Retailers are all too often at the mercy of their point-of-sale devices which can, should they go down, not only lead to lost sales as customers abandon their trolleys but also damage that outlet's reputation when customers leave negative reviews online.
Brendan van der Mescht is senior manager of supply chain at Altron FinTech. Image supplied
As a result, payment devices, which in many cases are a lifesaver when a customer cannot or does not want to pay with cash, can simultaneously be a retailer's biggest risk. And it is not a risk to be taken lightly.
The growing dependence on digital transactions
Data from the PayInc Economic Index Report for August shows that the number of transactions cleared through PayInc, formerly BankservAfrica, reached an all-time high of 177.8 million in the eighth month of the year, marking a 9.4% year-on-year gain.
While this figure includes electronic transactions via banking apps and websites, it serves as a clear indicator of just how vital the digital payments system has become to South Africa's economy.
The South African Reserve Bank's 2023 Payments Study Report notes that while cash remains king, card swipes represent the second-largest payment method in South Africa. In determining this, the bank used two methodologies.
Its Survey of Consumer Payment Choice matrix, which focuses on consumer preferences, shows that 75% of the population aim to use a debit card at the till point.
Card transactions drive higher spending
According to the central bank's Diary of Consumer Payment Choice, the actual use of such cards over a three-month period increases to 91%, albeit out of a larger consumer population base.
What the bank found is that card use at grocery retailers is frequent, although at a lower average value per transaction than might be expected.
Yet the numbers tell a compelling story. The average grocery payment using cash is R211.88, while debit card payments are more than triple that at R717.54, a clear indication of just how vital point-of-sale devices are to retail outlets.
These sales flow through hundreds of thousands of devices, with transactions doubtless amounting to trillions of rands each year.
The value of nationwide field support
What many people may not realise, however, is that their point-of-sale device is not just at risk of failure at the till point, but throughout its entire lifecycle – from pre-configuration through to secure delivery and any repairs it may require.
Each stage is important, though none as critical as ensuring that a provider has nationwide field services to reduce downtime and the knock-on effect on sales.
Trained technicians who can install units as well as provide swap-outs and on-site repairs are essential, as point-of-sale units affect a large sector of the South African economy, serving everyone from small businesses to major retail chains.
Equally important is that repairs are conducted by certified technicians who service the units at accredited centres using original equipment manufacturer (OEM) parts. This ensures compliance with warranties and relevant regulations while extending the device's usable life.
There are, however, several earlier stages that also contribute to secure and stable devices compliant with relevant legislation. This includes ensuring that units are pre-configured, tested, and kitted before reaching merchants, enabling plug-and-play installations that minimise deployment time.
When it comes to storing devices in warehouses, smart solutions make all the difference. Using barcode scanning and serial tracking, each device becomes traceable throughout its lifecycle. Smart warehouses also optimise inventory rotation, prevent stock mix-ups, and ensure faster fulfillment.
To ensure that point-of-sale devices reach their end destination safely, secure logistics protocols are essential. This includes tamper-proof packaging, GPS-tracked couriers, and chain-of-custody protocols to protect this sensitive financial hardware during transit.
The benefits of point-of-sale devices are immense, yet their functionality is only as reliable as the systems and processes behind them. In an economy where retail sales account for nearly a fifth of South Africa's entire gross domestic product, every minute of downtime represents not just lost revenue for individual retailers but a disruption to the nation's economic pulse.
Why end-to-end solutions matter
This is why comprehensive end-to-end solutions – from warehouse to till point, from installation to repair – are not merely value-added services but fundamental infrastructure.
When these systems work seamlessly, retailers can focus on what they do best: serving customers. And when every transaction flows smoothly, from the smallest spaza shop to the largest supermarket chain, we keep the heartbeat of South Africa's economy strong and steady.
