With UK Finance recently sharing that a staggering 93% of card transactions in the UK are contactless payments, it’s clear that a robust digital payment infrastructure is no longer a luxury for merchants; it’s a necessity. But what happens when the chip and pin devices we’re familiar with malfunction? 

We all remember the chaos caused by recent tech outages at major retailers like Tesco, Sainsbury’s and McDonald’s, with limited payment options frustrating customers and in some cases, forcing temporary closures. These outages highlight a critical vulnerability: a reliance on traditional payment systems which can leave businesses exposed to significant financial losses. Downtime caused by malfunctioning hardware translates to lost sales and potential reputational damage, which can take years to be resolved.

This is where software point of sale (SoftPoS) shines, offering a simple, fast, and more convenient way to accept payments using the NFC-enabled smartphones or tablets we have in our pockets. SoftPoS is set to play a pivotal role in shaping the future payments landscape, but by offering a suitable backup solution for when hardware payments fail businesses, it truly carves out a niche for itself in the evolving world of payments.

The importance of having an alternative solution

The IT disruptions faced by a number of prominent UK businesses earlier in the year serve as a stark reminder that existing systems are not infallible. These businesses face a pressing decision; invest in alternative payment methods to safeguard the customer experience and revenue of the business, or continue to provide a traditional payment solution and risk facing the costly disruptions associated with unexpected tech failures.

While traditional point-of-sale systems have served as the backbone of payment processing for decades, they are not without their vulnerabilities. Security breaches involving compromised card data are a persistent concern for businesses and consumers alike. 

Skimming devices attached to card readers can steal sensitive information during transactions. SoftPoS technology, by leveraging secure mobile device technology and tokenisation of sensitive data, can potentially mitigate these risks. Additionally, cloud-based security features and regular software updates offered by SoftPoS providers can further enhance the overall security of a business’s payment infrastructure.

SoftPoS solutions can serve as a safety net in situations where the primary card machine breaks down, whether due to a malfunction, battery issues, or technical problems that are beyond the immediate expertise of employees. By having an implemented SoftPoS solution, businesses can avoid lost sales and maintain customer trust during outages.

Cost-effective maintenance

Traditional payment methods, while familiar, often rely on expensive hardware that requires ongoing maintenance. This can be costly, and hardware malfunctions can lead to additional service call fees and downtime. 

SoftPoS, on the other hand, offers a more cost-effective solution. Updates can be delivered online, minimising downtime and making it perfect for fast-paced environments. Additionally, SoftPoS eliminates the need for costly terminals, streamlining the payment process and reducing operational costs associated with payment processing and reconciliation. 

Established companies can realise significant savings by implementing SoftPoS across their stores, removing the sole reliance on expensive point-of-sale hardware at each location. This frees up capital for other business investments and simplifies the management of their payment infrastructure.

A flexible future for omnichannel businesses

While traditional payment methods struggle to adapt to diverse business models, SoftPoS thrives. Pop-up shops, service providers, and smaller retailers can leverage existing smartphones and tablets, eliminating the need for dedicated hardware. This flexibility, coupled with its ease of setup, makes SoftPoS a convenient and cost-effective solution for businesses of all sizes.

Looking ahead, SoftPoS holds immense potential to transform the future of payments. As consumer preferences shift towards contactless transactions and mobile wallets, SoftPoS is well-positioned to become a primary payment method. Its inherent flexibility can cater to a wide range of businesses, from established retail chains to on-the-go operations and service providers. 

Furthermore, seamless integration with loyalty programs and real-time sales data empower businesses to optimise operations and enhance customer engagement. With continuous advancements in mobile technology and growing consumer demand for secure and convenient payments, SoftPoS is poised to play a central role in shaping the future of secure and adaptable payment solutions across all industries.

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