The retail sector is evolving at pace, and technology is at the heart of this transformation. POS (point of sale) systems have become indispensable tools for managing transactions, enhancing security and improving the overall customer experience.
Reflecting this growing demand, according to Grand View Research, the global POS software market was valued at USD 13.49 billion in 2023 and is projected to reach USD 27.71 billion by 2030, with a compound annual growth rate (CAGR) of 10.8%. For retailers, investing in modern POS terminals is a strategic move towards building more agile, efficient and customer focused operations.
Implementing a robust POS system not only caters to diverse payment preferences but also enhances operational efficiency, freeing up valuable time and potentially increasing revenue. By speeding up transactions, reducing manual errors and offering more convenient ways to pay, POS terminals help businesses serve more customers in less time, while also enabling features like upselling prompts, loyalty integrations and detailed sales insights that support more informed decisions.
Choosing the right POS terminal isn’t a one-size-fits-all decision, but understanding the essentials of card present transactions is a vital first step. Investing in this knowledge ensures your business remains agile and responsive to shifting payment trends, ultimately improving customer experience and driving sales.
What is a POS terminal?
A POS, or point of sale, terminal is an electronic device primarily used in physical retail environments to process card payments. It facilitates the secure capture of card data and the seamless transfer of funds from the customer’s account to the merchant’s.
However, the checkout process isn’t limited to a single POS machine. Modern POS terminals can integrate with electronic cash registers (ECRs) and electronic point of sale (ePOS) systems, enabling businesses to streamline their transactions and overall operations.
A complete POS setup often consists of multiple components that work together to enhance the checkout experience and business efficiency. These typically include:
- POS terminal: The primary device where customers tap, swipe or insert their card and enter their PIN (commonly referred to as chip and PIN payments).
- ePOS system: A software-driven solution that integrates with physical hardware such as POS terminals, computers or tablets for comprehensive transaction management.
- Electronic cash register (ECR): Used for recording sales and managing cash transactions.
- Barcode scanner: Essential for quick product identification and pricing at checkout.
While these are common hardware elements in a POS system, the exact setup varies depending on the type of business and the nature of its products or services. Whether in retail, hospitality or other industries, merchants can tailor their POS configurations to meet their specific operational needs.
How POS systems work
POS systems are the foundation of seamless retail operations, designed to facilitate transactions, manage inventory and improve the customer experience. As consumer expectations evolve, these systems help businesses stay competitive by enabling faster checkouts and reducing errors.
1. Initiating a sale
The process begins when a customer selects items or services for purchase. These are added to the POS system via barcode scanning, touchscreen selection or manual entry. While traditional POS, SmartPOS and mPOS setups can be initiated from anywhere in the store, SoftPOS takes this one step further by allowing merchants to operate entirely from an NFC-enabled smartphone, without additional hardware.
2. Calculating the total
Once items are entered, the POS system software automatically calculates the total amount payable. It applies relevant taxes, promotional discounts or service charges to ensure pricing accuracy and compliance. This calculation is handled seamlessly across all types of POS systems, supporting a consistent checkout experience regardless of the device used.
3. Accepting payments
At this stage, customers are prompted to choose a payment method. POS systems today support a wide variety of options, including chip and PIN, magnetic stripe, contactless cards and digital wallets such as Apple Pay and Google Pay. SmartPOS devices combine payment acceptance with display and receipt printing functions in one integrated unit. On the other hand, mPOS systems use connected card readers, while SoftPOS enables businesses to accept contactless payments directly on a smartphone. All payments are processed securely through a payment gateway and acquiring infrastructure.
4. Issuing a receipt
After a successful transaction, the POS system issues a receipt, either printed or digital, based on customer preference. SmartPOS and traditional POS often feature built-in printers, while mPOS and SoftPOS typically support email or SMS receipts.
5. Recording transactions and analysing data
Once a transaction is completed, the POS system automatically records all relevant details, including the items purchased, payment method used, time and date and transaction amount. This data is securely stored within the system and can be accessed for financial reporting, reconciliation and auditing purposes.
Beyond basic record keeping, SmartPOS systems provide valuable insights into sales performance. Businesses can track metrics such as best selling products, average transaction value and peak sales periods. These analytics help inform stock planning, staffing decisions and promotional strategies, supporting smarter, data led business management. Whether using a traditional terminal, SmartPOS, mobile POS or SoftPOS, having immediate access to detailed transaction data equips merchants with the visibility needed to make timely and informed operational decisions.
6. Enhancing flexibility and customer experience
POS systems are built to support a wide range of retail environments, from permanent storefronts to mobile and pop-up setups. Traditional terminals offer reliability in both fixed and adaptable spaces, while SmartPOS devices provide an added layer of functionality by allowing businesses to install tailored apps, such as inventory management, table-side ordering or staff scheduling, to meet specific operational needs. Mobile POS allows staff to take payments anywhere within a store or at off-site locations, and SoftPOS enables contactless transactions directly from a smartphone.
Whether operating a bustling high street shop, a boutique cafe or a mobile business, selecting the appropriate POS system is key to improving operational efficiency and elevating the customer experience.
Types of POS systems
Selecting the right POS system is crucial for optimising operations, improving customer experiences and increasing sales. Below is an overview of the most common types of POS systems to help businesses make informed decisions.
Traditional POS systems
Traditional POS systems are the standard countertop setups commonly used in brick-and-mortar stores. They typically include hardware components such as a monitor, cash drawer, receipt printer and barcode scanner. Designed for businesses with a fixed location, such as retail stores, cafes and restaurants, these systems offer reliable performance and comprehensive functionality, making them a dependable choice for managing transactions efficiently.
Mobile POS systems (mPOS)
Mobile POS systems (mPOS) are wireless payment devices that connect to smartphones or tablets to enable the processing of payments. Ideal for small businesses, pop-up shops, food trucks and service providers, mPOS solutions offer flexibility, affordability and scalability. Their portable nature allows businesses to serve customers efficiently, whether in-store, at events or on the move, making them a valuable option for those requiring mobility. Many mPOS solutions also connect to app stores, allowing merchants to download and use business-specific applications, such as invoicing or inventory tools to enhance functionality and streamline operations.
SmartPOS systems
SmartPOS systems are the next evolution in payment technology, combining the functionality of a traditional POS with the flexibility of a mobile device. Unlike fixed countertop terminals, SmartPOS devices are lightweight, portable and equipped with touchscreens, making them ideal for retailers, restaurants and service providers.
Beyond payment processing, SmartPOS terminals offer developing applications for advanced features such as inventory tracking, sales reporting and CRM tools, allowing businesses to enhance customer interactions and streamline operations. Whether you're running a boutique store or a fast-paced cafe, a SmartPOS solution provides efficiency, security and data insights.
Self service POS systems
Self service POS systems, often in the form of kiosks, enable customers to place and pay for orders independently without the need for staff to process the payment. By reducing wait times and streamlining the checkout process, these systems enhance efficiency and improve the overall customer experience. Commonly used in fast food restaurants, gas stations, car parks, cinemas and retail stores, self-service POS solutions provide a seamless, convenient and user-friendly payment experience while helping businesses optimise operations.
SoftPOS systems
SoftPOS (Software point of sale) allows businesses to accept contactless payments directly on a compatible Android smartphone or tablet, without the need for extra hardware. It turns a smart device into a secure payment terminal, supporting contactless cards and mobile wallets. It’s designed for ease of use, with a straightforward interface, making it a practical option for businesses that operate on the move or want to reduce reliance on traditional terminals. SoftPOS is particularly useful for smaller merchants or those looking for a more flexible, cost-effective way to accept payments while maintaining the security standards expected in payment processing.
POS payment solutions for your business
A reliable POS system is essential for retailers of all sizes, enabling seamless transactions wherever and whenever customers choose to pay. With evolving consumer expectations, businesses need a payment solution that is fast, secure and adaptable.
At emerchantpay, we provide state-of-the-art POS terminals equipped with the latest security standards and versatile network connectivity, including wireless capabilities that give you the flexibility to take payments anywhere in your store. Our solutions also support seamless gratuity acceptance, an in-demand feature across industries such as hospitality, beauty and personal services.
Designed with a customer first approach, our POS terminals deliver an intuitive user experience while supporting major debit and credit cards such as Mastercard, Visa, American Express and Union Pay, chip and PIN, magstripe and digital wallets. Integration with your existing ePOS system is straightforward, ensuring a smooth transition to an optimised in-store payment experience. Our offering includes a comprehensive range of solutions, from traditional POS terminals and SmartPOS devices to mPOS and SoftPOS technology, enabling businesses to choose the right set-up for their operational needs.
With over 20 years of expertise in the payments industry, emerchantpay empowers businesses of all sizes to enhance their payment solutions, drive customer satisfaction and streamline operations. Discover how our POS, payment gateway and acquiring solutions can help your business grow, speak to our payment experts today.