Tablet POS (Smart Terminals)

Competitive Snapshot Confidential. For discussion purposes only.

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Questions?

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Table of Contents

Contents Page

Executive Summary 3

Tablet POS Evolution 4

Proprietary Versus Open Tablet Systems 9

Tablet POS Competitive Comparison 15

Tablet POS Strength by Industry 31

Tablet POS Strength by Feature 33

Confidential. For discussion purposes only.

© Copyright 2016. The Strawhecker Group. All Rights Reserved.

Questions?

3

Incumbent Players Have Faced Increased Competition, Especially From New EntrantsThe onslaught of competition has not only challenge the established POS ecosystem, but has also brought rapid innovation around the natural pull of legacy systems and the deeply entrenched business models of incumbent POS providers. Incumbent POS systems may be challenged to develop these competencies internally or obtain them through external sources. With that said, partnerships are a vital element in the new POS world.

• Tech Companies: A number of tech companies have leveraged their user bases, merchant relationships, hardware, cloud, and wallet assets in the POS space. POS data is too attractive for these types of firms as they're well aware that the data is rich and under-monetized.

• Startups: Given the sheer scale of retail and POS related market opportunities, startups have targeted this market and have been rapidly innovating. Startups are poised to shift the focus from front-end to back-end solutions in the cloud, which drives further innovation.

• Mobile App Developers: Mobile device proliferation will continue to drive mobile app developer engagement. Mobile app developers have transformed the mobile experience, and are set to transform the POS and retail experience even further.

VC-backed investment is focused on companies that are driving integration of POS with in-store retail

systems and experiences. Outside of small businesses, such as single proprietors where a stand-alone mobile POS solution is

all that might be needed, the clear wave of both investment and innovation is towards solutions that integrate POS and back-

office systems into new retail experiences.

Source: PayPal; TRG; CB Insights; TSG Analysis

Tablet POS Evolution

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© Copyright 2016. The Strawhecker Group. All Rights Reserved.

Questions?Another iPad- and cloud-based POS system, Vend is simple to use and even offers a free plan. Vend may lack some of the features that full-service restaurants or those in the hospitality industry need but overall, their focus is on the retail space. Some of their unique features include the ability to use your iPad camera as a barcode scanner and a eCommerce design tool.

Pros Cons

• Flexible platform• Easy-to-use, cost-effective software• Optional integrations• Built-in loyalty tracking• Extensive online knowledge base• Competitive monthly pricing for POS software and affordable

hardware costs• Compatible with PC, Mac, tablets and smartphones• Compatible with multiple payment processors• EMV-chip card compliant

• Weak full-restaurant POS features• 24/7 phone support is an additional $19 per month• Expensive to add additional registers to software plan• Additional gateway cost• Currently no ability to swipe cards on iPad app (coming soon)• No gift card integration

Additional Pricing Details• Free, 1 store, 1 register (maximum), 10 products, 1,000 customers• Starter, $49/mo ($39/mo billed annually) – 1 store, 1 register (maximum,

unlimited products, 3 users, unlimited customers, 24/7 email support.• Advanced, $99/mo ($79/mo billed annually) – 1 store, 1 register

(additional registers $49/mo ea.), unlimited products, unlimited customers, unlimited user accounts, eCommerce, retail dashboard, 24/7 email support.

• Multi-Outlet, $249/mo ($199/mo billed annually) – unlimited stores, 2 register (additional registers $49/mo ea.), unlimited products, unlimited customers, unlimited user accounts, eCommerce, 24/7 e-mail support.

Hardware• Vend makes recommendations on hardware equipment.

4

Customer Focus: RetailCustomers: >15,000 storesPricing: From $49/month to $249/monthCompatible Card Processors: Vantiv and Moneris are the options for in-store card processing. They also include Stripe, PayPal, Authorize.Net, and Payment Express as gateway options

Bars/Restaurant Cafes/Quick Serve Retail

• Email/Print Receipts• Cash Drawer• Split Tickets• Open Tickets• Custom Receipts• Inventory Mgmt• Customer Tracking

• Marketing• Employee Tracking• Loyalty• eCommerce Integration• Large Ticket Pricing• Multiple Locations• Live Support

• Email/Print Receipts• Cash Drawer• Split Tickets• Custom Receipts• Inventory Mgmt• Customer Tracking• Marketing

• Employee Tracking• Loyalty• eCommerce Integration• Barcode Scanning• Multiple Locations• Live Support

• Layaway• Email/Print Receipts• Cash Drawer• Split Tickets• Custom Receipts• Inventory Mgmt• Customer Tracking• Marketing

• Employee Tracking• Loyalty• eCommerce Integration• Large Ticket Pricing• Barcode Scanning• Multiple Locations• Live Support

Source: POS Options; Merchant Maverick; Company website; TSG analysis

Tablet POS Competitive Comparison

Confidential. For discussion purposes only.

© Copyright 2016. The Strawhecker Group. All Rights Reserved.

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