Should My Business Take Mobile Payments Through My Point-of-Sale System?

Dec 23, 2015 | Weekly Articles

The face of Point-of-Sale (POS) is changing.

Mobile payments are slowly beginning to be accepted at many businesses, from retail to restaurants. Many banks are creating apps for smart phones to allow cardholders to use their phones as a mobile payment option.

Cashless transactions has been coming on since credit cards, and now mobile payments are creeping up on credit cards.

Out of all of our POS clients, only about 20% have adapted the mobile payment option.

Despite the small percent now, mobile pay is becoming more likely to be the option of the future. Jumping on the mobile payment bandwagon is a great idea for businesses who want to take advantage of the new type of payment.


What are mobile payments?

If you’ve never heard of mobile payments, or just don’t understand how they work, here’s a mini crash course.

Mobile payments act as a sort of cash absent transaction, unlike a credit card though, the funds are transferred from the phone’s secured wallet into your merchant account. You then receive the payments as you normally would through your processor.

Apple has been the predominant forerunner in the shift towards mobile payment.

Apple was the first company to work with banks and credit card companies to create a secure network to allow mobile payments.

The three main options for mobile payments are Apple Pay, Samsung Pay, and Google Wallet.

Samsung pay created a magnetic strip that is similar to the one on the back of a credit card. Making it easier for credit card terminals to read the phone and take the payment. With this feature, it does not require the card reader to adapt NFC payments into their network.

If not, NFC payments work in the same matter, where the phone is tapped against the terminal, where it is accepted or declined, much like a normal card transaction.

What are the benefits of mobile payments?

Mobile payments surprisingly, are fairly easy for smaller merchants to adapt. It does not require lots of expensive equipment.

Gene Signorini, the vice president of Mobile Insights has stated as much. “Mobile has really taken away the requirement that you have to build big systems and be a large company to be successful with technology…In many ways, it is easier for small businesses to adopt mobile payment programs because they don’t have a large infrastructure to work through so small businesses can jump right in” (

One of the largest draws for smaller merchants is the lower processing fees. Many merchants are finding that mobile payments have lower interchange and processing rates. Saving them a bit of money every month on their processing statement.


Can my Point-of-Sale take mobile payments?

Chances are, yes.
POS developers have been quick to take mobile payments, adapting to the new technology.

If you read our previous blog, POS developers in France are also taking steps to integrate Bitcoin payments.

What about your current Point-of-Sale?

Chances are your POS is capable of taking mobile payments.

If you’ve bought a POS in the last few years, the ability to take mobile payments is more than likely already build into your machine.

Storetender, Revel, PayAnywhere, and Restaurant Manager all have the ability to take mobile payments.

Since mobile payments first appeared a few years ago, many developers built the technology and software needed into their POS systems.

However, if you’re running off a POS system that is 15 years old, you may not be able to accept mobile payments.


Should I try and accept the payments?

Yes, with the rapid growing popularity of mobile payments, it would be unwise to avoid adapting them.

Mobile payments, while still only taking up a small percentage of transactions, cardholders and providers are making the technology more sophisticated. If the rapid growth of mobile payments continues, it shouldn’t be surprising to see them become the dominant form of payment in the next few years.


Want to talk to a mobile payments expert?

If you’d like to learn more about what technologies steps to take with your own business, or would like a free demo, contact us here.

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