The acquisition of Afterpay by Square will provide additional glue for the Square super app. Volker Schloenvoigt (Principal, London) looked at the recent blockbuster deal.If there ever was a person remotely interested in payments who wasn’t aware of Buy-Now-Pay-Later (BNPL) surely the last few weeks would have caused some stir.
Point-of-sale (PoS) terminals do little more than reading a payment card and encrypting the transaction. Merchants want to differentiate their offerings at the Point-of-sale, and to provide their customers with ‘value added’ services that not only increase their customer loyalty, but also increase the potential for spending more money in their stores.
One of my clients recently asked me ‘Is the PED dead?’. Every POS terminal and ATM incorporates a PIN entry device (PED). The PED and the POS terminal are intrinsically linked because of the payment industry regulations that define the standard for smart chip cards. These standards also determine how POS terminals and ATMs can authenticate a cardholder with their card.