By Brad Hyett, CEO of phos
Businesses in developed markets have seamless access to the latest payment technology and infrastructure. As such, they can effortlessly cater to the evolving preferences and demands of the modern consumer. On the other hand, small businesses operating in emerging markets struggle with this. They face constraints stemming from operational inefficiencies and limited financial resources.
Typically, merchants in emerging markets have to rely on local entities to help them incorporate a regionally accepted point-of-sale system. These businesses also have to manoeuvre through complex money transfer restrictions. Such hurdles cut into their profits, create high barriers to entry, and limit financial inclusion, stifling overall growth.
Enter SoftPoS. By eliminating cumbersome hardware and empowering merchants to accept secure payments on the NFC-enabled devices that they already own, the technology can revolutionise how enterprises operate in emerging markets.
Tackling long-standing obstacles
Businesses in up-and-coming markets have to deal with regulations, entry requirements, and transfer restrictions. However, research reveals that approximately 163 million small businesses in developing economies don’t have adequate access to mainstream financial services. They struggle to overcome the initial barriers, and in some instances are incentivised by local governing bodies to conduct their transactions in the local currency, rather than foreign. This adds another layer of complexity to the process while adding extra costs.
By allowing small merchants to use existing technology to accept payments, SoftPoS can help them tackle entry and operational costs effectively. It minimises reliance on local entities and gives businesses more autonomy over their operations. At the same time, SoftPoS addresses customer reservations by allowing them to conduct transactions using methods that they trust.
Staying ahead of the innovation curve
Payment technology is constantly evolving, which makes regularly upgrading hardware a costly affair. This makes it especially difficult for smaller businesses in emerging markets. The beauty of SoftPoS lies in the logistical simplicity of dealing with software rather than hardware, removing the need for companies to manage, replace, and dispose of payment terminals.
This is beneficial for small merchants, who would merely need to update software to resolve compliance issues. Therefore, smaller enterprises that are strapped for cash can easily save money and make the most of their resources.
The cost savings associated with not having to invest in additional hardware are a lifeline for small businesses, freeing up resources that can be redirected to critical areas of their operations. By offering consumers multiple payment options for their products and services, SMEs can maximise sales opportunities while providing a seamless experience for their customers. SoftPoS empowers businesses to expand their customer base significantly and retain them by offering flexible payment methods that cater to individual preferences.
Financial Inclusion Emerges Victorious
SoftPoS technology leverages innovation, eliminates bureaucratic hurdles, and simplifies operations in emerging markets. This democratises previously excluded vendors’ access to financial services and boosts financial inclusion. As more businesses enter the market, job opportunities increase and growth trickles down to underrepresented communities.
In this manner, the benefits of SoftPoS start to extend beyond those who run the businesses. Its transformative impact on the overall economic development of these regions becomes increasingly evident, promising a future where merchants in emerging markets can embrace innovation and compete more effectively.
Merchants who embrace SoftPoS are not merely adopting a technology; they’re future proofing their businesses. The world of payments is becoming increasingly contactless, and those who lead this transition will stay ahead of their competitors.
