mpos is dead. long live smartpos

Merchant Payments Ecosystem, February 16-18, Berlin

mPOS is dead.Long live

SmartPOSGeoffrey Barraclough

Head of PropositionEVO Payments International

TOP EUROPEAN MERCHANT PAYMENT ACCEPTANCE EVENT, COMMUNITY AND BUSINESS INTELLIGENCE HUB


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2. Strong Global Presence

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#4#6USA

Office locations

Headquarters Direct market presence Pan European acquiring license

#1Spain Ireland Europe Poland

New #5#2Mexico

https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_sp.html


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We’ve been through the hype!

“We estimate that Mobile POS could add 5 million incremental POS to the market”

First Annapolis, 2012 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20210

1000

2000

3000

4000

5000

6000

European mPOS installed base. Analyst projections

2015 pro-jection

Barraclough & Co from industry reports and presentations

Thousand units


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A platform for transition

The best thing about mPOS is not…the m….or the

POS…it’s a state of mind (and an operating

system)


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The Smart POS Bundle

Tablet ePOS vendors work 4:1 with mPOS payment facilitators

• Core bundle, orchestrated by ePOS vendor• Choice of payment service determined by ePOS

vendor• Choice of card processor determined by PSP

Software

HardwareBundle

Payment Service

PSP

Card Processin

g

Tablet Cash drawer Scanner Printer

ePOS E-com platform - Related apps

Payment terminal (e.g. mPOS) Gateway (PSP)

Merchant account Transaction processing/settlement From

this…To this…


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Payments Merchandising & Supply Chain

E-commerce

Accounting Packages Vertical Features

HR & Payroll

Marketing & Loyalty Advanced

analytics

SmartPOS bundle

includes a wealth of

useful application

and integrations


SME is the sweet spot for SmartPOS

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# of businesses

% of GDP

Large

Medium

Small

Micro <€50K sales, < 10 employees

Nano<€5K sales, sole trader

<1%

1%

7%

20%

72%

42%

18%

14%

7%

18%

In-store mobilit

y & Fieldfor

ce

Cheap & easy

“Does your payment service work with my

ePOS?

“Can you meet my CIO?

“Does your payment service work with my

phone?”

Barraclough & Co from iZettle presentation to mPOS 2015

SmartPOS bundle


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Vendor Domicile

Funds raised

No of POS

Price per

month*

eComm?

Sector specialism OS Target

customersEuropean payment partner

Lightspeed Canada $126m 34,000 £51 Y Retail &

hospitality iOS Small/Medium iZettle

Shopify Canada $122m n/a $40 Y Retail iOS/Android Small Not offered

Revel USA $115m 20,000 ? N Retail & hospitality iOS Small Verifone

Shopkeep USA $97m 20,000 £39 N Retail iOS Small Not offered

Vend NZ $38m 15,000 £39 Y Retail iOS/Android/Windows Small iZettle

Lavu USA $15m 8,000 $59 N Hospitality iOS Small Not offered

Touchbistro USA $12m n/a $69 N Hospitality iOS Small/

Medium Not offered

Nobly UK n/a 6,500 £29 N QSR iOS Small/Medium

In-house/Payleven

Leading tablet ePOS vendors are well funded but not yet well established in Europe


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Bringing payments and SmartPOS together, grows the profit pool

SME with one POS selling €75,000 pa on cards. 3 year view.

Revenue

Margin % Total

Software €60/month € 1,800 80% € 1,440

Hardware upfront € 1,000 10% € 100

Total ISV margin €1540

Revenue Margin Total

Payments processing

€ 225,000 0.50% €1,12

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Terminal rental € 540 40% € 216

Total acquirer margin

€1,336

Tablet POS Vendor Merchant Acquirer


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Acquirers need to be in the SmartPOS bundle or commercialise their own

Partner your bundle

Embed yourself in someone else’s bundle

Build your own bundle


How to be first choice SmartPOS payment partner

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Single integration point for payment transactions

Smar

tPO

S-fr

iend

lyre

lati

onsh

ip m

anag

emen

t

SmartPOS-focused service management

Automated (API) updates of CRM systems

Visa/MasterCard B-schemes AP’s

PSP/Gateway optionsTerminal options

Real-time M

IRapid terminal accreditation Rapid PSP/gateway integrations

Self-serve account moves/changes


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If you’d like to know more….

mpos is dead. long live smartpos

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