POS Designed To

OCTOBER 2015 | A VSR WHITEPAPER DESIGNED TO FIT TABLETS USHER IN AN ERA OF POS FREEDOM AND CHOICE oint of sale has looked the same, and and data safe and serve basic customer needs within functioned largely in the same way, its own proprietary ecosystem. New form factors, for decades. But that’s all changing as operating systems and reliable high speed Internet digital innovation rapidly transforms connectivity mean POS can be freed of its tethers, Ptechnical capabilities and in turn, both physically and virtually. consumer expectations. Mobile devices now deliver unprecedented power and access to information, Today, all of the power of a traditional big iron or putting consumers squarely in the driver’s seat in PC-based POS system fi ts comfortably into devices choosing how, when, where and what to buy, and a fraction of their size. But making that streamlined at what price. They expect the businesses they form factor work at the POS has been cumbersome, patron-ize to be at least as technically capable as until now. New advancements are transforming the they are. tablet and similar devices into highly functional POS systems that off er all of the capabilities of traditional Th e digital revolution also enables new approaches POS, and then some, without complex integration to POS architecture. No longer must the POS device tasks, unsightly cabling, closed computing environ- sit anchored to one spot, requiring local access to ments, PCI compliance or high costs. all of the data it needs to process transactions, keep money PRODUCED BY SPONSORED BY vsr_Powa_wp_1015_v3.indd 1 9/10/15 3:18 PM POSDESIGNED TO FIT FITTING THE SPACE: EVOLVING POS FORM “Changes in consumer shopping be- FACTOR havior and the advent of digital technology have radically changed the Traditional POS terminals are rapidly very nature of the point of sale (POS),” losing ground to tablet-based solu- Boston Retail Partners says in its 2015 tions. Tablets are typically classifi ed as POS/Customer Engagement Survey. mobile POS in industry research, but “Instead of a simple transaction device, they can actually be used as stream- the POS now needs to serve as the link lined countertop devices, as portable to customer information, shopping his- devices, or rapidly be switched from tory and purchasing behavior across all one to the other as the need arises. IHL channels. Unfortunately, many retailers Research projects a 320% increase in still try to utilize the same POS system shipments of mobile POS from 2013 from ten or even fi ft een years ago. Th is through 2017, according to its report, oft en leads to associate and customer Mobile POS: Hype to Reality. SMBs are frustration because of slow transac- leading the way: the report found just tions, lack of information available to 15% of mobile POS (mPOS) installs are associates and potentially increased in enterprise-sized companies, but by theft and fraud.” 2018 they are projected to account for 38% of POS installs. 451 Research pre- Older POS systems come with high dicts a 32% compound annual growth maintenance costs and technical limi- rate for mPOS through 2019. tations and also consume valuable counter space. As fi xed position de- Solution providers are also seeing this vices, they cannot be used to bring trend. In VSR’s 2015 POS Study, mobile the POS to the customer. Th e soft ware POS was said to be the number three architecture designed to run on these driver of new POS investments. Add- devices oft en uses payment processing ing mobile POS (49%) was the second soft ware that places the entire device in most cited reason for buyers upgrading scope for PCI compliance, adding costs POS, aft er PCI compliance. and management burden to users. And older, purpose-built POS devices oft en lack the connectivity and browser ca- “Now we see options like pability needed to access cloud-based PowaPOS that bring the applications for real-time customer and inventory data in support of robust peripheral functionality marketing and omnichannel retailing. with a unique, sleek, countertop design which Tablets overcome these limitations because they are built highly user friendly complements the evolving, and access the Internet. Tablets not only robust features of tablet lend a cool factor, but reduce training time because the interfaces are familiar solutions we see in the and intuitive — a critical factor in re- market today.” tail and restaurants, where annual staff turnover can top 300%. Tablet POS can — maTTHEW INAN, DIRECTOR OF be set up quickly, making it ideal for BUSINESS DEVELOPMENT AND SALES OPERATIONS, E-NABLER pop-ups and mobile businesses in addition to storefronts. Most new tablet- based POS systems off er subscription- 2 vsr_Powa_wp_1015_v3.indd 2 9/10/15 3:18 PM “With PowaPOS, you slide a tablet in there and it all goes well together. based, hosted POS, considerably lowering the barrier It doesn’t sound like a to entry for POS users of all sizes. huge thing, but it is when The recently published VSR POS Study found that you’re an integrator you’re 41% of solution providers agree that the future of POS lies in SaaS/Cloud/On-demand delivery of POS dealing with all those with in-store server back-up, and 49% foresee a hy- pieces and trying to make brid POS platform and e-commerce platform. it look decent.” Resellers also report widespread enthusiasm for tab- — Chester RITCHIE, US SENIOR VICE let POS among their customers. SMBs lead the way, PRESIDENT, WORLDPAY but enterprise acceptance is growing. “There is a shift forming within the POS industry as retailers modify their thinking from the implementa- tablet itself. Now we see options like PowaPOS that tion of a traditional POS system lasting ten to twelve bring the peripheral functionality with a unique, years, to other options such as mobile POS where less sleek, countertop design which complements the costly technology is not expected to last as long, al- evolving, robust features of tablet solutions we see in lowing more flexibility within the retailer’s environ- the market today.” ment,” Boston Retail Partner’s 2015 POS/Customer Engagement Survey also found. This innovation fills a market gap between traditional all-in-one POS terminals and lightweight tablets Productizing the Tablet surrounded by a jumble of POS peripherals. It com- The tablet’s familiar interface and streamlined form bines the former’s rugged, purpose-built design with factor have been drivers for use at POS, but until now the latter’s modern, connected platform: transforming a tablet into a fully functional POS device has added bulk back into the equation. A tablet • A swivel stand that not only holds a removable needs a dock to place it at the right height and angle off-the-shelf tablet, but also houses a receipt for countertop use — a dock that often makes it more printer, Bluetooth bar code reader and PIN pad difficult to use the tablet as a mobile POS device. in an elegant, streamlined form factor. Turning a tablet into a POS station also requires the • A single power cable to support all of these plus addition of a card reader, a cash drawer, a bar code the cash drawer. scanner, a printer, and sometimes a customer display, • A vertical footprint that minimizes use of valu- all competing for the limited ports available on most able counter space. tablet models if they are not wirelessly enabled — • Plug and play functionality that works right out and each requiring a separate integration by the soft- of the box. ware developer for each operating system used. The mass of cables and peripherals significantly detracts Such innovation enables ISVs and solution providers from the streamlined look and reduced footprint that to present a professional, ruggedized POS product initially attracted buyers. that combines the appeal of a tablet with the utility of a well-designed all-in-one form factor. These obstacles not only defeat some of the tablet’s inherent benefits, but add cost and time to POS set- “We’re finally seeing someone get all-in-one right,” up — a significant issue for SMBs. says Jason Seed, president of Kounta USA, which develops cloud-based tablet and phone POS software. “In earlier days there were limited options in “PowaPOS got it right because of the tablet. That stands and enclosures for tablets,” says Matthew changed the game. For the first time we saw a really Inan, director of business development and sales powerful all-in-one with a single power supply that operations for e-Nabler, which develops eMobilePOS cleaned up the desktop and made it much more pre- software. “They simply enclosed and housed the sentable than the old fashioned POS environment.” 3 vsr_Powa_wp_1015_v3.indd 3 9/10/15 3:18 PM POSDESIGNED TO FIT “If you compare the PowaPOS solution platform of choice for POS. versus the solutions out there in the marketplace, they kind of look kludgy “Tablets are easy, familiar and not over- and pieced together because they are,” bearing,” says Justin Guinn, market re- says Chester Ritchie, US senior vice search associate for Soft ware Advice. president for payment processor World- “Some PC-based POS can look a little pay. “With PowaPOS, you slide a tablet daunting. We think we will start to see in there and it all goes well together. It more and more industries using tablet doesn’t sound like a huge thing, but it is and phone-based POS.” when you’re an integrator you’re dealing with all those pieces and trying to Across the spectrum, the market is make it look decent.

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