If you have been following the developments in the mobile payments scene, you would notice that the competition is fierce. For instance, just recently iZettle and Payleven launched a new Chip & PIN device that will support all major credit and debit cards. However with extremely similar services, offerings and prices, these companies need to find ways of differentiating themselves.
Today, iZettle announced that they will now support Star Micronics’ range of MFI certified desktop and mobile printers. This allows their users to connect wirelessly to cash drawers and printers. Which in turn makes iZettle into an almost complete POS solution for small to medium enterprises. For those of you that do not analyze POS and printer manufacturers on the daily basis, Star Micronics is well known for being the supplier of choice for Apple stores worldwide.
In addition to the new hardware support, iZettle also updated its software which now has new sales overview tools. For example you will now be able to see your top selling products, average payment volumes, returning customers and more.
We see this move as an attempt to differentiate themselves from the competition and also to be able to sell to businesses that simply require this functionality and would not consider trying out mobile payments without it. Basically it expands the target market for iZettle, allowing them to go after slightly bigger companies, while still being able to cater for the individual entrepreneurs and small businesses that don’t need a complete POS solution.
In order to expand on this speculation on our behalf, we got in touch with Johan Bendz, the CMO of iZettle for comment:
“Looking at the history, originally iZettle was a mobile payments provider. We have since also developed the product and service in many ways. The service is definitely developing towards facilitating larger amount of transactions and higher transaction values.
The printer and cash drawer integration can be seen in the same light really. Basically the reason for all this is that from launch we had a huge interest from private and small businesses but also from larger businesses. They have a little bit of other demands than the smaller businesses.” – Johan Bendz.
Being a larger role in the POS infrastructure of larger businesses will allow the company to sell their services on a wholesale level to firms that have a large number of locations as opposed to single entrepreneurs and small businesses.
Additionally they will also become a valid alternative to the standard chip & pin terminals that usually are rather expensive to purchase and depending on where you are based also charge a monthly service fee and a percentage from the transaction.