Your mPOS opportunity The mPOS proposition Commercial models for acquirers Visa mPOS marketing collateral Visa Ready
Discover an untapped revenue stream Reach a new customer segment with mPOS
Mobile point-of-sale (mPOS) solutions have created a new growth opportunity for acquirers. It’s your key to accessing a rapidly growing market. This guide shows you how. Get started >
© 2014 Visa. All Rights Reserved. Your mPOS opportunity The mPOS proposition Commercial models for acquirers Visa mPOS marketing collateral Visa Ready
Your mPOS opportunity Merchants who don’t accept cards are missing out on additional sales. When you offer The rapid shift from mPOS solutions, you can create a cost-effective, incremental revenue stream for those cash to cards: merchants — and for your business.
This new breed of merchants is rapidly adopting card acceptance through mPOS, and the reasons are clear. It creates a unique opportunity for acquirers to serve: 4.7X faster growth rate for cards – Large enterprise merchants with a mobile sales force taking small payments than cash from 2010-20141 – Smaller merchants who are unable or reluctant to accept cards regularly - Consumer card usage increased at a rate of 8.5% mPOS meets the needs of this new merchant segment - Consumer cash usage The key benefits of mPOS line up directly with these merchants’ specific business challenges. increased at a rate of 1.8% Critical services for potential mPOS merchants:2
Simple pricing Quick funds availability
Marketing via online and Easy configuration social media and setup
Simple, online merchant Online help center with sign-up process low costs
1Global Merchant Segment Study compiled by Euromonitor for Visa International, May, 2014 2EY Advisory UK & I, 2012 Visa mobilePOS Infrastructure Study
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The mPOS proposition The value of mPOS to merchants is clear. The value to you is profitability. At a fraction of Onboarding the cost, mPOS delivers a return on your investment in less than one-third the time of merchants in a traditional POS solutions. fraction of the time: Time to achieve ROI1
Traditional POS 12Application fields for mPOS VS. mPOS 3X faster +
200Application fields for How to leverage mPOS for maximum ROI traditional POS1 Typical mPOS solutions provide free or inexpensive hardware and software along with – Fewer application fields to enroll bundled services and a simple pricing structure. Your mPOS offering should also deliver: – Simpler sign-up process – Card acceptance in days, Turnkey marketing support: not weeks Harnessing digital and social channels to maximize return
GO Hassle-free sign up: Traditional POS solutions require about 20x as many fields as mPOS1
Risk management: To balance efficiency with risk when merchants sign up
1EY Advisory UK & I, 2012 Visa mobilePOS Infrastructure Study
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mPOS is changing the payments Commercial mPOS models landscape: mPOS can be a profitable business solution, but it requires a streamlined approach to merchant-facing support and processes. To achieve this, acquirers should consider two models $ for going to market: 15 B 2012 transaction Adapt your current systems to offer mPOS. This may require time and a significant change volume for Square®1 of processes within your organization. – mPOS solutions are driving down cash usage Contract with a payment facilitator (PF). This offers significant advantages as PFs provide the mPOS terminals, act as the merchant of record and often market the solution themselves. – Commonly known as the “Square Effect”
Business questions to address when working with a PF:2
1. Acquirer – PF Contractual Terms & Conditions 2. Acquirer / PF – Merchant Contractual Terms & Conditions
Product related Finance related Product related Finance related • Roles and responsibilities, including • Pricing • Acquirer / PF role in providing the • Fees service descriptions • Settlement solution / service, including a short • Accepted cards • Local adaptation, branding, • Chargebacks service description • Receipts translation, documentation • Reporting • Merchant’s technical requirements • Taxes (e.g. mobile device, mobile network • Merchant onboarding • Funds and payout schedule connectivity) • Delivery and supply of hardware / Supporting terms and conditions • Refunds, returns, chargebacks software to merchants • Registration and account setup • Service levels, including software / requirements Supporting terms and conditions • Technical and systems requirements hardware maintenance and support • Security, encryption, key generation • Security requirements, including • Software license conditions • Software and license conditions login and authorization • Fraud detection and handling • Usage restrictions and banned • Liabilities, damages, disputes, • Customer service and complaint • Ownership of hardware transaction types warranties, termination of contract handling • Training • Dormant accounts and termination • Account history • Service availability • Liabilities, damages, disputes, warranties, termination of contract
1Mobile Point-of-Sale (m-POS) Acquiring Solutions, Mercator Advisory Group, 2014 2EY Advisory UK & I, 2012 Visa mobilePOS Infrastructure Study
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Marketing mPOS effectively As an mPOS provider, you’ll also be targeting non-traditional merchants. The data below shows The power of mPOS some of the most active merchant categories to consider. to drive card usage: Visa’s Top 5 U.S. Merchant Categories 75% of new mPOS users were 1 Personal General Beauty/Barber Professional Restaurants cash-only merchants Services Merchandise Shops Services The vast majority of mPOS devices were shipped to How to approach this market merchants who did not previously accept cards. To engage your prospects — and keep your cost-per-acquisition low — it’s critical to: – Leverage social media channels for low-cost/high-yield results – Integrate with target verticals to optimize your effects Visa has created a suite of marketing resources to help promote mPOS. Learn about them on page 6.
1Mobile Point-of-Sale (m-POS) Acquiring Solutions, Mercator Advisory Group, 2014
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mPOS marketing resources Take advantage of these toolkits and creative assets to help you promote your mPOS solution to The rapid adoption small/micro and large enterprise merchants while keeping your costs low. of mPOS: % Increase sales with mPOS
New mobile point-of-sale (mPOS) solutions make it easy to turn your smartphone or tablet into a convenient card reader to capture more sales … in-store or on the road. 111 Grow your business, easily one-year increase Lower your costs $ Increase sales by accepting card payments on “It just makes total sense – so easy Low to no-cost hardware and software let you get started with your smartphone or tablet to use and the bottom line is that it helps you to sell more.” in operational mPOS minimal investment or paperwork. You can benefit from: Sell more, simply — mPOS customer2 – No to low monthly equipment fees Call <1-XXX-XXX-XXXX> 1 – No long-term contracts Or contact
2Source: Added Value Visa mPOS Global Report, Sept. 2013 Source: Added Value Visa mPOS Global Report, Sept. 2013
2 – 4.5 million mPOS
– No dedicated phone line needed into a payment card reader
– No long-term contracts Or contact
Turn your smartphone or tablet devices in 2011
Call <1-XXX-XXX-XXXX> – No to low monthly equipment fees
Sell more, simply
— mPOS customer
2
minimal investment or paperwork. You can benefit from:
it helps you to sell more.”
your smartphone or tablet
Low to no-cost hardware and software let you get started with
to use and the bottom line is that
Increase sales by accepting card payments on
“It just makes total sense – so easy $
Lower your costs – 9.5 million mPOS
Grow your business, easily
or on the road.
capture more sales … in-store
a convenient card reader to devices in 2012
mPOS “Why” module your smartphone or tablet into mPOS “How” module Endorsement module
solutions make it easy to turn New mobile point-of-sale (mPOS)
– A mobile-friendly web page Increase sales with– mPOS A mobile-friendly web page – A series of video – 38 million projected with key benefits of mPOS with guidance on the endorsements from by 2017 activation process vendors to validate – A print-ready leave-behind the case for mPOS with key benefits of mPOS – A print-ready leave-behind with guidance on the activation process
12020 Foresight: Mobile Point of Sale Technology, Timetric, April 2013
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Streamlined compliance with Visa Ready The Visa Ready program is a security and compliance seal of approval that can increase your Building speed to market. By defining requirements and providing a list of compliant mPOS solutions, consumer trust: Visa Ready simplifies your selection process. % Here’s how Visa Ready helps ensure security and compliance: 45 cite fraud protection 1 Solution provider reviews Visa Ready requirements as critical1
Nearly half of consumers said fraud protection 2 Solution provider submits solution to participating lab for evaluation could influence their payment choices.
3 Lab submits successful test results to Visa
4 Solution provider signs Visa Ready agreement
Solution provider is now Visa Ready
Learn more about the Visa Ready program at technologypartner.visa.com/mpos
12014 Retail Point of Sale Payment Forecast, Javelin Strategy and Research, May 2014
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Tap into a new revenue stream with mPOS The rise in card usage and the rapid adoption of mPOS solutions offer you a unique opportunity to drive sales.
Find out how to take advantage of it. Contact [email protected]
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