For ages, payment terminals were built and used for their original purpose, to accept and process card payments in the most secure way and not to corrupt the bank system.

Besides increases in security routines, usages increased, e.g., with the use of NFC or alternative payment methods, which could still be handled via the proprietary OS. 

SmartPOS Devices

Meanwhile – in the age of mobiles and IoT – HW got more standardized and SW. In a hardened and secure compilation, East Android is rising as OS for payment terminals and is opening up the usage of terminals for further purposes besides payments. The advantages of those SmartPOS devices, e.g., for delivery, logistics, and hospitality, are nearly disruptive to older environments.

Certifications of global but even more local schemes across Europe (e.g., giro card/DE or Cartes Bancaires/FR) are specific, grew complex over time, and consume tremendous time and money to pass. 
At the same time life cycles of the new terminals or SmartPOS become shorter as developments in HW and OS such as Android are bound to usually not regulated markets. This disharmony in timing windows may lead to a shorter availability of new-age terminals and hinders its acceptance in Central Europe.

Local Card Schemes

Local (debit) card schemes are necessary for the independence of countries and national communities against global, mostly US-centric credit card brands. This dominance and the greed in Disagio and attached fees could only be limited through alternatives. Local brands should restructure their compliance processes into easier, faster, and more homogenous requirements. Nexo is a first step of how local schemes could harmonize and quickly use the new age terminals and SmartPOS.”

This article was contributed by our expert Stephan Schmidt

Frequently Asked Questions Answered by Stephan Schmidt 

Q1. How do cashless payments help economies grow?

'Access every Payment’ is the way to generate the highest conversion rate in eCom and bricks and mortar retail. Even considering Disagio and fees generated in cashless payment, those payments are usually the cheapest in transaction handling. The direct access- and availability of cash and its reporting enable immediate action by every retailer. The more revenue gets generated in shorter time scales, and the more efficient margin could be generated.

Q2. What are the advantages of smart POS systems?

SmartPOS environments enable registering and payments to be performed on one mobile device. This is at first cheaper, but the more interesting effect is the ability to review and potentially renew most of all branch operations. Disruptive customer access is possible – if you can and want to lift these advantages against the competition.

Q3. What percentage of transactions are cashless in Europe?

This differs from region to region. As Southern Europe and UK consumers with usually >20 terminals per 1,000 inhabitants are much more likely to pay solely cashless, Central European ratios at 12~14 Terminals per 1,000 inhabitants are much lower. Please remember that this is already after the Corona effect, in which cashless payment rose heavily in acceptances across Europe.

Q4. What are the different payment methods of retailing?

The ‘classical’ way of cashless payments are the international credit- and debit card schemes such as VISA with VPay, Mastercard with Maestro (now Mastercard Debit), and the analogies at AmEx, JCB, UPI, Diners, and Discover. Additionally, and at least in Germany, regional Debit Card Schemes such as giro card (Germany) and Cartes Bancaires (France) are leading. Those are much cheaper to the retailer than international schemes, but European regulation avoids recognizing those advantages to their inhabitants – for strange competition reasons.