option for merchants.

"It is obvious that mobile payments technology interests McDonald's and other restaurant companies looking to accelerate transaction times and that understand consumers and their love of their smartphones and desire for convenient ways to settle tabs, receive special offers and track and redeem loyalty program points," the article reads.

Merchants need to keep an eye on the payment industry to see how it is evolving because of mobile devices and NFC technology. A payment solution provider can help any organization with this and testing.

Together EMV and NFC are the future of payments

Thu, 26 Sep 2013 14:25:45 GMT

In the world of chip technology, merchants need to worry about two specific areas - EMV and NFC. Europay, MasterCard and Visa (EMV) — a global standard for inter-operation of integrated circuit cards — has had wide-spread adoption outside the United States and deadlines are in place for adoption in the U.S. over the next few years. However, just as chip cards are getting ready, other experts are talking about the arrival of near-field communication (NFC) technology.

While these two systems are very similar, they are not the same. EMV focuses entirely on the chip technology in credit and debit cards. NFC is an expanded version of this, using mobile and other devices to establish radio communication with each other by touching them together.

According to a recent PYMNTS article, these two systems do not need to be mutually exclusive. EMV is going to experience adoption in the U.S. retail sector before NFC does, and the the required upgrades are the perfect opportunity to prepare for both.

"The adoption of dual-interface chip technology will help prepare the U.S. payment infrastructure for the arrival of NFC-based mobile payments by building the necessary infrastructure to accept and process chip transactions that support either a signature or PIN at the point of sale," the article reads.

With the help of a payment solution provider that understands both of these technologies, any merchant can get a hand with adopting the future of payment services and be ready for any and all deadlines.

EMV could find a home in the cloud

Tue, 24 Sep 2013 17:11:02 GMT

In the payment industry, EMV adoption has been on the radar for the last few years. While it has experienced wide adoption outside of the U.S., EMV has not gained much ground with merchants stateside. However, with several deadlines set-up by Visa and MasterCard over the next few years, those rates are about to pick up.

Widespread adoption of EMV is important to the payment industry. Many experts believe the chip technology could be the future of fraud prevention when it comes to using a card. The payment chain is not restricted by country borders and neither are criminals, which is why global adoption is needed for EMV to be successful.

A recent article from PYMNTS looked at the current financial burden that companies face when deciding to upgrade to an EMV system. It involves replacing hardware and software, as well as training employees on a new solution. The piece, however, also covered a newer technology that could eliminate this challenge - the cloud.

"Forward thinking manufacturers and integrators are already exploring ways in which they can reduce these costs and the cloud is quickly emerging as a viable solution," the article reads. "With this approach, the EMV Kernel – the set of functions that provide all the necessary processing logic and data to perform an EMV transaction – is hosted in a cloud-based server."

Merchants need to keep an eye on the deadlines for EMV and what the latest solutions on the market are so they can make a smart investment.

University concessions upgrades to tablet POS system

Tue, 24 Sep 2013 11:40:24 GMT

One of the best aspects of going to a live sporting event is sitting in the stands with a frosty beverage and a hot dog. However, waiting in those lines for food and drink can be frustrating as every minute spent at the concession stand is time away from the action.

In many cases, speeding up the food line can be as simple as improving the point of sale system. That is just what Alabama State University (ASU) did this offseason when it decided it was time to improve services by implementing a tablet POS system.

According to an article from TechCrunch, the solution is powered by an iPad and software from Revel and all 30 concession stands have been updated. Officials are now able to monitor progress and sales figures in real-time. The system also operates 14 percent faster per transaction than the previous solution.

There are other added benefits to a tablet-based system that some organizations never need to use, but when called upon can be life saving. At a recent ASU game, the stadium experienced a power loss. Because iPads have a battery backup and can connect through a cellular signal, even with the power out, the food, beverage and merchandise sales were still able to continue, keeping the crowd happy during the outage.

Using a tablet as the base of a POS system provides a number of benefits that can take the traditional cash register to the next level. With the help of a mobile payments solution provider, any organization can start upgrading to a more innovative solution.

Study: 51 percent of consumers believe the cash register is old technology

Tue, 24 Sep 2013 11:33:29 GMT

In the retail market, merchants need to keep an eye on the desires of consumers. If the majority of customers want to pay with a credit card, it makes sense that business owners would want to have a point of sale system that can handle this kind of payment option.

Recently, POS innovator I Love Velvet released the results of the latest "Consumer Mobile Point of Sale Attitudes Report." This is a study of the average consumer's attitude toward mobile payment options. For the first time, a majority of respondents (51 percent) believe the days of the traditional cash register are over and it will soon be gone.

"Consumers are essentially telling retailers: 'get with the times'," Pascale Juan, I Love Velvet COO, said in the report. "As MPOS has the ability to cut down long lines in-store and get staff out from behind the cash register, it's clear that the businesses that recognize the benefits of MPOS solutions will win not only more of the consumer dollar, but the perception competition as well."

The study also found customers are more comfortable using a smartphone and tablet POS system in a retail setting (26 percent) than other markets. The food and beverage industry (14 percent) and airline and car rental companies (10 percent) rounded out the top three.

Using mobile devices as a cash register have become more than just a way to line bust. Consumers want them and merchants would be wise to partner with a payment solution provider to upgrade their systems.

Study: Mobile commerce responsible for $61.8 billion in sales this holiday season

Wed, 18 Sep 2013 18:11:12 GMT

With the holiday shopping season a few short months away, this is the perfect time for organizations to start preparing their systems for the rush. It is a smart move for retailers to invest in payment solutions that customers are clamoring for, like mobile commerce.

Recently, eMarketer released its latest predictions for the rest of the year and beyond in the mCommerce space. According to the study, mobile devices are contributing to overall commerce sales in two ways. First is as a driver of total sales, as consumers use mobile devices to make purchases, and the second is as a research tool for price comparison.

The report predicts that in November and December, mCommerce will be responsible for $61.8 billion, which is an increase of $8 billion from the year before.

"Tablets are particularly significant for mCommerce sales growth," the report reads. "As more consumers have embraced these devices for lean-back browsing of potential purchases, retailers have made greater efforts to make sure their tablet retail sites and apps are particularly rich and responsive."

The report goes on to say that tablet retail mCommerce sales will hit $26 billion, which will account for 62.5 percent of all U.S. sales in this industry. That is an increase from 56.2 percent that the device was responsible for last year.

While it is clear that the functionality of mobile devices in the hands of consumers is expanding, the same thing is happening for merchants. Sales associates outfitted with a smartphone to ring up purchases is becoming commonplace, especially in small business. Customers are just as likely to come upon a tablet POS terminal as they are a traditional cash register when they step up to the counter. A payment solution provider can help any organization embrace mobile device as a central tool for running their business.

Google betting heavily on NFC with latest Wallet app update

Wed, 18 Sep 2013 17:22:43 GMT

When two new versions of the iPhone were unveiled last week, many experts in the payment field denounced the devices because of the lack of near field communication technology. It has been predicted prior to the last few Apple hardware upgrades that an NFC chip would be included, but it has yet to materialize and some payment professionals have called it a dead technology because of this fact.

However, the death of NFC is overblown. All you need to do is look at Google and its family of mobile devices. This week, Google announced an updated version of the popular mobile Wallet application. The app lets users send money wirelessly, stores loyalty cards and offers a view of all Google Wallet activity. Individuals can connect a Visa, MasterCard, American Express or Discover card to the device and make in-store payments via NFC.

Version 3.1 relies on two main features to operate: NFC technology and barcode scanning. In a blog post, Peter Hazlehurst, Google's director of product management, spoke about the current lineup of devices and what is coming down the pipe.

"If you have one of the 29 different NFC-enabled devices, you can continue to tap and pay at hundreds of thousands of US locations, while also enjoying the new Wallet features," the article reads. "We also have more NFC-enabled devices on the horizon as we continue to invest in NFC with our partners."

NFC technology is still carving out its place in mobile commerce, and the user-base is starting to embrace it. Whether or not Apple gets involved, the tech has a place in the future of payments and merchants should keep an eye on the marketplace and the growth of NFC enabled phones.

What iPhone fingerprint scanning technology means for mobile commerce

Mon, 16 Sep 2013 10:46:56 GMT

Those in the payments industry watch Apple press events through a different filter. While consumers take in all of the product features, this specific vertical looks for the addition of near field communication technology or other features to Apple products that could push the mobile payments market further into the public eye.

While there have been plenty of rumors surrounding the inclusion of an NFC chip over the last few years, Apple has refused to include it in any of its new product offerings. Last week, the company unveiled two new iPhones—the iPhone 5C and the iPhone 5S—and again, NFC was left on the cutting room floor. However, there was a hardware update that holds some interest.

One of the big tentpole features of the 5S is a fingerprint sensor. This will add a new layer of security for accessing the device as well as authorizing payments. A recent article from Mobile Commerce Press examined what this could mean for the mobile payment market.

"Apple has been slow to warm to the concept of mobile payments in the past. Security concerns had caused the company to distance itself from NFC technology, which forms the backbone of most mobile payments platforms," the article reads. "Apple has been looking for an alternative to NFC and some rumors suggest that the company is developing its own mobile payments system for future iterations of its smartphones and tablets."

It has been argued that paying with the smartphone at the cash register will get kick started when Apple gets on board, and a fingerprint scanner could be the beginning of that movement.

Mobile POS helps merchants keep the doors open

Tue, 03 Sep 2013 16:43:35 GMT

While this blog has touched on many reasons why a smart phone and tablet payment solutions can benefit a business, there is one that is not often considered and it is a major selling point of the technology. It involves the use of mobile devices to get through the downtimes of a traditional point of sale solution.

Imagine being open for business when a storm rolls through that knocks out the power for an extended period of time. Without electricity for example, merchants may decide to only accept cash for purchases or revert to manual imprinter machines and carbon sales drafts as back up, either taking risk that transactions won't be approved later or calling to obtain a voice authorization for each card transaction. The emergence of mobile devices for payment acceptance is providing a compelling alternative back up solution.

A recent blog post from ROAM examined how smart phones and tablets can help businesses keep their doors open even if the power goes out, the internet goes down or if there is a hardware failure with the POS, cash register or bankcard terminal. Using mobile payment technologies can help maintain customer satisfaction and avoid lost sales even when your organization is dealing with something that is anything but ordinary.

"Leveraging a secure mobile card reader and an mPOS application, employees can gain a sure fire way to continue accepting payments in case a store's POS system goes down," the article reads. "And if the business happens to lose wireless connection, a merchant can still accept offline transactions if they're using an advanced mPOS solution."

Mobile devices as a back up payment solution can serve as an inexpensive contingency plan for keeping the doors open in a crisis. By partnering with a payment solution provider, any company can turn their Smartphone or tablet into an emergency system.

Tablet POS systems helping retailers succeed

Tue, 03 Sep 2013 16:43:05 GMT

By now, companies have realized that tablets are becoming a crucial tool in the corporate world. Whether they are purchased by companies or brought in by employees, these devices are making a deeper push into enterprises.

A recent TechRepublic article looks at the different ways that tablets are being used in a corporate setting in ways that are outside the norm. At the top of the list is a tablet POS terminal.

"Tablets have created an entirely new market for Point of Sale (POS) software, and many small businesses and the consumers who frequent them have encountered tablets and smartphones replacing the traditional cash register," the article reads. "While POS applications are nothing new to many businesses, tablets can be deployed for any application where a low-cost, connected, and interactive device is appropriate."

The piece continues to talk about other functions that merchants can use tablets for. These include using them to display advertisements, house local information and directories of services or employees, and to provide mobile kiosk services when at a trade show or convention. With the right third party peripherals or application, this is just scratching the surface of what these devices are capable of.

Most of these applications used to require purpose-built hardware and software, but with a commodity or customized mount and a web application to display content, you can deploy any terminal or kiosk-based application you can imagine.

With the help of a payment solution provider, any company can implement a tablet-based POS system.

Tablet POS systems a perfect fit for the 'future' of retail

Tue, 27 Aug 2013 18:06:52 GMT

The retail world is undergoing an interesting transformation. It is on the cusp of change from multiple directions as electronic and mobile commerce grow in popularity and new payment tools saturate the market. However, a recent Mashable article mentions that the next step in retail could be into the past.

According to the piece, many companies are starting to look into pop-up stores. These are small scale operations located either in larger department stores or in non traditional retail locations. Many of them also set-up shop temporarily like the One Direction store that travels with the band or online only custom suit company Indochino, which has launch events for a few weeks at a time before moving to a new city.

According to Angela Wang, the co-founder of Republic Spaces—a startup that allows merchants to rent out unused floor space for pop-up stores—this move by eCommerce and other non-traditional selling environments to brick-and-mortar locations will keep growing.

"Brands can reach new customers, sell more products, increase their brand exposure, launch new products, and test out new markets quickly and cheaply," Wang said. "The pop-up shop trend is the future of retail. It reflects a shift from the selling of goods and services to the value of experiences and transformations."

Many of these stores also need to use mobile devices as point of sales systems in order to take advantage of the small space or nomadic style. A tablet POS system is perfect for "future" retail systems, just as much as it is works for the current landscape.

Mobile commerce continues to have slow adoption

Wed, 21 Aug 2013 11:15:32 GMT

Many people believe mobile commerce is the future of retail payment solutions. With the increased functionality and popularity of smartphones, it seems inevitable that consumers will start using the devices to make purchases, even though adoption has been slow.

A recent article from Retail Info Systems News examined why the road to mass adoption has been bumpy. The piece cites a study by the IHL Group that found roughly 33 percent of retailers have no plans to adopt any form of mobile POS by the end of 2016. Security concerns, perceptions of difficulty in use and adoption and a feeling that there are no benefits to using the technology are the main deterrents.

"Mobile payment adoption has proven to be more difficult than a simple 'if you build it, they will come' concept. Yes, there have been some great successes however the mobile marketplace remains fragmented," the article reads. "It is clear the technology is here to stay, but clear direction and improvements must be made in order for this form of payment to become as ubiquitous as cash and credit cards."

The piece goes on to say that retailers, developers and payment processors will need to work together to optimize mobile commerce solutions. The reason for this is because customers will not be able to fully embrace the systems until retailers do.

It will take time, but mobile commerce is coming. With the help of a payment solution provider, any company can start taking steps toward embracing the future of mobile commerce.

Mobile commerce presence grows at Nordstrom

Mon, 19 Aug 2013 14:40:57 GMT

Mobile commerce should be a priority for retailers. As the popularity and functionality of smartphones and tablets grows, more consumers are using those devices as a tool to enhance the shopping experience. Merchants should take notice and not be afraid to embrace these gadgets in their stores.

Nordstrom is one of those forward-thinking companies that has welcomed mobile devices and is using them as a tool to increase efficiency and improve the customer experience. Currently, sales associates on the floor already carry mobile devices to run credit debit transactions from anywhere in the store. Many of them also have tablets which allow them to search inventory levels in local stores and online to help answer customer questions.

Jessica Sheibach, group product manager at Nordstrom Direct, was recently interviewed by CITEworld. She explained that the company's use of mobile devices is only beginning and there are many experiences in the store that present new opportunities.

The first plan is to install an iPad in every dressing room. Here, a customer would be able to access a specific application that searches inventory levels to see if a particular item comes in a different size or color, and what availability is like on the sales floor or in another location.

The company is also creating two other applications for consumers to use. The first allows customers to select items before entering the store and have them waiting in the dressing room when they arrive. The other uses real-time analytics to suggest items for purchase based off of a particular item a customer has recently picked up.

The businesses is also looking to install tablet POS systems for both self-checkout and traditional sale systems.

According to Sheibach, the goal is to "marry the online and store experiences." This is something that every company should be looking into and a mobile payment solutions provider can help businesses start down this path.