Tumblelog by Soup.io
Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.

August 11 2014

manuelricci

Why Only 2% Percent of UK Micro-Businesses Use Mobile POS

Mobile POS or Point of Sale technology is a brand new technology that came about with the rising popularity of mobile phones that are being utilized in e-commerce. A recent research into the mobile point of sale or mPOS technology revealed that the adoption of this technology which enables businesses like retail markets the use of credit card payments thru the help of a smartphone device as opposed to a fixed POS terminal is in fact very limited.

The same survey revealed that merchants and even shoppers are quite hesitant and skeptic of the new mPOS technology. The survey conducted was commissioned by payment service provider Kalixa together with MobileSquared. Kalixa with MobileSquared found out that only a staggering two percent of the UK-based micro businesses (with approximately 10 employees or less) currently use mPOS solutions to accept business payments. They use the service in conjunction with their business mobile plans in UK.

From the one thousand micro business entrepreneurs surveyed, around 45% percent said that cash flow is one of the main culprit for the hesitation which stunts their growth, and about 48% percent of them said they had lost several sales previously, with about 1 in 10 admitting that sales had drastically dropped since they are unable to accept the payment mode the customer demands of them.

Although the adoption of mPOS is tremendously low, there are a very few businesses that are looking into mobile POS as a viable payment solution to eradicate payment issues, with approximately 17% percent of them declaring that they anticipate that mPOS will remove any payment method problems, and that 19% percent perceived mPOS will help with the cash flow, and eventually pave a way towards business growth.

There are some 38% percent of the participants surveyed said that there is a possibility that they will adopt mPOS in the near future, with a caveat that their concerns regarding the safety and security of the system be first addressed. Those issues include the very sluggish payment speeds of available mPOS platforms, with about seven to ten days of settling payments, which in most typical business practice prevents the growth of cash flow, and of course there are the usual security issues that many entrepreneurs complain about. Almost half or 56% percent were concerned about the lurking security concerns, and some 29% percent of them remain worried regarding the connectivity drop outs. This brings into the picture the many mobile corporate plans in UK that make mobile POS payment systems adoption a success.

The chief analyst of MobileSquared, stated that their extensive research revealed that investment in a mobile POS device is one of the main consideration of the majority of micro businesses which at a given period requires around 12 to 18 months to make, despite all these, there is a marked increase in sales for businesses with mPOS as their main payment solutions for their enterprise.

It is evident that research is the main key to addressing the micro business industry concerns regarding settlement speed, connectivity, as well as security. However, there remains the need to educate micro businesses and their respective customers that the seemingly calculator like device is as reliable and safe as every other point of sale devices out there.

Kalixa, one of the leading mPOS service providers in the UK today have just launched a brand new mPOS product with Kalixa Pro which is a PAYG (Pay As You Go) plan with no long term contracts and just an initial £72 fee for the mPOS device, and card fees which are now pegged at 1.99% percent for every transaction.

Mobile Point of Sales is the future payment mode that many UK businesses will soon adopt. The technology, even though being questioned is yet to prove the overall system’s reliability, sustainability, and efficiency in the days to come. From these will depend the impending the success and acceptability of mPOS in the many years to come. 

Don't be the product, buy the product!

Schweinderl