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mPOS Web 3.0

Smartphone as mobile POS (mPOS)

Money mobility has until now been reserved for the user. From now on, all entrepreneurs will also be given this option.

The financial system is changing rapidly, both from the perspective of the consumer and the entrepreneur. Banking and financial services are being reinvented, including infrastructure.
The only device that a business owner cannot do without is the “cash management system”. Whether it’s the traditional electronic checkout or a comprehensive automated checkout system, every store needs a machine to process the sale.

Brief history of cash management systems

An early mechanical cash register was invented by James Ritty and John Birch after the American Civil War. Accurate accounting was made possible by the machine, both for businesses and for customers. In addition, the risks associated with employee theft were ultimately mitigated. As time went on and technology evolved, upgrades and modifications were made to the original design. A paper roll was added to record sales transactions, creating the journal for internal accounting purposes and the receipt for external accounting purposes. The original purpose of the receipt was to improve fraud protection.
The early registers were completely mechanical, but in 1906, inventor Charles F. Kettering, while working at the National Cash Register Company, designed a cash register with an electric motor.
A leading designer, builder, manufacturer, seller and exporter of cash registers from the 1950s to the 1970s was London-based Gross Cash Registers Ltd., founded by brothers Sam and Henry Gross. Their cash registers were particularly popular around the time of decimalisation in Britain in early 1971, as Henry had designed one of the few known cashier models that could switch between pre-decimal and decimal currencies.

Fast forward to the present …

Cash registers can be equipped with a cash drawer, management functions, manual feeder, scanner, receipt printer and security deactivation.

Depending on the needs of the business, a cash register or a complete cash register system can be installed. Small businesses may choose to install only a cash register, but that is less and less the case. Businesses need the ability to perform database marketing and that only comes from a POS system. The ability to record customer information and purchase history translates into the ability to sell to the person who is likely to buy. But before they get there, entrepreneurs have to overcome a number of hurdles. One of those hurdles is directly related to the cost of POS systems.

Complete POS systems can vary from € 500 to € 20,000. The more POS hardware added to the system, the higher the costs. Retailers can find a basic cash register for less than $ 200, but expect to pay between $ 250 and $ 800 for a more advanced cash register with scanners, display poles and other features. One reason for the high upfront costs associated with a cash register or cash register system is that a business can expect years of service with the machine they buy. Cash register life expectancy is between 10-15 years, with upgrades around 5-7 years.

POS systems improved business activity as retailers were able to eliminate the need for price tags. Sales prices are linked to an item’s product code when adding inventory, so all the cashier needs to do is scan this code to process a sale. If there is a price change, it can also be done easily with an inventory function. Other benefits include the ability to implement different types of discounts, a customer loyalty program and more efficient inventory management.
Despite these advantages, current cash management systems have caused many pain points for entrepreneurs. Various peripherals are linked to a computer unit and thus comprise the cash register system.

The reality is that most of these systems have old hardware that receives add-ons and software updates from their suppliers. The tendency is for these systems to eventually become slow, difficult to use, and become obsolete. When the system has a problem, the manager or the cashier has to enlist the help to fix the problem, with an increasing number of frustrated customers. This is a common situation for both large and small retailers.
POS systems have become so complex that their functionality can be completely discontinued even for a minor problem.

“Today’s data-driven economic reality, combined with the ability to digitize almost anything, paves the way for a simplified POS system.”

Not all hardware can be removed right away, but if a scanner can be turned into an app, almost any peripheral can eventually be removed with the introduction of a software counterpart. With an mPOS, companies can accept payments anywhere, anytime without investing in expensive terminals and cash registers. The domino goes even further. A lot of space is being freed up in the store, creating extra space for displaying goods and for customers. Imagine walking into a store and all you see is merchandise and more room to move.
Plus, do you remember all those vendors pushing expensive peripherals and unfriendly software updates onto PC units from the early 2000s? Away! Business owners can reduce costs associated with external suppliers, which reduces their profits.
Businesses need elegant services with a low learning curve for the people involved. Apps and decentralization are slowly alleviating the problems associated with legacy POS systems, enabling immediate operation through ‘plug and play’ services.

Blockchain mPOS: the new standard for payments

The biggest advantage of mPOS systems is that they don’t require any additional hardware to set up. Currently, the only criterion is to have an iOS or Android device.
The portability of mobile POS terminals makes payments cheaper and more flexible for merchants and easier for customers.
Blockchain technology is tailor-made for mPOS systems. Blockchain payments have multiple advantages, such as near real-time settlement, marginally low costs (compared to traditional FIAT solutions) and enhanced security thanks to the most modern encryption.
Blockchain payments and remittances are points for mPOS technology, allowing economically volatile communities to not only survive but thrive.

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