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The PayPal Zettle terminal is shaking up the mobile POS space in the US

By on October 11, 2022 0

In a well-timed move for the resurgence of brick-and-mortar retail ahead of holiday foot traffic, PayPal is bringing its PayPal Zettle Terminal mobile point-of-sale solution — “Terminal” for short — to U.S. retailers with a set of features to making it an attractive payment tool for SMEs in particular.

In the Tuesday, October 11 announcement, PayPal said: “The in-store solution comes with the Zettle point-of-sale app pre-installed, and small businesses will benefit from an integrated solution that will not only help them accept a range fast solutions and secure payments in person – including credit cards, contactless, digital wallets and PayPal and Venmo QR codes — but also helps them manage sales, inventory, reports and payments, all in one place. »

Discussing the development with Karen Webster of PYMNTS, Ed Hallett, Senior Manager, SMB Solutions at PayPal, called the Apple-inspired all-in-one mobile POS form factor, saying it was “a ‘a kind of milestone in hardware to handle in-person payment interactions.

Webster observed that the new POS incorporates more of the “brains” of retail operations beyond accepting payments, and Hallett agreed, noting that Terminal “gives you the ability to manage workflows basic point of sale with a product catalog, shopping cart, customer receipt generation, etc. in a portable way.

“The seller is free to complete the entire payment process, from start to finish, wherever the customer is – in the store, at the table, on the terrace, at the delivery point or wherever there is a mobile coverage,” according to the announcement. “The terminal can also include an integrated barcode scanner and can be connected to a docking station with an integrated printer for on-site receipt printing.”

Winking at mobile POS competitors like Square and Shopify, Hallett said, “There are a few on the market, but there are some things about it that are a little different. It’s modular, so you can buy the contactless if you don’t want the portable receipt printer and docking station. You can buy the thing alone, which means it’s cheaper.

A terminal, without accessories like a receipt printer, costs $199.

Another differentiating device is its preloaded 4G SIM card allowing the device to work in the absence of in-store Wi-Fi, which Hallett called a useful “fallback” for SMBs allowing them to process sales digitally using regular carrier service when Wi-Fi storage is down or unavailable.

See also: PayPal launches Zettle Terminal in the UK

A model of efficiency

Showing an awareness of the struggles of consumers and retailers in the current inflationary environment, PayPal Zettle Terminal harnesses the power of the PayPal ecosystem to control fees.

Hallett told Webster, “The pay rate is very cheap. We charge 2.29% plus 9 cents to process card payments with this device. The funds settle almost immediately in your PayPal wallet. These two things together are pretty strong, plus the cheap device itself and its power.

“Obviously moving into the PayPal wallet means that if you’re also someone who transacts online, I have a place where my money goes so I can manage it all through one account,” did he declare. This gives PayPal merchants a single view of the customer that SMBs and other merchants have, which can inform underwriting working capital and other senior functions.

“Obviously there’s a barcode scanner which helps get things done faster. It has that key mobility and breakaway capability where, again, modularity is something we’re passionate about. Some merchants who already use it are quite happy with it. Wi-Fi connectivity is really a great thing.

See also: PayPal, Venmo Now In-Store POS Payment Options

Relieving MPOS Pain

With the needs of small and medium retail businesses clearly in mind, Terminal’s design and ease of integration is poised to potentially replace a generation of legacy POS systems.

Hallett said “you have people who may have some sort of legacy chip and pin terminal, what you might say is a bit ‘dumb’ in that it doesn’t allow you to create a cart and track your sales as well as your payments. It doesn’t give you that integrated point-of-sale and payment experience.”

The terminal solves this pain point, as well as the clutter of the checkout counter, as he said, SMEs currently using iPad and tablet-based point of sale, the smallest terminal terminal “the reduced space is an added value compared to an iPad and a store kit and a cash drawer and all that kind of stuff,” he said, adding that “for each of those demographics, there can be an uptick at the level “.

If the retailer using a tablet POS already has a Zettle account, replacing it with Terminal is as simple as connecting a new device to the existing account without further modification. However, while Hallett said the process takes about five minutes, some SMBs “will have to rebuild your product library and retake your photos. So you will have some configuration items.

Positioning Terminal as a smarter mobile point of sale, Hallett said, “merchants are asking for it because it’s about really fundamental things about running a business. If I just know that I’ve taken a bunch of payments and that I don’t know what products I’ve sold, so it’s really hard for me to make basic decisions about what to sell more.

“One of the things we offer is cost of inputs so you can start working out your gross margin, so you can figure out like, ‘I’ve sold 10 of these things, this is my most popular product. ‘To start with, by working on what I’m selling the most before I even get into inventory management.Then I see where I’m making my margin so I can make good business decisions about what I’m selling.

He added that Terminal offers “best-in-class” integration with e-commerce platforms such as Big Commerce, among others, noting that Terminal makes it easy to sync inventory, which helps avoid frustrations. related to stockouts. “These are real business issues. We are not yet too much in an innovation space. It just meets very basic operating needs [where] SMEs have been underserved.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

We are always looking for partnership opportunities with innovators and disruptors.

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https://www.pymnts.com/news/regulation/2022/paypal-apologizes-for-threat-of-fines-over-misinformation/partial/