- Changing to a new POS can be a major undertaking, but the business benefits are undeniable
- Keeping up with consumer demands & tech trends is crucial to maintain competitive advantage
- Investing in modern payment processing technology helps accelerate business success
Your point-of-sale system is critical business technology that you depend on to keep revenue coming in and to deliver a positive customer experience. However, as technology improves and consumer behaviour evolves, your existing POS may not have the power or flexibility to keep up with these trends. In cases like this, it’s essential to invest in a new system, and here are the top 3 warning signs that a POS upgrade is needed.
It’s a constant struggle for businesses to strengthen customer retention and improve market share, with many factors to consider that determine success or failure. Customer preferences are always changing, competitors continue to work against you, and the advancement of technology never stops. For these reasons and more, it’s vital to always be looking for opportunities that can have a positive impact on your ability to serve customers better and gain efficiencies that will boost your bottom line. To that end, it’s important to know when an aging point-of-sale system may hinder the efficiency of your operations and negatively affect the customer experience.
Opting to implement a new point-of-sale system is no small decision. It requires significant investment in time and resources to do it. While your existing POS payment processing technology might seem like it does the job well enough for the time being, it may be costing you more than you realize. Before you make such a big decision to switch over to a new POS, you’ll want to evaluate your existing payment processing system based on a series of key criteria. Depending on how well your existing POS meets these criteria, the results can help clearly define if the time has come to invest in a more capable and flexible POS solution.
Here are the three most common warning signs that businesses may notice when their existing point-of-sale solution becomes outdated, along with explanations on why these warning signs are key indicators that it’s time for an upgrade.
Warning Sign #1 – Inability to Accept or Process Newer Payment Methods
The first and most noticeable problem that will start to arise when a POS system starts to show its age is incompatibility with newly developed payment methods. In the beginning, it may not be a major concern, as widespread adoption of new payment methods can take some time to occur for consumers and businesses alike. However, trends like these are irreversible, as we have seen time and time again.
For example, when chip-and-PIN debit and credit cards first started appearing in the market, many businesses didn’t need to rush the process of upgrading their POS systems because those cards still had magnetic swipe strips. This meant they could still work with older swipe-only payment systems. However, over time more and more customers began to expect the speedier processing that chip cards delivered, driving businesses to upgrade their POS out of necessity.
The same thing occurred with the advent of tap-to-pay NFC payments. The credit and debit cards equipped with NFC chips also had magnetic strips, as well as chip-and-PIN technology, making them backwards-compatible with most POS systems. However, consumers once again began to demand the faster speed and added convenience of tap-to-pay options. Savvy businesses adopted these technologies early, but eventually tap-to-pay became a standard payment method all businesses must accept.
Now, with the advent of digital wallets like the Apple Pay and Google Pay smartphone apps, as well as rising demand for QR code payments in many industries, it’s happening all over again. Consumer adoption of these new payment methods is accelerating, and businesses need to evolve along with them in order to provide the level of service customers expect. It’s only a matter of time before traditional payments like cash and credit cards are used in the minority of payments, while digital payments continue to grow exponentially. If you look at your existing POS system and evaluate it based on the diversity of payment types it is able to process, you might be surprised at the results. This is a critical warning sign that your POS system may not have what it takes to align with customer demands.
Warning Sign #2 – Reliance on Manual Tasks and Multiple Independent Systems
The acceptance of a diverse range of payment types is a POS issue directly related to customer expectations, however there are other shortcomings of outdated systems that can directly impact the operations of your business. Modern payment processing systems are multi-functional business management tools that can perform a wide range of critical tasks far beyond just accepting payments. Businesses with older systems are often required to switch between several different tools and technologies to complete certain tasks that are essential to the smooth operation of the company.
For example, if the POS system does not have integrated inventory management functions, this must be done either manually or using a separate inventory management system. The same goes for other important operational functions like scheduling, customer loyalty programs, e-commerce management, and sales reporting. Having to manually switch over from one system to another to run the business is not efficient, results in lost productivity, and increases the chance of discrepancies and human errors.
Newer payment processing systems are able to be upgraded and enhanced in a variety of ways that older systems simply don’t allow for. POS solutions like those from MONEXgroup can use downloaded apps to expand their capabilities to include inventory management, staff scheduling, loyalty programs, and much more. Alternatively, software integrations can also help to consolidate different business systems and enable them to work together for greater efficiency and cost savings. If your system lacks the ability to install value-added software apps or integrate with other systems, it could be a significant warning sign that you are in need of a new solution.
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Warning Sign #3 – Slow Payment Processing Speed and Older Data Security Protocols
Time is a valuable commodity. Not just for businesses, but for customers as well. Slow checkout processes can have a substantial negative effect on customer satisfaction, reducing the likelihood of repeat visits and weakening customer loyalty. Older POS solutions often suffer from speed issues that stem from the processing power of the hardware itself. Computer processing power is always improving with each generation of hardware, and even a system just a few years old can be significantly slower than a brand new solution. In addition, the number of steps required to complete a transaction using an older payment method can also slow things down. For example, tap-to-pay technology gets customers on their way in much less time than a cash or swipe credit card payment.
Modern POS systems also feature robust data security measures and anti-fraud protocols that older systems do not possess. Data encryption and tokenization of payment information helps to protect customers against fraud by uniquely encoding each transmission in a one-time-only digital packet. Even if the information in this packet is intercepted, it is impossible to use it to create any fraudulent transactions, rendering it useless for data thieves.
Data privacy and transaction fraud are major concerns for businesses, as the consequences of digital theft and loss of sensitive information can be quite severe. In cases like these, customers can rapidly lose faith in the business, and the potential risks for legal costs are high. Ensuring that your payment processing system is up-to-date with the latest in security technology can help avoid these types of problems, and provide greater peace of mind for customers that their information is protected.
Taking the Next Steps Towards a More Powerful Point-of-Sale Solution from MONEXgroup
At this point, you may already have determined whether or not your business is in need of a POS system with greater flexibility, enhanced functionality, faster processing speed, and heightened security. If you’re still uncertain what the best course of action may be, now is the time to contact MONEXgroup for more information. Our payment processing experts will gladly provide a detailed analysis of your current point-of-sale system, and ensure you have all the clarity you need to make the right decision for the success of your business.
Whether you require a new POS station for a retail location, a more comprehensive e-commerce platform, a mobile payment terminal that can go anywhere, or an automated unattended payment system, we’ve got the technology and the expertise to take your operations to the next level. Plus, your business will be supported by our world-class technical service team to assist whenever you may need us, 7 days a week, 365 days a year.
Learn more about the advanced POS systems and payment processing technology available from MONEXgroup, and contact us today!
Author: Sam Hutchison, MBA – Marketing Director at MONEXgroup
Bio: Digital marketing and project management professional highly experienced in campaign execution, mar-tech, media planning, team building, partner management, business development, analytics, sales, digital integration and e-commerce.
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