Part 1: 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. 

View the Infographic

Here's what we found:


Integrated POS Usage by Industry Vertical

The average of VAR-ISV survey responses showed that 68% of their SMB merchants were using an integrated payments/point-of-sale solution.  As you can see below, the POS landscape spans across multiple industry verticals.

Exhibit 22

EMV Transaction on Ingenico's iSMP4

EMV Transaction on Ingenico's iSMP4

EMV Usage is Progressing

On average, our survey respondents reported that ~ 35% of their SMB merchant bases have so far upgraded for EMV, which is a significant jump from the 17% reported in last year’s survey. VAR ISV survey commentary highlighted continued demand to upgrade and certify SMB merchant POS hardware for EMV-capable devices. We expect this trend to not only continue, but to grow significantly now that EMV is widely available.

Percentage (%) of Merchant Client Base That Has Upgraded for EMV Functionality

Exhibit 23 - 2017 vs. 2016 Survey Respondents

Percentage (%) of Merchant Client Base That Has Upgraded for EMV Functionality

Exhibit 24 - 2017

VARs and ISOs tend to offer more than one POS software solution

Our VAR and ISO survey respondents tend to offer more than one POS software solution to their merchants. In fact, over 50% of respondents offer at least 3 point of sale applications to their merchant customers. Because the respondents were split between dealers and ISVs, we expect that well over 50% of VARs offer mutliple POS package options. 

VARS offer more than one POS solution

How many unique POS software solutions do you offer and/or sell to your merchant clients?

Exhibit 34

Merchant interest in adding new functionality at the POS has grown significantly

Pay-At-Table allows merchants to move tables and increase customer engagement with servers

Pay-At-Table allows merchants to move tables and increase customer engagement with servers

A significant percentage (74%) of our survey respondents reported stronger SMB merchant interest in proactively upgrading their POS software functionality. We believe that highlights the powerful secular trend of improved and lower cost technology enabling valuable business solutions for smaller merchants.  This also likely speaks to merchants having more available resources than in previous years.  

Merchant Willingness to upgrade

Exhibit 33


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