Point-of-sale (POS) software is continually evolving. Cash registers alone cannot keep up. Brick-and-mortar retailers adopt leaner systems that operate on mobile devices in favor of complex setups costing thousands of dollars. It is not just retail stores interested in POS systems, online store owners who sell at craft fairs, trade shows, and farmers’ markets are require inexpensive and easy-to-use point-of-sale solutions. So, what exactly is the point of sale software?
What is point-of-sale (POS) software?
Point of sale software is what physical store retailers use to conduct sales in person. It is sometimes a cash register, computer, or even a tablet where cashiers input products, tally the cost and execute the financial transaction. Most POS software also communicates with inventory levels to keep everything in balance.
Several big stores have complicated and expensive POS solutions, some of which were custom-built for their requirements. Independent retailers are moving away from traditional POS systems and adopting cloud-based point-of-sale solutions.
Types of POS software
Generally, there are two main types of POS software: on-premise and cloud-based. On-premise POS software requires you to be on location to use it; Terminals are the most common on-premise POS. Cloud-based POS software offers more flexibility, as you can use any connected, compatible device to access the dashboard. Such software is becoming more mainstream—the market was valued at around $1.29 billion for 2019, with an expected growth rate of more than 21.38% through 2026.
You can conduct sales and check in on your business even when you are not at the store. You access it directly from online and often compatible with most POS hardware (cash drawers, printers, etc.) and other tools in your tech stack. This is great if you are a small business that sells in a store and online, along with the occasional in-person event.
There are other types of Point of Sale softwares that fall into one or both of the above categories:
Mobile POS (mPOS): A mobile point-of-sale can move around inside or outside a store. Store owners can take transactions from a central point of purchase, like a traditional checkout counter or cash register, or wherever they want. To make transactions on the go, retailers often use hardware like a tablet or smartphone for processing transactions. It works for pop-up shops thus increasing in-store conversion rate.
Tablets: A tablet POS can be both mobiles and docked to a station. These systems run on Android tablets or iPads, acting as either the main POS or supplementing your central POS station. This is also an mPOS. Tablets work ideally when selling products with numerous details, features, and/or use cases; collecting lots of customer data at the point of purchase; self-serve options; pop-up shops, and event sales.
Desktop: POS systems that run on a desktop computer are typically on-premise solutions docked to a checkout station. They’re bulky but often more reliable and robust, depending on the hardware you choose. The central POS station in a permanent brick-and-mortar store; businesses that want to add mPOS in addition to their desktop setup.
NORTHVALE, New Jersey, USA – Advanced Acoustic Technology Corporation (AATC), a leading manufacturer of high quality acoustic components, has teamed with New Yorker Electronics for franchise distribution of its buzzers, micro-speakers, dual speakers, microphones, receivers and more.
Manufacturing acoustic components since 1996, Advanced Acoustic Technology Corporation is an audio industry production expert. The company’s devices are vital in security and surveillance, home and office appliances, industrial equipment and many other markets. Headquartered and firmly established in Taiwan, major brands like ASUS, Pegatron, Wistron, Advantech and Delta have been working with AATC for decades. In addition, customers like Fluke, AMD, Honeywell and Motorola have remained long-time customers who have trusted AATC to offer the right choice from a range of thousands of items.
A QS 9000 and ISO 9001 certified industry pioneer, AATC innovates in terms of higher sound output, lower power consumption, auto and medical solutions, miniature design and smart application solutions. In its endeavor to expand into North American markets, AATC has tagged New Yorker Electronics, an AS9120B and ISO 9001:2015 certified global source of passive components, discrete semiconductors, electromechanical devices, Flash & DRAM modules, embedded board solutions, power supplies and connectors.
“North America is a potential market that we focus on expanding, and we are delighted to have New Yorker Electronics as our valued business partner in the States,” said Andy Hsu, General Manager of AATC. “Our team will continue to offer full support to New Yorker in terms of sales, marketing and engineering.”
Barry Slivka, President of New Yorker Electronics, said, “This partnership with Advanced Acoustic Technology is a major addition to our portfolio of audio component products. Our customers will benefit from the high quality precision of AATC that much of the world has already come to know. Our established distribution resources will ensure a full coverage of AATC throughout New Yorker’s entire distribution network.”
Because the evaluation of quality acoustic components is both objective and subjective, AATC, through New Yorker Electronics, invites customers to test audio performances by equipment and by ear. As components are driven by audio signals input by customers’ circuit, AATC advises on schematic design to ensure optimized performance. AATC also suggests mechanical design of the final product, for instance as the resonant chamber will affect audio performance as well.
As a franchise distributor, New Yorker Electronics supplies the full line of AATC Indicators, Transducers, Sirens, Piezo Plates, Speakers, Receivers, Microphones and Integrated Circuits (IC).
Many people recall times when they ran cashless for a week or maybe longer. The digital payment infrastructure is ready to shine, and customers across the world are increasingly adopting the new modes of payment.
Although digital payments have been here for a long time. Paypal, one of the largest digital payments companies today, started all the way back in 2004. Now Paypal is the limelight for business to business payments. But the implementation of payment technology into customer to business services and peer to peer paymentsservices have only been possible with the advent of technologies like 4G, 5G, Blockchain, AI & ML, and RegTech.
In the span of five to six years, digital payment technologies have seen massive developments in terms of financial inclusion, and we’re expecting to see more innovation in the coming years.
Banks and Non-Banks need to switch to Digital Transformation
As per a report by EY, 50% of consumers are already using FinTech applications for money transfers and payments, whereas 65% are optimistic that they will be doing so in the future.
The significant disruptors of the payment landscape are the non-banking financial institutions that operate via unconventional means. The distinguishing line between payment networks and banks will continue to blur.
To keep up with the increasing trend of cashless payments, banks and non-banks will have to act quick. Offering tech-agnostic value-added financial products and services will be the way forward to achieve digital transformation.
It is interesting to understand where the payment technology trend is heading towards and what 2021 has in store for us in such exciting times. This article will take you through all that you should know about payment technology in 2021.
What Is A Payment Technology?
Payment technology is the driving force behind the digitization of payments. There are several payment technologies such as Blockchain, QR codes, NFC, Biometric and many others that are currently disrupting the conventional payment ecosystem.
However, not every available payment technology is worth investing in. There are several parameters that affect the feasibility of payment technology implementation and the ROI (Return on Investment) that it can bring. For example, the QR code technology has made contactless payments a feasible solution over NFC or RFID.
Latest Payment Technologies in 2021 #1 Biometric Authentication
Biometric authentication has been in the limelight for the past couple of years. Security has become a prime concern for banking institutions due to strict compliances by regulatory bodies. It has made multi-factor authentication a necessity for mobile walletand payment service providers. The availability of a fingerprint sensor or iris recognition in almost all the smartphones and tablets, have made biometric a feasible option for multi-factor authentication.
Biometric authentication is a verification method involving structural or biological characteristics of an individual. The verification methods range between facial recognition, fingerprint scanners, heartbeat analysis, iris recognition, and vein mapping.
This payment technology helps FinTech service providers prevent chances of identity theft and fraud. Biometric authentication is a unique and crucial step in the online payment process, as it ensures efficiency, security, and improves customer satisfaction. The ease of authentication and high-security help financial institutions build customer trust and loyalty.
#2 mPOS
Mobile-Point-of-Sale, aka mPOS, is an innovative payment technology that is focused on freeing merchants from their store location and going mobile. It liberates merchants to seamlessly accept payments at various places like trade shows, concerts, food trucks, and many other places.
Not only this, but the mPOS payment technology also streamlines the checkout process at the stores by replacing central checkout areas with staff equipped, with instead mobile-point-of-sale devices.
Indeed, mPOS technology will be a popular trend in 2021, and the statistics show the same. Global Market Insights reports that by 2026, the mPOS market will be valued at $80 billion globally. It is expected to grow with a CAGR of 19% between 2019 to 2026.
Source: Global Market Insights
#3 Voice
With the rise of smart speakers and home assistants, voice commands have become mainstream in the tech space. The banking and finance industry isn’t untouched from voice tech, and in the near future, we’ll see more and more people handling their finances via smart assistants.
Many financial giants are heavily investing in voice tech for payments, as statistics reveal that there is an increase in the number of people that are buying products via smart speakers. Statista found 35% of users purchase products like groceries, home care, and clothing using smart speakers.
The rising use of e-wallets across the Southeast Asian region has brought Malaysia to the limelight in the digital revolution. Consumers are shifting from cash to contactless payments, as they find the modern convenience of managing their everyday finance via their mobile phones much more pleasant. However, The E-Wallet Trends In Malaysia is moving at an even faster pace because of the reduction of cash usage experienced during the covid pandemic.
Seeing the increasing demand for digital payment solutions in Malaysia, more and more digital wallet providers are now offering innovative solutions in the market.
A Study by Mastercardin 2020 revealed that Malaysia is leading its Southeast Asian (SEA) neighboring countries in terms of usage of digital wallets. The study also found that the use of e-wallets in Malaysia is at 40 percent, followed by the Philippines at 36 percent, Thailand at 27%, and Singapore at 26%. Mastercard gathered data from 10,000 consumers across the Asia Pacific region.
Where customers use E-Wallets?
Across SEA nations, the use of e-wallets has risen by 8% from 2019. Among all the payment methods, cash was still the most preferred payment method for the SEA population in 2020, followed by credit/debit cards at 22.7%, and e-wallets at 22%.
Another study regarding e-wallet trends in Malaysia by Oppotus, found that 60% of the Malaysian customers have used an e-wallet in Q3 2020, which is more than double the number from 27% in Q3 2019. The study also revealed that on average, Malaysian customers used 2-3 e-wallets during Q3 2020.
The surge in the number of users utilizing the power of contactless payment technology is fueled by several industries supporting digital payments. Food & Beverages, Convenience Stores, and the Groceries industry continue to see growth in the number of customers paying via e-wallets. It is due to the continuous promotion of contactless payments (via offers and discounts). Needless to mention that the e-Penjana campaign also elevated the growth chart.
The food delivery services also saw an upsurge in the payments via e-wallets as everyone was trying to stay indoors during the pandemic. Other areas, including Transportation and fuel, realized this increase too.
Another study by BCG (Boston Consulting Group) provided a different view of the market. It revealed that adoption of e-wallet is highest among banked consumers (31%), followed by underbanked at 17%, and unbanked at 9%.
In its study, BCG also discovered that almost 33 percent of the SEA consumers are willing to prioritise choosing non-bank digital solutions for some of their banking activities. The consulting company believes that 12 percent of the credit card and 10 percent of the deposits could shift to non-bank digital solution providers in Malaysia, Thailand, and Vietnam.
Which customer segment uses e-wallets the most?
The report by Oppotus also found that Gen Z has the highest adoption rate for e-wallets in Malaysia, with 71 percent of the respondents using digital payment solutions in Q3 2020. They are followed by millennials, GenX, and Baby Boomers at 60 percent, 59 percent, and 43 percent, respectively.
The study also revealed that households with a median monthly income (between 7,001 and 10,000 RM) use e-wallets the most – at a 73 percent adoption rate. Whereas with 67 percent, high-earning families rank second, and the lower-income families rank in third place with 55 percent rate.
In an earlier study in 2019, the company found that Malaysian males have a slightly higher e-wallet adoption rate (52 percent) than females (48 percent).
Another study by Facebook and Bian & Co., Malaysia found that with 83 percent, Malaysia has the highest percentage of digital customers in the SEA region. Followed by Singapore and the Philippines at 79 and 74 percent, respectively.
The highest adoption of digital customers in the SEA region by Malaysia can be due to the highest smartphone penetration. A report by Statista forecasted that the figure is 94 percent in 2020, and will grow to 97.4 percent by 2022.
E-wallet landscape in Malaysia
With Bank Negara Malaysia licensing more non-banking institutes, Malaysia is set to embrace the vision for a cashless society, in which the residents will have a variety of methods to make mobile/online payments.
Although considering the e-wallet trends in Malaysia, the market is still in its infancy. As many banking, as well as non-banking financial institutions, focus on gaining access to merchants and customers. The increasing mobile penetration will result in a lucrative market for e-wallets in Malaysia.
The development of the tech industry and e-commerce has also added to the increasing popularity of digital payments in Malaysia. While convenience remains the foremost reason why customers prefer paying via e-wallets. Financial transaction security, reward points and cashbacks schemes have also contributed to the growth of e-wallets in the Malaysian market.
As per a report by Fintech Malaysia in 2019, there were a total of 53 e-wallets in Malaysia, with the industry occupying 19 percent of the FinTech space.
Boost, Samsung Pay, and Maybank QRPay are among the top three e-wallets (as per market share) in the Malaysia market, followed by BigPay, Fave Pay, Alipay, GrabPay, and others. Let’s go through them one by one and understand how they’re operating in Malaysia.
1. Boost
With an 18 percent market share, Boost is the top e-wallet in the Malaysian market. Boost is an award-winning lifestyle e-wallet, which was launched in 2017 by Axiata Group Berhad, a telecommunications giant in Malaysia.
The e-wallet has partnered with 17 banks, including Maybank, RHB Bank, CIMB, Hong Leong Bank, Public Bank, and many others.
Boost is home to 7 million consumers, and the user base is still growing. The e-wallet service is available at over 140,000 customer touchpoints, covering both brick and mortar stores and online stores in Malaysia.
Boost also allows its customers to pay to any merchant that accepts UnionPay cards. Moreover, their signature Shake Rewards offers up to eight times more cashback, coins, Golden Tickets, and prizes.
In May last year, Samsung Pay integrated Boost e-wallet into their app to provide customers with a seamless and secure payment option. Boost has also partnered with Shell stations to allow the consumers to pay for petrol at 800+ Shell stations across the country. The users would get RM5 cashback with every spend of a minimum of RM40 at Shell stations.
The growth strategy of Boost also includes the partnership with Astro, Syabas, and Telekom for bill payments, and with Dewan Bandaraya Kuala Lumpur’s (DBKL) car parks for parking payments.
Till now, around 60 percent of merchants that use Boost are small and micro businesses, including ‘Pasar Malam’ vendors, ‘nasi lemak’ sellers, and food truck operators. Its latest feature, Boost Partner Wallet, allows consumers to earn cashback by making payments to the participating merchants. The users can use the cashback next time when they pay those merchants.
2. Touch ‘n Go
Launched by China’s Ant Group and Malaysia’s Commerce International Merchant Bankers (CIMB), Touch ‘n Go (TNG) is in talks with investors to raise $150 million to fund expansion plans.
The e-wallet was launched in July 2017 as a joint venture between Touch ‘n Go and Ant Financial. TNG allows users to pay at over 280,000 merchant touch points via QR codes. The wallet users can pay for tolls, street parking, car-sharing apps, and taxis via RFID; and even top-up their prepaid phones.