The advantages of mobile POS devices

Chip & PIN readers connect to a mobile device (Apple or Android), and can process card payments instantly. They are a great alternative to traditional card readers, which are usually bulky, expensive, and require a merchant account.

Traditionally, PDQ machines are provided by the merchant’s payment processing company, and use their own mobile data connection. Mobile card readers, on the other hand, pair with a smartphone or tablet via a Bluetooth connection to authorise the payment, effectively turning the device into a chip & PIN machine, that uses the device’s 3G or 4G data connection to process the transaction.

This means retailers are no longer tied to a specific location (the store where the PDQ machine had been set up), but can now take their card readers on the go. While owners of permanent retail spaces might still find the traditional way works perfectly well for them, the new system offers new opportunities to:

• online retailers wanting to test face-to-face interaction with their customers with a pop-up store.
• itinerant merchants, such as food vendors and delivery services, or creatives that take their wares to markets or other events, and thus far had been tied to cash only.
• established brick-and-mortar retailers, too - that now have the opportunity to become more mobile, and also take advantage of trade events, pop-ups, markets, etc.
• startups, that can now get started quickly, and with minimal setup fees and hardware investment.

iZettle, SumUp and the newly-launched PayPal Here and Shopify Tap, Chip and Swipe are four of particular interest to us.

iZettle

How does it work?

iZettle is a pioneer in the mobile POS industry. Their compact card reader works in correspondence with a clever smartphone app which allows businesses to take payments anywhere and at any time.

Their system functions on a pay-as-you-go model, which is revolutionary as far as the card payments industry is concerned.

Advantages:

• iZettle offers two types of card reader: a displayless “Lite” reader, which businesses can obtain for free, and an advanced “Pro” reader, that supports contactless payments including the likes of Apple Pay.
• iZettle accepts the broadest range of credit and debit cards: Visa, MasterCard, Visa Electron, Maestro, and American Express.
• There are no monthly fees involved, and the set transaction fee decreases as usage goes up.

Disadvantages:

• There is an extra cost incurred if you also wanted a receipt printer.
• It isn't the cheapest option of the POS devices discussed.

SumUp

How does it work?

The payment process is made very simple with SumUp. Similarly to iZettle, all is required is a card reader and app. By using the app the merchant can enter the balance to pay, the customer then inserts their card in to the reader and confirms payment by entering their PIN number. Once the payment has gone through, an email or SMS receipt is sent out to the customer.

Additionally, SumUp will initiate payments to your bank account daily, but it can take 3–6 working days for payments to be credited in your account.

Advantages:

• SumUp offers an additional online dashboard feature for accounting and business decision purposes. It enables users to access sales data and export the history for a particular day, week or month to an Excel file.
• There are no fixed monthly fees or minimum transaction volumes.

Disadvantages:

• For those who are wanting to offer paper receipts, compatible printers are only available at additional cost.
• The card reader does not process transactions via swiping a card’s magnetic strip, so if you have customers from the USA, this could cause a problem.

PayPal Here

How does it work?

PayPal Here will now allow small businesses to take payments almost anywhere. It is ideally suited for a business looking for a card reader with a low initial cost and no monthly fees. It would be particularly suited to small businesses such as market stall vendors and traders.

All you need is a PayPal Here card reader and to download the free app. The card reader then needs to be connected to your mobile phone via Bluetooth.

Advantages:

• You are able to track payments for both cheque and cash, and you are able to issue invoices and/or receipts through the app.
• PayPal payments can be integrated with eBay sales which would be ideal for small businesses who already operate through PayPal.
• Payments can integrated from cards (Chip & PIN, NFC contactless, swipe and manual entry), cash, cheques, PayPal and eBay.

Disadvantages:

• PayPal Here is a little more expensive than its competitors. For instance, if your transaction volume hits a certain limit per month, you would not benefit from the sliding transaction fees like you can get with iZettle. Instead, PayPal Here charges 2.75% for Chip and PIN regardless of monthly sales.
• Interactions with their customer service team can at times be a pain.

Shopify Tap, Chip, and Swipe

How does it work?

The Shopify Tap, Chip and Swipe mobile POS is wireless and great to use as part of your on-the-go point of sale solution. Simply tap the device to accept contactless cards, Apple Pay and Android Pay, or alternatively insert chip cards to accept secure payments. For those who still use magnetic stripe cards, simply swipe the card through the side of the device.

Advantages:

• It features an integrated PIN pad to provide full EMV chip card support.
• It can use iPads or iPhones to capture customer signatures.
• The device has the ability to accept chip cards, contactless cards, and magstripe cards.

Disadvantages:

• It is currently only available for US based merchants.
• This POS will only work for those already using Shopify as a platform for their online store.

Conclusion

Having discussed the four mobile POS devices it would seem they all share a lot of similarities. It all depends on which one is going to suit you and your business best. Transaction costs and functionality are the two main areas you need to focus on when deciding on the perfect mobile POS. Nevertheless it seems a great opportunity to take advantage of the increasing capabilities of smart phones and the peripherals they have for processing card payments on the go.

Are you in need of a new Shopify store? Read about our services and get in touch to discuss your next project if so.