Mastercard and eService have announced a pilot implementation of the LitePOS solution enabling smartphones to fulfil the functions that have been so far reserved for payment terminals.
LitePOS operates based on the innovative “PIN on glass” technology. The combination of a smartphone with an attachment makes it possible to safely accept card payments in the amounts exceeding PLN 50, which requires entering the PIN code. This is the first such an implementation on the Polish market, and one of the first three in Europe. Several hundred eService customers can participate in the pilot, which will last until June 2019.
The technology tested in the pilot includes equipping Android smartphones or tablets (starting from 7.0 Nougat version) with eService LitePOS app and an attached card reader, which is manufactured by Ingenico. This set makes it possible to create an affordable and fully mobile solution supporting transactions made using contactless and chip payment cards. One of the most important features of the new solution is maintaining highest security standards. As a result, it becomes possible to accept card transactions with a smartphone, and their value does not have to be limited to PLN 50, i.e. the maximum amount that does not require entering the PIN. Mastercard is responsible for the certification of the solution ensuring the security of all transactions.
The commencing pilot is aimed at testing the new solution in market conditions. Further improvements to the solution will be introduced during the pilot, based on the feedback from participating entrepreneurs. The end result will be developing the LitePOS’s final design and conduct final tests during the last phase of the pilot.
The pilot version of the LitePOS solution based on the PIN on glass technology that we have implemented together with Mastercard is one of the most important innovations launched by us this year. The technology being tested has great potential. It is in line with our current activities supporting the popularization of state-of-the-art and secure payment solutions. We are convinced that thanks to the convenience, ease of use and low costs of the solution we are developing, it will soon become very popular and it will be used by many new clients who have so far postponed the decision to introduce cashless payments to their businesses, said Joanna Seklecka, President of the Management Board at eService.
The planned market tests were preceded by qualitative opinion research conducted among around a dozen entrepreneurs. They assessed the new technology, the way of installing the application and the ease of use of the set.
The innovation proposed by Mastercard and eService has been positively received. Participants of the research expressed their willingness to use this type of device for their businesses. The advantages of the new technology have been mostly appreciated by entrepreneurs who provide services “on the go”, in a mobile way, such as couriers and taxi drivers. They also attracted the interest of entrepreneurs who accept card payments relatively rarely — beauty salons, plumbers, photographers or construction industry professionals.
According to the latest survey carried out by Mastercard entitled “Entrepreneur in a cashless world”, one of the most frequent reasons for not accepting card payments are the associated costs. It is indicated by 10% of the surveyed representatives of the SME sector. The LitePOS technology is a response to the expectations and capabilities of small businesses. It enables companies to minimize the necessary infrastructure and costs. In addition, an increasing number of customers using payment cards means that the investment associated with card acceptance pays off faster. Almost half (49%) of entrepreneurs in the Mastercard survey says that the number of card transactions made by their customers has increased over the last year. The same percentage believes that having a payment terminal positively influenced the development of their business.
Cashless payments are becoming a standard in the retail and services sectors. ‘Pin on glass’ is yet another Mastercard’s initiative aimed at making it easier for entrepreneurs to meet the expectations of consumers, who want to have a choice between card and cash. Apart from LitePOS, we are at an advanced stage of testing another innovative technology, which is also to enable sellers to use their smartphones as payment terminals. In addition, we are intensively supporting the activities of the Cashless Poland Foundation, thanks to which SMEs can try out the payment terminal for the period of 12 months free of charge, said Kamila Kaliszyk, Head of Market Development at the Polish branch of Mastercard Europe.