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The very point of sale
The ve ry point of sale creating targeted, data-driven campaigns to win back
customers. "The value of consumer data is tied to use
in personalizing experiences and influencing users
to build brand relationships and make purchases,"
they stated.
Are your merchants • Social: Accenture researchers additionally noted

that 64 percent of customers want merchants to
plugged in? react more quickly to their changing needs and
preferences, but 88 percent of retail respondents

By Dale S. Laszig believe customers are evolving faster than they can
update legacy systems. "Using data to effectively
DSL Direct LLC segment customers and understand their [needs]
boosts satisfaction and brand reputation to improve
fter years of trying to humanize payment tech- interactions and produce long-term ROI," they wrote.
nology, the tables have turned. We're now won- • Technological: McKinsey researchers reported that
dering why we can't be more like our tech. How consumers have more checkout options than ever
A did this happen? For years, identical devices before. McKinsey's 2021 Digital Payments Consumer
rolled off assembly lines to be palletized and shipped Survey found 82 percent of Americans used some
to warehouse loading docks, where they were promptly form of digital payment in 2021. "Across developed
unpacked and daisy-chained to receive identical software economies, contactless payments for lower value
loads. Countertop terminals looked and acted the same; transactions are ubiquitous," they wrote.
programming options were scarce but POS devices, in tan,
charcoal gray and black, were ubiquitous. • Environmental: Edelman researchers conducting
the Edelman Trust Barometer Survey found 52
In the old days, the first question every help desk percent of respondents wanted businesses to ramp
representative asked was, "Is it plugged in?" Thirty years up climate change efforts, with 49 percent calling for
later, merchants are asking themselves the same question, more efforts toward reducing economic inequality.
namely, are they plugged in to digital commerce, and if not, "Data insights can help companies reduce [waste and
what's holding them back from upgrading? The answer related costs] by anticipating customer habits and
could be simple or complex, depending on where they sit requirements when ordering stock and hiring staff,"
in the commerce value chain. they wrote.
• Legal: The International Compliance Association
For a big-box retailer, an upgrade might mean optimizing estimated fraudulent financial crimes account for
the omnichannel customer journey. For a small store, 3.6 percent of global GDP. FreedomPay researchers
it might mean adding channels, payment methods or recommended investing in secure payment
contactless capabilities. technologies and partnering with integrated
payment solution providers to help prevent data
A recent study by FreedomPay offers merchants of all breaches amid rising cyber threats, such as hacking
types and sizes a prescriptive road map. Unleash the Power and malware.
of Pay, published in October 2022, examined technology's
role in retail with Accenture, Deloitte, McKinsey and other Always-on managed services
leading market research firms. Researchers agreed retailers As most payment professionals would agree, merchants
need advanced technology to compete in today's complex, are not big fans of change, but updating a legacy system in
consumer-driven market. the digital-first world is not nearly as daunting as it used

Market impacts to be. Yesterday's purpose-built POS systems frequently
required heavy upfront investment in terms of equipment,
Participating researchers in the FreedomPay study applied training and maintenance fees. And limited shelf lives
a PESTEL analysis to identify political, economic, social, were overshadowed by threats of noncompliance and
technological, environmental and legal impacts on the obsolescence. Today's payment solutions, by contrast,
retail landscape. They concluded retailers face numerous are designed to seamlessly adapt to ever-changing
pressures. Following is a sampling of research findings: requirements, global consumer preferences and payment
• Political: Deloitte researchers noted the war methods. Managed services include remote monitoring
in Ukraine has caused supply chain shortages, and continuous upgrades to keep technology secure and
particularly in the Eurozone, where Russia is halting up to date. In addition, integrations are a snap because
gas supplies. "Supply chains are disrupted and there most modern systems are built on open source, processor-
have been significant price hikes for fuel, gas, food, agnostic architecture.
and electricity," they wrote. "Cross-border commerce can be complex, from navigating
• Economic: Accenture researchers found that retailers regional data protection regulations to integrating with
can combat rising prices and reduced spending by local payment providers and offering innovative payment
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