• Brad Hyett, CEO at phos


• 19.12.2022 11:30 am
#payments

Future proofing payment offerings for customers has been a priority for retailers and merchants alike over the Christmas period, and as we embrace a new year. Adopting cutting-edge Software Point of Sale or ‘SoftPoS’ technology could be the solution to respond to the rapid growth of digital payments while keeping pace with changing payment behaviours.

SoftPoS allows merchants to accept card payments directly on their phones or mobile devices without the need for any additional, specialised hardware. This enables businesses to avoid the high costs of having to pay for expensive Point of Sale (POS) terminals i.e. card readers.

A new study from Juniper Research has found that the SoftPoS user base will grow 475% globally by 2027. As Apple’s entry into the market contributes to merchants’ acceptance of the technology, this will also create an influx of iOS-specific services.

With SoftPoS being used on both Android and iOS operating systems, the integration of additional business applications serves to enhance the functionality of how payments are made.

The Tap to Pay era is due to shake up the market, so how can businesses use SoftPoS orchestration to tap into this innovative technology?

The deployment of Tap to Pay within SoftPoS orchestration 

Partnering with an orchestration layer enables legacy technology providers and financial institutions to quickly bring ‘Tap to Pay’ solutions to market. In short, the ability to take secure payments between a traditional card or digital wallet and an NFC-enabled mobile device.

This is huge for legacy players as reliance on outdated payment technology such as chip and pin machines - and a lack of affordable alternatives - can greatly reduce the payment options they’re able to provide their customers - minimising potential revenue for these businesses.

With Tap to Pay, however, merchant customers benefit from a low-cost, easy-to-use system. This system is easy to maintain, with upgrades being managed by the SoftPoS orchestrator, allowing for the seamless integration of the latest payments innovation while continuing to meet regulatory changes and guidelines. This can all be done through a simple app download on a mobile device.

Not only does SoftPoS orchestration allow legacy technology providers to adapt to the ongoing demand for streamlined payment processing, but it can also support improved financial inclusion by providing access to low-cost, convenient and quick means of accepting digital payments.

Why partnering with a SoftPoS orchestrator is beneficial

New and innovative businesses that serve customers through a mobile application can simply enable Tap to Pay acceptance through their own solution using a SoftPoS orchestrator. 

As well as offering this solution to customers, legacy providers can use the orchestrator’s technology stack and quickly benefit from their domain expertise instead of having to create their own in-house solution which can prove to be complicated, expensive and time consuming.

SoftPoS orchestrators can either launch a white label SoftPoS app or incorporate the technology into their existing solution to meet the rising demand for payment acceptance capabilities on mobile.

Once live,  merchant customers of all sizes will benefit from the enhanced flexibility, seamless onboarding, increased access to sales data, and security that comes with a SoftPoS system.

SoftPoS consolidation and the rise of investment

Looking at the macroeconomic picture, It’s an exciting time for SoftPoS development. What was still an emerging technology just a few years ago is now beginning to enter the mainstream thanks to recent consolidation in the market.  

Earlier this year, Apple announced that it would allow third-party SoftPoS vendors to deploy their technology on iOS devices - a move that is really going to drive both the awareness and the adoption of SoftPoS. Not only is it a contributing factor to growing merchant acceptance of the technology but consumer understanding of it too. These two aligning factors will only drive more curiosity in the market in the months ahead.

Familiarity with the solution will also continue as more leading payment brands deploy ‘Tap to Pay’ solutions on iPhones. PayPal and Venmo have already announced their support for Apple’s new functionality giving merchants varied options to choose from. 

For those SoftPoS vendors which decide to remain acquirer agnostic and are open to the idea of serving as an orchestration layer for legacy providers, there’s an opportunity to provide added value in this evolving market. Not only can these firms enable multi-channel distribution that can be used effectively by all types of businesses, but also promote the effectiveness of SoftPoS and its functions beyond a single acquirer - thus driving increased adoption and market penetration globally. 

Moving forward?

SoftPoS is firmly poised to disrupt the payments market over the next 12 months, and Apple’s rollout of the technology on iOS devices will only accelerate Tap to Pay adoption - encouraging more businesses to take advantage of the software.

The timing is fortuitous. With contactless payments accounting for a growing majority of credit and debit card transactions, Tap to Pay will be key to meeting this rising consumer demand for flexible, convenient ways to pay.

A global SoftPoS orchestrator, by design, can help legacy technology providers and financial institutions bring Tap to Pay solutions to market quickly and efficiently. This provides a key source of competitive advantage that can help businesses, of all sizes, to scale and reach more end users globally.