What is SoftPOS technology for digital payment solutions and its benefits?
Projections state that the global digital payment market could reach $236.10 billion by 2028. Since much of this growth is attributed to the advent of new technologies, including SoftPOS technology, it's an easy-to-setup, low-cost digital solution that's ideal for merchants to jump-start this trend and boost digital payment acceptance. So what is SoftPOS? How can it improve the way merchants operate and provide a seamless transactional experience for consumers?
What is SoftPOS?
SoftPOS is a software-based technology that can turn any mobile device—such as a smartphone or tablet—into a contactless payment terminal, also known as a "COTS," or "off-the-shelf business" device.
SoftPOS technology is compatible with any NFC-enabled Android device where the merchant installs an app designed to accept contactless payments. Once the software is downloaded, consumers can use digital or contactless payment cards to pay the merchant simply by tapping their card or smartphone on the SoftPOS-enabled merchant device.
This technology allows merchants to use their own devices to accept payments without having to purchase dedicated, cumbersome, and expensive hardware. This makes SoftPOS more effective than mPOS (Mobile POS) solutions, which require merchants to invest in dedicated hardware to accept contactless payments. This may include a dongle or payment terminal capable of reading a card's chip or magnetic stripe.
Simply put, SoftPOS uses an established payment infrastructure, but with a more modern approach.
Benefits of softPOS technology
There are many benefits of using a SoftPOS solution over traditional hardware. Among them:
Small merchants, especially in markets with a high proportion of contactless cards, can benefit from SoftPOS solutions due to the cost and operational benefits of SoftPOS technology. For smaller merchants, SoftPOS is an easier and more affordable way to accept card payments. There is no need to spend on specific payment devices, as cheap solutions can be used. Merchants and consumers using SoftPOS solutions are likely already accustomed to the device they are using, which makes payments easy and convenient.
There are also other benefits for merchants such as convenience in terms of portability, battery life, and reduced chance of losing a payment device. There are also low hardware related issues. Conventional devices come with complications such as each device requires certification, key upload, charging and a long lead time if the device requires replacement to name a few. All of these are removed when you use a SoftPOS solution.
The speed of accepting payments
For solution providers, the biggest benefit is the speed with which they can enable a merchant to accept payments (this may be subject to onboard merchant automation).
Larger enterprise merchants may have many more use cases with SoftPOS. Larger merchants can use SoftPOS as a queue-breaking solution, for temporary pop-up kiosks or as a back-up payment acceptance solution.
Safe and reliable payment method
There are many other use cases where this technology simplifies the checkout / checkout process, for the benefit of the user who does not have to wait and pay immediately after the purchase, in a smooth and easy way. After all, there has been an exponential increase in the number of contactless payments over the past few years, which makes it a safe and reliable payment method.
Also, SoftPOS provides the opportunity to boost business opportunities: endless lanes and sponsored sales. Specifically, by providing the possibility to pay directly where the product is in the store - or it should be, i.e. endless aisles.
Meet customer needs
It can be said that SoftPOS is the kind of technological innovation that meets the changing needs and requirements of customers. There are many sectors that will benefit from it, but the retail industry (both grocery and specialty) can arguably be considered the ideal industry in which SoftPOS technology has many use cases and benefits: infinite lanes, assisted sales, pop-up stores, queue busting, payments on delivery, etc.