In the last five years, both mobile point of sale (mPOS) and mobile payments (mPayments) technology has taken quantum leaps. This innovation is opening a whole new world of opportunities for retailers.
In this new world where smartphones, tablets, and other mobile devices have come to dominate the retail and hospitality industries, mobile POS systems and mobile payments are two areas that are commonly talked about, but not clearly defined.
While the terms “payment” and “point of sale” offer some level of differentiation between the two, the options that are available in the market for each are so varied, and in some cases, so nuanced, that many business owners can’t quite explain the difference.
This becomes a more significant problem when the time comes to select a point of sale (POS) technology. Without a clear understanding of the options available to you, you might end up making the same costly mistakes as many other small business owners. We don’t just mean in terms of dollars and cents.
Choosing the wrong point of sale technology means that you won’t have the best possible tools for running and growing your business. That could include anything from subpar reporting and analytics to ineffective inventory management tools and an absence of critical integrations. It can also mean less flexibility choosing a processor, which can lead to paying higher rates or the inability to accept new cutting-edge mobile payments technology such as Apple Pay and other NFC payments.
That said, it’s important to understand the differences between these two technologies, or else risk setting your business back for years to come. So, how do you differentiate between the two and ensure that you are making the right choice? We’ve outlined what you should know about each below.