2014.21 | poynt

With so much re-invention focus on payment with the likes of Square, Google Wallet and Apple Pay, it’s no surprise that someone in silicon valley decided to take a run at updating the old school point of sale payment terminal. Poynt is the iPhone to the traditional point of sale pinpad’s Blackberry.  It will be interesting to see if it takes off in the same way that the iPhone did. Poynt’s device is certainly different than it’s more traditional competitors in looks and basic utility.  The unit has a sleek contemporary look that utilizes an android tablet and has no physical buttons for pin entry.  Like other newer units, it has all the standard payment interfaces – MSR, EMV, and NFC – but also adds a PoyntQR/barcode imager and a bluetooth antenna.   Poynt also has a basic built in point of sale software solution, and a Software Developers Kit to allow others to build applications that can run on the platform. On the plus side, Poynt certainly has a look that retailers can embrace.  It takes point of sale pinpad terminals away from the spongy buttoned senior citizen’s calculator look to a software based, touch driven, futuristic device.  Every base is covered with payment options with all of the capabilities included on the device.  All of this is positive for the right application. For high volume retailers, this may not be the right device.

  • With two screens, the device appears to be designed for an interaction sitting on top of a counter that starts with the store associate entering data on the device and then passing it to the customer for payment entry.  This is sub-optimal for a high volume retail environment where every motion counts.
  • The device does not appear to have any security mounting options beyond a kensington type lock interface.  Given the need/desire for tier one retailers to mount devices on checkstands, selfcheckouts and more, the device cannot be mounted in stores with certainty that it won’t be stolen for attempted security incursions.
  • Touch screens are still an experiment for payment terminals in North America.  Shoppers are accustomed to buttons for pinpads.  Shoppers at tier one retailers are more than just twenty something hipsters in New York ordering cronuts who want to try the latest thing.  Most shoppers at high volume retailers want to get through the line.  Our moms need to know how to use this thing and get through the line in seconds.  This is certainly less and less of a problem as time passes, but the issue is still worth noting depending on the target market of particular retailers..
  • Pinpads take a lot of abuse in retail.  Mobile phones and tablets are replaced by consumers every 3-4 years.  Tier 1 retailers often target keeping devices for 7-12 years.  Can these devices last this long?  Certainly the software aspects mean that the devices can be updated over time, and looks can even be changed over time.
  • Most of the traditional calculator looking pinpads have some sort of privacy shield.  This device has a screen that is quite large that may be difficult to use without sharing your pin with the entire staff and entire shopper population.

This is not to say that Poynt was even built to deal with these challenges.  Poynt is solely a better looking device that enables every type of payment interface possible.  Selling payment terminals is a messy business.  As articles on this device point out, payment device vendors need to convince payments processors and banks, and to a lesser extent retailers, and not consumers, that their devices are worthy of certification and usage at point of sale. Poynt raises the bar and provides a fresh perspective, and for that alone, it is worthy of consideration.  While other articles seem to focus on the old school nature of pinpads on the market, in Canada, there have certainly been changes in recent times with the move to EMV to newer sorts of pinpads like those provided by organizations like NBSPS that have features like sleek good looks and audio prompts. EMV requirements in the US means that timing is good for new devices, and Poynt should take advantage of that change.  No matter whether Poynt takes off or not, it certainly provides other vendors the opportunity to change the paradigm that embodies the conservative payments industry.  I can’t wait to use a touch screen pinpad.  Expect it to become common sometime soon.

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2011.06 | Electronic Payments and Gratuities

Different cultures treat gratuities differently. For instance, visiting a Tim Horton’s in Quebec, customers often encounter a broad swath of coins in front of the point of sale unit. Consider this the horizontal approach to the traditional tip jar. It’s a simple visual cue to remind customers to leave their nickels, dimes, quarters, or the odd loonie at the end of a transaction. You don’t see that in Ontario where a a jar or cup are the favoured vehicle.

What becomes of tip jars in the electronic age? If there is no silver (nickel, copper, zinc) passing from hand to hand in a transaction, what happens to the tip jar?  This is a gap in the current move towards electronic payments. In this case, there is not an app for that – at least not one I’ve noticed.

In the past, paying with a card in a lunch line would have been considered pretentious – an inconvenience to the store and the customers in line. Now the pendulum is swinging the other way.  An article today in QSR quoted a shop owner who said that half of clients coming into his store want to use electronic payment. While the electronic option is a tremendous convenience to consumers, there are well documented costs to the store owners to provide this convenience.

The part of these new electronic transactions that has not been addressed in the media or in an electronic manner is the gratuity. While those of us who do not work directly in the service industry probably don’t give it more than a passing thought, those tip jars, and the income they represent are certainly important to the people that help us every day. Without the opportunity to leave a tip, consumers lose a chance to thank those who help us with a small token of appreciation. With the onset of increasing electronic payments, consumers are less likely to throw a few coins of change into the jar or on the pile, as there is no residual change to jingle in their pocket.

Casual and formal dining establishments certainly provide the capacity to tip electronically by providing a gratuity step in the electronic purchase but what about the coffee shops, sandwich shops, and independent burger joints? QSR establishments do not have any sort of capability to enable a gratuity to be passed via an electronic purchase.

What to do?  In some areas, tips can make a difference for employees, and for retailers a small perquisite with which to attract top notch help that can drive more business.  As usage of cash starts to decrease, innovative retailers and solutions vendors will find a way to continue the tradition.  I suggest the following thoughts:

  • Ensure any solution is unobtrusive and passive.  I personally loathe being asked if I want to pay $1 to support charity of the day.  I support various charities on an ongoing basis and applaud their work, but refuse to pay any of these point of sale charity fees on principle as it feels to me like someone is trying to shame me into doing the right thing by having a rosy cheeked teen ask me if I want to plant a tree for $1.  Tipping can NOT go in this direction if it is to be successful.   Any opportunity to leave a gratuity for good service needs to be understated and private.  The slot under the window for Ronald McDonald House at the McDonalds Drive Thru will see some of my change, as it doesn’t judge me.
  • Leverage solutions already in place to ensure ease of use and universal capability.  While it may be tempting to use an iPhone app to tip someone, adding a step to a low value transaction could potentially slow the line, and remove the potential of further gratuities for the server.  If the solution is only an iPhone or Blackberry app, what about the good old plastic card carriers?
  • Make any solution simple and ensure it is operationalized. Today, for small value purchases on credit, cashiers quickly swipe the card and hand it back – no signature required.  Given that card payments are moving to chip and pin in Canada, customers are more accustomed to swiping, dipping, or tapping their own cards.  Why not encourage customers to swipe their own card, and on the pinpad screen provide a single button press to round up to the next dollar with the push of a single button.  Nobody sees the transaction but the client, and the server can be rewarded.  In fact, now the retailer can see who’s really pulling customers into the store.

Tipping is complicated at the best of times.  Are they individual, are they pooled, would servers want to hide how much they get in tips from their employers, or from the tax authority?  While it’s hard to say the direction it will go, it seems inevitable that some electronic mechanism for tipping for low dollar transactions will occur.  Maybe one day it won’t be a trail of coins at the POS, but a tap of a contactless card to a separate reader that says tips – the true electronic tip jar…

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