POS Solutions
Article | March 18, 2024
Prior to the pandemic and quarantine, less than 8% of commerce was online. As of Q3FY20 eCommerce grew north of 14% of all commerce. So while the Retailpocalypse was in its last phase, physical retail still outsold eCommerce by at least 7:1.
The failure rate of crowdfunding campaigns is 85%.
The failure rate of eCommerce store owners ranges from 80 to 97%.
What if there were a way to bridge the gap between these three failure rates? What if we could bridge what people consume online with what they purchase offline before waiting for brain-computer interfaces (BCI)? In short what if we could bridge social and commerce? (Example use case.)
Mostly missing are the memorable, meaningful, measurable and monetizable responses from people interested in stories about beagles, princesses and pitbulls, pets, car repair, raspberry blueberry vinaigrette gyros, budget-saving techniques for holiday travel, getting stuck at airports in blizzards, rental cars and Cup o’ Noodles, My Fair Lady and @Instacart, dining out at the delicious Banana Leaves café, cooking kosher halal gelatin-free, blue #1 artificial dye-free egg nog flavored marshmallows, 50th anniversaries and chocolate ganache, adventures camping with youth groups, birdhouses built by kids, rainbow hair dye, artificial dye-free cakes DIY for your child’s birthday party, and Halloween gingerbread houses and Greek Mount Olympus costumes.
Other than ad revenue Youtube collects which most of it’s video posters see little of, monetizing the DIY craze has proven quite tricky. Ditto for Christmas shopping, smartphone accessories, buying a new luxury Subaru online with no salesman, how to get hard to find contact lenses and vitamins for kids, how Amazon often has thrift store prices on inventory thrift stores rarely carry, the challenges of buying clothes on Amazon that don’t fit but you don’t realize that until the clothes arrive, DIY car repair, funny car repair, glorious victory of car repair, diaper cakes and muscle aches, drones and honey scones, Triple A baseball and blue-tailed skinks, favorite foods, fasting, and Boston, fused vertebrae and buried treasure, where to buy school supplies when most stores are sold out, creameries and charcuterie,
Bridging social media with eCommerce has been the white rhino of many investors and start-ups for many years.
Instead of working toward such solutions, we have VC’s and stockholders asking about vanity metrics:
- How many people looked at your website? Instead of: How many people subscribed or how many purchased an item?-
- How many downloads per month does your app have? Instead of: How many of the people who downloaded your app have note removed it less than 30 days later?
- What’s your ad revenue? Instead of: How can your product capture or create more value?
In reply entrepreneurs answer these questions, they often present their increased spend on marketing followed up with vanity milestones:
“We’re using Google Analytics and similar providers to track every movement of the supply chain, to ensure when the purchaser’s journey is completed, there’s no delay in delivery. This will lead to more frequent purchases ideally of higher priced products, and…
We are pitching to Chipotle on Friday!”
This leads to concentrated research on Chipotle’s SWAT, followed up with an excellent pitch including a demo via Zoom.
The result of this pitch is usually:
1. The person loved the pitch and accepts your invitation to meet again with his/her manager next week.
2. The person you pitched to is not the decision-maker
3. The person you pitched to doesn’t quite understand what you’re pitching
4. The person you pitched to had 3 other projects due by COB and wasn’t fully present and listening to your 10-minute pitch
5. You provided too many facts too quickly, trying to build rapport
6. You shared how you’re product can reduce shrink, increase ROI, decrease costs, increase retention, and cure cancer. The person you pitched to doesn’t believe all those promises.
7. The person you pitched to is afraid of advocating change; the risk from change that results in lesser results can lead to negative repercussions. The risk of “business as usual” is minimal.
Forgotten by almost all eCommerce platforms and store owners are the facts that:
- People behave differently when they are observed (best behavior vs. average behavior). Despite this, we are seeing an incredible number of start-ups that offer to help track everything your customers do. “We’re Palantir for eCommerce” is essentially the ethos of these companies.
- The Paradox of Choice by Barry Schwarz – too many choices overwhelm the person making the choice, to the point that no decision is made. If you don’t train your mind to buy what you want even if you have to look on pages other than Amazon and Google Shopping, you might end up buying the product you almost wanted.
- The concept of incentivized virality – when PayPal gave $20 to each person who referred another person who joined, and when DropBox offered free data storage to people who referred friends who joined – which Reid Hoffman and Chris Yeh brilliantly detailed in Blitzscaling:
The Lightning-Fast Path to Building Massively Valuable Companies.
So now each eCommerce platform tries to copy Amazon who built their model on the opposite of physical retail. Consider your last experience renting a car at an airport vs. Amazon:
- Do you want to refill the gas tank or would you like us to?
- Would you like liability only or more comprehensive types of insurance coverage?
- Would you like a GPS?
- Would you like to join our exclusive members club? etc., etc.
Adding to what @ElevateDemand said, “ B2B marketing is broken,” Raj De Datta, CEO and cofounder of @Bloomreach said, “The future of B2C marketing looks like B2B marketing,” Kevin Marasco, CMO of @Zenefits correctly said “marketing is going back in time from B2B to B2C” or person to person.
Smart speakers in every phone, tablet, laptop PC, TV, and car succeeded by BCI, which @Facebook and @Neuralink are pioneering, hold great potential. Until those products arrive or after their R&D phase, @Homemaide’s object recognition and image recognition models can provide the sorely needed bridge between Social and Commerce.
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POS Solutions, POS Retail, Ecommerce Merchandising
Article | June 10, 2024
At my current company Monizze, we issue social vouchers, like meal, eco and gift vouchers. These vouchers are consumed using a specific Monizze payment card via a physical terminal. As a result, I come into contact with card payments on a daily basis. Unfortunately, I am still far from being a card expert, but along the years I can say I have built up a good basic understanding of how a card payment happens. As I had to collect information from different sources to get this first good understanding, I thought it might be interesting to share my summary for "dummies" of how card payments work.
First let us have a look at the card itself. A card is just a plastic carrier on which a design is printed. Afterwards a chip (an embedded microprocessor) is attached to the card, on which 1 or more applications can be deployed. A card with such a chip is often also called a smart card or an EMV card, with EMV an abbreviation for "Europay MasterCard VISA", which are the 3 companies that originally established this global electronic transaction standard. A card does not need to have a chip, some cards only have a bar code or QR code on them, while others have a magnetic stripe. Obviously an EMV chip card is more secure than those other models.
Most EMV chip cards today are Dual Interface chip cards. This means the card can be used in both contact (i.e. the card is put in the terminal to read the chip) and contactless (i.e. the card communicates via an NFC antenna with the terminal) mode.
This should not be confused with co-branded / co-badged cards, which exist quite a lot in Europe. As many countries still have their local payment method (like Bancontact in Belgium, Girocard in Germany, Cartes Bancaires in France, PagoBancomat in Italy, MultiBanco in Portugal…), most banks in those countries issue such a co-badged card, which supports both this local payment method and a more international payment method. E.g. in Belgium almost all debit cards are co-badged with Bancontact and Maestro (Maestro being an international payment method owned by MasterCard).
When fabrication of EMV chip cards starts, all cards are the same. Of course by printing the design on the card and personalizing the card (with the name, card number…) you get a specific card. Additionally there is a personalization of the EMV chip. On the chip the specific application(s) of the card is deployed, as well as the specific personal information. This personal information stored on the card consists of the card number (also called the PAN number = Primary Account number), the expiration date, a security code (also called CVV = Card Verification Value or CVC = Card Verification Code), a number of cryptographic keys and the list of CVM checks (CVM = Card Verification Methods). This list indicates which type of security check should be applied and can depend on the type of payment (e.g. contact versus contactless), what the terminal supports and the amount. E.g. the CVM list can indicate that a contactless transaction can be executed up to 50 EUR without asking for a PIN.
The cryptographic keys ensure the necessary security. E.g. they are used to calculate a cryptogram (based on one of the stored secret keys and the info of the transaction), which is sent along to the issuer. The issuer can then verify that the transaction message was not altered along the way by calculating itself the cryptogram and comparing it with the provided cryptogram. In the same way, it is possible to encrypt a PIN code and send it to the issuer for verification. The PIN code can be stored on the chip and verified by the chip directly. This so-called PIN offline verification is however only possible when the chip can be read by the terminal. In case of a contactless transaction requiring a PIN, card issuers usually work with PIN online, which means the PIN is sent in an encrypted way to the issuer, who verifies the correctness of the PIN, before authorizing the transaction.
The information on the chip of a card can also be virtualized. This means that instead of the card sending the NFC signal (in contactless mode) to the terminal, it is also possible that your smartphone sends out this signal (and emulates the card). This can be a specific app, using HCE (= Host Card Emulation), but this technique is only available on Android phones, as Apple does not give access to the NFC antenna. A more common technique is of course Apple Pay and Google Pay, where you onboard your card on the Apple/Google infrastructure and your smartphone emulates the physical card.
Now that we have clarified what the card does, it is good to have a look at how a payment works.
The first step is of course telling the terminal (POS = Point of Sales terminal) how much the customer needs to pay. This can be inputted directly on the terminal, but large retailers have of course an integration with their cash register (= ECR = Electronic Cash Register). This integration allows to pass immediately info like the amount, which card types can be accepted (cashier can select a specific payment method) and potential other reference information. Obviously, a lot of cash register systems exist (e.g. Lightspeed, Square, Casio, Toshiba…) and also a lot of protocols to integrate ECRs with terminals (e.g. VIC protocol) and finally also a lot of different terminals (e.g. Wordline, Ingenico, CCV, Adyen, SumUp, VIVA Wallet, Cetrel, Loyaltek…). All these differences make those integrations quite a mess.
The terminal will then read the card (contact or contactless) and determine which verification methods need to be applied. Once the verifications on the terminal are ok, the payment is sent to the Acquirer (often the merchant’s bank), which sends the payment to the Issuer (usually the bank of the card holder, which issued the card). This Issuer validates if the card is still active, if the PIN code is correct (in case of PIN online), if the customer is allowed to do a transaction at this merchant (e.g. card might be disabled for foreign transactions) and whether the customer has sufficient funds to execute the payment. In case of a positive reply, the payment is considered as successful, even though the actual settlement will usually happen later. This settlement consists of the acquirer requesting payment to the issuing bank, the issuing bank debiting the cardholder’s account and transmitting the money to the acquirer bank and the acquirer bank crediting the merchant’s account.the cardholder’s account and transmitting the money to the acquirer bank and the acquirer bank crediting the merchant’s account.
For the communication between the terminal, acquirer and issuer a "Payment Network", like VISA, MasterCard, American Express, UnionPay, Bancontact… is used. This payment network sets all the rules of how these different players should interact. Additionally there are multiple protocols of how terminals can communicate with the Acquirer, like CTAP, EP2, Nexo (EPAS), IFSF, STD70, ABI-CB (Italy)…, making it for international players very hard to support all local payment methods.
It is also important to understand the difference between a "Four Corner model" (also called a Four-Party scheme, Open Scheme or Open Loop payment model) and a "Three Corner Model" (also called a Three-Party scheme, Closed Scheme and Closed loop payment model). The first model is the model described above and is the most widely used. E.g. VISA, MasterCard and UnionPay use this model. In the second model ("Three Corner Model"), the issuer, acquirer and payment network are the same party. This means the payment network provides the card to the card holder and contracts with the merchant to configure/setup the terminal. Typical examples are Diners Club, Discover Card and American Express, but often also niche payment methods, like the social vouchers (e.g. meal voucher payments) of Monizze fall in this category (even though in many countries, social vouchers are also handled via an "Open Loop" model based on VISA or MasterCard).
As you can see a card payment involves a large number of parties. While cash registers and terminals are bought or rented by merchants and typically include also a monthly service fee, the other players are usually paid per transaction. The Acquirer will recover those transaction fees from the merchant through a "Merchant service charge". The Acquirer however keeps only a small part of this fee, as around 20% of this fee (the so-called scheme fee) is going to the payment network (e.g. VISA or MasterCard) and up to 70% (the so-called interchange fee) to the Issuer. Part of this interchange fee is often used in the form of rewards (e.g. cashbacks) to the customer, thus encouraging the card holder to use his card as much as possible.
Card payments are clearly undergoing a major transformation. On the one hand, there is a strong push towards a cashless society. This trend, strongly accelerated by the Covid crisis, increases the use of card payments. On the other hand, there is a trend to replace the physical cards by payments with smartphones. This includes the exponential rise of the use of Apple Pay and Google Pay, but also new payment techniques, often based on QR code scanning (like e.g. Payconiq in Belgium).
Additionally due to the aggressive take-over strategy of the 2 major American players (VISA and MasterCard) in the last decade, there is a strong feeling, especially in Europe, that there is need for more competition and a new European player. As a result, several large European banks are joining forces to create a European alternative. It is however doubtful that this new initiative will be successful, as new technologies and payment methods, like PSD2 Payment Initiation, SEPA Request to Pay (SRTP), instant payments, CBDCs… can likely give better (more frictionless and cheaper) alternatives to the traditional card payment schemes.
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POS Retail
Article | May 10, 2024
When printing receipts or invoices, many accounting and point-of-sale programs enable the usage of common desktop printers. Receipt printers, on the other hand, typically have a smaller footprint and consume less ink and paper than ordinary printers. This equals more profit and savings for your company. Therefore, we will explain everything you need to know about how to use a receipt printer.
What is a receipt printer?
In the retail and restaurant industry, a receipt printer is a crucial part of a point of sale (POS) system. As stated in its name, they are used to print credit card slips and client receipts. In retail stores, a receipt printer is used after customers have made transactions. This system is also used in restaurants to print orders in the kitchen or at the bar.
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POS Retail, Security
Article | July 28, 2023
Discover cutting-edge innovations, learn about operational efficiencies, and explore ways to enhance customer experiences through modern POS solutions with the most awaited POS events in 2023.
As the significance of customer satisfaction, efficient inventory management, and omnichannel experience grew, the adoption of Point-of-Sale (POS) systems has gained significant momentum in the last few years. These advanced systems offer businesses numerous benefits, including enhanced efficiency, real-time data analytics, and seamless integration with other essential operations.
With the addition of features, such as time data accessibility, seamless integration with other business operations, enhanced mobility, and automatic software updates, these cloud POS solutions empower businesses to make informed decisions, improve operational efficiency, provide personalized customer experiences, and adapt quickly to changing market demands. To stay at the forefront of this technological revolution and garner the latest insights in the sector, industry professionals and enthusiasts are flocking to various events and conferences dedicated to cloud POS. Here are some of the top payment-related POS conferences for businesses to attend:
The Payment & Innovation Forum 2023
November 16-17, 2023 | Budapest (Hungary)
The Payment & Innovation Forum 2023 is a premier event that brings together industry leaders, experts, and innovators in the banking and fintech sectors. With a focus on the European Union regulatory landscape, the forum explores the safe and responsible adoption of the latest innovation trends in banking. Speakers, including Javier Santamaría, The Chair of the European Payments Council; Daniela Bobocea, Chief Digital Officer at Digital Banker; and others, will share valuable insights and exchange ideas on the evolving payments landscape. Attendees can expect insightful discussions on topics such as the new era of customer experience, the relationship between fintech and banks, disruptions and digital banking trends, regulation and innovation, instant payment solutions, and the future of EU cybersecurity.
Driving the Future of Ecommerce in Asia Pacific
October 11-12, 2023 | Marina Bay (Singapore)
Driving the Future of Ecommerce in Asia Pacific, eCommerce Expo Asia is back in 2023 for its highly anticipated fourth edition. With an impressive lineup of industry experts, including David Jou, CEO & Co-Founder of Pomelo Fashion; Jay Teo, Head of Point of Sales Business at Shopline; Alexandra Morris, APAC Head of Marketing at BigCommerce; and Jay Jenkins, Global Tech Evangelist at BytePlus, the event will shed light on the latest innovation and highlight game-changing solutions that will propel their ecommerce endeavors forward. Attendees can expect insightful keynote speeches, informative panel discussions, and thought-provoking sessions on the emerging trends and strategies driving the future of ecommerce in the Asia-Pacific region.
Advanced E-Commerce & Retail Expo
October 25-27, 2023 | Makuhari Messe (Japan)
Advanced E-Commerce & Retail Expo is a comprehensive event showcasing a wide range of products and solutions tailored for the retail and ecommerce industries. It focuses on store operations, customer attraction, customer service, and online-offline store connectivity. The POS event presents professionals from various sectors, such as retail, ecommerce, food and service, manufacturing, and management of industries like hotel and leisure, making it a valuable platform to explore cutting-edge solutions that drive business growth. Attendees can expect to connect with industry experts, discover innovative technologies, and gain insights into the latest trends in retail, ecommerce, marketing, logistics, and systems.
Los Angeles eCommerce Summit 2024
May 16, 2024 | Los Angeles (California)
Los Angeles eCommerce Summit 2024 is a highly anticipated one-day event that brings together a curated group of local eCommerce experts, decision-makers, and industry professionals from the vibrant LA area. The conference is thoughtfully designed to deliver high-impact impressions through panel discussions, presentations, and one-on-one meetings covering a wide range of topics such as eCommerce strategy, marketing, operations, customer experience, payment solutions, shipping logistics, and loyalty programs. With industry leaders and innovators from established retailers and brands as participating speakers, attendees can expect to gain valuable insights, forge meaningful connections, and stay ahead in the ever-evolving eCommerce landscape.
Payments Summit
February 26-28, 2024 | California (USA)
Hosted by Secure Technology Alliance, the 16th annual Payments Summit will be held in conjunction with an Identity Summit, as well as the Winter Member Meeting of the U.S. Payments Forum and Identity Access Forum. Under the theme of ’Smarter Faster Payments,’ the summit showcases renowned keynote speakers Ben Nemtin, no. 1 New York Times bestselling author and Shola Richards, Founder of The Positivity Solution, who will share their invaluable insights on the future of payments. With a focus on enhancing the user experience, improving decision-making, and reinforcing security measures, Smarter Faster Payments is an important industry event for those seeking to stay ahead of the curve and make a meaningful impact in the world of payments.
Payments Forum
May 6-8, 2024 | Florida (USA)
Payments Forum is a premier event where industry experts, leaders, and decision-makers from financial institutions, card issuers, payments processors, merchants, and retailers gather for strategic discussions on revenue growth and product development. This POS event serves as a vital platform for attendees to gain valuable insights into the latest technological advancements, regulatory impacts, and the evolving landscape of consumer behavior. With a focus on innovation, digital transformation, and staying ahead of industry trends, the Payments Forum provides a unique opportunity for professionals to exchange knowledge, explore new options, and drive their organizations toward success in the dynamic payments sector.
PAY360 Conference
March 19-20, 2024 | London (UK)
An essential event, the PAY360 Conference, is where professionals in the payments industry come together to navigate the ever-evolving landscape of the payments ecosystem. With speakers such as Kosta Du, Founder and CEO of Dapio; Charles Damen, Chief Product Officer at Token; and Denise Johansson. Co-CEO and Co-Founder of Enfuce, on the deck, the conference provides a unique platform for networking, collaboration, and knowledge-sharing. Recognizing the growing demand, this POS event has expanded to a larger venue, reflecting its status as the preferred meeting point for forging partnerships, acquiring new customers, and influencing policy. By pushing boundaries and going the extra mile, PAY360 is committed to serving and benefiting the payments community, enabling attendees to stay ahead of the curve and thrive in this dynamic and fast-paced sector.
MoneyLIVE Summit
March 6-7, 2024 | London (UK)
MoneyLIVE Summit, held in the world's FinTech capital, is the premier global event for payments and banking professionals. Bringing together industry leaders at the forefront of their fields, this POS summit serves as the epicenter of ground-breaking partnerships, amplifying innovation, and nurturing the brightest ideas. With five remarkable stages to choose from, attendees can delve into a wide range of topics, including open banking, new revenue models, payments innovation, digital identities, and more. MoneyLIVE Summit provides a unique platform to stay informed, inspired, and connected with the latest trends and advancements shaping the payments and banking landscape, making it an important event for industry professionals seeking to drive success and embrace the future of finance.
Smarter Faster Payments 2024
May 6-9, 2024 | Miami (USA)
Smarter Faster Payments 2024 is an exceptional industry event that recognizes the transformative power of technology and information in revolutionizing the world of payments. This POS event is dedicated to organizations that are at the forefront of driving innovation, delivering value through groundbreaking solutions and services, and utilizing these advancements to meet their business requirements and engage with customers. With a focus on enhancing the user experience, empowering decision-making processes, and ensuring robust security measures, Smarter Faster Payments offers a unique platform for diverse organizations to come together, share insights, and explore the latest trends and strategies in the payments landscape. Attendees can expect to gain valuable knowledge, establish meaningful connections, and stay ahead of the curve in this dynamic and rapidly evolving industry.
CMO in eCommerce Conference - 2023
September 27, 2023 | Online
A must-attend event, The CMO in eCommerce Conference - 2023, designed specifically for eCommerce Chief Marketing Officers (CMOs) looking to optimize their online stores and drive business success. This POS conference brings together a panel of experienced eCommerce CMOs who understand the challenges of managing and developing thriving online businesses. With a wealth of knowledge and practical advice to share, these industry experts will provide valuable insights on optimizing store performance, enhancing customer engagement, and boosting sales. Attendees can gain critical insights into the latest trends, platforms, tools, and apps, gaining a competitive edge and making their marketing efforts more effective.
The Future of POS
The future of Point-of-Sale (POS) is poised for significant transformation through the integration of cloud-based technologies. Attending the top 10 POS conferences in 2023 presents a remarkable opportunity for industry professionals to gain invaluable insights and stay abreast of the latest advancements in this ever-evolving field. These conferences serve as vibrant platforms where retailers, technology providers, and industry enthusiasts can converge, share knowledge, and forge meaningful connections. Attendees can stay ahead of the curve by participating in these events, leveraging the power of cloud-based POS systems to enhance operational efficiency, improve customer experiences, and drive business growth.
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