Small businesses, startups, and mobile-based companies often operate on shoestring budgets, making bearing the cost of a traditional POS system a challenge. The good news is that modern mobile card readers provide you with the robust functionality you need without breaking the bank.
Read on to learn why these solutions are ideal for cash-strapped entrepreneurs.
Lower hardware costs
Whereas traditional POS systems come at a significant price, mobile card readers come at little or no physical cost.
When a company invests in a traditional suite of point of sale products, they are usually making a sizable purchase.
The substantial upfront investment generally involves dedicated POS terminals, customer-facing displays, barcode scanners, receipt printers, cash drawers, and more. At times, businesses will even need to purchase servers. In the end, what you pay can run into the thousands of dollars.
By contrast, a mobile credit card reader may even be free, offered as a promotion through a company’s payment services provider.
Alternatively, it could be available as part of a minimally priced subscription. Because mobile card readers connect to smartphones or tablets that you already have, there is no need to purchase costly POS terminals.
Lower software fees
Traditional POS systems usually feature higher monthly or annual fees, and you will pay more for ongoing support, maintenance, and updates. Mobile card readers are often subscription-based or have free basic plans. Because they are in the cloud, automatic updates may be included.
Traditional POS systems generally contain several moving parts, all of which require regular updates and maintenance.
Additionally, you may be required to pay a monthly or annual licensing fee. Doing so is not optional since updated systems are necessary in order to remain in compliance with Payment Card Industry and other compliance standards.
On the other hand, mobile solutions tend to operate on a subscription model with very low monthly fees. Bare bones plans with stripped-down feature offerings can even come at no charge.
Since the software packages are usually stored in the cloud, automatic updates are generally included with no extra fee. Because the third-party provider has custody of the software and is responsible for updating it and keeping it in compliance, your company has no need to hire in-house IT staff.
Minimal installation and setup
The network configuration, professional installation, and extensive setup of traditional systems can be costly. By contrast, mobile readers usually can be set up and started in minutes.
A full-featured POS suite houses a multi-faceted array of capabilities, but they come at a price. It takes both time and money to get these types of systems up and running.
Most of the time, you will need to pay a professional to take care of the extensive network configuration and setup involved.
The same is not the case when it comes to mobile card readers. In fact, most of them are plug-and-play or are connected via Bluetooth.
Even for tech novices, setup can be accomplished in a matter of minutes without the need to hire an expert.
Long-term contracts
Traditional POS systems often come with added baggage in the form of long-term contracts and cancellation penalties. Mobile card readers are more flexible.
For providers to maintain old-school POS systems, they generally require that their clients enter into a long-term contract.
In many cases, businesses pay dearly if they attempt to withdraw from the agreement early. As a result, scaling a business can be cumbersome and expensive.
On the other hand, mobile payment processing often does not involve any contracts at all. Instead, businesses are given their choice of flexible options that can be modified if the retailer’s needs change.
Flexibility
Although traditional POS solutions are multi-featured, they are less flexible if a business moves, grows, or shrinks. Mobile readers, by contrast, are highly scalable.
In these uncertain times, predicting the course of your business’s growth can be difficult. If you have a traditional POS, you may find it burdensome if you have to relocate or if your needs decrease.
If you do grow, you may have no choice but to put out even more money to purchase additional hardware.
Mobile card readers are not weighed down in that way. If your company is just starting, you can simply begin by buying one mobile credit card reader.
As you expand, you can add more. By the same token, you can subtract as needed if you are downsizing.
Reduced maintenance and IT costs
Traditional systems usually come with ongoing software and hardware maintenance costs. The cloud-based nature and minimal hardware needs of mobile card readers make them more affordable.
Standard POS suites generally incur ongoing maintenance costs for hardware, software, and dedicated IT personnel. You may also be expected to shell out dollars for ongoing support contracts.
By contrast, mobile card readers represent negligible hardware costs. Because they are cloud-based, updates and maintenance are handled by the service provider.
As a result, you will not need to hire a dedicated IT support staff to keep the system running smoothly.
Mobile payment processing and card readers are gaining popularity with many smaller companies. With their flexibility, scalability, and affordable cost, they can grow and change as your company evolves with the times.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
