Why Point of Sale (POS) And Connectivity Are Essential When Setting Up A Retail Business In SA

Let’s be honest. Setting up a new retail business in SA is not easy. Exciting, yes, but also difficult and scary as heck. There are at least a gazillion things that wake you up in a cold sweat in the middle of the night as you wonder – and not for the first (or last) time – if all the angst is really worth it. Of course, it is worth it, and you will get there. You just have to grit your teeth and work through all the issues one by one.

Sadly, the harsh but undeniable reality of owning a retail business in SA is that the hard work only really starts once you’re actually open for business. Your first challenge is to get customers, either physically through your door or online via ecommerce. And then you have to jump through a whole lot more hoops to make their shopping experience positive so they come back and buy from you again.

One of the easiest ways to achieve that last goal is to have reliable and consistently great connectivity when it comes to point of sale (POS) options. Think about it: you actually have a customer who wants to buy stuff from you. Why wouldn’t you want to make that as easy and stress-free as possible for them?

Plastic Is Fantastic – Why Retail Business In SA Needs To Trash The Cash

Of the 50 million plus  people living in South Africa, just over two thirds have active bankcards. This figure grows by about nine percent every year. That translates to a lot of people who would rather pay for stuff by card than by cash. If your retail business isn’t bankcard friendly, you’re missing out on an almost incalculable number of potential sales.

Why Do Cards Crush Cash?

Many people in South Africa don’t like to carry cash for security reasons nor is it wise for businesses to have large amounts of cash on their premises. Customers are also likely to spend more if they know they can pay by card.

Paying by card also taps into the consumer psyche. It’s actually more difficult psychologically for customers to take physical cash out of their wallet. Why? No one likes to see that comforting wad of notes get thinner and thinner! It’s much easier to simply whip out a card and pay with “invisible” money. When you don’t actually see your money disappear, it’s a lot more fun to buy stuff!

What Card Payment Options Do I Have?

As a new retail business in SA, you have a variety of card payment machine options, giving you great flexibility. This is particularly useful if you have a physical shop, but also sell at markets at the weekend for example. Or you’re a catering business that often sets up stalls at sports events or concerts. Depending on the nature of your business, you can choose from such options as:

• Wireless card machines – these are ideal for restaurants and coffee shops, for example, as they can be taken from table to table. They work using GSM or Bluetooth technology.
• Smartphone card machines – these effectively turn your iPhone or Android handset into a pay point. They are great for people offering in-home or office services, such as mobile pet groomers, hairdressers or nail technicians. They’re also ideal for plumbers, electricians and other service providers who prefer to be paid on the spot, rather than invoicing and waiting for EFT payments.

Contactless Payments Are Here To Stay

Globally, the contactless payment transaction market is projected to rise by a massive 55% by 2025, taking its total value to in the region of US$800 billion. Look me in the eye and tell me you don’t want some of that action! And just FYI, if you really don’t want it, maybe these stats from Mastercard will change your mind:

• After October 2018, all new card acceptance terminals in the Middle East, Africa, Europe, Latin America and Asia Pacific will be EMV chip and contactless enabled.
• By April 2023, all merchant terminals in the same regions will be EMV chip and contactless enabled.

“Our vision is a world where everyone can simply and safely tap their card or device when paying in a store, and quickly be on their way,” says Ajay Bhalla, chief security solutions officer at Mastercard. “This marks a significant step towards greater consistency, security and speed for everyday payments, while laying the groundwork for future innovation.”

Why Getting Connected Is Critical

Of course, offering your customers this type of innovative payment solution relies on having a reliable Internet connection. Sadly, for so many retail businesses in SA, this is often hard to come by, which dramatically affects the stability, productivity, and growth of your business.

An article by SME South Africa reports that 41% of South African entrepreneurs say keeping a stable Internet connection in their workplace is a key challenge. Two thirds experience severe issues for between one and three days every month, while the remaining one third have serious issues for between five and 10 days every month. The flip side is, of those businesses who have embraced new technologies such as the Cloud, 44% say they are already seeing significant advantages – specifically savings in both time and money.

If you’re setting up a new retail business in SA, have a chat to Huge Connect. We’re one of the most start-up friendly telecommunications companies in the country. We also don’t believe in Internet downtime. In fact, the very phrase horrifies us. So let’s talk about how we can help your business grow.