If you don't have retail point of sale (POS) in your value-added reseller (VAR) business plan, why not?
A 2014 report from eMarketer predicts total retail sales in the US will top $5 trillion in 2016. And the 2014-installed base of POS terminals in the US was estimated at 13.9 million, with a growing number of mobile POS (mPOS) units included in that total.
While not every retail business in the country uses a POS system, it's clear there's significant opportunity for growth. So if you're still not sold, here are a few more reasons why your VAR business plan must include retail POS.
US EMV adoption rates remain low
While the October 2015 EMV transition date has passed, many merchants still lack the necessary upgrades at the POS needed in order to handle chip-card transactions. And as more and more consumers get replacement credit and debit cards in the mail—approximately 50 percent of cards have been reissued so far—business owners will begin to feel the pressure.
You should also know that larger retailers have led the way in EMV adoption, while small to medium-sized businesses (SMBs) and very small businesses (VSBs) have not been as quick to upgrade. Surveys cite several notable reasons for this discrepancy. Many merchants are unaware of the liability shift, while others believe the costs to upgrade outweigh the benefits.
Despite these objections, many retailers will soon be pushed to upgrade their POS systems, and there's no better way to cement an ongoing business relationship than by setting yourself up as a trusted advisor from the start. By helping new clients understand the importance of EMV adoption and recommending best-suited terminal upgrades, you'll gain a retail POS customer for the long term.
Retail mPOS maintains strong growth
In 2014, mPOS devices used in retail stores made up 30 percent of the market. And adoption rates continue to rise.
Industry analysts anticipate that SMBs and VSBs will drive much of the growth of these POS devices over the next few years. And that's why it's a great time to incorporate mPOS as part of your VAR business plan.
Handheld mPOS devices offer retailers tremendous flexibility when assisting customers, managing inventory, and processing payments. Employees can take handheld devices anywhere on the sales floor, checking stock levels and locating products for customers. And it's simple to add prompts to upsell and cross-sell complementary products and services.
While some retailers use mPOS devices exclusively, the terminals can also be the perfect addition to a traditional POS system. Small and medium-sized retailers benefit from a smaller footprint at the POS, and mPOS adoption often causes a retail business to stand out in the mind of the consumer.
As you cultivate your VAR business plan, it's a great time to consider retail POS and all the ways you can help new clients meet the challenges of a changing payments climate.
How does retail POS factor into your current VAR business plan?
ABOUT THE AUTHOR
Jeremiah Shea leads Ingram Micro’s DC/POS Payments Program and provides support for vendors like Verifone, Ingenico, Magtek, ID Tech, and Equinox. He has been part of the DC/POS division at Ingram Micro now for five years, working with all facets of the business for strategic execution. Jeremiah has also become the subject matter expert on EMV readiness and overall payments strategy. With a technical background and a sound understanding of the business, he is a great resource to tap for any and all questions relating to EMV, but more broadly anything DC/POS related as well.
Phone: 1-800-456-8000 ext 64810