Mobile Payments: Stresses for POS Developers and VARs

Patrick Turiano |

July 9, 2012

Mobile Payments

The payments ecosystem is changing and the impact of the convergence of new mobile payment types, mobile wallets and consumer programs are leading to new stresses for point-of-sale (POS) developers and value-added resellers (VARs).

Historically, they have been focused on delivering an integrated solution to their merchants, providing one system that handles everything from time clock management to inventory to payment processing. New payment types (NFC, EMV, QR and more) and customer programs (mobile gift, loyalty and context aware marketing) are converging on the marketplace, creating disruption and uncertainty.

POS developers and VARs are faced with the challenge of a payments landscape that is evolving from four or five options to what may be hundreds. Adding just one new payment option, such as EMV, presents a costly and tedious task that involves new hardware and additional technical development. As customers demand more value-add in terms of loyalty rewards and mobile couponing, merchants will need all of the options to support and grow their business. POS developers and VARs will not have the capacity to integrate each individually and it’s unclear at this time which offerings will be adopted quickly by consumers versus those that will fade away.

POS developers and VARs need a scalable, reliable and secure payment-agnostic solution that allows for a one-time integration and offers their merchant customers complete flexibility to offer what they want, when they want. Consumers are driving change and merchants and their suppliers need to be looking ahead to ensure that they have the foundation to meet and exceed their increasing expectations.

For decades, point-of-sale vendors and value added resellers have been focused on delivering products that merchants use. Today, the focus in payment solutions is on the end customer and the experience they have with the merchant.