Merchants in the health and beauty segment are moving to improve payment acceptance and create new customer-facing features as they strive to build innovative experiences for customers, according to a recent survey of more than 600 companies conducted by PYMNTS in collaboration with AEVI.
The survey, which focused on small merchants with revenue under $250,000 to medium-sized with revenue up to $100 million, included health and beauty products sellers and service providers, as well as healthcare providers. More than 60% of all respondents indicated they are very ready for innovation, and 44% indicated they are very interested in new Smart POS solutions, with another 20% indicating they have already adopted this emerging category of payment systems.
Smart POS solutions based on open hardware provide access to a marketplace of apps that ensure merchants can easily innovate. Acquirers and banks are able to provide merchants with a platform capable of quickly adding new consumer-facing functions and business management apps such as payroll management to help merchants increase profits and efficiency.
Companies in the survey are eager to use SmartPOS systems to manage marketing and loyalty programs, while fulfilling consumer expectations of how they will use their mobile devices and interface with merchants in-store and online.
The survey found that 80% of those surveyed said they were interested in innovating consumer-facing apps that would offer solutions such as digital receipts, customer satisfaction rankings, loyalty programs and different payment acceptance methods.
“The survey is a stunning endorsement of the payment industry’s growing move beyond traditional, primarily single-application payment devices,” said Martina Jeronski, Vice President of Global Marketing and Communications with AEVI. “Smart POS solutions are transforming the traditional point of sale into a new point of interaction (POI), between merchants and consumers at any endpoint, fully supported by merchant solution providers.”
The findings reveal that 68% of companies with annual revenue below 500K are interested in Smart POS solutions and less than 11% are currently using them. More than half of these smaller merchants say they heard about these solutions from other businesses and less than 4% indicate they received their information from acquirers. As these merchants are less satisfied with their payment service providers than larger merchants, and with more than 60% willing to switch providers, the report provides acquirers with valuable insight in creating differentiated next generation acquiring solutions for this market segment.
The full survey is available here. This is the second in a series of four surveys, with subsequent reports that will cover consumer and hospitality.