Elly Financial Technologies Limited
54 Poland Street, London, W1F 7NJ
54 Poland Street, London, W1F 7NJ
Due to the coronavirus pandemic, merchants in the UK have suffered many financial losses. Reduced working hours, higher operational costs, and strict pandemic-related health and safety protocols resulted in lower profits in 2020 and 2021. However, 2022 comes with a strong hope for rebirth. Businesses are now focused on increasing their profits to make up for the incurred losses. To achieve that, merchants are looking for ways to optimize their operational costs and appeal to their potential customers. One way to do that is by investing in a modern, functional, and efficient POS payment machine.
If you’re a UK-based merchant looking for a new POS payment machine to help you reduce costs and increase profits, this article will provide an ideal solution for you. What’s more, in this guide, we will discuss the current state of merchant payments in the UK to give you a general overview of the situation.
Although the first forms of money started appearing over 5000 years ago, people used to exchange goods long before that. Bartering, an activity where people used to exchange one thing for another, was the first form of commerce. Since money didn’t exist back then,the most precious possessions that one could have were land and livestock. A person’s wealth was often measured by the number of cows and sheep they possessed.
The first forms of money were coins, usually made from precious metals such as gold or silver. Then, banknotes started to slowly make their appearance - first, they were made from leatherand then paper. However, people have struggled to maintain the value of paper money for civilizations, dealing with numerous issues, such as its production and inflation.
The first credit cards issued by Diners Club in the USA were the next step in the evolution of money. Ever since their appearance, credit cards have been rapidly evolving. As a result, more advanced forms of merchant payments have started to appear.
Nowadays, advanced technology allows merchants to offer their customers various payment options, ranging from traditional ones (cash, bank transfers, or credit card payments) to alternative ones (mobile phone payments, digital wallets, or even cryptocurrency payments).
To keep up with the demand for more advanced payment options and rapid changes in consumer spending habits, practical solutions such as point-of-sale (POS) terminals started to appear. Thanks to advanced POS terminals, such as an all-in-one POS payment machine, merchants can now provide various payment options to their customers from one single device.
Without a doubt, the last two years haven’t been easy for retailers from all around the globe. However, this period has been particularly challenging for UK-based merchants, as between Brexit and multiple lockdowns caused by the coronavirus pandemic, retail sales have dropped considerably.
According to Statista’s report, the total value of retail sales in the UK has decreased by approximately three million British pounds due to the impact of the COVID-19 pandemic on consumer spending patterns. Even though retail sales peaked in December 2020 despite the pandemic, nearly every sector of the retail trade industry in the UK has suffered in the last two years.
Over 85% of UK shoppers are currently shopping online and turning towards eCommerce. UK residents are already taking advantage of alternative and more technologically advanced forms of payments. In 2021, the principal merchant payments in the UK were made via contactless cards, digital wallets, and Buy Now Pay Later schemes. Since these payments trends are likely to continue and expand in 2022, merchants all over the UK are rapidly adapting to new payment technologies.
In 2020 and 2021, merchants had to face significant losses due to numerous issues, such as health restrictions, chargeback fees, and supply issues.
Due to the coronavirus pandemic, businesses had to comply with strict regulations. Reduced capacity inside their stores, working hours, and personnel led to fewer customers, fewer sales, and as a result - fewer profits. What’s more, additional costs of cleaning and sanitization services that businesses had to invest in to continue their operations during the pandemic led to higher operational costs. This, together with lower income, led to significant losses for many merchants across the globe.
The high transaction, operational, and chargeback fees for credit and debit card transactions have been one of the main reasons why merchants in the UK incurred higher costs and lower profits last year. Transaction fees occur every time a merchant processes a payment. In contrast, chargeback fees occur whenever a merchant receives a chargeback and can range from £5 to £15 on top of the amount being refunded to the customer.
In addition, depending on their merchant acquirer, many companies incur additional hidden costs that negatively impact their finances. Investing in an efficient, all-in-one POS payment machine can help merchants make their transactions smooth and transparent and avoid chargeback or hidden fees.
Another effect of the coronavirus pandemic in 2020 and 2021 was supply issues. In the wake of lockdowns, curfews, and numerous restrictions, merchants had to deal with multiple supply issues, such as longer delivery times and higher transportation costs, due to fewer available suppliers.
Owning a POS payment machine has numerous benefits for your business. It is an excellent way to process different types of payments, ranging from credit card payments to digital wallet and cryptocurrency payments. In addition to that, investing in a modern POS payment machine can help you optimize your business operations and reduce costs in the long term.
However, many POS machines are expensive to maintain due to elevated fees. If you’re tired of overpaying for your old POS payment machine, Elly POS is a perfect solution for you!
Choosing Elly POS gives you an advantage over your competitor thanks to low and transparent transaction fees, which allow you to save on cost. Elly focuses on helping UK-based merchants streamline their digital operations through an efficient all-in-one POS payment machine. Get in touch with Elly’s team now!