Has SoftPOS been a success in Europe so far?
More and more payments are now accepted directly via mobile phones
As digital payments grow, new technology can deliver new customer experiences.
The frictionless checkout experience seen online is seeping into the physical retail world. SoftPOS is one technology leading the way in bringing new levels of innovation into the card present retail space. Juniper Research forecasts that global SoftPOS transaction values will grow with a CAGR of at least 53% over the next five years, and the European market for Mobile Point of Sale devices – including SoftPOS – will be worth $15 billion by 2027.
Introducing SoftPOS
SoftPOS technology allows businesses to accept payments via a standard iOS or Android device. For the first time, a company can take in-person card payments without buying and maintaining payment-specific hardware. SoftPOS payments are only made via a contactless card, Apple Pay, or Google Pay. Markets with a high contactless penetration – cards issued or mobile wallets – will see the most success.
Unlike previous mobile payment solutions (often termed MPOS), the idea for SoftPOS was taking payments on an “off the shelf” device. A standard phone or tablet with NFC capability that a small business can easily buy in the high street can take card payments. In other words, a standard handset used for calls, emails, and browsing can replace a POS machine.
Payment acceptance becomes another application on the phone.
There are several key benefits that SoftPOS can provide to merchants, consumers, and even acquirers:
Hardware agnostic – any device with an NFC capability can take payments, allowing flexibility for merchants of all sizes. For consumers who may have considered starting a part-time business. Device flexibility allows casual businesses to operate efficiently without upfront investment.
New distribution channels – acquirers and other resellers of merchant solutions can distribute their offerings via mobile app stores. There’s no need to rely on selling POS devices to connect to processing services. App store software distribution means more payment acceptance endpoints, which can be scaled as needed.
Speed to go live – with software-based payments, merchant onboarding can be seamless and paperless. There is no need to wait days or weeks to set up a merchant account, as onboarding should be fully digital. Electronic KYC (Know Your Customer) can enable businesses to make sales faster than ever.
Whilst still a nascent technology, SoftPOS grew significantly in 2023. Expect SoftPOS to go mainstream and become a standard sight in the years ahead, but there will undoubtedly be some growing pains. Let’s review the evolution of SoftPOS and its future direction. Specifically with Europe, including the UK, in mind.
