Point of Sale
(POS) Finance
Table of Contents
I.Executive Summary ... 2
Objectives Mission Statement II.Description ... 3
OperationsISO's and EPOS suppliers
Service Levels & Financial Management
III.
Industry ...
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Market Analysis
Market Segmentation & Competition Pricing
POINT OF SALE (POS) FINANCE - 2
Executive Summary
Payment Gateway started its Journey in February 2012 as a Point of Sale service provider and supplier. Therefore we do understand the complications for Vendors, ISO’s and servicing firms when they get cash stricken clients. The most easiest and cost effective process in getting the product across and installed is financing the contract.
Financing typically involves two different types i.e. Hire Purchase
Finance Lease
In this scenario, since it’s a Tangible asset therefore the preferred method is Asset finance Lease. It is the most cost effective and commonly used process where an ISO, Vendor or sales firm gets paid for the Asset or service provided with profitable interest and end-user pays directly to lender via Monthly installments. The end-user has to pay for the insurance plus the service maintenance which completely depends on the clauses in the contract. In most of the cases vendors have their own insurers hence Lender doesn’t have to insure the system provided.
Objectives
To provide easy, cost effective & feasible Vendor Management program where any Point of Sale (POS) device can be financed based on its market and retail value.
Mission Statement
Payment Gateway would approach businesses who offer EPOS or Payment Terminals such as Vendors, ISO’s and Sales firms to create awareness and generate more Vendor Management programs. This will not only help existing Point of Sale (POS) suppliers but will also create space for new businesses and generate more investment. All this will result in creating more jobs and generating more employment. The major characteristics of Point of Sale (POS) finance are
24 Hour Electronic Payouts for smaller deals or contracts (once approved) Easy Payout mechanism for larger deals
Flexible Interest rates
Weekly or monthly reporting (PDF or Spreadsheet) Flexible Direct Debit dates
Out of hour End-user support desk Electronic invoicing
Portfolio Description
What makes Payment Gateway Ltd unique is its presence in different niche sectors of Payments industry. From backend services of Point of Sale (POS) Hardware & software to money transfer services in Europe, Payment Gateway supplies all the backend and intermediary services to developers,
integrators, Hardware Payment suppliers and Payment Service Providers (PSPs).
The concept is to provide all different types of Payment Services on one platform with re-occurring returns. This concept has not been commonly used in UK due to intensive negotiations and continuous investment required to run the program. Payment Gateway has been investing in different projects for last three years hence we are able to run this program with complete satisfaction.
ISO’s & EPOS Suppliers
There are more than 300 Electronic Point of Sale (EPOS) suppliers in UK and around 800 in total across Europe. Most of them work as Brokers, Independent Sales Organizations (ISO’s) and accredited Vendors. However when it comes to finance the equipment, their respective partners have little choice to get them accredited and approved Vendor program from different finance firms. The main reason behind this is higher interest rates, lack of transparency and difficult contracts issued by either finance firms or Lenders.
Payment Gateway Ltd is neither a Lender nor a Finance firm. We operate in Partnership with FCA accredited and approved firms to finance & Insure an Asset plus get re-occurring payments from clients (End user) via Direct Debit. In return, we payout Vendors, Sales firms and Brokers to make whole process easier, transparent & smooth. The transparency of this process is effective in every manner as it generates confidence on both sides.
Service Levels & Financial Management
We believe in continuous investment in businesses and industry hence our service levels are slightly higher in comparison to any Payments and POS firms in UK. Some of the benchmarks are
Insured Equipment 24/7 Customer Support
Rapid replacement of faulty devices or with any Technical fault Easy Integration
Branded Invoicing
POINT OF SALE (POS) FINANCE - 4
of contracts, we deal with FCA accredited firms who provide a complete end to end service i.e. from collection via Direct Debit to re-imbursement in client Bank accounts.
The whole process is automated and encrypted with state of the art online portals and anti-fraud / money laundering systems, which makes thing easier and hassle free for us plus efficient for all clients. All contracts are managed by FCA accredited auditors who work on behalf of our FCA accredited lenders. All of processes can be reported online via portal which can be accessed via username and password, provided by us ensuring transparency at every step. Vendors are able to download reports via online portal in PDF or CSV format. For in-depth accounting purposes, we can also send hardcopies or Liaise with accountants to ensure data accuracy.
Industry
Market Analysis
As per the graph, in 2008 the funding for EPOS suppliers was progressive however it reduced due to saturation in market and higher number of EPOS suppliers, most of them using European service levels. Similarly Payment Terminal financing was stable till 2011 however it’s declining every year due to different number of ISO’s selling the same products on longer term contracts hence lenders / financiers not returning enough revenue to re-invest in market. However most of the financiers / lenders are moving towards large asset financing due to less hassle, effective management and re-sale market of the asset involved.
0% 10% 20% 30% 40% 50% 60% 70% 80% 2008 2012 2016 % g row th ov er pr ior pe riod
Local Market Growth
Epos providers Payment Terminal ISO's Large Asset sellers
Market Segmentation & Competition
POS finance industry in UK is competitive however there is always room to breathe. All the major Banks and financial institutions do not finance any small or medium ticket Assets like EPOS or Payment
Terminals therefore vendors are always looking for firms who would finance Assets on smaller tickets via lease finance. In UK and Western Europe, there are very few lenders who have facilities and system to ensure the transparency and smoothness of an asset. Also when it comes to invoicing, the old invoicing methods of hardcopy and letters are still in use which makes a business look bad in 21st century
Technology market.
PayGateway removes all the old & difficult processes which are full of technical jargon and brings new life to Vendors & ISO’s. All these processes not only make things easier but also provides time & resources to generate new business.
Being highly saturated & segmented market, UK does have a tendency to operate flexibly and with out of the box approach new avenues of small & medium ticket finance can be targeted and achieved. PayGateway is also working hard to remove any segmentation in the market which creates unnecessary division and increases unemployment. Therefore we operate without any regional and territorial policy within UK and Europe hence creating more jobs and cross market training sessions.
Pricing
For all Point of Sale (POS) finance and lease options, we offer very flexible and lower interest rates which results in higher sales and revenues for ISO’s and Vendors. Our systems are robust plus powered with innovative technology, we endeavor to bring processes which are flexible and easy to operate for everyone.
Client satisfaction is our benchmark and we makesure that all ISO’s, Vendors and Sales firm adhere to our processes for effective revenue generation. Hence the pricing criteria has been made extremely simple keeping in view the current market competition i.e.
Online portal & reporting: - Free ISO & vendor activation: - Free
Contract printouts & electronic invoicing: - Free Paper invoicing: - £1 per invoice
Interest rate: - Depending on the number of contracts (Starting from 9%) 24/7 Customer support: - Free
