Stanchion and Ingenico Join Forces to Accelerate SoftPOS Adoption in Financial Markets

Although SoftPOS adoption is in its earliest stages, this game-changing technology that enables contactless payments directly on mobile devices is garnering global attention and solving challenges for merchants, acquirers, and software developers. In a recent Pulse of Payments Series podcast, Swipe Right on SoftPOS: Unlocking Payment Freedom, Pierre Aurel, Chief Product Officer, and Norman Frankel, Chief Growth Officer, of Stanchion, shared their perspective on SoftPOS, where it’s delivering value today, and what to expect from this disruptive technology in the future.

Stanchion, a global payments consulting firm, has partnered with Ingenico to make SoftPOS available to its clients. Aurel explained that Stanchion provides an integration layer, its “payment fabric,” which enables banks to leverage solutions like SoftPOS.  

Many consumers adopted digital wallets for touch-free experiences during the COVID-19 pandemic and discovered the low-friction payment experiences they provide. However, consumers are somewhat limited by the current acceptance network. Payment devices must have near-field communication (NFC) capability. Many smaller merchants lack those devices or don’t have a contactless payment volume large enough to keep those devices charged and ready to accept tap-to-pay payments. SoftPOS gives merchants an easy way to accept contactless payments without the expense of deploying and maintaining separate payment devices. They use smartphones or other mobile devices they already own, download a SoftPOS app, and begin accepting contactless payments.

Securely Moving from Payment Hardware to Software-Based Payments

Aurel pointed out that a challenge with SoftPOS is matching the security of payment hardware in a software solution. The Payment Card Industry Security Standards Council (PCI SSC) published the MPoC (Mobile Payments on Commercial-off-the-shelf) Standard, which enables safe processing. Ingenico SoftPOS solution providers also comply with the PCI Data Security Standard (PCI DSS), PCI PIN PTS to protect PIN data entry on mobile devices, and the PCI Software Security Framework (PCI SSF) that ensures software is secure throughout its entire lifecycle.

Partnership with Ingenico has helped Stanchion make SoftPOS available to its clients. Stanchion’s payment fabric, integrated with Ingenico SoftPOS, facilitates projects and removes the burden on banks to develop solutions, maintain integrations, and do continual regression testing.

SoftPOS Use Cases Today

Frankel pointed out that SoftPOS adoption began in Europe over five years ago, particularly during the COVID-19 pandemic when not touching cash was a priority.

He added that when Greece changed tax regulations in 2024, requiring that all transactions be recorded in a point of sale (POS) system so that the merchant can provide an electronic record. Merchants were able to comply quickly by using NFC-capable mobile devices, downloading SoftPOS, and accepting contactless payments. 

Additionally, 18 months ago, Romania began requiring that any merchant with a turnover of €10K or more offer a contactless payment option. Banks that subsidized payment solutions for small merchants needed a cost-effective solution that they could implement quickly. SoftPOS was an excellent fit, and adoption spread quickly, with one bank reporting 25% of transactions a year after launch originated on SoftPOS.

He pointed out, however, that merchants don’t have to wait for rules or standards to change to benefit from SoftPOS. Businesses, from small restaurateurs, insurance agencies, and tourism businesses to large enterprises that need a reliable queue-busting tool, cash-on-delivery services, can use SoftPOS to accept payments. Furthermore, if a merchant is charged for use of a terminal, SoftPOS can eliminate that cost with this payment method.

What to Expect from SoftPOS in the Future

Both Aurel and Frankel expect SoftPOS adoption to trend upwards, particularly as card brands help build trust in this technology and more consumers and businesses become familiar with its benefits. Also, look for more embedded use cases that create a tap-to-pay experience on unattended devices like self-service kiosks and EV charging stations. Expect SoftPOS providers to add more features, like dynamic currency conversion and embedded finance like buy now, pay later (BNPL), which can help banks expand their services and grow revenues. SoftPOS may even blur the lines between online and in-store payments, allowing consumers to pay using their own devices and making “app-to-app” transactions.

Act Now

Frankel’s advice is to give SoftPOS a try.

The Pulse of Payments Series is sponsored by the Leaders in Payments Podcast and Ingenico. For more insights from Stanchion on SoftPOS, listen to the entire episode, Swipe Right on SoftPOS: Unlocking Payment Freedom.