Today's Thoughts

Point of Sales systems (POS)


I was watching the football game this weekend. (the game being Vikings vs. Eagles)  As the wife and I are Vikings fans, this game soon became clear that it was not going to be an exciting one.  Well, not for us! Congrats to the Eagles!
(Both deserve to win the super bowl, as both teams haven't taken that title in a very long time, if ever!  Vikings never, Eagles back in 1958)


We were sitting and discussing her business. (she has a small home business for quilting)  She received a call (sunday mind you) for an order.  I saw the Square device attached to the phone, and inquired about it.  (If I start talking stocks her eyes glaze over, and she starts nodding off)  Her response shocked me!  She says: "I love it!"   I ask why?  She explains that someone can make a purchase, the reciept is sent via email, her inventory is adjusted, and her accounting is automatically adjusted.  I was intrigued!  Again asking how does it update your accounting or books?  The reply, It updates our QuickBooks!  Then she goes on and on about how you can get a cash register for your store front, how they offered her credit at 2%, ( I was the one starting to drift off and day dream now)


Wait...wait...2% how can they do that, I asked?

She didn't know, as she didn't apply.  I assume that was the best rate anyone could get, and was a lure to get the many applying.


I watched how easy it was for her, watching the game, taking the order over the phone, then a couple taps later she was done. Customer had their order in, payment accepted, inventory adjusted, and tax records were up to date!


So me being on the hunt for another great stock, I was shocked at what I had just learned.  (From a stock perspective, I learned there is now two topics that wife really enjoys talking about now, and that is Disney and Square.)


The other Point of Sale system that I am familiar with is PayPal.  While technically I don't consider this a POS system.  I have found it to be the most favored, when doing transactions for many reasons.  It's easy and a trusted transaction method that does not give out your banking information.  I've seen 80 year old men, navigate the system like its nothing, while watching the same age group struggle to understand email accounts and how to set them up.


From a small business approach, I was impressed with Square!  From a personal shopping perspective, I like PayPal.


Square accepts credit, PayPal is more of a direct debit to your banking account.


Both have a place.


We bought shares of Square this morning!  Couldn't sleep, waiting to get in on this one!  It's high, but its going higher as they are now entering the lending business, and looking for more re-occurring income.  We will have to watch how this plays out.  They are currently getting at least 2.75% of every transaction and as high as 3.5% per tap.  With the economy recovering and the small business person hopefully getting a tax break, I can see more spending/sales in the future!


I am curious how Apple Pay will compete with a full POS system in the future, you know they will.......

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