Risks of an Outdated or an Ordinary POS System in Kenya

After an unpredictable few years in retail, it’s perhaps no surprise that many retailers in Kenya have decided to ‘sweat their assets’ and hold on to their POS systems in Kenya for longer than in the past. Currently, only 21% of retailers are using POS software in Kenya they’ve adopted within the past two years, and more than 40% of POS software is over five years old.

In retail, staying up to date is essential – being ahead of customer demand, implementing the latest best practice, and taking advantage of modern POS system in Kenya benefits.

In retail, staying up to date is essential – being ahead of customer demand, implementing the latest best practice, and taking advantage of modern POS system in Kenya benefits. Many retailers therefore see a POS system upgrade as a necessity, and in a recent study, 60% said that POS replacement was their top priority.

So opportunity is abundant in the retail market, for those retailers who can harness it. One of the ways they can do this is by ensuring that they’re embracing integrated Retail POS technology. Here’s some of the key ways that an integrated POS systems in Kenya for retail businesses can underpin growth strategies for retail stores:

We explore the eight key consequences of using an outdated POS and how modern POS systems benefit retailers:

POS system security risks

Older systems are likely to be more vulnerable to security breaches and cybersecurity attacks. Vendors naturally tend to focus on supporting and securing the latest versions of their systems – hackers know this and look for POS software vulnerabilities, seeing them as ‘easy targets’. Retailers running old software are therefore at the biggest risk of POS software vulnerabilities, risking financial losses, legal liabilities and a damaged reputation.

Lack of integration

A retail business runs on interlocking processes – and for maximum business efficiency, the systems that run these processes must be able to communicate and exchange data. Inefficiencies in retail POS occur when these systems are not integrated. For example, old POS Systems in Kenya may not be integrate MPESA or other online payment platforms.

POS System Performance Issues

Older POS system tend to run more slowly than their modern counterparts. POS system performance issues are because:
a)applications are not optimised.
b)applications are not compatible with newer hardware and cannot take advantage of faster processor and storage speeds.
c) applications are not compatible with the latest versions of operating systems.

POS system in Kenya performance issues result in slower transactions, checkout delays and customer dissatisfaction. The impact of ineffective POS on sales is reduced revenue and profit.

Lack of support

One of the consequences of using an outdated POS can be a lack of support. Vendors provide support – in the form of new fixes and patches – for a limited period of time. After this, support is non-existent or is on a ‘best efforts’ basis, meaning that if you hit an issue, it can take considerably longer to fix, if at all. Extended failures impact service and are another potential source of customer dissatisfaction and lost revenue.

On-premise only

Older POS systems are often on-premise software, rather than cloud based. Ordinary POS system disadvantages include significant investment in software; expenditure on servers and storage; in-house staff needed to manage the system. Whereas cloud-based, modern POS systems benefits include: a Software-as-a-Service (SaaS) payment model; no in-house hardware or staff; and with all upgrades managed by the vendor, reduced disruption and greater stability.

Unsophisticated analytics and reporting

Business analytics and dashboards have become increasingly sophisticated in recent years, and one of the consequences of using an outdated POS is that it may not be able to provide the level of detailed and real-time analytics that today’s retailers need to make smart business decisions.

Lack of flexibility

Retail customers are always demanding more – new payment types, new ways of interacting (such as mobile POS, or click and collect). Older, more rigid POS systems in Kenya may not have the flexibility to meet these demands, or at least not without a lot of time-consuming changes, meaning the retailer is late to the market compared to their competitors.

Not compliant with industry regulations

Legislation, especially around payments, changes over time and the consequences of using an outdated POS may be that it is not equipped to meet or enforce current standards.

Sticking with an old system has pitfalls and may end up costing more than it saves. An outdated POS system risks greater costs, customer dissatisfaction and reduced competitiveness in the market. So whilst ignoring POS system upgrade necessity might seem like a money saver in the short term, the best strategy for success is to harness the power of modern POS system benefits

Get ready to supercharge your business! SimbaPOS is THE game-changer for Kenyan small businesses. Unlock its magic – fast transactions, stress-free inventory management, customizable to your heart’s content, mobile payment superstar, and all that on a budget! Don’t wait, upgrade to SimbaPOS now and ride the wave of success! Your business will thank you for it!

Call us on 0700 001779 for a demo/installation countrywide