How often do you carry cash with you? You along with a growing number of customers are choosing to go cashless. Having the ability to accept in-person card payments with an mPOS device becomes a make or break factor for small businesses that cannot afford to miss a customer.
Americans barely use cash to make payments anymore. One in four Americans rarely carries cash at all and only 41 percent of respondents claim they carry cash regularly. Mobile POS has changed the payments game and cash is on its way out — or at least becoming less popular.
What is an mPOS Device?An mPOS (mobile point-of-sale) is a smartphone, tablet or wireless device that performs all the functions of a traditional POS terminal wirelessly and more. This kind of payment terminal has been steadily growing and it’s predicted that the global mobile POS market will grow at a compound annual growth rate (CAGR) of 18 percent from 2018 to 2024.
Mobile POS devices guarantee a new level of operational and economic efficiency as well as mobility, without the usual binding contracts and business requirements of traditional POS terminals.
This sounds great in theory, but you might be wondering how it works. This new mobile payment technology is quite simple. You can use an iOS or Android device that you already own, all you have to do is download an app. And just like that, you can turn your smartphone or tablet into a secure mobile point of sale solution.
You have the option of keeping your existing hardware and using the mPOS device to compliment it or you can ditch the clunky equipment altogether and go completely mobile.
Here are the key factors to consider when choosing an mPOS device for your business:
Do you think mPOS devices should be able to do more than reading credit cards? The answer is yes. All great mPOS devices are used for a variety of other smart functions as well. Smart functionalities vary across the different providers – accepting digital tips, ringing up sales (even off-line), processing returns, and sending payment requests. Some tools can add a significant amount of value to your business operations depending on what you are in need of.
The mPOS device should accept all major global card providers such as VISA, Mastercard, American Express. This is critical and should be something that is addressed immediately. If your mPOS device can't accept major credit cards, you risk losing out on a ton of business opportunities. In addition, your mPOS should be able to accept smaller local card providers to offer additional convenience to local customers.
Being a small business owner, getting paid quickly and on time is imperative. Your mPOS device should have fast settlement capabilities (the payments should be processed within 24 hours of the transaction). At this point, there is no excuse to prolong your payments from getting deposited into your bank account.
Finding an mPOS device that can provide a quick settlement of funds is critical for small business owners who need to be able to access their funds right away to cover their day-to-day business expenses.
Know what you are getting into before you sign on the dotted line. Make sure you carefully look over the contract and are made aware of any fees you might have to pay. Be sure to ask questions if something is ambiguous so there are no surprises down the road.
With mPOS, buying a device would be the only one-off purchase, which oftentimes is not even necessary. Many business owners use a smart device that they already own and turn it into an mPOS terminal. After the mPOS device is decided on, you will be charged a small transaction fee every time you accept card payment. Additional fees associated with mPOS are a red flag and often times avoidable.
All smart devices come with LTE internet connection and if they don’t there is usually an option to purchase it with your plan. WiFi, Bluetooth, and SIM cards are the most popular options. You need your own internet connection so that you can operate even in places where WiFi is not available.
As new generations of mPOS devices turn fully mobile, the need for multiple connectivities grows and becomes a necessity.
Although these extra merchant services are not a requirement, they can be a nice additional perk that may influence your decision. When it comes to additional services, try to find ones that are most beneficial for your business. Some common add-ons include risk management tools, accounting software, automated invoicing, free merchant accounts as well as sales generation tools.
With mPOS exponentially growing in popularity, it’s critical for your business to invest in mPOS as well as an mPOS device. It’s never been a better time to embrace this new payment technology and take advantage of the myriad of advantages it has to offer.
GoSite's Payments turns your smartphone or tablet into a fully functional mPOS device without any additional hardware. All you have to do is download the mobile app and you will be processing payments like a pro in no time.