A point of sale(POS) system denotes the place where customers make payments for the products or services that they purchase. This also includes the software and the hardware(e.g. POS terminal, smartphones, etc.) that facilitate the process of managing the buy, return and exchange transactions.
According to Grand View Research, the global market for point-of-sale terminals is estimated to reach $125.9 billion by 2027.
In the table below, we discuss the different types of POS systems available in the market today.
Types of POS Systems | Used by |
POS Apps
(Cloud-based applications that can be downloaded onto any device that supports them) |
Businesses that run on a strict budget, and require a versatile and portable point-of-sale system |
Mobile POS Systems
(Software system with mobile accessibility) |
Traveling merchants or retailers who require mobile solutions for on-spot sales |
Touch Screen POS Systems
(System that operates on different types of touch screens such as smartphone, tablet, and computer) |
Businesses that seek to expedite the ordering and checkout processes |
Cloud POS Systems
(Systems that are totally hosted online and use cloud storage) |
Businesses that wish to get reports and POS data from any location |
Open Source POS Systems
(Software that can be used and modified for free) |
Businesses that want to build proprietary systems using in-house technical expertise |
Multichannel POS Systems
(System that enables a business to engage with customers through multiple channels) |
Omnichannel retailers, who need to sync stock levels |
Self-Service Kiosk POS Systems
(System that allows customers to scan and pay for their own merchandise or service) |
Quick-service businesses with self-service checkout options |
An efficient point of sale (POS) system ensures that all your transactions are complete and accurately recorded. It boosts productivity and saves time by automatically tracking transactions and matching the cash in the register with that in your records. Here are some of the significant benefits that POS systems provide to businesses.
POS systems provide their customers with multiple payment methods. This makes it easier for the retailers to receive funds sooner and also saves the customer the trouble of signing checks or invoices.
POS systems are capable of handling a wide range of operations including inventory management and staff scheduling. This frees up your time and allows you to engage in strategic activities such as customer relationship building.
POS systems collect a plethora of data about your customers and enable you to make informed decisions about your inventory, marketing objectives, and operations.
Automation helps reduce errors in recording transactions and collecting payments, thus making the process more efficient and accurate.
POS systems allow you to save time on administrative tasks, checkout processes, and other clerical workflows.
Always keep your business needs in mind, both current and forecasted, when choosing POS software and hardware. For example, mobile point of sales (mPOS) systems can be much more budget-friendly and easy to use than an on-premises POS system. If you want to allow customers to check out by themselves, have a self-service terminal with touchscreen options.
Keep in mind the market trends and look out for the application features when you choose POS software.
If you plan to purchase or upgrade your POS system, here are some pointers to help you make a good decision:
Here are some of the important questions to ask the vendor while choosing the POS system for your organization
The leading POS systems not only help complete payment transactions but also offer real-time reports that can be accessed on the go via a mobile app or a website.
Point of sale or POS transactions refer to the location and channel where a buyer pays the seller. It can be offline or online.
A POS system costs between $3,000 and $10,000. However, the final POS pricing is determined by the type of POS hardware, software, and level of customization that you request for.
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