Don't Get Lost In The Sea Of ISVs: Think Outside The Box

By Luis Artiz, Group Product Manager, System Devices Group, Epson America, Inc.

In the last few years, point of sale (POS) ISVs have converged on the user interface as a main point of differentiation.  However, that advantage will not be sustainable because there isn’t a high barrier to creating good front-end apps.  In addition, some ISVs have been able to rely on first-mover advantage, larger venture capital funding, a strong regional presence, and sometimes, just plain luck to grow their market share. But these strategies only last so long. As the ISV market begins to consolidate, the focus needs to shift to providing real, and continual, value to the merchant and the consumer.

The global POS machine market will grow at a CAGR of 11.5 percent from 2017 to 2025, according to Persistence Market Research, reaching $144.2 billion. For ISVs to benefit from that high demand for new solutions, they will have to look for new ways to generate benefits for their merchant clients. That means establishing value-added capabilities that will provide competitive differentiation not just for the ISV in question, but also for the merchants who deploy the solution.

This alignment of business objectives – making the merchant a more appealing option for the end consumer – can increase sales for the ISV in the near term and establish stronger customer loyalty over a longer period. Three ways to provide that value are to create customer-specific solutions, work with partners that incorporate other features into the POS, and integrate the POS with the Internet of Things (IoT).