Chase-backed POS company wants to rewrite SMB market with new tablet-based solution

Summary:Focused on small retailers and merchants, GoPago has created a free turnkey point-of-sale system that combines technology from Verizon Wireless and Motorola. SMBs pay only the transaction fee.

GO LIVE Photo_Tablet

Get ready for a point-of-sale POS market shakeup . GoPago, a company backed by financial services giant JP Morgan Chase, has created an integrated tablet-based POS solution that it will give away for free -- charging only a 2.85 percent transaction fee for purchases that are processed using it.

The system, called GoPago LIVE, combines an Android-based Motorola Xyborg tablet with Verizon Wireless 4G service, plus a card swiper, a stand, a cash drawer and receipt printer. The application runs in the cloud and uses the Chase Paymentech encrypted payments service.

Rather than charging a fee for the equipment, GoPago has opted to give it away and charge only for the financial services that back it. "Small businesses have been gouged by POS solutions, we have been listening to them," said GoPago CEO Leo Rocco. The company chose an Android-based tablet in order to keep the cost of the system down and to ensure that merchants could use it out-of-the-box, he said.

The GoPago system has been tested by approximately 600 merchants in the San Francisco area, and the company is seeking to connect with stores that are generating less than $1 million annually (although it works with customers that are above and below that amount). The system will be available nationwide by the middle of August, Rocco said.

Among some of the features that SMBs can expect:

- The ability to export data to Excel files for processing and reporting (there is also a programming interface that can be used to connect it with other financial software)

- Built-in customer relationship management software to capture information about customers

- Basic loyalty system features, so that merchants can create basic promotions 

- Processing that works on 4G or 3G wireless networks from Verizon Wireless (if the 4G connection isn't available, the system will step down to 3G when processing a payment)

- The ability to create customized services, so that merchants can process detailed orders

- Software for creating a basic mobile storefront that allows customers to browse and pay with their smartphones

Related stories:

Tablets signal turning point for small-business POS systems

Square turns Apple iPad into cash register, beefs up analytics

 

Topics: SMBs, Cloud

About

Heather Clancy is an award-winning business journalist specializing in transformative technology and innovation. Her articles have appeared in Entrepreneur, Fortune Small Business, The International Herald Tribune and The New York Times. In a past corporate life, Heather was editor of Computer Reseller News. She started her journalism lif... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.