US Bank aquires talech
US Bank has acquired POS company talech as of September 9th. talech, a Palo Alto based point of sale provider, is a great POS company for SMB, retail, and restaurants.
A brilliant move on the part of US Bank to bring another offering to their table. This also allows US Bank to keep it’s credit card processing money in house, instead of losing it to someone else.
Why would US Bank buy talech?
This has been the new trend in point of sale technology. The realization that the money is in the credit/debit card processing, not monthly POS fees. That type of thinking has started to upend the industry. US Bank is in it for those processing fees! They want your cash!
The landslide started with NCR acquiring Aloha. Compounded then by First Data and it’s POS offering Clover. But then Heartland and Shift4 buy up most of the other legacy restaurant POS companies.
Now classic POS like Dinerware, Focus, Restaurant Manager, managed by credit card overlords. US Bank can use this opportunity to introduce talech customers to Elavon. Elavon is US Bank’s wholly owned payment processing subsidiary.
This is also a great opportunity, because nobody encounters more new businesses than bankers. Bankers are who you speak to for loans, and bank accounts for your new business. So why wouldn’t they be in the POS business? Simple vertical integration would tell you that you want the customer in front of you to be able to buy everything they need. And buy it without a hassle. That’s why the nacho cheese dip is near the corn chips. They know you need both.
But this could be a positive change for talech AND US Bank
There are 2 major reasons this could be a great thing for all you restaurants out there!
First off, this could drive the overall price of POS down. You have so many fewer companies competing. But they compete for every dollar. And since they make their money on processing, the monthly fees they collect don’t have to be as high. The cost of hardware decreases too, and supplies. Because the whole point is to sign you to a contract for credit card processing.
This means you’ll be getting more bang for your POS buck. The more competitive these big companies are, the better off you are! Look at Apple and Samsung, trying to out-tech each other has led to better innovations for both. The speed that the technology advances is dramatically increased. And who’s better off? The consumer.
Second, this will mean a huge influx in cash for these companies. They won’t have to spend their days schilling for investors. They can concentrate on technology, service, and more.
A company like talech most benefits from a company like US Bank, because its the best kind of reliable bank roll. Nothing keeps your company rolling like knowing you don’t have to worry about money as much.
This could be a turning point for the whole POS industry. I’ve talked about this before, but this could be it. Last year I went to the National Restaurant Association convention in Chicago. The number of POS companies was immense. I think that in coming years, that number will consolidate to only a few. But the technology is going to dramatically advance.
talech is a cool company. Their POS product is top notch. Much better for a QSR or restaurant than Clover or something cheap. And more functional than an inexpensive retail POS would be too. So this was not only a cash grab by US Bank, but a very smart one. If there was a POS company I was going to hitch my wagon too, talech would definitely have been in the discussion.
Check out talech here, if you’re looking for a new POS.
And check out our other blogs on POS too!