How Have Advancements in POS Security Solutions Helped Fintech Companies Expand Their Businesses?
In the post-pandemic period, almost all major developed and developing countries have introduced digital technologies in financial services to facilitate smooth transactions and complete payment without any hassle. As a result, many new systems such as POS machines have become quite common in retail outlets, supermarkets, hypermarkets, departmental stores, etc. While POS systems have largely simplified financial transactions, certain issues related to privacy and security have come up, thereby creating trust issues among customers. To address these concerns, comprehensive POS security solutions have been developed that help keep customer data safe from any breaches and leaks.
Ensuring POS security through the deployment of advanced technologies
Over the years, several large organizations in different end-use industries have started using POS systems to help customers make purchases and complete transactions. Naturally, these systems hold large amounts of important data regarding customers’ financial information, credit details, purchase history, etc. At the same time, these software applications also contain data regarding the employees working in the organization. Thus, any cyberattack on POS systems proves to be detrimental to all the stakeholders involved. To deal with this, end-to-end encryption technologies have become quite popular which offer all-round protection to the system. Once entered, all the customers’ financial data is encrypted before it is stored, thus ensuring its safety even in case of malware attacks and phishing threats.
Apart from updating the POS software applications, advancements in hardware systems have also played an important role in the growth of the POS security market. As per a report published by Allied Market Research, the increased use of modern hardware solutions to support technologies such as contactless payments, mobile wallets, etc., has contributed to the rise of the sector. The industry, which accounted for $4 billion in 2021, is predicted to gather a revenue of $10.3 billion by 2031, citing a CAGR of 10.2% during 2022–2031. In recent years, almost all card service companies have transitioned toward chip readers, thus reducing the chances of swipe transactions. This has also improved the overall security of POS systems.
The adoption of near-field communication wristbands and smart devices to enhance the trust and credibility of the POS system is another important trend witnessed in the industry. Companies have designed smart devices that offer payment through biometric authentication, thereby reducing any chances of duplicity and fraudulent access. The deployment of blockchain technologies to ensure secure and transparent transactions has also gained huge popularity in the sector.
BharatPe and Zeller launch innovative POS solutions to boost digital payments
Recently, several fintech companies in developing countries have launched state-of-the-art point-of-sale solutions that help organizations and customers to transact easily. For instance, in April 2024, BharatPe, India’s leading fintech company, unveiled an all-in-one payment device that includes various options including a POS system, a QR code, and a speaker to notify completion of a transaction. Called BharatPe One, the company has planned to launch this product in more than 100 cities across India in the first phase and more than 400 urban areas in the next stage. The multiple functionalities, along with high-tech security solutions make this device a perfect product for small and medium-scale businesses.
In August 2024, Zeller, a financial services provider in Australia, announced the launch of a similar all-in-one payments solution viz., Zeller Terminal 2 which has been integrated with a customizable POS application. This payment device allows email, QR code, and SMS receipts, thereby making it easier for merchants and customers to complete transactions.
In conclusion, the growing digitalization of financial transactions has increased the popularity of POS security solutions significantly. The increasing transition toward end-to-end encryption technologies and advancements in POS hardware systems are estimated to impact the industry positively in the future.
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Author Bio:
Akhilesh Prabhugaonkar holds a bachelor’s degree in Electronics Engineering from the reputed Vishwakarma Institute of Technology. He has a special interest in forensics, world history, international relations and foreign policy, sports, agriculture, astronomy, security, and oceanography. An ardent bibliophile and melophile, Akhilesh loves to write on topics of interest and various other societal issues. His love for writing made him enter the professional world of content writing and pursue his career in this direction.
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