Terminal as a service (TaaS) is defined as “an end-to-end solution developed to manage terminal hardware. It brings together a comprehensive suite of services covering the entire life cycle of your payment terminals, from installation to end-of-life management.”
According to Charl Janse van Rensburg, General Manager: Integrated Transaction Solutions at Altron FinTech: “TaaS is not a new concept in the market. Service providers have always been providing it as a service; we’re just putting a name to it now.”
He goes on to explain that as a service provider in the payment terminal industry, Altron FinTech has structured its service offering to be able to provide its customer base with this comprehensive service: “Our customers are looking for a one-stop shop solution. From a payment perspective, we must be able to provide all the services around a device. This includes onboarding the customer, onboarding them on the 'switch', providing the actual device, as well as offering national support, which is what we refer to as Field Services. These are the technicians who go out into the market and service the devices.”
One of the main components of the TaaS offering to a customer base is access to a financial transaction switch that is connected to all the South African banks. We asked Janse van Rensburg to provide a bit of background on what exactly a switch is and why it is so important: “The easiest way to explain a switch is to use an example. A consumer goes into a clothing store, selects the items they want to purchase and then they make their way to the check-out counter. They offer their bank card as a form of payment. This bank card is associated with an account from an issuing bank, which is the bank that holds your funds (you bank with them), and in this instance, the way to access your money is to swipe your card. It is important to remember that there are two components to this transaction – in addition to the issuing bank, you also have an acquiring bank (in layman terms, this is the bank that acquires the transaction). Once you swipe your card, the transaction will go to the acquiring bank, which will then make a request to the issuing bank if there are funds available. The issuing bank’s response will be a “yes” or “no”, which will then replay to the merchant as to the status of funds and then process the transaction if there are funds. This all happens in the space of a few seconds. The customer then walks away with the goods, and that evening the issuing bank will settle the money to the acquiring bank. What is termed switching is the actual transaction from a device going all the way through to an issuing bank and back, as well as everything else that relates to that transaction, such as the settlement, authorisations, etc.”
When it comes to the actual payment terminal device, Janse van Rensburg smiles and says that they have the following internal slogan they live by: “Any payment type, with any device, to any issuing bank.” He goes on to say that as a service provider in this industry, Altron FinTech has learned that for your customer base to enjoy optimal TaaS benefits, you need to be able to cater to their specific needs.
Touching on the various devices currently in the market, Janse van Rensburg mentions there are basically three types of devices – Linux, Android and integrated devices. When asked about the current trends in the market, he mentions that Android devices (and the technological possibilities they offer) are becoming more popular in the market. “The older devices used to work on the Linux operating system. What the Android device offers is very similar to your phone. Imagine your phone as the device, only it’s got the capability to accept a card,” he says.
Pulsing him for more details on the subject, he elaborates: “An Android device allows you to write your own application on the device. The app is integrated into the payment application. This is the portion that is managed by the service provider, in our case Altron FinTech, and it ensures that the payment information is kept secure. On the surface the app can be customised to integrate with the look and feel of the specific business, but underneath is everything that the service provider offers as part of TaaS.”
The support provided to customers, especially by field technicians, is one the most important components, and one of the strongest selling points of TaaS. Janse van Rensburg confirms this: “If you did some market research and spoke to business owners about the use of payment devices, the majority (if not all of them) will tell you that excellent after-sales support is one of the biggest considerations when purchasing or renting a payment device. As a business owner, you cannot afford for your business to grind to a halt because of a payment terminal that is not working for an extended period. You need to be able to contact your service provider and know that they will have a technician on site to assist as soon as possible.”
Looking at TaaS as a whole, it is easy to see why customers prefer this comprehensive service from their service provider. By working with a service provider that can offer this service, a business owner can concentrate on growing their business.
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