Part 2: How well do you know the POS Channel?

Datacap partnered with Piper Jaffray & Co., an investment bank and research firm, to conduct a payments industry survey that consisted of responses from an amalgamation of 558 Value-Added resellers, Independent Software Vendors and Independent Sales Organizations who are all on the front line in forming today's payments landscape.

The responses provided an intriguing look into the payments industry from the perspective of POS and payments providers. Below is part 2 of our survey results.

Here's what we found:


SMBs want Omni-Channel Payments

Our VAR-ISV survey respondents said 29% of their small-mid-sized business (SMB) merchants have requested an omni-channel payment solution, which is still a relatively low percentage, but indicates significantly greater interest than our previous surveys. We believe payment gateway and omni-channel processing capabilities can be key product solution differentiators (noneconomic) for merchant processors vying for VARs-ISVs. Our merchant processors under coverage have all become more vocal about their e-commerce/omni-channel offerings, which we believe is indicative of growing SMB demand for such solutions.

Onmi-channel payments

Percentage (%) of SMB Clients Requesting Omni-Channel Payment Solutions

Exhibit 19 - 2017 Survey Respondents (By Distribution Channel)

More VARs/ISVs are offering a mobile POS solution.

Tablet-based POS

Tablet-based POS

More survey respondents (57%) are offering a mobile POS solution (tablet or browser-based) than the respondents in our 2015/2016 survey. We believe demand for mobile POS solutions will remain strong as 93% of our survey respondents either are offering or considering offering mobile POS to SMB merchants.

Mobile POS Solutions

Solutions-as-a-Service

Our survey showed 59% of VARs/ISVs offer a recurring revenue “as-a-service” model for their
POS solutions to SMB merchants. Only 22% of VAR-ISV merchant clients are using an “as-a-service” model, suggesting significant opportunity for VARs-ISVs to migrate their merchants.

Recurring Revenue Opportunities

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