# Adyen rejuvenates in-store payment integration with an API POS solution powered by nexo standards
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-09-18
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Adyen: Revolutionising In-Store Payments with nexo Retailer Protocol
Meta Description: Discover how Adyen's seamless integration with nexo Retailer Protocol revolutionises in-store payments, simplifying processes and enhancing customer
URL: https://financedigest.com/adyen-rejuvenates-in-store-payment-integration-with-an-api-pos-solution-powered-by-nexo-standardshtml

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**Introduction**

Adyen is the payments platform of choice for many of the world’s leading companies, providing a modern end-to-end infrastructure that connects directly to Visa, Mastercard, and consumers’ globally preferred payment methods. Adyen delivers frictionless payments across in-store, mobile and ecommerce channels. Its key customers include L’Oreal, Superdry, Facebook, Uber, Netflix, Spotify, Tory Burch, Casper and Bonobos.

> Today, POS payments still represent the largest global volume, yet the majority of systems remain awkward and inefficient.

This case study explores how the adoption of the nexo Retailer Protocol enabled Adyen to deliver a [unique way](https://www.financedigest.com/5-unique-ways-to-go-greener-in-the-office.html "5 unique ways to go greener in the office") of combining sales and payment systems simply and cost-effectively, with a standardised and centralised solution that delivers real business benefits.

**The challenges**

Merchants have long grappled with the cumbersome process of connecting payments and sales solutions in a traditional in-store point of sale (POS) set up.

This is because the two functions (sales and payments) are managed separately, locally, and usually in different programming languages. Merchants are then forced to rely on software ‘libraries’ to integrate the POS registers, terminals and payments systems. Being tied to these complex and extensive libraries not only incurs high initial set-up costs, but also adds complexities to [service upgrades and prohibits quick roll-outs of new payment innovations](https://www.financedigest.com/accelerating-financial-services-innovation-with-the-promise-of-data-mesh.html "Accelerating financial services innovation with the promise of data mesh ").

To account for programming language compatibility issues with this model, localised updates need to be done manually, meaning [management of terminal fleets](https://www.financedigest.com/fleet-management-101-for-smes.html "Fleet Management 101 for SMEs") is difficult and slow. Business risks apply here too, as forced updates and PCI exposure can leave sales staff inconvenienced if these updates occur during trading hours and create resourcing issues for [back office](https://www.financedigest.com/to-get-employees-back-in-the-office-business-leaders-must-do-their-homework.html "To get employees back in the office, business leaders must do their homework") staff when updates are required across all store locations.

Adyen saw the opportunity to redefine in-store [payments integration](https://www.financedigest.com/building-a-business-case-for-integrated-payments.html "Building a Business Case for Integrated Payments") and help large international enterprises and leading domestic merchant leaders to overcome these challenges. Adyen looked to nexo’s protocols as a cornerstone for developing a powerful, innovative and modern [solution fit for some of the world’s biggest leading](https://www.financedigest.com/bny-mellons-new-solution-leads-the-digital-bill-pay-revolution.html "BNY Mellon’s New Solution Leads the Digital Bill-Pay Revolution") retailers.

**Why nexo?**

Keen to offer merchants a modern way of connecting in-store terminal [hardware to its single payment](https://www.financedigest.com/does-softpos-signal-the-end-of-payment-hardware-as-we-know-it.html "Does SoftPOS signal the end of payment hardware as we know it?") platform, Adyen assessed the nexo Retailer Protocol. This protocol defines a set of interfaces between a [card payment application and a retail point of sale system](https://www.financedigest.com/fingerprints-and-tag-systems-collaborate-to-offer-contactless-biometric-payment-cards-globally.html "Fingerprints™ and Tag Systems collaborate to offer contactless biometric payment cards globally"), and Adyen quickly found it was able to accommodate merchants’ needs in a variety of ways. Here’s why nexo works for them:

_The cloud’s the limit_

The nexo Retailer Protocol enables Adyen to centralise its [solution with cloud](https://www.financedigest.com/the-future-of-fintech-and-open-source-cloud-solutions-in-the-united-kingdom.html "The future of fintech and open source cloud solutions in the United Kingdom") or local-based API options that transform the current resource-intensive, one-to-one library management into a simple, agnostic service model that updates in real-time.

As the local and cloud integrations use [standard internet access](https://www.financedigest.com/luxury-to-essential-latam-boosts-internet-access-in-pandemic.html "Luxury to essential: Latam boosts internet access in pandemic"), there is also no need for complex client configurations. [Merchants simply ‘plug and play’ their terminals to install them and benefit from the latest services](https://www.financedigest.com/visa-launches-crypto-advisory-service-for-financial-institutions-merchants.html "Visa launches crypto advisory service for financial institutions, merchants").

This interoperable and centralised integration process alleviates the business risks for both the [payment processor and its merchant customers](https://www.financedigest.com/how-payment-institutions-can-leverage-data-to-support-merchant-customers.html "How payment institutions can leverage data to support merchant customers"). For Adyen, it also means they enhance their payment offering at the point of sale, while delivering consistent integration between POS terminals, cash [register systems](https://www.financedigest.com/energy-management-system-market-to-register-a-cagr-of-14-8.html "Energy Management System Market to register a CAGR of 14.8%") and their payment platform.

_Simplify upgrades globally_

By standardising the exchange of payment acceptance data, Adyenis able to realise huge [operational efficiencies](https://www.financedigest.com/finance-operations-efficiency-7-ways-to-slick-up-your-department.html "Finance operations efficiency – 7 ways to slick up your department") for merchants. This includes mitigating a number of [risks such as forced updates if old versions aren’t actively managed](https://www.financedigest.com/risk-management-redefined-navigating-post-covid-disruption.html "Risk Management redefined: navigating post-COVID disruption") and having multiple devices on different versions. Both aspects also drastically slow the [delivery of new services](https://www.financedigest.com/online-food-delivery-services-market-will-reach-a-valuation-of-over-us-4212-6-mn-towards-2029-end-fmi.html "Online Food Delivery Services Market will Reach a Valuation of over US$ 4,212.6 Mn towards 2029-end: FMI"), such as shoppers preferred payment methods and makes fleet management complex. With the Terminal API using the nexo protocol, the delivery of new services and [system upgrades](https://www.financedigest.com/sweden-to-upgrade-berzelius-supercomputer-with-nvidia-ai-systems.html "Sweden to upgrade Berzelius supercomputer with Nvidia AI systems") are dramatically streamlined, removing reliance on local installs of software and updates.

nexo’s basic interaction model is request/response JSON messaging. This means that making a payment with the Terminal API is a simple request-response, and all informational events, such as notifying where the terminal is in the payment process, are communicated via JSON webhooks that are optionally implemented. This standardised JSON messaging format, rather than customised libraries, call-backs and SDKs, makes it far easier for merchants to update and roll-out new software.

_Compliance and security, instantly_

nexo’s standards and protocols are built upon the internationally recognised ISO 20022 standard and conform with PCI DSS, keeping P2PE standards in mind. This not only ensures universality and interoperability between different equipment and payment systems internationally, it also guarantees all implementations are fully compliant and secure, reducing the [need to investigate compliance](https://www.financedigest.com/why-the-us-urgently-needs-media-compliance-auditing.html "Why the US urgently needs media compliance auditing") levels with each new country merchants expand into.

_Powered up payments processing_

Adyen’s ‘all-in-one’ powerful platform gives merchants a unified [system that manages all transactions globally](https://www.financedigest.com/a-report-on-global-clinical-trial-management-system-market-by-pmr.html "A Report On Global Clinical Trial Management System Market By PMR") via POS, mobile devices and ecommerce, while centralising access and visibility of data. Not only does this realise more immediate efficiencies in terms of costs and resourcing, it also enables a new level of data analysis for merchants across all [sales channels while allowing Adyen to continue to deliver future-focused payment innovations](https://www.financedigest.com/continuous-innovations-and-growing-urbanization-to-amplify-sales-of-privacy-screens-market-fact-mr-report.html "Continuous Innovations and Growing Urbanization to Amplify Sales of Privacy Screens Market: Fact.MR Report").

nexo enables the [delivery of this fully](https://www.financedigest.com/ikeas-home-deliveries-will-be-fully-electric-by-2025-ceo.html "IKEA’s home deliveries will be fully electric by 2025 – CEO") integrated super service, as all payments players communicate and interoperate by ‘speaking the same language’ across borders.

_Delivering better services in-store_

There are a number of other innovative ways in which the Terminal API is delivering in-store fluidity and advancing [customer experiences](https://www.financedigest.com/customer-experience-creating-the-calm-in-the-chaos.html "Customer Experience: creating the calm in the chaos").  For example, since in-store payments can be initiated remotely, merchants can create an experience where a shopper initiates an order in-app, then walks into a store where the [sales assistant can then pull the order and push](https://www.financedigest.com/u-s-automotive-and-aircraft-interior-genuine-leather-aftermarket-is-expected-to-push-sales-at-3-6-cagr-with-the-market-valuation-reaching-us-11-1-bn-in-2031.html "U.S. Automotive and Aircraft Interior Genuine Leather Aftermarket is expected to push sales at 3.6% CAGR, with the market valuation reaching US$ 11.1 Bn in 2031") the payment to an in-store terminal (say pay by QR code) on collection of the item. Another example may be a hotel [assistant helping a guest check-in on a tablet or mobile device](https://www.financedigest.com/virtual-assistance-to-pave-the-way-for-pain-management-devices-market.html "Virtual assistance to pave the way for Pain Management Devices Market"), then routing the payment transaction through to the closest available terminal.

In a fast-paced world increasingly focused on [real-time payments](https://www.financedigest.com/the-role-of-invisible-real-time-payments-in-fueling-the-future-of-cx-in-business.html "The role of invisible, real-time payments in fueling the future of CX in business") and a seamless consumer experience, offering these possibilities to merchants creates a range of exciting new use cases for this technology.

**What’s next for Adyen?**

[Next steps](https://www.financedigest.com/eu-leaders-to-discuss-next-steps-on-energy-ukraine.html "EU leaders to discuss next steps on energy, Ukraine") for Adyen’s Terminal API is further integration efforts with their Checkout API which will enable merchants to access a full Unified Commerce payment solution. They expect this to be production ready in early 2019. By making its solutions easier to integrate, as well as more efficient and available, Adyen can continue to deliver outstanding [value to its customers](https://www.financedigest.com/the-value-of-customer-centricity-to-c-suite-financial-strategy.html "The value of customer-centricity to C-Suite financial strategy").

To learn more about the nexo Retailer Protocol, you can [download the specifications](http://www.nexo-standards.org/standards/nexo-retailer-protocol?utm_source=iseepr&utm_campaign=nexo-Adyen) and read more about the organisation [here](http://www.nexo-standards.org/?utm_source=iseepr&utm_campaign=nexo-Adyen).

To get started with Adyen’s Terminal API view their documentation here or to learn more about their in-store offering [click here](https://www.adyen.com/pos-payments).


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