ETA Expert Insights: Expanding Merchant Capabilities — SaaS Solutions in App Marketplaces
1-13-2025
By the ETA Payment Sales & Strategy Committee
Gregg Aamoth, CEO, POPcodes • Ryan Aumann, ISV Rep, Boarding and Maintenance, Global Payments • Jennifer Reichenbacher, Chief Marketing Officer, Stax Payments
With an extensive point-of-sale (POS) network, app marketplaces not only create revenue opportunities for Software as a Service (SaaS) developers but also enhance merchant operations and drive efficiency by offering specialized solutions.
THE GROWTH OF APP MARKETPLACES
The launch of Apple’s App Store in 2008 set into motion the emergence of app marketplaces. Unlike generic app stores that offer a wide variety of consumer applications, payment-specific app marketplaces cater to the unique needs of merchants. App marketplaces leverage POS infrastructure to provide merchants with access to a range of applications designed to enhance business operations. By consolidating multiple apps in one place, POS companies empower merchants to streamline operations, saving time and resources. Until now, constraints such as time and budget have made it difficult for small and medium-sized businesses (SMBs) to implement value-added services that meet their unique needs. However, app marketplaces enable providers to cater to SMBs with specialized solutions [1].
THE SaaS OPPORTUNITY
Given the immense number of POS terminals across the world, there exists an incredible monetization opportunity for SaaS-based apps to cater to the needs of businesses. Omar Ebeid , CEO of Zeal, points out, “POS app stores catalyze an ecosystem where developers meet specific retail needs, driving operational efficiency and unveiling new revenue avenues for merchants.” SaaS developers create these cloud-based apps, generating recurring revenue through subscriptions. Unlike consumer smartphone apps monetized by ads, B2B apps in POS marketplaces focus on direct revenue generation by delivering tangible value to merchants. These apps provide automatic updates, improved data security, and scalable growth. However, app marketplaces also present some challenges. The huge selection of apps can overwhelm merchants, making it difficult to choose the right one. Ebeid says, “Being on a POS app store doesn’t mean instant compatibility with the POS payment application.” Integration hurdles may arise if acquirers have different payment apps running across regions.
CUSTOMIZED BUSINESS SOLUTIONS
These app marketplaces foster a collaborative environment where developers and merchants can unlock new business capabilities. The benefits for merchants extend beyond streamlined workflows and time savings. Various business sectors can benefit from integrating app marketplaces with their POS systems to enhance efficiency and growth. Popular POS systems like Clover, Ingenico, Shopify, and others represent this by offering built-in app stores with a wide variety of business apps tailored to different industries. For instance, restaurants can use apps for online ordering, loyalty programs, and workforce management, while retailers might implement apps for inventory tracking, customer analytics, and mobile payments. Service-oriented businesses, such as salons, can adopt apps for booking, point redemption, and payroll. This ability to mix and match specialized tools meets the unique operational needs of any business.
FINDING THE RIGHT APP(S)
Marketplaces are great for choice and flexibility, but, like our personal smartphone, most rely on the user, in this case, the merchant, to research, select, download, and set up each App. When looking at a POS marketplace for your business, we recommend reading reviews, asking peers, and doing your due diligence. How might certain Apps, like inventory, billing, and accounting, work together to drive incremental efficiency for your business? Do you need both an ordering and a loyalty app, or is there one that does both and would work for your business?
These apps are solutions that merchants can put to work for their business. Just make sure you’re selecting the right ones to solve existing pain points and needs. And that they are easy to set up and use. Get the most for your time and investment to drive savings and revenue in the future.
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Citations
[1] Business Insider. (2018). The Point-of-Sale App Marketplaces Report. https://www.businessinsider.com/point-of-sale-app-marketplaces-report-2018-3
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $56.75 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers.
ETAs membership spans the breadth of the payments industry to include independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, and software providers (ISV) and hardware suppliers. For more information, visit electran.org.