The use of mobile devices as a POS terminal is a growing trend in the retail and small business world. For some time, Apple's retail stores have been using iPods and a specially designed application to act as mobile cash registers. Other major outlets like JC Penney and Urban Outfitters have announced and started to implement plans to fully switch to this kind of solution also.
Many small and midsized businesses have also adopted some form of mobile payment solution. Whether its the Square system - a tiny plug in for a smartphone that allows the user to process credit and debit card payments - or a Verifone terminal. However, as with any payment solution, security remains a problem.
Ensuring PCI compliance and avoiding card fraud from skimming are concerns for businesses in any market. Despite best efforts to stay safe, customers can be hesitant to swipe their card through a mobile device plugin as opposed to an old fashioned cash register system. Merchants need to ensure wireless and cloud-based networks are secure and transactions are covered from the running of the card to the sending of a receipt.
There are innovations in the market solely based on increased security protocols. A recent report from ZDNet profiles the announcement from mobile payment provider Revel. The company revealed the latest update to its iPad-based point-of-sale platform - EMV adopting. The Europay, MasterCard and Visa (EMV) specification support credit and debit cards through an integrated security chip. It is widely adopted in Europe but has yet to grab hold in the U.S.
EMV is considered to be part of the next standard for retail and business payments because they are much harder to hack and duplicate. For the B2B industry, ensuring the security of partners is crucial to forming strong relationships and improving overall brand reputation.