What POS Leasing Is and How It Helps Retailers
To understand POS leasing, we first need to understand the market for it. According to a recent report from Business Insider Intelligence, the adoption of mobile POS systems is projected to grow significantly over the next few years. In 2014, mobile POS usage stood at 3.2 million. By 2020, it’s expected to hit 27.7 million devices. That’s a significant leap. However, it immediately pales in comparison to enterprise mobile POS across the entire retail industry.
A recent report from Retail Info Systems revealed that only 3 percent of enterprise merchants have fully deployed mobile POS systems. This might come as a surprise to many given the widespread use of mobile devices in business and retail applications — we see them in hand in mall stores to major big box locations and beyond. But to others who understand the difficulty of implementing a full-scale mobile POS strategy across an entire organization, it won’t.
Difficulty with integration, different operating systems, not enough battery life for a full workday, POS to device connectivity, security, and even device aesthetics have all played a role in retailers’ avoidance of mobile POS adoption. These are all valid concerns — if a retail employee can’t easily carry the device around the floor, or has to consistently swap it out for a charged-up version, efficiency is lost and perhaps even sales due to device unavailability.
Mobile POS Leasing: A Solution for Retailers
Most of the above concerns are more closely aligned with purchasing mobile POS devices and deploying them throughout the enterprise. For many, this simply isn’t an option. The sheer cost and time investment to do so is staggering, and in just a short amount of time after deploying a mobile POS platform into a retail environment, the devices themselves will have depreciated significantly. Add to that the risk of devices breaking or being damaged due to heavy physical use, and it’s no wonder why so many retailers avoid implementing a mobile POS program.
Thankfully, there are alternative options to purchasing mobile POS hardware that also alleviate many of the concerns retailers have. Hardware-as-a-Service (HaaS) from River Capital Finance is an innovative POS leasing program that provides retailers with the devices they need without a heavy upfront cash outlay. Let’s review some of the ways that POS leasing through HaaS helps retailers overcome these barriers to a more mobile-focused payment environment.
Integration and Connectivity
A key benefit of POS leasing is that you can combine the mobile device, the POS system, and any other systems into your hardware bundle. This ensures everything works well together, without any problems around integration or interfacing between separate systems. Whereas it would take significant time to build bridges between existing hardware or hardware that would have to be purchased, HaaS delivers the entire mobile POS solution in one package.
Battery life and the ability of a mobile device to interface with a POS system are important considerations with a mobile POS program. Early on, mobile devices and POS systems were separate, and employees had to carry both around. While this has since changed and battery life is improving on newer devices, there are still concerns that need to be considered. If you purchased this hardware before, you’d have to deal with these issues until resources permitted the acquisition of new hardware. Employees would likely have to deal with outdated hardware and poor battery life for some time. With HaaS, you get new hardware once your contract resets, which is typically every three years. This ensures you have high-performing hardware at all times, and when it’s time for an upgrade, you’ll be covered.
Support and Maintenance
If you own POS hardware, you’re ultimately responsible for managing your own updates. Not only is this time-consuming and potentially costly, but its impact extends beyond the devices themselves. For every device that’s off the floor being repaired or updated, there’s an employee that must either find and use another device or be forced to use a stationary in-lane payment terminal. If the latter, that means the employee can’t be out where your customers are, and your company might be missing out on sales because of it. With HaaS, all updates and upgrades are handled for you. Simply send the device in, and a temporary replacement will be sent out so your team members can maintain their productivity.
Reporting and Analytics
While having devices up and running throughout your retail stores is great, what’s even more helpful is understanding how they’re being used and how they’re performing. For example, say you had a mobile POS system that worked with different device types. Over time, you start learning that it doesn’t work with Android devices as well as it does with Apple devices. You learn this from store associates, but by then, you’ve already invested in the POS system and must now deal with the hassle or consider a platform-specific solution. With HaaS, an in-depth dashboard with extensive reporting on device performance is available to you 24/7. This allows you to identify issues before they become business-impacting problems.
Achieve Mobile POS Success with HaaS
While it may be tempting to invest in your own hardware, the benefits of HaaS are readily apparent in the sheer ROI attainable through state-of-the-art hardware that comes with your contract. Devices are new, and multiple systems can be bundled to ensure your mobile POS solution is working seamlessly without interruption. Employees will have the tools they need to meet your customers wherever they are and whenever they’re ready to check out. And if support is needed, the River Capital Finance team is here to help.
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