SoftPOS: The Easy Path to Contactless Payment Acceptance, Anywhere
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Digital transactions continue to gain momentum, and with consumers expecting to make payments in more places, merchants are looking for practical, reliable solutions. SoftPOS is emerging as a popular option. Grand View Research estimated the global SoftPOS market at $255.4 million in 2022 and predicts growth at a disruptive 22.3% compound annual growth rate (CAGR) from 2023 to 2030. That would put its market value at more than $1.250 billion. It’s easy to see why this innovative technology has impressive potential for growth. SoftPOS makes it easy for merchants to meet demand and accept contactless payments anywhere.
What is SoftPOS?
SoftPOS stands out among payment solutions because it’s software-based and, therefore, not dependent on payment hardware. It allows merchants to accept contactless payments directly on a mobile device, such as a tablet or handheld computer used for mobile point of sale (POS) or store management. The Payment Card Industry (PCI) has standards for SoftPOS to ensure payment data security. PCI published the Mobile Payments on Consumer Off-the-Shelf (MPoC) standard in 2022, including security for PIN entry on the same device that captures cardholder data in addition to regulations for how to develop, deploy, and maintain these solutions.
With SoftPOS, merchants of all sizes can deploy solutions to accept contactless payments wherever customers engage — in the aisles of a retail store instead of waiting in a checkout queue, at the table in a restaurant, outside the store at a pop-up shop, or even in a remote location. However, the benefits don’t end there. SoftPOS lowers the total cost of ownership (TCO) of accepting contactless payments. With this payment method, there’s no additional payment device to purchase, implement, charge, or maintain. Additionally, the SoftPOS provider addresses PCI standard changes, making it easier for the merchant to stay compliant rather than having to update PIN pads.
Which Merchants Benefit from SoftPOS?
It’s easy to see how small and micro-merchants can benefit from SoftPOS. They don’t have to invest in costly payment devices, maintaining them, and updating them to accept contactless payments. SoftPOS can lower the barrier of entry, making it practical for some small businesses to accept digital payments for the first time.
However, larger merchants, including Tier One retailers, can also benefit from SoftPOS. This technology can complement the payment technology they currently use, such as Android terminals or devices that run on other operating systems and unattended devices for convenient self-service. SoftPOS makes it easy to expand payment acceptance to any location where employees can use a mobile device. It can also provide an easy way to accept payments when the network is down, allowing employees to use mobile devices connected to cellular service until a connection is restored.
Future-Proof Your Business with Innovative Payment Solutions
Consumers have adopted contactless payment methods for speed, ease of use, and convenience, and they will look for the opportunity to use cards and digital wallets for in-person transactions wherever they make purchases. Adapting technology and processes to accommodate this payment method is essential to providing the types of experiences that build strong customer relationships and revenues. However, merchants need to remember that payment innovation continues. Consumers may increasingly demand to use alternative payments like buy now, pay later (BNPL) or new forms of payment as they emerge in addition to digital wallets, contactless cards, and traditional digital payment methods.
A smart strategy is to implement a payments platform that supports the whole range of payment methods — from credit and debit to SoftPOS and alternative payments — and has the flexibility to expand to accommodate new payment methods and features in the future. Merchants will also benefit from a solution from a payment technology provider that includes payment services that streamline management and enhance performance.
Ingenico SoftPOS first certified MPoC 1.1 for chip and pin extension
Ingenico SoftPOS is now certified to accept payments along with a secure card reader. The reader can be easily attached to any smartphone, enabling merchants to offer Chip and PIN mobile payment acceptance.
To learn more about a platform that supports the full range of payment methods, including contactless payments and SoftPOS, contact us.
