TSYS moves into point-of-sale with the launch of Vital POS (TSS, SQ)
Vital POS includes three hardware products: Vital Mobile, a dongle-type attachment to read magnetic-stripe and EMV cards; Vital Plus, a countertop smart terminal"; and Vital Select, a tool designed for larger retailers or those with multiple locations. The products run on the same back-end software system, and offer merchants access to a variety of business management tools, including analytics and inventory and employee management.
The solution can be white-labeled by partners including banks, ISOs, and ISVs, and is transferable, meaning that providers can use processors other than TSYS if they so choose, TSYS EVP and President of Merchant Solutions Philip McHugh told Business Insider Intelligence. Vital, which resurrects the name of a TSYS acquiring brand sunsetted in 2006, is reliant on technology from iMobile 3, which the firm acquired for $13.4 million last year.
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Moving into POS offerings has potential for TSYS, but the service will have to contend with strong competition.
- TSYS sees Vital as a huge field of opportunities, per McHugh.For TSYS, Vital POS can represent a strong customer acquisition opportunity as rising card payment popularity pressures a wider array of merchants to look for simple and affordable ways to accept cards. And the huge field of opportunities that POS presents could also allow TSYS to tie existing clients more tightly to its business, per McHugh.
- But the firm will have to effectively differentiate Vital in a crowded space to succeed.The space is competitive, with players like Square, Clover, Poynt, and Stripe all vying for share. But McHugh believes that Vitals ease of use, customer service, flexibility, customizability, and best-in-class approach to partnership with ISOs, ISVs, and other players features that Business Insider Intelligence found merchants value can help it differentiate from other players. And theres precedent for processors moving into POS to see great success Clover, owned by First Data, shipped its 1 millionth device last year and grew 45% annually in Q3 2018 which indicates that if TSYS can position itself correctly, it could leverage Vital to further its recent growth streak.
SEE ALSO: The Payment Industry Ecosystem: The trend towards digital payments and key players moving markets
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