mPOS 101What merchants need to know about mobile point-of-sale technology

GUIDE

DEVELOPED AND PUBLISHED BY:

2mPOS 101 | © 2015 Networld Media Group

Page 3 Executive Summary

Page 4 Chapter 1 | Introduction Security PCI Encryption EMV NFC and Bluetooth low energy

Page 9 Chapter 2 | The Evolution of mPOS Transformation Consumer foodservice industry Service-oriented businesses E-tailers Cloud-based systems Consolidation Ancillary services

Page 13 Chapter 3 | Who’s Who in the Market Amazon AnywhereCommerce First Data Ingenico Mobile Solutions/ROAM Intuit GoPayment Intuit QuickBooks Point of Sale iZettle Leaf MagTek NCR Silver Payleven PayPal Here Poynt Revel Systems ShopKeep Square Verifone

Page 27 Chapter 4 | Conclusion Payment types Customer experience Omnichannel

Page 31 References

CONTENTS

Published by Networld Media Group © 2015 Networld Media GroupWritten by Robin Arnfield, contributing writer, MobilePaymentsToday.com.Tom Harper, president and CEOKathy Doyle, executive vice president and publisherWill Hernandez, editorTiffany Smith, custom content editor

3mPOS 101 | © 2015 Networld Media Group

Mobile point-of-sale is transforming the retail industry in a way few tech-nologies have done before.

For small merchants, the benefits of installing mPOS technology include not just low-cost card acceptance on smartphones and tablets but also ac-cess to the value-added retail management software offered by traditional POS systems, but at a lower price.

For large retailers, mPOS provides a way to improve customer service — for example, through line busting — and to respond to showrooming. “An associ-ate with an mPOS device can engage a customer in conversation and show them the features of a product using their device, and then take the order and capture the payment,” Aite Group senior analyst Thad Peterson said.

This report provides guidance to micro-, small, medium-sized and large merchants on the options available in the mPOS market, including over-views of the leading vendors. It also reviews key issues that merchants need to be aware of, such as security and EMV compliance.

EXECUTIVE SUMMARY

Robin ArnfieldMobilePaymentsToday.com

Robin Arnfield has been a technology journalist since 1983. His work has been published in ATM Marketplace, Mobile Payments Today, ATM & Debit News, ISO & Agent, CardLine, Bank Technology News, Cards International and Electronic Payments International. He has covered the United Kingdom, European, North American and Latin American payments markets.

4mPOS 101 | © 2015 Networld Media Group

CHAPTER 1

Bulky cash registers are a thing of the past for small and medium-sized busi-nesses (SMBs), as smartphone- and tablet-based systems with attached card readers become more prevalent. Another benefit of these mPOS de-vices is that they can be used for line busting during peak store hours.

While micro-merchants may find it sufficient to attach an mPOS card reader or dongle to a smartphone or tablet, larger retailers typically need more sophisticated “mobile-register” solutions that offer more than payments acceptance, with additional features including real-time inventory checking, loyalty, ordering and product information.

To reap the benefit of those value-added features, retailers need to ensure their mPOS systems are fully integrated with their existing POS systems.

Instead of using dongles, larger retailers typically deploy sleeves encasing the mobile device being used as the interface to conduct card transactions, or integrated tablet-based solutions consisting of purpose-built, all-in-one mPOS devices. The advantage of sleeves is that they are more robust than dongles and can include barcode readers for price and inventory checks.

Another option is to deploy countertop tablet stands containing a tablet and card reader and linking to hardware accessories such as receipt printers, cash drawers and barcode scanners.

SecurityAny merchant deploying mPOS technology needs to be aware of the re-sponsibility to ensure the security of customers’ transactions.

Mobile devices face many of the same threats PCs do, including malicious apps, viruses and other types of malware. Because of Android’s open-platform approach, Android-based devices are particularly vulnerable to malware.

Malware doesn’t affect iOS-based devices to the same extent as Android devices because of Apple’s “walled garden” approach to iOS apps.

Introduction

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A significant security risk is caused by smartphone users jailbreaking or rooting their devices. This involves a user removing the controls set by the device’s manufacturer so the device can run unauthorized apps, which opens it to the risk of being infected by malware.

Mark Schulze, co-founder of Android tablet-based mPOS vendor Clover Net-work, which is now owned by First Data, says his company provides controls to ensure the security of its customers’ devices. “We offer our own secure version of Android, with controls to ensure merchants’ employees can’t use Clover tablets to play games,” he said. “If a tablet goes missing, we shut it down remotely and erase everything stored on it. You can’t jailbreak or root our devices, and you can only download apps from our app store.”

PCILike all merchants accepting payment cards, merchants using mPOS card readers must adhere to the Payment Card Industry Security Standards Council’s (PCI SSC) data security standards, the most important of which is the Payment Card Industry Data Security Standard (PCI DSS).

The PCI SSC is an open forum responsible for developing and managing the PCI DSS and related payment card data security standards. Merchants, processors, card issuers and technology vendors are required to comply with those standards.

The PCI standards’ purpose is to safeguard cardholder data and sensitive authentication data by eliminating security vulnerabilities at any point in the payment card infrastructure. The standards cover POS, e-commerce and ATM transactions.

Entities that are noncompliant with PCI DSS or that suffer breaches face substantial fines from the card schemes as well as potential liability for the cost of fraud.

“When a mobile device is transformed into a POS terminal for a merchant to accept card account data, there is a responsibility to protect that informa-tion,” the PCI SSC says. “Thus PCI standards begin to apply when a mobile device is used for payment card acceptance.”

In August 2014, the PCI SSC updated two guidance documents it originally issued in February 2013: “PCI Mobile Payment Acceptance Security Guide-lines for Merchants as End-Users” and “Accepting Mobile Payments with a Smartphone or Tablet.”

“When a mobile device is transformed into a POS

terminal for a merchant to accept card account data, there is a responsibility to protect that information.”

—PCI Security Standards Council

CHAPTER 1 Introduction

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In its guidance, the PCI SSC warns that, as merchants’ mobile devices aren’t used only as POS tools but also to carry out other functions, they introduce new security risks. “By design, almost any mobile application could access account data stored in or passing through the mobile device,” it says.

In addition to security risks such as malicious apps, viruses and intru-sions, mPOS card readers face a threat from fraud specifically because of their mobility, the PCI SSC says. MPOS card readers can be used not just inside stores but at remote locations such as customers’ homes or farmers markets. A key risk to merchants is the ease with which a criminal can steal an mPOS device, modify it to intercept cardholder data and return it without anyone realizing it was gone, the PCI SSC says.

According to the Mobile Payments Today report “Mobile Banking and Pay-ments Security,” merchants should regularly check that their mPOS devices haven’t been physically tampered with — for example, by the insertion of a card skimmer. The report also recommends that small merchants such as coffee shops that use mPOS technology should ensure the Wi-Fi connection they use for their mPOS device is separate from the Wi-Fi network they pro-vide for customers to use in the store. The mPOS Wi-Fi connection should be on a secure network that is segmented from a public Wi-Fi network.

EncryptionWhen selecting an mPOS card reader, merchants should avoid any reader that just converts the magnetic-stripe data on the customer’s card into an audio signal that is transmitted in unencrypted form via the merchant’s smart-phone. This is a bad security practice, as there could be malware on the smartphone that would intercept the card data.

The PCI SSC guidelines state that the best option for merchants using mPOS is to use a PCI-validated and approved point-to-point encryption (PCI P2PE) solution.

The PCI SSC’s PCI P2PE standard provides a specification for the use of strong encryption to achieve point-to-point encryption, where clear-text card data is removed from the payments environment. This is accomplished by encrypting data from the point of interaction (where cards are swiped/dipped) until the data reaches the P2PE solution provider’s secure decryp-tion environment.

With P2PE, the card number is encrypted in the card reader with a key that isn’t known to the merchant and that can be decrypted only by the processor or the issuer.

CHAPTER 1 Introduction

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EMVFrom October 1, 2015, U.S. merchants who haven’t upgraded their POS ter-minals to accept EMV (Europay, MasterCard and Visa) chip card payments will become liable for fraudulent misuse of EMV cards occurring on their terminals, under a liability shift imposed by MasterCard, Visa and the other card networks.

The EMV standard is designed to prevent card skimming and counterfeiting, as EMV-compliant cards contain an embedded chip as well as a magnetic stripe. An EMV card’s chip stores the cardholder’s account data more secure-ly than a magnetic-stripe-only card.

EMV cards are ubiquitous across Europe and will become widely adopted in the U.S. due to the October 1 liability shift.

“U.S. mPOS vendors need to be able to demonstrate a clear roadmap for supporting EMV,” said William Nichols, president and CEO of Montreal, Canada-based m-payments firm AnywhereCommerce.

“Any U.S. mPOS provider which doesn’t already offer EMV capability or doesn’t plan to offer EMV in the next six months should be of concern to merchants,” Aite Group’s Peterson said. “The big mPOS providers such as Verifone and Ingenico already support EMV, and Square will launch an EMV card reader in spring 2015.”

One consequence of the U.S. move to EMV will be that mPOS vendors such as Square that have been giving their magnetic-stripe card readers away for free will have to charge for EMV card readers, Nick Holland, a Javelin Strat-egy analyst, told USA Today.

And those readers are not cheap. “European mPOS vendors charge £30 ($46) to £100 ($153) per EMV device,” said Phil Sealy, a senior analyst at U.K.-based ABI Research.

NFC and Bluetooth low energyNear-field communications (NFC) is a radio frequency identification (RFID) based communications technology enabling POS terminals to accept pay-ments from contactless cards and from NFC-enabled smartphones contain-ing mobile wallets such as Google Wallet and Apple Pay.

When opting to pay from a mobile wallet, the customer selects the card stored in the mobile wallet that he or she wishes to use then taps the smart-phone on the merchant’s contactless card reader to make a payment.

CHAPTER 1 Introduction

“Any U.S. mPOS provider which doesn’t already offer

EMV capability or doesn’t plan to offer EMV in the

next six months should be of concern to merchants.”

— Aite Group senior analyst Thad Peterson

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Bluetooth low energy (BLE) is an alternative proximity communications method to NFC, allowing BLE-enabled smartphones to make mobile pay-ments and receive marketing offers in stores through links to BLE-enabled transmitters called beacons.

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CHAPTER 2

“The mPOS market is maturing at an amazing rate, considering it started five years ago,” said Aite Group analyst Andrew Copeman. According to ABI Research, the global installed base of mPOS devices will increase fivefold between 2014 and 2019 to 51 million, or 46 percent of the overall POS terminal market. The Apple iPhone’s launch in 2007 opened the door for third-party develop-ers to create mobile apps and external hardware for micro-merchants to accept cards at farmers markets and similar venues. Square helped spur the mPOS industry when it introduced its smartphone app and dongle in 2009. “Square’s rapid ascension spurred intense invest-ment and increased competition in this new space,” said Michelle Evans, senior analyst for consumer finance at Euromonitor International. As smart devices became more prevalent and capable, companies devel-oped more mPOS business capabilities such as inventory management, loyalty programs and better merchant/customer interaction. Once the mPOS market began to expand, the traditional POS terminal manufacturers such as Ingenico and Verifone launched their own mPOS sys-tems. The market also has seen companies such as ShopKeep and NCR’s NCR Silver subsidiary providing tablet-based alternatives to traditional bulky POS systems.

TransformationAccording to the 451 Research (formerly Yankee Group) report “Revolution-izing Retail With mPoS,” mPOS is transforming the retail industry in a way few technologies have done before. “Retailers which have eschewed cum-bersome cash wraps in favor of a mobilized checkout are already reaping increased savings, sales and customer satisfaction,” said the report.

The evolution of mPOS

“Square has been the poster child for the dongle revolution.”

— Michelle Evans, senior analyst for consumer finance, Euromonitor International

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A cash wrap is a counter, typically about 15 square feet, that contains a POS terminal, scanning equipment and space for bagging purchases. “While originally targeted at micro-merchants, mPOS technology has made inroads in larger stores that find value in the one-on-one consumer interac-tion,” Euromonitor’s Evans said. “In retailers like Nordstrom, Apple and Home Depot, mPOS devices are supplementing, and even replacing, traditional POS terminals. Employees are being armed with these mPOS devices to enable them to accept card payments anywhere in the store. These de-vices can be used to not only drive efficiency around the checkout process, through line busting, but have also increasingly become a cornerstone to a more enhanced consumer shopping experience.” An associate equipped with an mPOS device offering inventory management can help a customer find an item. If the item isn’t in stock, the associate can order the product and have it shipped to the customer’s home. “MPOS helps merchants respond to showrooming,” Aite Group’s Peterson said. “An associate with an mPOS device can engage a customer in conver-sation and show them the features of a product using their device, then take the order and capture the payment.”

Consumer foodservice industryNo other industry has embraced mPOS quite like the consumer foodservice industry has, Euromonitor’s Evans says. “Consumers are increasingly using their mobile devices to make dining decisions, and many independent food-service providers can leverage mPOS to not only accept cards — perhaps for the first time — but also manage their store and customer relationships.” And Schulze said merchants are telling Clover Network that its Clover Mobile POS solution is transforming their businesses. “It enables staff to walk around and take orders and payments,” he said. “A lot of QSR restaurants are using Clover Mobile to take orders from people waiting in line, as people leave if the line is too long.”

Service-oriented businessesAccording to the 451 Research report “Exploring the Enterprise mPoS Op-portunity,” mPOS is seeing adoption among regional, service-oriented busi-nesses such as HVAC and maid services.

CHAPTER 2 The evolution of mPOS

“We’ve seen larger U.S. merchants install mPOS

solutions so their staff can take payments from customers while walking around the store.

This unchains the staff from the cash wrap and allows them

to interact more closely with customers on the sales floor.”

— Jordan McKee, senior analyst at 451 Research

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“MPOS is particularly beneficial for these types of enterprises, given that the traditional billing approach is often invoicing,” wrote report author Jordan McKee. “By taking a payment on the spot, DSO (days sales outstanding) is significantly reduce d and cashflow issues are alleviated.”

E-tailersA recent trend has seen large and small e-tailers enter the physical retail-ing space, either by opening permanent brick-and-mortar stores or pop-up shops. MPOS technology provides a low-cost and flexible way to do so.

MPOS also solves e-tailers’ challenge of how to make the in-store consumer experience smooth, fun and effective, without deploying too much infrastruc-ture, Eric Hoffman, senior vice president at Ingenico Mobile Solutions, wrote in the Mobile Payments Today report “Mobile Payments State of the Industry 2015 - Omnibus Edition.”

Cloud-based systemsIncreasingly, mPOS vendors offer apps that run in the cloud. “The POS industry is moving to software being available in the cloud,” Zilvi-nas Bareisis, a senior analyst with U.S.-based Celent, told Mobile Payments Today. “POS software is becoming less proprietary, which means a wide range of developers can write apps for a vendor’s POS devices.”

In a cloud-based POS system, an mPOS device is able to connect to the mer-chant’s central database, updating transactions and inventory in real time.

An example of a cloud-based mPOS solution is First Data/Clover Network’s Clover Station (see page 14), whose software enables merchants to manage their inventory, track revenues and generate reports both in the store and remotely. The system constantly synchronizes data on the Clover tablet with data in the cloud.

“The cloud represents a big shift in retail,” Clover Network’s Schulze said. “We have a Boston-based client who rang us from France to say this was her first holiday in 10 years, as previously she hadn’t been able to leave her business. Now she could log in to the cloud from her hotel and check up on her business.”

ConsolidationBecause of the large number of mPOS vendors, market consolidation is like-ly. “There are around 70 vendors and they can’t all survive,” ABI Research’s

CHAPTER 2 The evolution of mPOS

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Sealy said. “In order to position themselves for future competition, vendors are increasingly focusing on product and functionality differentiation and on targeting specific verticals. This contrasts with the early days when vendors had similar products and business models.”

Another trend is for vendors to position themselves in either the hardware or service provider categories. “There are three models,” Sealy said. “Some vendors focus on transaction-processing revenues. Others just manufacture mPOS hardware, which they sell to mPOS service providers on a white-labeled basis, while other companies both produce hardware and provide transaction-processing services.”

Ancillary services“While mPOS players may offer differing fee structures to appeal to various merchant categories, the additional services these companies can offer be-yond card acceptance have become more fundamental to their differentiation than any fee structure,” Euromonitor’s Evans said. “Besides enabling small businesses to accept card payments for the first time, mPOS terminals may offer loyalty programs, improve security around the payment transaction or provide merchants with enhanced consumer analytics,” Evans said. “These tools enable small merchants to compete with their bigger competitors.” In 2014, the mPOS market became more about ancillary services than dongles and iPad stands, Mobile Payments Today Editor Will Hernandez wrote in a review of 2014. That trend will continue in 2015 as EMV migration is creating opportunities both for established mPOS companies and for new entrants such as Poynt (see page 22). “Currently, the vast majority of mPOS sales are very basic, payment-only applications,” Rick Oglesby, a senior research analyst at Double Diamond Payments Research, told Mobile Payments Today. “However, ISOs and ac-quirers are gearing up to change that, looking to replace mag-stripe terminals with EMV-ready mPOS products that will serve as product hubs, including not only payments products but also loyalty solutions, accounting products and business development and management solutions.”

CHAPTER 2 The evolution of mPOS

“These tools enable small merchants to compete with

their bigger competitors.”— Michelle Evans, senior analyst for consumer finance

at Euromonitor International.

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CHAPTER 3

This chapter profiles the main mPOS players.

AmazonIn August 2014, Amazon launched Amazon Local Register, a mobile card reader similar to offerings from Square and PayPal.

Amazon charges merchants 2.5 percent per swiped card transaction, which is lower than Square’s 2.75 percent. In addition, Amazon charges 2.75 per-cent per keyed-in card transaction.

Amazon Local Register offers apps for iOS- and Android-based devices. The card reader also works with Amazon’s Fire OS devices, including its Fire smartphone. Amazon says Kindle Fire HDX owners can use the tablet’s May-day button to contact an Amazon Tech advisor for free at any time.

451 Research’s McKee told Mobile Payments Today that Amazon’s customer support differentiates the company from its competitors. “That is a fairly sig-nificant component of the overall value proposition,” he said.

Amazon charges $10 for its card reader with free two-day shipping, but mer-chants receive a $10 credit to cover the initial purchase. Merchants receive funds from transactions within one business day and have the option of spending them within minutes on amazon.com.

Amazon offers accessories such as cash drawers, receipt printers and semi-permanent stands and mounts for mobile devices.

Amazon Local Register is targeted at micro-merchants and lacks the sophis-ticated value-added software-as-a-service products offered by vendors such as Leaf (see page 20) and ShopKeep (see page 24) that combine front-end capabilities such as payment acceptance with back-office tools such as in-ventory management, tracking employee hours, and related business tasks. However, Amazon’s card reader offers through its accompanying app ancil-lary services that enable merchants to track sales trends, peak sales times and bottom-line data.

Who’s who in the market

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As of February 2015, the Amazon reader supports only magnetic-stripe card transactions, not EMV.

AnywhereCommerceAnywhereCommerce offers a range of mPOS solutions including hardware, software and a hosted payments-processing gateway that routes merchants to their acquirer through a wireless connection.

The firm’s offerings include:• the Nomad 2.0 EMV-certified chip-and-PIN card acceptance device,

which allows businesses to process EMV chip-and-PIN, EMV chip-and-signature and magnetic-stripe card payments through Android-, iOS-, Windows 8- and Windows Phone 8-based smartphones and tablets; and

• the Walker magnetic-stripe and EMV chip-and-signature card accep-tance device.

During the second quarter of 2015, AnywhereCommerce will launch versions of the Walker and Nomad devices that support NFC.

“To help merchants offer a good customer experience, we offer a series of pre-developed apps that acquirers can white-label and load onto their mer-chants’ handsets,” AnywhereCommerce’s Nichols said.

First DataIn January 2014, U.S. payments processor First Data announced Clover Sta-tion, an Android tablet-based countertop POS system that includes a touch-screen, card reader, cash drawer and receipt printer, and accepts credit and debit cards, cash, checks, EMV, NFC and mobile wallets such as Apple Pay.

Clover Station features a customer-facing EMV card reader that plugs into the tablet’s USB port.

First Data developed Clover Station following its purchase of mobile pay-ments firm Clover Network and mobile loyalty provider Perka.

Clover Station is an open, cloud-based solution enabling merchants to con-nect to First Data via Ethernet hard-wired links or Wi-Fi. The Clover web dashboard lets merchants remotely manage their business from any PC, smartphone or tablet, enjoying access to their business information at any time, even when away from the store.

CHAPTER 3 Who’s who in the market

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“We have a data synchronization update mechanism so all the data stored on the tablet such as inventory is automatically synced with data stored in the cloud, and vice versa,” Clover Network’s Schulze said. “If your tablet is offline, you can still take orders and run your business.”

Merchants download apps for Clover Station from the Clover App Market, which includes First Data’s Insightics customer data solution, its Perka loyalty app and Gyft prepaid solution, as well as apps for vertical markets from third-party developers.

All the apps available on the Clover App Market are tested by First Data for security. Merchants can download their devices’ apps only from the Clover App Market, to prevent malware infecting their tablets.

“We have a simple user interface,” Schulze said. “One merchant told us he’s nostalgic about the cash register he had before installing Clover Station. But he said he doesn’t want to go back to a traditional cash register, as training his temporary summer staff in using it took a lot of time. It doesn’t take any time at all to train his staff to use Clover Station, he told us.”

In November 2014, First Data announced the Android tablet-based Clover Mobile mPOS solution, which will be available worldwide during 2015. Clover Mobile connects to First Data via Wi-Fi or 3G mobile data links.

First Data says Clover Mobile enables more personal consumer engagement for small to mid-sized businesses by taking the functionality of the company’s Clover Station off the counter and onto the sales floor. Armed with Clover Mobile, merchants can place orders, take secure payments, scan inventory, clock in employees, sync sales data with their accounting packages and generate marketing insights, the company says.

Clover Mobile can be paired with Clover Station or work as a standalone solution offering full cash register capabilities with access to the Clover App Market.

Clover Mobile processes magnetic-stripe cards and features an EMV chip-and-PIN “dip” reader. The solution’s NFC capabilities allow it to accept con-tactless payments including Apple Pay, and its barcode reader allows mer-chants to scan goods for inventory purposes or checkout. Clover Mobile has a mobile printer that can be mounted on a merchant’s belt to give customers paper receipts remotely upon request, without returning to the register.

Clover Station and Clover Mobile use point-to-point encryption through First Data’s TransArmor security service, says Schulze. “As soon as a card is swiped, the transaction data is encrypted and passed direct to First Data. Clover Station and Clover Mobile never have unencrypted data on them.”

CHAPTER 3 Who’s who in the market

Source: First Data

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Ingenico Mobile Solutions/ROAM

In February 2012, Ingenico acquired control of ROAM, announcing in Janu-ary 2015 that it owns 100 percent of its mPOS subsidiary. ROAM is now part of Ingenico Mobile Solutions.

ROAM has carved a niche for itself by targeting big-ticket customers. It doesn’t compete with the likes of Square directly. Instead, it acts as a plat-form provider, selling its mPOS solutions (card readers, apps and tools) to acquirers and other resellers who then distribute these solutions under their own brands. Its hardware portfolio, which includes a chip-and-signature card reader and a Bluetooth-based chip-and-PIN card reader capable of pro-cessing EMV and NFC transactions, is compatible with hundreds of mobile devices and supports Android, iOS and Windows.

In addition, ROAM offers the ROAMmcm 5 mobile payments engine, the ROAMgateway payment gateway service and professional services.

In November 2014, ROAM launched the latest version of its mPOS app, ROAMpay X5.

ROAM said ROAMpay X5 features a completely redesigned user inter-face and claimed it is the first and only native tablet application for iOS and Android that supports all mobile payment types: magnetic-stripe, NFC, EMV chip-and-PIN and EMV chip-and-signature. The app is compatible with any Ingenico mPOS device, including Ingenico’s iCMP chip-and-PIN card reader.

“As the mPOS market matures, we’re seeing a growing number of merchants moving to tablets for mPOS, but software designed for smartphones doesn’t always port well to tablets,” said Scott Holt, Ingenico Mobile Solutions’ vice president of marketing and solutions. “For ROAMpay X5, we addressed the growing audience of customers looking to use both iOS and Android tablets. The end result is a tablet-optimized and simplified user interface.”

In January 2015, Ingenico and Beamm, a developer of cloud-based POS technology for small businesses, launched the smart tabletPOS solution for small business owners. Smart tabletPOS combines tablet POS software with cloud-based tools to help merchants manage their business and send pro-motions to customers, and it supports EMV, NFC, Apple Pay, Google Wallet and magnetic-stripe cards.

The companies said that tablet POS systems designed for small businesses typically aren’t able to integrate with a merchant’s existing terminals, forcing merchants to use a particular processor. “Smart tabletPOS is the first to en-

CHAPTER 3 Who’s who in the market

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able merchants to leverage their existing standalone terminals and acquirer relationships,” they said.

The smart tabletPOS combines an Ingenico iCT terminal, Beamm’s smart iPad POS application and management tools, a tablet stand and a cash drawer.

Intuit GoPaymentIntuit’s GoPayment app for iOS- and Android-based devices has two pricing plans.

The pay-as-you-go option has no monthly fees, but merchants pay 2.4 percent per swiped transaction and 3.4 percent per keyed transaction, plus a 25-cent transaction fee. Alternatively, merchants pay $19.95 a month plus 1.75 percent per swiped transaction, 3.15 percent per keyed transaction and a 25-cent transaction fee.

GoPayment, which offers a free card reader, doesn’t work with Windows-based devices.

All GoPayment transactions automatically synchronize with Intuit’s Quick-Books accounting software and with Intuit point-of-sale software products to help merchants manage their business.

Intuit QuickBooks Point of SaleIntuit QuickBooks Point of Sale combines Intuit’s GoPayment app with its QuickBooks accounting software. QuickBooks auto-updates merchants’ books when they’re paid and when they sell or receive inventory.

Three QuickBooks Point of Sale versions are available:• Basic, enabling merchants to track inventory, manage vendors

and offer discounts and gift receipts

• Pro, offering all Basic features plus tracking employee hours and commissions, providing layaway and gift cards and creating loyalty programs

Multi-store, offering all Pro features plus managing multiple stores, tracking inventory between stores, generating reports and shipping and tracking packages.

In November 2014, Intuit and Revel Systems (see page 23) announced QuickBooks Point of Sale powered by Revel Systems, an iPad POS solu-tion that works within the QuickBooks ecosystem. The solution uses the

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cloud to automatically sync sales, payments, inventory, customer relation-ship management (CRM) and payroll data to QuickBooks, providing retail-ers with an integrated view of how money is flowing in and out of their businesses.

QuickBooks Point of Sale powered by Revel Systems will be available in early 2015.

iZettleSweden’s iZettle offers its EMV-compliant mPOS card reader and app in Europe, Brazil and Mexico. Its marketing partner is Spain’s Banco Santand-er, which invested €5 million ($6.7 million) in iZettle in June 2013.

IZettle doubled its transaction volumes in 2014; as of February 2015, it is running at a total annual transaction rate of €2 billion ($2.28 billion). In Feb-ruary 2015, it launched iZettle Lite, a free EMV chip-and-PIN card reader that connects to mobile devices using a cable.

IZettle still offers its EMV-based Card Reader Pro, which has a built-in dis-play and connects to tablets and smartphones wirelessly.

iZettle supports iOS- and Android-based smartphones and tablets, and it has a standard charge of 2.75 percent per transaction.

In January 2015, iZettle released its iZettle 4.0 app for iPhone and iPad and said it is working on a new version of its Android app. IZettle 4.0 allows us-ers to add custom discounts in the product library, discount individual items in a purchase and add a note to items in the cart.

IZettle maintains a more flexible pricing strategy than its competitors to broaden its target market to include larger merchants. It offers merchants a Smart Rate, which automatically reduces their transaction fees based on their monthly sales volume from the standard 2.75 percent to as little as 1.5 percent per transaction. At the end of each month, iZettle calculates the total fees for that month and pays a cashback based on total payment volume.

In January 2015, cloud-based POS provider Vend announced a partner-ship with iZettle to enable iZettle’s EMV card readers to work with the Vend Register iPad app.

In February 2015, iZettle partnered with cloud-based accounting software Xero to enable Xero’s small-business customers to automatically integrate their accounts with their iZettle activity in real time.

CHAPTER 3 Who’s who in the market

Source: iZettle

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LeafLeaf offers the 7-inch Android-based LeafPresenter mPOS tablet, which costs $250, with POS software costing $50 per month, plus $25 per month for software per additional tablet. In addition to payments, Leaf’s software tracks sales, inventory and employee data.

The Leaf Essentials hardware bundle, which costs $674 plus $50 per month, consists of a LeafPresenter tablet, software, a base station, a printer and a cash drawer.

Cambridge, Massachusetts-based Leaf, which was acquired by U.S. pro-cessor Heartland Payment Systems in August 2014, says its platform is processor-agnostic and connects to most U.S. payment-card and gift-card processors.

The LeafPresenter accepts NFC transactions and mobile wallets such as PayPal and mobile loyalty and payment service LevelUp. However, a Leaf spokesperson told Mobile Payments Today in February 2015 that LeafPre-senter doesn’t accept EMV cards yet.

MagTekSince 1972, Seal Beach, California-based MagTek has manufactured elec-tronic devices and systems for the reliable issuance, reading, transmission and security of cards, checks, PINs and other identification documents. Its products include secure card reader authenticators, check scanners, PIN pads and distributed credential-issuing systems.

MagTek’s devices and services are secured using its MagneSafe™ Se-curity Architecture technology. By leveraging strong encryption, secure tokenization, real-time authentication and dynamic transaction data, MagneSafe™-based products enable users to assess and validate the trustworthiness of credentials used for online identification, payment pro-cessing and other electronic transactions.

Tokenization is a security technology that involves using a one-time number to represent an actual credit or debit card number in a payment transaction. This token has zero value to a criminal, as it can be detokenized only by the tokenization service provider.

MagTek’s QwickPAY solution is a complete, secure mPOS offering for card-present mobile payment transactions. QwickPAY works on iOS-based devices including iPhone 4, iPhone3GS, iPhone 3G, iPad, iPad2, and iPod touch; and on the Android and Windows PC operating systems.

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Based on MagneSafe™, QwickPAY encrypts card data within the card reader’s head, reducing the scope of PCI compliance by eliminating sensi-tive card data from the application. Decrypted data is delivered only to a PCI DSS-certified payment processor or gateway. QwickPAY also tokenizes sensitive transaction data.

MagTek offers QwickPay users a choice of card reader authenticators. iOS-based QwickPay users can opt for MagTek’s iDynamo card reader which works with iPhones, iPads and iPod touch devices.

Alternatively, MagTek’s uDynamo card reader connects to Apple and Android phones and tablets with a retractable audio jack, while its USB interface connects to Mac or Windows PCs. Thirdly, the BulleT card reader leverages Bluetooth technology to transform Android phones and tablets into handheld POS systems. BulleT offers a USB cable for connecting to desktop PCs.

In December 2014, MagTek launched QwickPAY Pro, an mPOS solution for retailers and restaurants which was developed exclusively for the iPad.

MagTek says QwickPAY Pro delivers convenience while eliminating sen-sitive card data from the application. The solution is available for free in the iTunes App Store, and it works with MagTek’s Made-for-Apple certified mobile card readers, secured by MagneSafe™.

“QwickPAY Pro extends the value of the QwickPAY product line by targeting merchants wanting a larger, tablet-sized user interface while continuing to leverage the protection offered by the MagneSafe™ Security Architecture,” says Mimi Hart, MagTek’s president and CEO. “By combining the app, the card reader and card processing services, resellers like Payment Alliance In-ternational have the opportunity to resell the entire QwickPAY platform help-ing merchants to prevent fraud and simplify their PCI audit requirements.”

Other MagTek products include the IPAD® PIN transaction device, a multi-function handheld POS terminal with keypad input, graphics display output on a 128x64 pixel screen, and magnetic-stripe card reading capability, and the DynaPro PIN-entry device and magnetic-stripe/EMV/contactless card reader.

In December 2014, Custom Business Solutions integrated MagTek’s Dy-naPro Mini card swipe and PIN entry device into its NorthStar Order Entry iPad-based hospitality ordering system. The DynaPro Mini offers a card swipe, EMV reader, PIN entry keypad and card data tokenization solution leveraging MagneSafe™.

NorthStar’s iPad ordering solution consolidates a traditional POS interface, guest-facing ordering interface, kiosk ordering mode and integrated web

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and mobile ordering in one platform. MagTek equips NorthStar Order Entry with its encryption, tokenization and card authentication technology plus Bluetooth connectivity.

NCR SilverNCR Silver is a scalable, cloud-based mPOS system from NCR that con-nects to a merchant’s back-office software. This gives NCR the ability to sell its solution to larger merchants who might be reluctant to buy a product from a smaller, less established mPOS player.

Versions of NCR Silver are available for multiple business types, including food trucks, retail stores, service providers and cafés.

The iPhone- and iPad-based NCR Silver mPOS system accepts Apple Pay, bitcoin, LevelUp and PayPal as well as magnetic-stripe cards. NCR Silver will offer EMV acceptance during 2015, NCR says.

Merchants using NCR Silver can activate the LevelUp application as a pay-ment option in their POS systems. Once that is activated, customers can scan unique QR codes generated by the LevelUp app during checkout.

For $499, merchants receive a NCR Swivel Stand for iPad, a card reader, a cash drawer and a countertop receipt printer.

The basic NCR Silver software costs $59 per month, with $0.10 charged per transaction for each additional device up to $29 a month. The software offers the ability to ring up sales from anywhere; inventory, pricing and profit management; consolidated real-time reporting; built-in loyalty and marketing tools; live support 24/7; and QuickBooks integration.

In addition, NCR offers the NCR Silver Pro Restaurant Edition software, which costs $129 per month, and the $299 Silver Care Plus mPOS setup service.

Since October 2014, NCR Silver has offered merchants with an iPhone 6 or iPhone 6 Plus remote-payment and order-ahead capabilities using the Silver Sidewalk app, which works with Apple Pay.

PaylevenGermany’s Payleven offers its mPOS technology in Europe and Brazil.

Payleven’s contact-based EMV chip-and-PIN card reader is compatible with Apple devices running iOS 7.0 and higher and most Android devices running version 4 or higher, which support both Bluetooth and GPS. During 2015,

CHAPTER 3 Who’s who in the market

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Payleven will launch an NFC EMV card reader, a spokesperson says.

In the U.K. and the Netherlands, Payleven offers its clients a flexible pricing model, which means that the more they process, the less they pay.

In Germany, Austria, France, Spain, Italy, Belgium and Poland, Payleven has a fixed-fee structure of 0.95 percent per debit-card transaction and 2.75 percent per credit-card transaction. In Brazil, Payleven charges 2.69 percent per debit-card transaction and 3.39 percent to 4.39 percent per credit-card transaction.

PayPal HereThe PayPal Here mPOS card reader enables merchants to accept payments on any device running iOS or Android from customers’ PayPal accounts and from credit and debit cards. The card reader is free when ordered at www.paypal.com/here. There are no setup or monthly fees or long-term commitments.

In January 2015, PayPal announced a partnership with Microsoft that will enable any device running Windows 8.1, including Microsoft’s Surface Pro 3 tablet to use PayPal Here.

PayPal also launched a software development kit (SDK) enabling Windows app developers to create ancillary services including inventory manage-ment and customer-engagement programs such as loyalty that can be paired with PayPal Here on Windows.

PayPal’s partnership with Microsoft gives it an advantage over rivals such as Amazon Local Register, Intuit GoPayment and Square, whose dongles aren’t compatible with Windows devices.

PayPal charges 2.7 percent per U.S. card swipe transaction and 3.7 per-cent per swipe transaction involving non-U.S. cards. Keying in a U.S. card number costs 3.5 percent plus 15 cents. Merchants receive payments from customers’ cards into their PayPal accounts.

PayPal Here provides a daily summary sales report. Users can attach a wireless printer linked to a cash drawer to create a full POS system. In ad-dition, iPad users can attach a barcode scanner.

PayPal plans to release an EMV- and contactless-enabled reader in the U.S. in 2015, which will connect to mobile devices via Bluetooth. PayPal hasn’t disclosed the U.S. price for the EMV card reader, which is already available in Australia and the U.K.

CHAPTER 3 Who’s who in the market

Payleven U.K. fee structure: Over £7,500 ($3,862) - 1.5 percent

£5,000-£7,500 - 1.75 percent 

£2,500-£5,000 - 2.25 percent

Under £2,500 - 2.75 percent

Fixed 2.75 percent fee for American Express. 

Payleven Netherlands fee structure: Over €12,000 ($13,666) - 1.5 percent

€8,000-€12,000 - 1.75 percent 

€4,000-€8,000 - 2 percent

€2,000-€4,000 - 2.5 percent

Under €2,000 - 2.75 percent

Fixed 2.75 percent fee for American Express. 

23mPOS 101 | © 2015 Networld Media Group

PoyntIn October 2014, Poynt, a U.S.-based startup headed by former Google Wallet executive Osama Bedier, announced its Android-based Poynt Smart Terminal, which enables merchants to accept multiple payment types, such as chip cards and mobile payments.

Poynt says its terminal is designed to meet the highest PCI and EMV requirements as well as to connect to any processor. It features a dual-touchscreen design combining a 7-inch merchant-facing screen, a 4.3-inch customer-facing screen, a printer, a barcode scanner and wireless connec-tivity in a single package.

The Poynt Smart Terminal, which will be available in early 2015, will be dis-tributed in the U.S. by major U.S. acquirers Chase Paymentech and Vantiv as well as by Creditcall, EVO Payments International and POS Portal. The terminal features a combination magnetic-stripe and EMV card reader, along with an NFC antenna, a camera to capture QR codes and barcodes and a Bluetooth antenna for BLE functions.

Poynt has an open software strategy, inviting developers to produce apps for its terminal. Bigcommerce, Boomtown, Intuit, Kabbage, Swarm and Vend are the first software firms to provide apps for the terminal.

Vend’s app provides merchants with inventory and customer loyalty tools. Store analytics vendor Swarm gives merchants a beacon device to help them track customer movement at the storefront. Boomtown, a tech support vendor, provides an Amazon Mayday-type experience using Poynt’s built-in camera. Kabbage provides SMB credit lines, while Boomtown provides tech support, Bigcommerce online storefronts, and Intuit back-office software.

Poynt’s business model is based on the software for the device, which costs $299 when preordered directly from the company. Mobile Payments Today says Poynt will take a percentage of the software that is used with the device.

Revel SystemsSan Francisco-based Revel Systems provides a scalable iPad-based mPOS system for retailers, grocery stores and restaurants: the Revel iPad POS. Its cloud-based software offers front-end order entry and a cash reg-ister, plus back-end personnel scheduling, time clock and payroll, inventory management, product/menu management and advanced business perfor-mance reporting. Customers can download approved third-party apps from the Revel Marketplace and integrate with Intuit’s QuickBooks Point of Sale.

CHAPTER 3 Who’s who in the market

Source: Poynt

24mPOS 101 | © 2015 Networld Media Group

Revel offers implementations of its system for specific vertical markets such as QSRs, coffee shops, food trucks and self-service kiosks. Its full-service restaurant system, for example, offers tableside ordering by using iPad Minis.

Since 2013, Revel’s system has been EMV compatible. In September 2014, Revel added support for Apple Pay through a processing deal with Chase Paymentech, and its system also offers payments via bitcoin, Lev-elUp and virtual gift cards. Revel says it can integrate with 95 percent of processors through the USAePay gateway.

In October 2014, Revel rolled out its iPad POS system at more than 700 Smoothie King locations in the U.S. Other clients include Dairy Queen, Goodwill and Pizza Patron.

ShopKeepShopKeep provides iPad-based mPOS hardware and cloud-based soft-ware for small businesses. Its ShopKeep Register POS software enables merchants to manage their inventory and employees and track customer purchases and behavior.

In December 2014, ShopKeep released its Apple Pay and EMV chip card reader. The reader, which is manufactured by Ingenico, allows merchants to accept Apple Pay NFC payments along with magnetic-stripe cards and, once its EMV functionality has been activated, chip cards.

As of February 2015, the reader’s chip card functionality isn’t available, but ShopKeep plans to make it available soon, a spokesperson told Mobile Payments Today. The device connects to the ShopKeep Register app via Bluetooth and retails for $249.

ShopKeep says that its magnetic-stripe card reader, which is manufactured by MagTek, and its chip card reader both use point-to-point encryption.

ShopKeep offers three versions of its solution: ShopKeep for Quick Service, ShopKeep for Retail and ShopKeep for Restaurants.

ShopKeep’s Hardware Starter Kit for Restaurants and Bars and its Hard-ware Starter Kit for Quick Service Restaurants both cost $917, while its Hardware Starter Kit for Retail Shops costs $919. The kits include a receipt printer, a cash drawer and a free chip card reader.

Merchants pay $49 per month per ShopKeep Register app. However, the company doesn’t require a long-term contract, and merchants are free to choose their own processor.

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In January 2015, ShopKeep launched a free iOS mobile app, ShopKeep Pocket, which can be downloaded from the iTunes App Store. The app works with ShopKeep Register and enables users to monitor business operations via their mobile devices while not in their stores.

SquareSquare offers the free Square Reader magnetic-stripe card reader and free Square Register app that support iPhones, iPads and Android-based smart-phones and tablets.

In the U.S., Square processes Visa, MasterCard, Discover and American Express at 2.75 percent per swipe. If merchants manually enter card infor-mation, they pay 3.5 percent plus 15 cents per transaction.

Square Register offers inventory management and provides daily, monthly or yearly sales reports. Using the app, merchants can email or text receipts to customers or attach a receipt printer to an iPad.

Square also offers the free Square Inventory and Square Analytics apps and Square Invoices, which charges 2.75 percent per invoice when cus-tomers pay with credit or debit cards.

In May 2013, Square launched Square Stand, which turns an iPad into a countertop POS system and connects to hardware accessories such as a receipt printer, kitchen printer, cash drawer and barcode scanner. Square Stand, which costs $99 in the U.S., includes an integrated magnetic-stripe card reader. The device has a rotatable base, enabling it to be swiveled around to face a customer.

U.S. merchants can preorder Square’s mobile EMV card reader, which will ship in spring 2015, on its website for $29.

The Chip Card Accessory for Square Stand, the EMV-compliant upgrade for Square’s countertop POS system, will ship in spring 2015 and can be preordered online for $39. The accessory will connect via USB.

VerifoneVerifone’s PAYware Mobile suite of products includes:

• PAYware Mobile e100, which plugs into a smartphone’s audio jack and enables merchants to accept credit and signature-based debit cards;

• PAYware Mobile e105 EMV-enabled mPOS solution for iOS, Android or Windows-based smartphones and tablets; and

CHAPTER 3 Who’s who in the market

Source: Square

Source: Verifone

26mPOS 101 | © 2015 Networld Media Group

• PAYware Mobile e255, which features a PIN pad and an EMV card reader along with NFC-enabled functionality.

In January 2015, Verifone announced the PAYware Mobile e355 mPOS ter-minal, which is intended to free merchants from smartphone/tablet technol-ogy upgrade cycles and supports Android, iOS and Windows. Verifone says PAYware Mobile e355 can accommodate different form fac-tors and will outlive smartphone and tablet models. That ability enables merchants to make long-term investments in mPOS at a much lower cost of ownership, it says.

“The prospect of having to purchase new mPOS devices for associates when smartphones and tablets are upgraded has been a major inhibitor to mPOS investment among retailers,” said Mark Shockley, Verifone’s senior vice president of mobile solutions.

PAYware Mobile e355 supports Verifone’s Secure Commerce Architecture (SCA), a point-to-point encryption solution that eliminates the flow of card data to the merchant’s integrated POS system and enables encrypted deliv-ery of that data from the POS terminal directly to the merchant’s processor.

Available in summer 2015, PAYware Mobile e355 accepts all payment types, including EMV, NFC, Apple Pay, and magnetic-stripe cards; features an op-tional barcode scanner; and supports Wi-Fi, Bluetooth and USB connectivity.

In January 2015, Verifone and Samsung announced a global partnership to provide Android-based mPOS products to multi-lane and enterprise retail-ers. The initial offering, which will be introduced during 2015, will feature:

• a ruggedized Samsung Galaxy Tab Active tablet with 8-inch screen;

• enhanced security with Verifone’s point-to-point encryption of payment data coupled with Samsung’s Knox mobile device security;

• multiple connectivity options, including Wi-Fi, Bluetooth and USB;

• acceptance of EMV, NFC, beacons and magnetic-stripe cards; and

• commerce-enablement capabilities provided by Verifone’s Commerce Enablement platform, which allows retailers to deliver value-added ser-vices, targeted marketing and advertising content from anywhere inside or outside stores.

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CHAPTER 4

Cost and utility are critical factors in choosing an mPOS provider. As chapter 3 showed, mPOS systems vary from basic solutions offering a free dongle and app plus a fixed fee per transaction to advanced systems offering value-added features and charging for hardware plus a monthly fee for software and customer support.

The decision to opt for a simple dongle/app system or a countertop tablet-based system offering business analytics and integration with back-end retail platforms, for example, depends on the merchant’s size and business model.

“For micro-merchants, mPOS is about the cost of the card reader and the payments app, and they’re not that interested in value-added features,” Aite Group’s Peterson said. “Micro-merchants don’t want to get tied into long-term contracts with traditional acquirers, but they need to appreciate the process-ing fees they pay their mPOS provider are typically twice what they would pay traditional acquirers. However, many micro-merchants see taking card payments as incremental transactions they wouldn’t have got if they didn’t have a card reader.”

“For SMBs, tablet solutions with value-added features such as business analytics and loyalty enable them to enjoy the same technologies that large merchants already use but at lower cost,” ABI Research’s Sealy said. “So they’re getting the benefit of value-added features for the first time.”

For large retailers, the mPOS value proposition is primarily about improving the customer experience. To achieve that objective, they will need scalable mPOS solutions offering integration with omnichannel retail systems along with features such as integrated loyalty and promotions.

Payment typesMerchants need to ensure their mPOS systems are able to accept all current forms of payment, including contactless cards, NFC, EMV and QR codes. With the pending U.S. EMV liability shift on October 1, 2015, EMV accep-tance will be critical.

Conclusion

“It’s important you choose a solution that can handle

alternative forms of payment that the consumer

wants, including NFC, EMV, mobile wallets, and

whatever comes next.” — Scott Holt, Ingenico Mobile Solutions’ vice president

of marketing and solutions.

28mPOS 101 | © 2015 Networld Media Group

“It’s important you choose a solution that can handle alternative forms of payment that the consumer wants, including NFC, EMV, mobile wallets, and whatever comes next,” Ingenico Mobile Solutions’ Holt wrote in a Mobile Pay-ments Today article. “Talk roadmap with your vendor to make sure they can handle your needs not just today but two years from now.”

As the digital payments industry evolves, virtual currencies such as bitcoin may gain increasing acceptance among consumers. Merchants who target millennials and tech-savvy consumers should consider whether they want to accept bitcoin payments through their mPOS systems.

Customer experienceIn today’s competitive retail environment, merchants are striving to provide the best customer experience.

Many merchants believe the aesthetics of the mobile devices used for mPOS fall in line with the cool customer experience they want to create in their stores.

Dan Diliberti, Panasonic North America’s senior product development man-ager for tablet and payment systems, told Mobile Payments Today that the evolution of tablets as a merchant tool coincides with retailers’ desire to turn their place of business into a chic experience.

“A lot of times, tablet tech blends in with their image,” Diliberti said. That is why iPads with their “sexy look” have seen increasing adoption by mer-chants, he said.

Along with their mPOS rollout, retailers and foodservice providers should consider offering consumers mobile shopping/ordering and loyalty/rewards apps for use on their own smartphones and tablets.

According to a survey by the National Restaurant Association, a growing num-ber of U.S. consumers want to incorporate smartphone technology into their dining experiences.

“Many Americans have used technologies such as touchscreen ordering, smartphone apps and mobile payments while dining out, and more would be interested in doing so if their favorite restaurants offered such services,” Euromonitor’s Evans said.

OmnichannelProviding an omnichannel customer experience has become a major issue in modern retailing.

CHAPTER 4 Conclusion

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“Omnichannel means that no matter which channel is the touch point of the moment to the consumer — a payment terminal in a store, an online storefront, or a retailer’s app on a mobile device — their experience should be seamless, streamlined, secure and optimized for the needs of each channel,” Ingenico Mobile Solutions’ Holt wrote in a Mobile Payments Today article. “But more often than not a very important piece of the omnichannel puzzle is left out: a mobile point of sale (mPOS) solution.”

Retailers deploying mPOS solutions need to consider how to tie those solu-tions in with their existing POS infrastructure. “Otherwise, it’s impossible to provide a true omnichannel experience,” Holt wrote. “When a retailer’s omnichannel strategy delivers a unified and integrated experience, both the merchant and consumer reap the benefits.”

For example, if a customer visits an omnichannel retailer’s brick-and-mortar store to exchange an item bought online using a smartphone, that customer wants the retailer to have a unified view of his or her order history and pref-erences to avoid having to enter the same information at every interaction.

If the store’s mPOS solution is integrated with its terminals and back-end systems that hold the customer’s order history across all channels, then an associate will be able to use a tablet to see the customer’s order informa-tion and preferences and assist with the exchange.

In the article, Holt says key capabilities merchants should look for when deploying mPOS solutions within an omnichannel retailing program include:

“Security compliance. Security features such as EMV compliance, end-to-end encryption and overall PCI compliance should be supported throughout your commerce platform — including mPOS. There shouldn’t be any fear on the consumer’s part that one channel is less secure than another.

“Back-end and front-end integration. You want to make sure your mPOS solution can integrate with back-end systems for inventory, shipping and the like. This ensures it’s part of your overall POS infrastructure, not just a standalone mPOS island. This will reduce the need for multiple data entries and reconciliations, while increasing your overall business efficiencies. Re-garding the front-end payment side, the seamless integration of your mPOS solution within your existing payment system will create a true omnichannel environment that is much more efficient, especially when providing services such as in-store refunds.

“Flexibility. There are several facets to this. The first is the ability to choose your own credit card processor, since many merchants already have a processor relationship in place. Another is the ability to customize software

CHAPTER 4 Conclusion

30mPOS 101 | © 2015 Networld Media Group

as needed using APIs (application programming interfaces) for integration with your payment infrastructure and back-end systems and value-added services, including loyalty programs. A third is the ability to white label a so-lution with your own branding. Look for an mPOS vendor that gives you the option to customize your solution as needed, without breaking the bank.”

CHAPTER 4 Conclusion

31mPOS 101 | © 2015 Networld Media Group

REFERENCESMobile Payments Todaywww.mobilepaymentstoday.com

“Mobile Banking and Payments Security: What banks and payment service providers need to know to keep their customers safe,” by Robin ArnfieldNetworld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/12036/18751

“Exploring the Enterprise mPoS Opportunity,” by Jordan McKee451 Researchhttps://451research.com/

MasterCard Mobile POS Programwww.mastercard.com/corporate/mpos.html

MasterCard Mobile Payments Readiness Indexhttp://mobilereadiness.mastercard.com/

“Incorporating mPOS for a true omnichannel experience,” by Scott HoltMobile Payments Todayhttp://www.mobilepaymentstoday.com/articles/incorporating-mpos-for-a-true-omnichannel-experience/

“Mobile POS myopia: Moving beyond the micromerchant,” by Jordan McKeeMobile Payments Todayhttp://www.mobilepaymentstoday.com/blogs/mobile-pos-myopia-moving-beyond-the-micromerchant/

“Mobile Payments State of the Industry 2015 — Omnibus Edition”Networld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/12036/19754

Mobile Payments Today white papershttp://www.mobilepaymentstoday.com/whitepapers/

“A look at the PCI guidelines for mobile POS”Mobile Payments Today white paper sponsored by Mokihttp://www.mobilepaymentstoday.com/whitepapers/a-look-at-the-pci-guidelines-for-mobile-pos/

32mPOS 101 | © 2015 Networld Media Group

REFERENCESMobile Payments Today directory of suppliershttp://www.mobilepaymentstoday.com/companies/directory/companies-by-category/

“Mobile Wallet Comparison Guide, 2015 edition”Networld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/12036/20723

“Payment Processing: A Merchant’s Perspective,” by Thad PetersonAite Groupwww.aitegroup.com

Payment Card Industry Security Standards Council (PCI SSC) documents pagehttps://www.pcisecuritystandards.org/security_standards/documents.php

Square’s EMV information sitehttps://squareup.com/emv#

Visa Ready mPOS program for merchants and vendorshttp://usa.visa.com/clients-partners/mobile-acceptance/index.jsp?ep=v_sym_mpos&symlinkref=https%3A%2F%2Fwww%2Egoogle%2Eca%2Fwww.visa.com/mpos