Differences between a physical Terminal and using a mobile phone as a payment terminal

The mobile phone has gained prominence in the workplace, to the point of rivalling the physical payment terminal. Far from being a drawback, the mobile phone presents itself as a key tool for businesses looking to continue growing.

What does it mean to use a mobile phone as a payment terminal?

The payment terminal first appeared in the 1980s as a response to the need to process payments without cash. While its presence remains significant, gradually, using the mobile phone as a payment terminal has become a viable alternative.

Why has the digital terminal gained traction? The rise of technology and its growing importance in people’s lives has brought a shift in consumer needs, which has also affected how businesses operate. One such change has made it possible to turn a mobile phone into a payment terminal using Tap to Pay — a solution worth considering.

Comparison: physical terminal vs using a mobile phone as a terminal

This new scenario has sparked debate over whether the mobile POS is set to take over from the physical terminal, which has been a staple in retail environments for the past 40 years.

Initial and operational costs

A physical terminal involves an upfront cost that depends on the model and provider. Turning a mobile phone into a terminal requires a much lower investment, as no new hardware is needed and you can use a device you already own.

Operational costs also affect the POS: the monthly fee varies by bank or payment provider, whereas using a mobile device does not involve maintenance fees.

While using a mobile phone as a terminal is not entirely free — as there is a transaction fee — it is typically much more affordable.

Flexibility and mobility

The physical terminal often requires more administrative steps, as banks tend to be strict when collecting documentation to activate the device. Installing a POS on a mobile phone is more streamlined, still fully compliant with legal requirements but with more flexibility on timing.

Although connectivity is generally similar (landline, 3G/4G or Wi-Fi), portability is where the mobile terminal truly excels. While the traditional terminal is geographically limited, the mobile POS offers far more independence, allowing you to move around without worrying about wireless connection.

Integration with management systems

Software integration in physical terminals is often complex, which can lead to slower adoption by users. By contrast, the mobile POS offers easier integration thanks to mobile applications.

PaynoPain is known for its committed technical support team, who are fully available to assist clients — and at no extra cost. This contrasts with banks, which usually charge a monthly fee for this type of service.

Advantages of each option according to business type

Brick-and-Mortar businesses with high customer turnover

The physical terminal is an excellent choice for businesses with high transaction volumes, as it offers fast and stable payments. It is built for continuous use and often includes a receipt printer.

On the other hand, the mobile POS stands out for its ease of use, low initial costs and lack of monthly fees. Its ability to accept modern, convenient contactless payments makes it a compelling alternative to the traditional terminal.

Entrepreneurs and freelancers on the move

The physical terminal is a good fit when many transactions take place in fixed locations. The inclusion of a receipt printer adds value to the business image, giving entrepreneurs and freelancers a more professional appearance.

Using a mobile phone as a terminal is the most practical option for entrepreneurs and freelancers who work outside their usual workplace, as it allows them to accept payments from anywhere. It requires no monthly fee and easily supports card, contactless, and mobile payments — ideal for home services, couriers, or mobile professionals.

Considerations when choosing the best payment solution

Available budget and recurring costs

The mobile POS is ideal if you have a limited budget or are unsure of your financial stability. It requires almost no initial investment and has no maintenance fees.

If your business grows or you’re ready to invest more, a physical terminal may be more cost-effective in the long run.

Customer preferences in payment methods

Understanding your customers’ preferences is essential. If they feel more comfortable receiving a printed receipt, the physical terminal is the way to go. If they’re accustomed to paying by phone, offer them the modern alternative with a mobile POS.

Ease of use and day-to-day implementation

As mentioned earlier, implementing a POS on a mobile phone is quicker and easier. The physical terminal involves a more complex setup, but it’s better suited for integration with existing sales systems.

What’s the ideal solution for your business?

Deciding which payment method to adopt depends on several factors. Most importantly: your business model, transaction volume, and the level of mobility your daily activity requires. Both systems have their benefits, but they are best suited to different contexts.

Accepting payments with a physical terminal

If you operate a fixed-location business with high customer turnover (such as a café, shop or hair salon), you’re likely looking for speed, stability and a professional payment experience. In this case, a physical terminal is probably the most suitable option.

These devices are designed for continuous use, offer physical receipt printing and integrate better with till systems. Although their upfront and monthly costs are higher than a mobile POS, they can be more economical over time if your sales volume is significant.

Accepting payments with (your phone and) Tap to Pay

If you’re a freelancer, mobile entrepreneur or run a business that offers home services, attends fairs, markets or occasional sales, a mobile POS is the ideal solution. It’s less demanding financially, with no monthly maintenance fees to worry about.

Payment solutions for all types of business

Another option is to use a hybrid setup. For example, you could have a physical terminal as your main payment point in-store, and a mobile POS as a backup for off-site events, terrace payments or deliveries. This gives you flexibility and cost optimisation depending on each sales scenario.

While your business model, sales volume and required mobility will largely dictate your choice, don’t forget other important factors: available budget, ease of use, customer payment preferences and compatibility with existing systems.

If your customers value mobile or contactless payments and you want a modern, convenient solution, the mobile terminal is an excellent fit. If you prefer a more traditional and fast experience with printed receipts and a standalone device, the physical terminal offers greater confidence and professionalism.

In summary, if you’re looking for mobility, flexibility and low upfront costs, using a mobile phone as a terminal is the best choice. If you need stability, speed and professionalism at a fixed location, go for the physical terminal. Don’t rule out combining both solutions — this dual approach could give you the best of both worlds by turning two seemingly competing models into complementary tools.

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