Helping each of your customers choose and install the right mobile point-of-sale solution takes some detective work. You need information about how they serve customers and take payments. But once you develop those relationships, you're in a better position to recommend merchant services that can generate recurring revenue.
Selling merchant services for mPOS can depend on the size of the merchant. Larger businesses may have more cash on hand to add or upgrade terminals but want help forming a relationship with a payment processor.
Small-to-medium businesses (SMBs) and very small businesses (VSBs) often want more payment flexibility when adding mPOS hardware and software. And that's where you can solve your client's problem while adding recurring revenue.
Here are three recurring revenue sources for mobile POS you'll want to recommend for your customers.
1. Simplify payment processing for merchants
For many merchants, the process of evaluating and selecting a payment provider (also called payment gateways or processors) for card transactions can be overwhelming. And that's where you can serve as a trusted advisor while also creating a recurring revenue stream.
Growing residual income from merchant services such as payment processing requires a network of relationships with business owners. Generally VARs align themselves with one or more payment providers and then offer those services to merchants.
As a VAR, you can earn a commission from each merchant agreement and also get a percentage of every completed transaction. If you don't have a preferred payment provider, you can always turn to a company such as Ingram Micro for a recommendation.
2. Offer a variety of software solutions
As mPOS options continue to expand, merchants have different ways of accessing needed point-of-sale software.
Traditional software packages are more suitable for larger companies that need to integrate with enterprise systems. These generally require upfront payments. But migrating to another software solution can be difficult and costly for a merchant.
As a result, more businesses are turning to cloud-based solutions, thus reducing IT and data storage needs in the process. Software-as-a-Service (SaaS) options are generally delivered via mobile app. If the software capabilities don't match merchant needs, finding another cloud solution that works with existing point-of-sale hardware is fairly easy.
3. Create payment flexibility with Hardware-as-a-Service (HaaS)
Paying for new mobile POS terminals all at once can be a financial hardship, especially for smaller businesses with limited cash flow, or for larger merchants planning to upgrade many payment terminals at the same time. That's why leasing point-of-sale terminals can be such an attractive option for merchants.
Entering into a monthly contract means business owners can pay over time while enjoying fixed hardware costs. Terminals are installed right away and include warranties and service contracts promising quick action when something goes down. And when terminals are no longer needed, terminating the contract and returning the hardware is easy.
Contracts to provide mPOS merchant services are beneficial for both VARs and business owners, offering flexible solutions for merchants and recurring revenue opportunities for resellers.
What recurring revenue opportunities are you seeing when helping create solutions for your mPOS customers?