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Lightspeed, a point of sale vendor for many retail markets, is being speculated to be going up for sale soon. Due to alleged financial misreporting, the leadership is considering options, “including partnerships, acquisitions, or transactions, to enhance growth and shareholder value.”
This potential transition demonstrates the overall market affects providers offering point of sale systems for small and medium retail stores. Retail stores across the country are facing challenges, with many closing their doors.
This market strain can also lead to the downfall of retail point of sale providers, pushing them toward acquisitions, shutting down entirely, or declaring their software end-of-life (EOL) like QuickBooks did last year.
Now that we’ve established vulnerability to market forces regarding retail technology SaaS providers, there are some questions we need to ask.
Whether it’s Lightspeed POS being sold, QuickBooks POS announcing EOL, or any other retail point of sale technology provider shutting down, immediate concerns that retailers need to consider are:
This blog dissects what retailers may encounter when a POS provider goes out of business. We’ll explore how retailers using Lightspeed point of sale can prepare themselves and find solutions to protect their operations if they suddenly find their retail technology software reaching its End-of-Life stage.
While the end of a POS provider’s business can be disruptive, it opens doors to new strategies that business owners may have not originally considered. By staying prepared and viewing this challenge as an opportunity, retailers can emerge stronger and better equipped to face the ever-evolving retail landscape.
Most POS systems integrate with only one or two payment processors. Each vendor will have partners across a range of companies.
This works in different ways since POS vendors and payment processors may or may not integrate.
Transaction disruptions will happen during downtime regardless of the situation a retailer might find themselves in. Cash may still be usable. However, credit cards, digital wallets, and mobile payments will prevent some customers from being able to make purchases.
This can hurt customer service and might have the effect of customers questioning the safety of their information since the switch-over happens so quickly.
But how can this loss of point of sale provider benefit retailers who suddenly find themselves without one?
There are POS system providers that integrate with multiple payment processors. Take for example Celerant. We integrate with five different world-class processors. This selection means that people even operating in the high-risk industries have choices that can help them where they normally can’t find any.
While easier said than done, if retailers find themselves in this dilemma, finding point of sale vendors that integrate with AltruPay, Fortis, Global Payments Integrated, Shift4, and WorldPay can make the switch experience easier. These processors serve various retail verticals and have solidified partnerships throughout the point of sale vendor industry.
Imagine one day, as a business owner, you go into your retail store and boot everything up. In the process, an error message pops up on the register screen.
It says to contact customer support to help resolve the issue. When you pick up the phone or send an email to support, you’ll be met with a few possible scenarios, each equally frustrating.
| Scenario | Result |
|---|---|
| No Support | Company closed overnight. System won't work despite reboots. Error message prevents operation. Multiple restarts cause crash and permanent boot loop. Store operations halted with no support available. |
| Company Switch | POS vendor acquired by a new company. Support reps unfamiliar with your system. They promise to get back "when convenient." You resort to manual card processing with carbon paper copies. |
| Forced Upgrade | Rep knows your issue from old records. Informs your POS system is End of Life. Options: upgrade to their system or lose support entirely. |
| Best Outcome | New company aware of widespread issue. Hotfix coming soon. Rep helps unfreeze the system for limited transactions. Provides guidance for transition. |
Any small to medium retailer in this position will wish for scenario four but often find themselves in the later three.
When point of sale vendors go under or get sold off, there are often no backup plans for those using the existing systems. Countless users will find that their system is no longer functional, and their retail technology will cease to operate.
Don’t assume your POS vendor will always be there. While you might hope for the best, prepare for less ideal scenarios. When POS providers change hands or shut down, it affects more than just tech support. You could lose access to software updates, security patches, and even the ability to add new terminals. Even if you rarely need help, these factors are crucial for maintaining and growing your system. Regularly evaluate your provider’s stability and have a backup plan ready. Stay proactive to avoid being blindsided by sudden changes that could leave your business vulnerable or unable to expand.
When retailers migrate to a new point of sale retail system, they risk finding one that isn’t the right fit for their type of business.
The process can be time-consuming and costly. The new system may also lack specific features that the retailer relied on, forcing them to find workarounds or forego certain functionalities altogether. Some ideas to create a buffer caused by this can include:
Software integrations like inventory management, eCommerce platforms, and customer relationship management systems may not mesh well with the new software or become completely unusable, depending on the new provider’s direction. Plan for this by:
Conversely, a new POS system may not integrate as smoothly with existing systems that the new company lets you keep, leading to operational inefficiencies and increased manual work. If the existing point of sale system is maintained, the new provider may require forced upgrades to the software. These fees can be substantial and add up quickly.
Read More: How Much Does a Point of Sale System Cost?
Carefully review all contracts and service agreements for hidden fees or mandatory upgrades. Negotiate upgrade terms and timelines, if possible, to spread out costs. Explore alternative financing options, such as leasing equipment or software-as-a-service models.
While the prospect of being forced to switch point of sale system providers can be daunting, there are some steps any business owner can take when the switch happens.
While taking a pause in business may be necessary, considering your choices and calmly thinking about the next steps are tantamount. Below are some proactive measures for retailers to take while keeping everything we discussed in mind.
| Proactive Measures for Retailers | Benefit to Retailers |
|---|---|
| Contractual Safeguards | Maintain regular backups of critical data. This practice ensures that retailers have access to their vital business information in the event of a sudden transition, minimizing data migration issues. |
| Diverse Payment Options | Establish relationships with multiple payment processors or ensure the POS system can integrate with various processors. This flexibility can mitigate the risk of losing the ability to process payments. |
| Data Privacy Impact Assessment | Conduct a data privacy impact assessment when changing POS systems to identify and mitigate risks related to customer data protection. Stay informed of data protection laws and ensure any new POS system has the functionality to comply with these regulations from the outset. |
| Engage Employees and Stakeholders | Involve employees in the transition process, particularly those who use the system most. Their input can highlight features that are crucial for daily operations. This approach allows for testing and adjustment before full implementation, reducing the risks of a complete system overhaul. |
As inscribed on the book cover by Douglas Adams, writer of The Hitchhiker’s Guide to the Galaxy, “Don’t Panic.”
This can be an opportunity to factor in what your business truly needs to operate smoothly. While there are many choices, a hybrid point of sale system can fill many needs. Consider Celerant’s Cumulus Retail for smaller stores and Stratus Enterprise for larger retailers looking to expand.
Our POS system stands out by offering innovative eCommerce and mobile app solutions seamlessly integrated into one unified platform. This enables retailers to deliver a consistent shopping experience across all channels: in-store, online, or on mobile—while significantly saving time by managing everything from one place.
Unlike other systems, such as Lightspeed, this complete connectivity provides retailers with a competitive edge, allowing for frequent POS system updates, easier product management, and a streamlined customer experience that boosts satisfaction and sales.
Whichever you choose, you want to ensure it’s the right system for your business. Retailers switch POS systems every 3 to 5 years, so picking the right one is worth taking your time for.
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