Lightspeed Might Be Up For Sale: Here’s How Retailers Can Prepare

By Nicholas C. Borowitz

Lightspeed point of sale is prospectively going up for sale. This could mean that thousands of retailers need to decide their best next steps and start preparations for the worst-case scenarios.

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.

Related: QuickBooks Point of Sale has Reached End of Life and What Retailers Need to Know

Now that we’ve established vulnerability to market forces regarding retail technology SaaS providers, there are some questions we need to ask.

What do retailers need to know when their point of sale provider goes out of business or goes up for sale?

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:

• Potential loss of credit card processors may pose challenges to future transactions.
• Software support from trusted teams won’t be available for the retail technology.
• Migration to a new point of sale provider might occur within a shortened transition window, potentially resulting in a poor fit for the business.
• Compliance issues, especially regarding customer data protection laws, can arise when changing POS providers.
• Integration challenges may emerge between the new point of sale system and periphery functions such as eCommerce, accounting, digital marketing, and scheduling.
• Financial burdens can result from a rushed retail software and technology switch, ultimately affecting the company’s bottom line.

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.

Related: See Why Retailers Choose Celerant POS over Lightspeed POS

Challenges Posed by Potential Loss of Payment Processors and Hardware Functionality

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.

1. In the best case, a new point of sale system is immediately compatible with existing hardware and data. The vendor partners with the financial processor. Equipment is plug-and-play, and data transfers easily, minimizing downtime.
2. A worst case is new software is incompatible with existing equipment. Retailers must buy new hardware and manually enter old records. Skipping steps risks data loss, potentially causing serious financial issues.

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.

Learn More: 5 Benefits of Integrating Accounting Software with Your Point of Sale System

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.

Pro Tip:

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.

What Happens When Support Teams Are No Longer Available for your POS

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.

Explore: How to Get The Help You Need from Your POS Provider (Even if You Do Not Speak Tech)

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.

Pro Tip:

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.

How to Deal With a Forced POS Migration to a New Retail Software Provider

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:

1. Create a detailed migration plan with realistic timelines.
2. Budget for immediate costs (hardware, software licenses) and long-term expenses (training, maintenance).
3. Consider the potential revenue loss during the transition and plan accordingly.

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:

1. Prioritize your must-have features and communicate these clearly to potential vendors.
2. Explore third-party add-ons or integrations that can fill feature gaps.
3. Be prepared to adapt some business processes to align with the new system’s capabilities.

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?

Pro Tip:

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.

Proactive Measures for Retailers When Switching to a New Point of Sale System

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.

Read More: How Long Does It Take to Go Live With a New Point of Sale System?

Now What After the Forced Point of Sale Switch for Retailers?

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.