When you’re running a small business, accepting customer payments should be smooth like butter.
Your two major options are mobile point of sale (mPOS) and more traditional electronic funds transfer point of sale (EFTPOS) systems.
It’s like choosing between a sleek sports car and a reliable family sedan. Both can get you where you need to go, but the journey will feel different. Let’s break down the great mPOS vs EFTPOS debate.
What is mPOS?
mPOS is the use of a smartphone, tablet or other mobile device to perform the functions of a POS or EFTPOS system wirelessly. Generally, you’ll download an app on your mobile device that connects to an external card reader.
This app combines your smart device and card reader into a payment terminal. Together, they mirror the functionality of traditional POS systems and EFTPOS systems in mobile form.
mPOS typically has lower monthly fees and open contracts. You could optionally buy a card reader outright (this will attach to your phone or tablet) and pay a set-up fee. You’ll also need to provide the internet connection your mPOS will use.
How Does mPOS Work?
- You enter transaction details into an app on your phone or tablet.
- The app sends the details to your device.
- Your customer taps their card, using their PIN if needed. If an external card reader is attached, then a swipe or insert may be possible depending on the types of transactions the mPOS system will accept.
- The app communicates with your payment network.
- The payment transaction carries on as normal.
The Upside of mPOS: Handheld Benefits
- It’s mobile: Take card payments anywhere. (As long as you have your smart device and/or card reader with an Internet connection.)
- It’s cheap: The monthly fees for mPOS are generally less than those for a fully-featured EFTPOS terminal. However, mPOS systems may have higher set-up costs or transaction fees.
- It’s simple: mPOS systems sometimes position themselves as simpler to use due to being part of your smart device.
- It’s integrated: With your payments integrated into a basic POS app, every sale is accessible for performance tracking and account reconciliation.
What is EFTPOS?
What is EFTPOS then? EFTPOS machines are the Swiss army knives to mPOS’ steak knives. EFTPOS machines usually pack in way more features and options, providing more flexibility for your customers and ease of use for your business. EFTPOS machines, also called payment terminals, are standalone devices that are dedicated to accepting payments for your business. EFTPOS machines are held to certain standards to ensure they are compliant and secure, protecting your business and your customers.
mPOS vs EFTPOS: The Key Differences
- Features: It’s usually easier to get an EFTPOS terminal to handle some transactions or take Mail Order/Telephone Order (MOTO) purchases.
- Transaction fees: It’s worth comparing the fees of mPOS and EFTPOS providers to see what offers a better deal for your business. When using mPOS, it can be harder to shop around and find a better deal on your merchant service fees. You’re limited to providers who offer mPOS solutions. If you decide to get a dedicated EFTPOS solution for your business, you’ll have a wider array of options to choose from.
- Scaling: EFTPOS beats out mPOS when it comes to growing with your business. EFTPOS terminals can integrate with POS systems (of your choice) to accept payments even more smoothly. Use these integrated terminals to manage stock or customer loyalty programs.
- Dependency: mPOS systems are totally dependent on mobile devices or tablets. If your mobile device or tablet acts up, you need to go to the device supplier to get it resolved and/or replace the device. Whereas with an EFTPOS machine, your provider can help solve tech issues immediately with over-the-phone support, and providers like Smartpay will even mail you a free replacement for a broken machine in as little as one business day! mPOS systems also limit other functions these devices can be used for, as they will be constantly taking payments. Can you imagine getting a phone call in the middle of a customer’s payment?
Which Option Makes “Cents” for You?
When it comes time to choose between mPOS and EFTPOS, here’s what you need to do:
- Understand what your business needs from a payment solution. Are you a busy cafe, or do you operate a market stall once a week? These considerations have a big impact on the right decision for you.
- Weigh up the costs. Depending on your business, you might prefer to deal with higher upfront costs and lower transaction fees. Or, you may want to avoid upfront costs and pay more down the line. Consider:
- Set-up costs
- Rental costs
- Merchant service fees
- What happens if things go wrong? Can you get support? EFTPOS systems are usually a better option for reliability. EFTPOS terminals usually come with a full-service package like 24/7 support, remote software updates and additional features like tipping.
- Plan for the future. Is your business going to outgrow mPOS soon? If so, it might be easier to go with a full blown EFTPOS system from the word go.
Carefully considering your type of business, volume of transactions, customers’ payment preferences and future plans will help you make the right decision. You can also speak to a number of providers to get answers to any questions you might have.
The Payoff of Smartpay’s EFTPOS Machines
If you choose to nab our Android terminal, you’ll also get the benefits of Smartpay Low Cost Tap & Pay. With one low rate across Visa and Mastercard contactless credit and debit transactions, you pay a single monthly cost covering merchant fees while enjoying free terminal rental*, no payment network fee and seven-day settlements into your existing business bank.
For our Long Term Rental customers, you get a turbo-charged S920 EFTPOS machine that works with any acquiring bank of your choice, and you can grab 12 months free EFTPOS rental on 36 month lease terms**. All our EFTPOS machines are easy to use with no fussy setups.
Keen to explore our EFTPOS machine options for your in-store payments? Get in touch today and one of our Kiwi payment specialists will walk you through your options.
*minimum turnover and T&C’s apply.
**T&Cs apply.
