A smartphone is arguably one of the most widely used everyday products of the 21st century. In a world where payment convenience is everything, SoftPOS (Software Point of Sale) is a technology that’s here to stay.
Originally, SoftPOS technology was only available on Android devices. With Apple now entering the ecosystem step by step, SoftPOS is on the cusp of accelerated adoption, especially in markets with small merchants, such as Brazil, France and the UK. To illustrate, Juniper Research report predicts that by 2028, 61 million smartphones globally will use SoftPOS, marking a 683% increase from 2023.
In this article, we’ll explore what SoftPOS is, how it works and why it’s becoming a popular choice for businesses. We’ll also examine its benefits and compare it to mobile POS and traditional POS terminals.
What is SoftPOS and how does it work?
SoftPOS, short for Software point of sale, is an emerging technology in the world of mobile payments. It allows Near field communication (NFC) enabled smartphones or tablets installed with software to accept card payments without any additional hardware. This innovative payment solution eliminates the need for traditional POS hardware terminals as businesses seek more flexible ways to process contactless transactions for consumers.
According to PCI MPoC, SoftPOS solutions must run on off-the-shelf commercial mobile devices and cannot be installed on traditional payment terminals, ensuring a clear distinction between dedicated hardware and flexible, software-based acceptance.
To make accepting payments possible, the process begins with the merchant installing a SoftPOS app on their compatible device, which turns it into a secure payment terminal.
When a customer is ready to pay, the merchant initiates the transaction by entering the amount into the SoftPOS app. The customer then simply taps their contactless card, smartphone or wearable device on the merchant's phone to make the payment.
The SoftPOS app securely processes the payment, encrypting the transaction data to ensure safety. Once the transaction is complete, both the merchant and customer receive confirmation, concluding the payment process.
Benefits of SoftPOS for businesses
Flexible and mobile
SoftPOS payment terminals enable businesses to accept payments anywhere and anytime. They are mobile and easy for merchants to offer services on the go. This is particularly beneficial for businesses with multiple locations, pop-up shops or mobile businesses.
Easy set-up and integration
SoftPOS is easy to set-up, often requiring just an app download and account set-up. They can also integrate with existing business applications. For instance, a restaurant with its own application for managing tables and orders can integrate the SoftPOS functionality directly into the application. This enables the staff to accept and manage payments right through the same environment, simplifying operations and workflows.
Differences between mPOS and SoftPOS
Among POS terminals, mPOS and SoftPOS have emerged as popular choices. Although they’re often mentioned together, they offer distinct features and benefits. A mobile point of sale (mPOS) is any portable device that lets merchants accept and process transactions on the go. According to Statista, the transaction value for mPOS payments will reach USD 12.56 trillion in 2025. While SoftPOS and mPOS are mobile payment solutions, they have some key differences. Let's look at what these differences are below.
Device requirements
SoftPOS needs only a smartphone or tablet with NFC capabilities and an internet connection, while mPOS requires a dedicated mPOS device in addition to a mobile device such as a smartphone or tablet.
Transaction type
SoftPOS is limited to contactless transactions. mPOS, on the other hand, can process swipe, chip-and-pin and contactless payments. Both payment systems support refunds and reversals, offering more flexibility.
Cost
For both SoftPOS and mPOS a mobile device is required. If we assume that the mobile devices cost the same for SoftPOS and mPOS, SoftPOS can have lower upfront costs as it doesn't require extra hardware at set-up. mPOS involves a higher initial investment due to the need for card readers or other devices.
Portability
Both SoftPOS and mPOS are highly portable. However, since mPOS requires a card reader as well, SoftPOS is relatively more portable than mPOS.
Differences between traditional POS and SoftPOS
Traditional POS systems are fixed or semi-mobile terminals used to process payments at a checkout counter or service desk. Compared to SoftPOS, they offer a different experience in terms of hardware, set-up and scalability.
Hardware dependency
Traditional POS systems require dedicated hardware, such as card readers, printers and cash drawers. SoftPOS requires only an NFC-enabled smartphone or tablet.
Cost
The cost of a traditional POS system includes purchasing or leasing terminals, maintenance and potential software licensing fees. SoftPOS decreases these costs, making it a more cost-effective alternative. SoftPOS is more suitable for mobile start-up businesses with little capital to invest in the beginning.
Installation and maintenance
Traditional POS set-ups often involve a comparatively more complex installation and need regular maintenance. In contrast, SoftPOS can be installed via an app and doesn't require routine servicing or technical support on-site.
Transaction type
Traditional POS can process all kinds of payments including digital wallets, contactless payments, swipe and chip and pin payments. On the other hand, SoftPOS is limited to contactless and digital wallet transactions.
Reliable SoftPOS solution for your business
SoftPOS helps businesses embrace the future of digital transactions.
At emerchantpay, our SoftPOS solution simplifies card transactions on the go. For partners and merchants ready to build their own payment apps, we offer a Software Development Kit (SDK) designed for straightforward integration. Some of the key benefits include:
- No extra hardware: Install and create an account to accept payments with an NFC-enabled smartphone or tablet.
- Versatile transactions: Accept cards and digital wallets, including higher value transactions that need a PIN.
- Convenient checkout: Receive payments anywhere and never miss a customer with our SoftPOS solution.
Contact our payment experts today to explore the potential of SoftPOS.