Mobile point-of-sale technology has transformed how small businesses accept payments, making it easier for merchants to process card transactions without investing in traditional payment terminals. As competition among mPOS providers has intensified, companies have increasingly differentiated themselves by offering value-added services that extend beyond payment acceptance. Bundling payment hardware with financial products and business tools has become an effective strategy for attracting and retaining small business customers.
The partnership between American Express and Payleven exemplified this approach by combining a free Chip and PIN card reader with an American Express Business Gold Card. The offering provided small businesses with both payment acceptance capabilities and access to business financing, creating a more comprehensive solution for merchants.
American Express and German mPOS (mobile point-of-sale) vendor Payleven have announced a new European distribution deal that will see small businesses given a free Chip and PIN card reader and business credit card (American Express Business Gold Card) as part of a SME business package. The deal between mPOS provider and card issuing company is believed to be an industry first.
Commenting on the announcement, Konstantin Wolff, managing director and co-founder of Payleven, said,
“With the partnership, entrepreneurs are perfectly equipped for their everyday business. The business bundle contains technology to securely accept card payments, as well as a flexible credit card that is specifically tailored to their needs.”
With hardware, it generally becomes a race to the bottom in terms of price but by packaging a mPOS device with other value added services like a new business credit card, it shifts the discussion away from price and towards value. It would not be surprising to see other mPOS manufactures to look for strategic deals with payment card issuers and or processors in Europe and around the world.
As payment acceptance technology continues to evolve, partnerships that combine hardware, financial products, and business services offer greater value than standalone payment devices. Small businesses increasingly expect integrated solutions that simplify operations while supporting growth and cash flow management. By shifting the focus from hardware pricing to broader business benefits, payment providers can strengthen merchant relationships and remain competitive in the rapidly changing payments landscape.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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