According to various research reports, the point of sale (PoS) market is set to grow significantly over the next decade, driven by the expansion of e-commerce and omnichannel retailing, evolving regulatory changes and compliance requirements, growth in the retail and hospitality sectors, a heightened emphasis on security and fraud prevention and a rise in contactless payment methods.
Many PoS hardware stations are designed to connect directly with cash drawers, allowing businesses to efficiently handle cash transactions. Additionally, terminals often include robust reporting tools that enable merchants to individually track cash sales, refunds and deposits in detail, supporting more accurate and streamlined cash flow management.
For merchants using hardware PoS devices, these solutions ought to offer all-in-one capabilities observes Peter O’Halloran, Head of Enterprise & Digital Commerce EMEA at Fiserv.
“In addition to aiding with the management of tasks such as online ordering, accounting and inventory management, such offerings also provide robust reporting and analytics data analytics,” he says. “Merchants using these devices can view data on customer spending patterns, stock tracking and internal processes in a real-time dashboard on mobile device applications.”
This gives business owners a clearer picture of the company’s progress and performance without needing to always be on site. Once this is realised, merchants can leverage the data all-in-one PoS systems to generate to pinpoint efficiencies, optimise inventory and streamline payments, all of which help finance teams to make smarter decisions.
“By tapping into real-time point of sale data, finance teams gain access to accurate, actionable insights that support more effective decision making across pricing, inventory and profits,” says Peter Chan, VP of Partnerships at DoJo. “Rather than relying on historical reports or assumptions, real-time data reveals live sales performance, customer behaviour and transaction trends, allowing for smarter forecasting.”
This visibility empowers finance teams to identify areas of underperformance, reduce waste and optimise margins. It also enables them to support strategic decisions that keep the business competitive, whether that is adjusting pricing or adjusting stock levels based on actual customer trends.
Some of the worlds’ largest retailers have implemented new systems recently. For example, UK supermarket chain, Morrisons, has selected NCR Voyix to provide new PoS technology across more than 13,000 checkout lanes in almost 500 stores.
Morrisons is investing in additional capabilities that replace legacy technology to optimise efficiency and scalability, and the platform will enable the retailer to quickly roll out new digital, personalised experiences.
US specialty furniture retailer, Bambi Baby, has massively reduced in-store checkout times and grown average order values by 30% since implementing a new PoS system.
The company recognised the need for a unified solution that could support its growing omnichannel operations and eliminate manual processes. Store workers were struggling to keep up with manual order entry, especially during busy weekend hours.
“We were doing pen and paper transactions using an Excel sheet, scanning them and having the back office enter orders,” explains IT Director, Josh Weiss. “You would come in on a Monday and have to enter 50 orders manually. It just became a process that was not sustainable.”
The paper-based checkout process also created bottlenecks. “You would have four or five people backed up trying to buy something,” says Weiss.
Bambi Baby replatformed to Shopify over a three month period. Each store now operates multiple PoS stations plus mobile devices, enabling staff to process transactions anywhere on the floor.
“I can check four people out simultaneously and it takes minutes to do so,” says Weiss. “Now I have time to be with people because the same ten minutes I used to spend writing up orders, I can be upselling.”
This improved efficiency has translated into significant business growth. “Our conversion rate is up by 30% and average order value is up too,” adds Weiss. “Everything is managed from one place and it is so trainable – I can teach someone the POS system in 35 minutes.”
One of the most interesting debates in the retail space is over the extent to which software point of sale or SoftPoS solutions are replacing traditional systems.
SoftPoS is a useful addition to the PoS offering, but it will not replace traditional systems entirely as merchants will always have differing requirements. For instance, smaller retailers selling lower value products or services need their system to be low cost, easy to set up and use and highly agile whereas larger retailers – or merchants selling high value products or services – need high throughput and value-added services.
That is the view of Tommaso Jacopo Ulissi, Head of Strategy and Transformation at Nexi Group, who says this disparity in system requirements is fuelling the rise of so-called ‘SmartPoS’, which he says delivers value beyond just payments.
“By enabling merchants to manage multiple services direct from the terminal, the point of sale is transformed into a hugely innovative business management tool,” he explains. “As well as taking payments, SmartPoS can meet specific additional needs such as order management, taxi bookings, collecting customer feedback or manging loyalty programmes.”
Traditional points of sale are being replaced as customer behaviours and payment preferences change, adds Jacopo Ulissi. “It is essential that point of sale innovation continues to reflect the contrasting needs of merchants across industries and geographies, offering a variety of different solutions that can be tailored to the unique requirements of every business,” he continues.
SoftPoS is supporting new use cases by enabling more convenient payments on the go, suggests Fime Strategic Partnerships and Security Manager, Christian Damour.
“Think about small merchants at outdoor marketplaces, on the spot invoice payments to tradesmen, ticketing inspectors on trains, in-store sales attendants untethered from the cashier’s desk or waiting staff at restaurants who no longer need to fetch the point of sale terminal,” he says.
“By enabling merchants to manage multiple services direct from the terminal, the point of sale is transformed into a hugely innovative business management tool.”
Tommaso Jacopo Ulissi, Head of Strategy and Transformation, Nexi Group
Some of the limitations of SoftPoS show why it is currently viewed as being complimentary to, rather than replacing, traditional systems. It can only be used for contactless payments unless a PCI PTS (PIN Transaction Security) certified card reader is connected via Bluetooth. Taking a picture of the card or manually typing card data into the device is a fallback option, but both options sacrifice convenience.
“Interestingly, SoftPoS is also evolving to enable ‘unattended’ use cases,” notes Damour. “Mastercard’s ‘Tap on Own Device’ operates as an extension to SoftPoS, enabling customers to tap their card on their own mobile device to complete an e-commerce payment. This can be enabled by installing a dedicated mobile app and must also comply with the PCI MPoC (mobile payments on COTS or commercial off-the-shelf devices) standard, which is designed to ensure that all SoftPoS solutions undergo rigorous testing to keep data secure.”
O’Halloran agrees that we are not looking at the end of traditional POS systems despite SoftPoS becoming increasingly popular in the payments industry by eliminating the need for additional devices, allowing merchants to monitor and manage transactions anywhere, any time.
For customers, it reduces checkout times as payments do not need processing at the till and can instead be managed from anywhere on the shop floor. This is especially beneficial for customers with limited mobility.
“Nevertheless, traditional point of sale devices offer certain benefits that SoftPoS solutions cannot replace,” says O’Halloran. “For merchants with fixed locations and high transaction volumes, traditional point of sale hardware offers more stable and reliable solutions and can also often facilitate a wider range of payment options for customers.”
As consumer expectations and preferences evolve – with greater emphasis placed on faster and more efficient service – businesses need more flexibility in how and where they accept payments. According to Chan, SoftPoS delivers that flexibility.
“With smartphones acting as secure payment devices, staff can take payments from anywhere, whether that be at the table, on the terrace or in a queue,” he says. “For instance, during busy periods when card readers are all in use, staff can simply switch to a business phone or tablet to process a payment, reducing wait times and improving service speed.”
The potential benefits are even greater in large scale or high traffic environments like festivals and events where long queues at bars or merchandise stands can be tackled by deploying additional SoftPoS devices instantly, enabling staff to process payments more quickly and keep customers moving.
“In addition to enhancing mobility, SoftPoS gives businesses the flexibility to use their preferred combination of hardware and software, aligning payment solutions with their existing technology stack,” adds Chan. “Whether it is a restaurant floor or a festival site, every corner of a venue becomes a potential transaction point.”
Enhanced security looks set to be at the heart of future innovation in PoS payment technology. Institutions that already support secure payment acceptance are well positioned to extend their role into digital identity acceptance.
Payment and digital identity ecosystems can securely store cryptographic keys and execute sensitive operations thanks to a combination of cryptography and secure hardware.
“They also use similar user interfaces and input methods, such as NFC or near-field communication and biometric scanners,” explains Marcelo Bellini Garcia, VP Digital Identity at Consult Hyperion. “Both are based on defined standards and are built on trust relationships between key stakeholders.”
For services that require face to face verification or hybrid customer journeys (where digital and physical interactions are blended) the PoS becomes the clear candidate for identity authentication. In this scenario, digital identity does not just expand what PoS can do – it also expands where it can go.
“Key use cases are emerging and many pilots are already underway,” says Bellini Garcia. “For example, customers collecting prescriptions in pharmacies, where identity verification and payment often occur together can now do so as part of a unified experience that improves efficiency and enhances the customer journey in-store. In retail, regulation for age verification with digital identity when buying liquor is already in place in Australia.”
O’Halloran suggests that as the technology continues to develop, one of the ways it will make payment processing more efficient is through optimising security and compliance in a continuously evolving regulatory landscape.
“Point of sale devices that offer robust security and compliance measures safeguard sensitive customer data and guarantee secure payment processing,” he says. “In turn, this facilitates faster, more streamlined transactions by preventing technical difficulties and outages.
Banks are increasingly looking to facilitate seamless payment acceptance product integrations with point of sale technology to further boost the efficiency of payment processing.”
O’Halloran also refers to the potential of ‘pay by bank’ to transform PoS payment technology. “For merchants, adding real-time payments enables them to instantly process payments linked to financial institutions,” he concludes. “What is more, the wider range of payment options is not only convenient for merchants but also helps in significantly increasing their customer base.”
