Prepare your outdated point of sale system for the digital wallet revolution

23 February 2017
 Categories: Shopping, Blog


There is no doubt that point of sale systems have revolutionised the way companies do business with their customers. Letting customers make orders quickly and easily is paramount for ensuring that your business has a high throughput. One of the biggest changes in recent years has been the widespread adoption of digital payments. Mobile payments and digital wallets are here to stay, and there's no sign of them waning in popularity any time soon. As such, it's imperative that you consider your options when it comes to ensuring you are ready for the onslaught of mobile payments that are on their way. 

Unlike many other forms of electronic payments, mobile payments take place at brick-and-mortar stores; that is to say, stores that you can physically attend, not online retailers such as Amazon. In the United Kingdom, for example, any payments that are made using contactless cards are restricted to £30 (about A$50); this is because they only have single-factor authentication. However, even though payments using Apple Pay uses two-factor authentication (and therefore isn't subject to a transaction limit), they are typically limited to the £30 transaction limit until such time that the retailers in charge upgrade the software at their terminals to comply with the new specifications. Australia, on the other hand, is limited to A$100.

Apple isn't the only game in town, either, as Android Pay (developed by Google) handles tap-to-pay purchases on compatible Android devices, including Android phones, watches, or tablets. Android Pay uses near-field communication (NFC) to transmit funds wirelessly to the retailer. Like Apple Pay, Android Pay uses two-factor authentication for added security; it is a common theme among those of us who want the convenience of payWave without the risk. Binary options can also be traded using Bitcoin, which is a cryptocurrency that relies heavily on the use of digital wallets for convenience and security.

As Apple and Android happily hold their own market share in electronic payment technology, it is wise to support their systems. Getting on board too late to such payment methods can leave you flatfooted and flailing; moreover, your reputation as a reputable trader depends, in part, on staying abreast of payment technologies. Additionally, binary options traders should consider the ramifications of an economy sustained on digital wallets and contactless payments. While we will not attempt to advise which digital wallet companies are worth investing in, if any, it may be a good idea to consider their importance in a growing digital economy.