The surge in digital and cloud-based payments technology hasn’t killed off point-of-sale terminals; their role is simply changing, as cloud-based payment providers like Podium roll out their first hardware.
Starting in 2014 with a text-based customer-contact service, Podium last year
Built on Stripe’s payments-acceptance backbone, Podium’s card readers supplement its cloud-based platform for small merchants that previously accepted payments only via smartphone.
“Since local businesses rely on in-person transactions in addition to online, it was important to expand Podium’s platform to accommodate this,” said Chase Petrey, vice president of Podium Payments, a new division within the company.
Podium is coming at the same problem from a different direction than payments providers like Clover and Fattmerchant, which suddenly needed cloud-based contactless payment acceptance during lockdowns to accommodate curbside sales during the pandemic.
Lehi, Utah-based Podium worked with mobile POS equipment maker BBPOS to design its own line of branded payment terminals. The solution includes a Bluetooth-powered mobile unit and a countertop version that connects via Wifi to a computer, tablet or mobile device to accept card payments via chip insert, tap, swipe and mobile wallets. Transaction prices vary according to volume, Podium said.
Podium's card readers integrate into its flow of merchant services to create a continuous thread of communications and payments history visible through the consumer’s smartphone in a text sequence, with receipts sent via text or email.
Podium’s service also supports recurring payments, text-based marketing campaigns and customer reviews, with the capability to pay refunds out to consumers through the platform on demand. Employees can also use Podium for group chatting.
Portland Window Coverings in Oregon recently adopted Podium’s card reader in its store, augmenting the fintech's chat-based messaging service that appears to all website visitors to answer questions, make appointments, follow up on orders and pay.
The solution has simplified and streamlined the complexities of selling window coverings, said store owner Joel Masters.
“For all kinds of independent retailers including auto repair shops, landscapers and jewelers, having a payment terminal option can be important for the transaction flow,” Petrey said.
Payment terminals as a whole are evolving, said Richard Crone, a principal with Crone Consulting LLC.
“As long as there’s an interchange differential, there will be a market for POS terminals, because card-present acceptance rates are lower than card-not-present rates and that benefits the merchant,” Crone said.
But standalone payment terminals with limited features are endangered, according to Crone.
“Podium is brilliantly positioned to create an ongoing relationship with the customer by capturing a mobile phone number for transactions, ordering and marketing,” Crone said.
As merchants increasingly enrich their connections to consumers, they are also looking to expand the types of payments they accept.
“Today a company like Podium may only accept major card brands, but it’s easy to see how a merchant could harness a text-based channel to accept a variety of payment types that could bypass the card networks,” Crone said.
Podium serves 90,000 businesses in North America and Australia including Ashley Furniture and the Utah Jazz. So far only a handful have opted for in-store payment terminals, but Podium is ramping up for growth from small businesses that increasingly see the need for online and on-site payments.
