Netsai Ngidi
A reliable payment system is crucial for any business, not just for receiving payments, but for ensuring convenience, trust, and smooth operations. POS devices enable businesses to accept multiple payment methods, manage sales data, and enhance customer service. With so many options available, choosing the right POS device and payment method can feel overwhelming. But it doesn’t have to be.
“Selecting the right POS system is pivotal,” says Netsai Ngidi, Product and Solutions Head at FNB Merchant Services. “It’s about understanding your business’s needs, budget and growth plans, then choosing the right device and payment plan.” She shares insights on the pros and cons of the various POS options available to businesses:
POS option 1: App-based solutions – App-based POS solutions convert mobile devices like smartphones or tablets into payment terminals. This is ideal for start-ups or businesses with flexible operations, these systems typically operate on a pay-as-you-use structure. An example is FNB’s Speedie, which is designed to help small businesses accept payments securely via a smartphone. However, Ngidi highlights that businesses still need to consider connectivity requirements and a good understanding of how the solution works, for example, where the cardholder must tap to pay on the smartphone.
POS option 2: Free card machines – The offer of a card machine can be appealing for businesses looking to minimise initial investment. These devices offer immediate deployment without upfront costs. However, Ngidi advises caution regarding transaction costs. “Free POS machines often come with higher-than-average commission and switching fees,” she explains. “Entrepreneurs should also review contractual obligations and early exit penalty clauses, which might restrict flexibility as your business grows.”
POS option 3: Buying a device outright – Buying a POS device outright provides full ownership, often offering long-term savings if offered with reasonable commission fees. Owning your device means you do not have pay ongoing device rental fees. FNB supports outright POS purchases by offering convenient payment options, including the ability to use eBucks towards the initial cost. For instance, FNB’s Speedpoint device, which includes a printer, is available for R1 999, while the Speedee device without a printer costs just R699. FNB devices can also be purchased via the FNB Shop on App and Online channels. Purchasers benefit from a 12-month warranty, out of warranty repairs are for your own account, and you don’t usually receive a replacement device to use while yours is being fixed.
POS option 4: Renting a device – Renting a POS device provides businesses with significant benefits, most notably minimal upfront investment, predictable monthly expenses. The rental model provides ongoing device maintenance, with providers managing repairs, replacements and upgrades. “Renting ensures your business operations will not stop due to equipment malfunctions, with swift repairs or replacements typically included in the service agreement,” Ngidi explains. FNB offers POS rental prices starting at R200 per month for Speedee (without printer) and R390 per month for Speedpoint (with printer), providing flexibility as businesses scale.
While POS rentals offer numerous benefits, Ngidi says that businesses still need to understand all the associated costs that may be levied by the device provider. These often include switching fees, minimum monthly fees if specified transaction volumes are not achieved and settlement fees, which can quickly add up. “In line with our commitment to enabling the growth of small businesses through an affordable payments ecosystem, FNB doesn’t charge settlement fees on all transactions and all businesses,” Ngidi points out.
Don’t just buy a POS device; choose a business partner:
Ultimately, choosing the right POS solution involves more than just picking any POS device to meet the immediate transactional needs of a business. What’s needed is a carefully considered partnership with a provider that is able to meet your business where it is now, understand where it is going, and offer adaptable payment solutions designed to grow with your business.
“The ideal POS provider doesn’t just supply equipment; they deliver reliability, ongoing support and cutting-edge solutions tailored to your evolving business needs,” Ngidi concludes. “At FNB, we are committed to being that trusted partner enabling your payments journey and supporting your journey as an unstoppable business.”
Netsai Ngidi, Product Head for Merchant Services at FNB. She writes in her personal capacity.
