Why combine biometrics identifical with a POS solution?
Author: huifan Time: 2021-06-30
Benefits of Integrating Biometrics with POS Solutions
Today's retail industry relies heavily on POS solutions to manage business tasks faster and more efficiently. POS technology solutions help business owners manage transactions, cash flow, inventory, and billing and payroll. Today's POS technology needs to meet the industry's growing demand for secure and efficient systems that increase productivity and facilitate smoother business processes. As a result, growing issues such as employee theft, partner card punching and payroll fraud are accelerating the need to integrate sophisticated technologies such as biometrics with POS solutions.
Why do POS systems need biometrics?
Biometric technology uniquely identifies humans based on physical characteristics such as fingerprints, finger veins, palm veins and irises. The technology has been used in different industries such as law enforcement, banking, and healthcare for many years. Currently, the adoption of biometric technology for POS solutions is increasing in the retail industry, mainly because traditional identification security protocols using passwords and swipe cards for employee login are now considered obsolete. Personal identification numbers (PINs) and ID cards are often forgotten or lost, which can incur costs and cause productivity disruptions, not to mention the devastating financial losses they can cause to business owners. The use of biometrics for personal identification in POS systems has proven to be the most accurate identification method recognized in the industry, and its implementation in POS solutions can improve accuracy and security by eliminating the aforementioned POS system vulnerabilities.
What are the benefits of integrating biometrics with a POS solution?
The integration of biometrics with pos terminal with biometric solutions provides accuracy and security, bringing many benefits to the retail industry. Listed below are some of the key benefits of integrating biometrics with POS systems.
- Accurate employee identification:
PINs and passwords do not adequately protect identities because they can be lost or stolen, increasing the risk of identity theft. Anyone can easily make a transaction using a stolen swipe card or PIN. The integration of biometrics with the POS solution will ensure accurate employee identification, protect the POS system and eliminate the hassle and risk of employee identity theft.
- Eliminate buddy punching:
Buddy punching is another common problem in the POS industry, where one employee uses an easily shared card or PIN to punch in for an absent or late employee. The American Payroll Association estimates that 75 percent of businesses in the U.S. are affected by buddy punching and that it can cost businesses up to 7 percent of their payroll each year. Biometric technology offers a highly effective alternative that utilizes unique physiological attributes that make it impossible for employees to punch in absent or tardy employees using a POS system. Biometric integration with POS systems eliminates partner punching and provides accurate time and attendance data.
- Combat Employee Theft:
Employee time theft has been the highest percentage of retail shrinkage over the past few years, and the number is rising. 2013 Volumatic Kount U.S. Retail Fraud Survey revealed that U.S. retailers will lose an average of 1.3% of sales due to shrinkage, which equates to $54 billion annually. Employee inventory theft is the largest area of retail loss today, accounting for 37 percent of total shrinkage. Because of vulnerabilities in swipe cards and passwords that can lead to the theft of employee time, where one employee can use stolen credentials to make a transaction, integrating biometrics with a POS solution can provide a sealed inventory access control system that maintains a clear audit trail for each transaction, thus encouraging employees to take responsibility for acting ethically and being accountable for their actions.
- Loss Prevention:
According to the U.S. Department of Commerce, employee dishonesty and time theft cost U.S. businesses more than $50 billion annually. Relying on security cameras, barcode swipes or PINs for inventory management and transactions has vulnerabilities that can prevent employee theft and thus reduce the efficiency of the solution. Instead, biometrics can ensure loss prevention by providing sealed system access to inventory and a specific audit trail for each transaction.
Top 5 Benefits of Incorporating Biometric POS into Retail
In an era of technological maturity, retail markets are adopting modern biometric point-of-sale (POS) systems for faster, more secure and efficient business operations.The pace of digital transactions accelerated nationwide in 2016. The Indian POS terminal market has witnessed significant growth as retailers are rapidly adopting POS machines.
In the digital payments industry, retailers need to include next-generation biometric-based POS systems due to security threats such as card cloning/skimming, payment conflict risks and plastic card fraud.
Biometric POS can help retailers manage cash flow, efficiently perform billing processes, process transactions without compromising accuracy, and more. In addition, biometric POS can increase productivity, security, accountability and improve the customer experience.
Benefits of biometric POS systems
In a rapidly changing world, various industries such as healthcare, banking, telecommunications, and law enforcement are supporting biometrics to a greater extent. Have you ever wondered how biometrics can help manage operations in the retail industry?
Let's take a look at some of the key benefits of adopting a biometric-based POS system in the retail industry.
- 1. Fast and secure digital payments
The growing demand for secure and fast transactions in the retail market is driving retailers to adopt biometric POS terminals. As a result, biometric POS is being adopted to improve security and eliminate the need to use unreliable PIN and card scanning digital payment methods. In addition, the device makes payment operations seamless, simple and smooth through secure identification or authentication of the customer.
- 2. Protect consumers from card cloning theft
With traditional digital payment systems such as credit/debit cards, there is always a risk of card theft or cloning on the client side. A salesperson can take a consumer's card to make a payment and illegally copy the card details without leaving any behavioral cues to the consumer. As a result, retailers are installing biometric POS to protect consumers from card cloning theft and to further improve customer satisfaction.
- 3. Portability and Versatility
Biometric POS terminals are portable and can make bulky cash counters neat and tidy. In addition, the device offers real-time secure payment mode. In addition, mobile POS systems (mPOS) are handheld, compact and portable payment machines that are easy to carry and use anywhere, anytime. Today, the entire retail market relies on multifunctional POS terminals that can perform a variety of payment operations, such as card payments, withdrawals, transfers, wallet payments, etc.
- 4. Easy to use and operate
Biometric POS is very easy to operate and use, no matter how big the business needs are. Some advanced and unique features are involved, from perfect billing, sales reporting, fast wallet payment to withdrawing old transactions through fast biometric scanning operation.
- 5. Improved billing efficiency
Biometric POS improves billing efficiency and provides a seamless transaction experience for both consumers and retailers/merchants. In addition, biometric fingerprint and/or iris scanners eliminate any possibility of billing errors or fraud and facilitate a smoother billing process for retailers.
India POS Terminal Market
The global market for POS systems was documented to have soared to $40 million in 2016, with approximately 30 million POS terminals sold globally. Meanwhile, the Indian POS market stood at $450 million with approximately 300,000 units shipped.
GOI is boosting the Indian POS terminal market by encouraging cashless transactions under the National Digital Initiative. Apparently, after the implementation of the Pradhan Mantri Jan-Dhan Yojana (PMJDY), sales of POS systems across the country have risen sharply.
Moreover, the introduction of biometric mobile POS or mPOS thresholds into the POS system market and its adoption in diversified industries has increased exponentially with the popularity of smartphones.
Conclusion
Combining biometrics with POS solutions to replace passwords and swipe cards will improve accuracy and security by preventing employee theft, partner card punching and payroll fraud. Biometrics are now very affordable and companies that rely on POS systems are taking advantage and getting a tangible return on investment (ROI) after implementation.
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