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Growing range of services using POS terminals

In earlier posts we already discussed how POS terminals have other applications than just accept credit card payments.

With the end of terminal exclusivity, card processors like Redecard and Cielo are looking for new ways to use their network of POS terminals.

• Redecard now accepts transactions from Multiplus, a company that creates loyalty programs, among them the loyalty program for TAM airlines.
• Cielo is launching a platform that allows stores to use POS terminals for promotions and loyalty programs. The first project to be announced is the development of a loyalty program for Cacua Show, a chocolate chain with stores all over Brazil. Cielo will charge the retailers for every transaction. 

According to Rômulo de Mello Dias, CEO of Cielo, the retailer will have control over all information. For example, when that user last visited your store, how much he spent and what they spent it on. All essential information for any loyalty program.

We more than agree with all of this.

And while it is possible to set-up a computer network to collect all this information, using POS terminals for this has many advantages.

Their low cost and availability are drivers behind the increasing market that uses POS terminals in different ways. 

Proof of that is our growing number of clients that use POS terminals for things like: ticket management, sell credit for cellphones, bill collection for utilities companies, control fleet expenses, manage meal cards, create loyalty programs and promotions,...

More info on the Estado(Portuguese).

Sold POS terminals 2005-2009

After coming across a report on the number of sold POS terminals these last few years, I put them all into a couple of graphs.

In Latin- America:

Worldwide:

The end of exclusivity and its impact

Since July 1st the terminal exclusivity has ended in Brazil. Every POS terminal now processes cards from other brands. 

To break up the 90% market dominance that of Cielo and Redecard had, the government enforced some ruling that make it easier for new card brands to enter the market. Not only will this mean lower transaction costs but also estimated savings of R$1.2 billion in equipment rental for the retailers.

According to the CNDL (Confederação Nacional de Dirigentes Lojistas) there are 5 million POS terminals in Brazil spread over 1.5 million stores. Cielo owns 1,6 million of them and Redecard 1 million machines. With the end of the exclusivity this number will go down drastically. Because now a shop only needs one terminal for all its transactions.

Estimates from Abecs are that there are 597 million credit cards (including credit, debit, private label and others). From January until June 3.3 billion transactions were made these cards, representing an amount of 244 billion reals. This is a 21% increase compared to the same period in 2009. And with fixed rates on every transaction, there is a lot of money going around in this industry. Since the liberalization a couple of new players have entered the playing field.

• First Data, the worlds largest credit card payment processor
• Elo is the project from Banco do Brasil and Bradesco.
• Getnet from Santander

It is still too early for concrete results but as the new entrants gain market share and build up their network capacity, things will start changing.

And with more card brands in the market and a larger audience, there are many opportunities. A shared terminal makes it easier for card companies to build out their network. And these networks need all POS applications, which creates new opportunities for application developers.

 If you have any projects you would like to discuss, do not hesitate to contact us at arthur@planobe.com.br!

POS in action: bill collection for utilities company

A network of POS terminals can be a good alternative to a complex computer system, as we have said before. This article gives an example of a company using these machines to do house-to house bill collection for water and energy consumption.

Company

The company provides a service to collect the money that is owed for water and electricity use. In Brazil this process works like this: 

• An employee from the water company comes to the house, checks the meters, and takes down the consumption levels
• Then these data are transmitted (traditionally with PDAs) to the central computer system of the money collection company.
• Finally these data are processed an invoice is created and sent to the customer.

POS terminals in action

Consider how a point of sale terminal can simplify this process:

• The employee puts in the consumption on the POS keyboard
• The data get automatically transmitted to the server. 
• These data are communicated back to the terminal. 
• The built-in printer creates a physical invoice at the spot. Which can  be presented and paid on the spot. Or when the customer isn't home, put into the mailbox for later payment.

Advantages

The system using point of sale terminals simplifies the process, cutting labor and administration costs. 

And because the process is easier and the invoice reaches the customer a lot faster, the owed money will be paid quicker, which improves the cash flow.

This program was developed in a language called POSXML on our WALK platform. Maybe WALK can also help you to simplify your POS application development. Let us know!

Point of sale terminals: more than just payments

POS terminals are not just devices that can process payment cards. They can work as an alternative to systems that use computers.

A point of sale terminal is very similar to a normal computer. It has a processor, memory, network access (gprs or ethernet), screen, keyboard, printer and a reader.

Advantages of Point of Sale terminals

Security

A point of sale terminal is built to process payments. This means that one of the core functions of the device is protecting very sensitive customer data. Manufactures of POS terminals have to follow rigorous standards (called Payment Card Industry Data Security Standard or PCI-DSS) in order to bring their devices to the market. These and other kind of measurements reduce possible fraud dramatically.

Simplicity

Using a simpler device means that less can go wrong. With a computer infrastructure it is always a struggle to figure out what the problem is, let alone whose fault it is.

By relying on the basic hardware of point of sale terminals, with vendor support, problem solving goes a lot smoother. No more spending hours on tech support and losing valuable time.

Another advantage of the simplicity is that it the devices are virus-proof. Checks are in place the prevent viruses from getting into your system and compromising your data.

Mobility

The compact format and wireless capabilities of POS terminals allow the devices to be used outside normal environment such as on the road.

Cost

A simple POS terminal costs around $150, significantly cheaper than a basic computer.

Because POS terminals are cheaper, their investment take less time to become profitable. In comparison, a traditional computer based system takes 5 to 7 years (according to Kurt Ericson, VP/general manager at J2 Retail Systems) to pay back its initial investment. Waiting a minimum of five years to upgrade your equipment is a long time. New technologies will be available that allow faster transaction processing with better security.

So its basically choosing between having your capital tied up or enjoying more flexible.

Software

Point of sale terminals seem like a good option, but what about the actual software?

When using the right tools, the complexity of the development of programs for computers and point of sale systems is the equal.

The main difference is that POS systems are much more flexible. Once developed, adding new features or implementing new hardware functions is fairly easy in a POS environment.

Another advantage of point of sale systems is that they allow the devices to be remotely updated.

Share your story with us

• Are thinking about investing in a new computer infrastructure? 
• Do you think a point of sale based system might serve your needs?
• Are you currently using a point of sale network?

Please let us know in the comments!