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HowSMBsAreThinkingAboutPayments,POSAndIoT
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Panelists MODERATOR:AdamBlairExecutiveEditor,RetailTouchPoints
VanessaFodenGlobalRetailMarketingSegmentManagerIntelvanessa.foden@intel.com
HiteshAnandVPofProduct,CommerceEnablement&[email protected]
How SMBs Are Thinking About Payments, POS And IoTOctober 5, 2016
Todays’ SMB merchant is not the one we knew 5 or 10 years ago…
Key Themes from the 451 Research Study
Digital transformation is driving a profound evolution of consumer behavior and commerce technologies, resulting in an influx of new complexities for SMB’s
To thrive in such a dynamic commerce environment, embracing change must become the new norm for SMB’s
The next several years will see SMB’s increase their adoption of new commerce software and technologies to keep pace with all of this change
1 2 3
Study Findings
Business Challenges for SmB Merchants
10%
12%
14%
25%
37%
16%
12%
20%
27%
22%
20%
20%
23%
21%
15%
Other, please specify
Managing employees
Adapting to new technologies
Creating customer loyalty
Controlling costs
Acquiring new customers
1st 2nd 3rd
What is the top challenge facing your business this year? (n=205)
Top Software Applications
3%
6%
6%
7%
10%
14%
15%
18%
20%
9%
8%
8%
14%
17%
13%
17%
15%
9%
10%
9%
19%
11%
10%
17%
15%
Other
E-commerce
Marketing
Employee scheduling
Payroll / Accounting / Bookkeeping
Customer ordering / booking / reservation / table management
Customer Relationship Management (CRM)
Inventory
Point of sale
1st 2nd 3rd
What software applications do you consider mission-critical for running your business? (n=144)
Payment Technology Used
4% 6%9%
14%
25%
42%
Tablet point of sale
Wedge/integrated card reader (generally integrated into the physical PoS display)
Mobile point of sale (mPoS) device
Handheld pay-at-table terminal
PIN pad
Countertop terminal
What is your primary method of accepting card payments? (n=179)
Notable Shifts are Starting to Occur…
§ Although current-generation POS systems are doing a fair job fulfilling their purpose of accepting payments, there’s indication of a need for a more robust POS that goes beyond just payment acceptance.
§ Less than 1 in 4 of respondents stated their existing POS does not go above and beyond their needs
§ 81% of respondents are considering, planning or in the process of upgrading their POS, 38% within the next 6-12 months.
POS Upgrades are Underway
38%
19%
16%
27%
Plan to upgrade in next 6-12mo
No plans to upgrade
In the process of upgrading / recently upgradedConsidering upgrading without an immediate timeframe
In regards to your point of sale system, which of the following are you planning to do? (n=179)
SmB Interest in Customer Facing Applications
64%
49%
35% 30% 28%
8%
Pay with credit card points
Pay with a mobile wallet
Redeem/earn loyalty points and rewards
Add additional products/service
to the order
Display promotions /
advertisements on the point of
sale display
None of the above
What specific customer facing applications/use cases are most important to you in a point of sale system? (select all that apply)
§ Mobile wallets lead the trend with over 63% of respondents noting an increase in demand/use
§ Mobile loyalty and mobile coupons are also trending upward– almost 50% of respondents have seen an increase
§ Across the 3 technologies, <12% have seen less demand or use, signaling the use of mobile at the point-of-sale is likely here to stay
Customers Demand & Use Mobile More
28% 18% 19%
35%
29% 27%
30%46% 43%
5% 4% 8%2% 2% 3%
Mobile/Digital Wallets Mobile Loyalty Mobile Coupons
How much change in customer demand for / use of the following technologies have you seen over the past year?
Significantly more demand/use Somewhat more demand/useAbout the same demand/use Somewhat less demand/useSignificantly less demand/use
SmB Adoption of Digital Technology
43% 38% 35% 35% 32% 29% 29% 27%10%
20% 24% 26% 18% 27% 27% 21% 23%
27%
15% 19% 16%22% 17% 19% 22% 20%
18%
22% 20% 23% 25% 24% 25% 27% 30%45%
E-commerce website
Mobile-optimized website
NFC-based mobile payments
EMV mPOS Mobile coupons/offers
Branded customer-facing
mobile app
Mobile loyalty/rewards
program
BLE Beacons
What is your company’s position on the following technologies?
Currently implemented Plan to implement in next 6-12mo Considering implementing without an immediate timeframe No implementation plans
With new applications and connected devices entering the market practically every day, the IoT presents possibilities for retail and hospitality businesses of any size.
IoT: The network of physical objects, such as devices, vehicles, buildings, etc., which are embedded with technology that enables them to communicate and collect and exchange data.
§ 77% of SMBs indicate they have a moderate or strong understanding of IoT, but few fully grasp it
§ Despite its early stage, we believe IoT will have a pervasive and transformative impact across all aspects of commerce
§ End result will have a direct and favorable influence on how goods and services are purchased and customers are engaged
The Intersection of IoT and Commerce
23%
47%
30%
On a scale of 1-10, how would you rate your understanding of the concept of "Internet of Things (IoT)“ (n=205)
Little to no understanding (0-3)
Moderate understanding (4-7)
Strong understanding (8-10)
When asked, 87% of SMB’s said that they can see IoT applying directly to their business in some way.
Key use cases:
§ Developing or enhancing existing products/services
§ Attaining customer-centricity
IoT Business Application
0%
13%
25%
32%
41%
46%
46%
Other
I do not see IoT directly applying to my business in any way
Helping us to reduce risk
Helping us to optimize operations
Helping us to better understand our customers
Helping us enhance customer targeting/increase sales
Helping us to develop new or enhance existing, products or services
How do you envision IoT applying most directly to your business? (Select all that apply) (n=205)
IoT StatusIn the eyes of SMB’s, IoT is quickly becoming more than just a theoretical concept.
§ 15% of SMB’s have already deployed one or more IoT initiatives
§ Another two thirds of SMB’s are planning or considering an IoT deployment
§ Education is critical for the remaining 26% who are not considering an IoT deployment
The potential to combine IoT initiatives and POS upgrades is very real, and there is a major correlation between the two
31%
15%26%
28%
What is your organization's current status on IoT-related initiatives? (n=205)
We plan to deploy an IoT initiative within the next 6-12mo
We have already deployed 1 or more IoT initiatives
We are not planning or considering deploying an IoT initiative
We are considering deploying an IoT initiative with no immediate time frame
High Correlation Between Planned POS Upgrade and IoT Deployment
SmB’s POS Upgrade and IoT Initiative Plans We are in the
process of upgradingour POS / recently
upgraded
We plan to upgrade our POS in 6-12 months
We are considering upgrading our POS
without an immediate timeframe
We have no plans to upgrade our
POS
We have already deployed 1 ormore IoT initiatives 36% 18% 10% 6%
We plan to deploy an IoT initiative in the next 6-12 months 50% 54% 15% 6%
We are considering deploying an IoT initiative without an immediate timeframe
7% 21% 48% 29%
We are not planning or considering an IoT initiative 7% 7% 27% 60%
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Q&A|Panelists MODERATOR:AdamBlairExecutiveEditor,RetailTouchPoints
VanessaFodenGlobalRetailMarketingSegmentManagerIntelvanessa.foden@intel.com
HiteshAnandVPofProduct,CommerceEnablement&[email protected]
#SMBPOS
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