Crypto Point of Sale Systems
As a consumer, you probably don’t pay too much attention to the machine you swipe your credit card at. As a merchant, you know the Point of Sale terminal has been evolving over the years. The first POS released by IBM in 1973. In the ’70s the terminals worked on a local area network, in the ’80s and ’90s terminals were connected to the telephone lines. The early 2000’s terminals began to send your encrypted data over the internet. In 2013 the famous Target data breach exposed the flaw with POS terminals. In our opinion, Crypto POS terminals are coming to take over.
The first instance I could find about crypto POS systems is the XBterminal, from a youtube video of a prototype back in 2013. There are 4 notable company’s that are working on interesting projects to expand adoption by allowing merchants to accept bitcoin or other altcoins on their existing POS or new systems.
Starting with the best option I could find, Coingate. Coingate has a great road map. Coingate started in 2014 and by November 2015 they processed over 1000 transactions. In 2016 they registered 1k users. 25k users, 100k trans and the 10th employee by late 2017. Then 50k users and 200k processed transactions in 2018. It will be interesting to see if they continue the trend in 2019. I believe its possible as they have multiple ways of processing crypto transactions.
Coingate allows for integration with an existing merchant point of sale terminal. Similar to other POS companies which allow you to install an app then connect via a Bluetooth card reader for credit card trans; Coingate allows you to install an app on that same terminal and accept crypto. If you have a website running let’s say WordPress you could use their plugin Magneto. If you have the programming skills you can use the Coingate payment API to integrate with your platform of choice. Similar to most sites now; Pay with Amazon or Google, Coingate has a Pay with Bitcoin button you can enable on your website.
Bringing the conversation back from the platform of crypto payments that is Coingate and on to the crypto point of sale industry. Coingate has a developing company that is sure to be a competition to the likes of Square (SQ) shortly. As Coingate works internationally and SQ is limited to the US only, it won’t be long before Coingate catches up.
Pundi X has the runner up slot, they actually have a physical POS. On their website, they list locations such as; Dubai, Venezuela, Singapore, Nigeria, and Indonesia. Pundi X also brought their POS to events like Ultra Music Festival in Taiwan, as well as VOFans and Quantum EAM. Starting from August 1, 2018. 5,000 XPOS devices are on their way to 24 countries. Pundi X has 3 terminals all of which have near field communication payments like Apple Pay and Google Pay.
The next company in the industry would be Panda Group. Panda group made Panda Crypto Exchange. Panda group also made Xeler the Point of Sale. In stores around the world, there are bitcoin atm’s that allow you to purchase bitcoin with fiat. In Columbia the Xeler allows you to process a transaction and exchange fiat on the same device. This is an interesting innovation that gives them an edge to compete against Pundi X who has a head start in the hardware department.
Dexlab is a Dapp that created Xpay, an open point of sale (XPOS) and payment platform. Possibly in the future, Dexlab competes with Coingate. The plus side of Xpay is the ease of use by paying in DAI a stable coin, merchants would be paid in the equivalence of USD. The only thing I would say is a flaw is that the only payment method appears to be Qrcode however NFC is the method consumers prefer in the fiat having both options like Pundi X is necessary.
Crypto is evolving at an exponential rate over 10 years we went from just bitcoin to over 2000 currencies, 1600+ markets, and $140B+. We might be at the beginning of a new bull run so these numbers are sure to change as the year progress’. There are millions of merchants that don’t have crypto as a payment method. The journey to mass adoption will be long but in order for every user to buy crypto, they would need to have a place they want to spend their crypto. What are your thoughts? Leave a comment below and let us know!
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