Understanding the Different Types of POS Systems

There is no single POS system that can be implemented, as is, in any type of business. If you run a grocery store, you can’t use the same type of POS system that a clothing retailer would use. If you run a small, pop-up boutique, you don’t need the same type of equipment you would use in a major chain store. When you choose a POS system, you need to know what different types are available, and understand their benefits so you know which of them is best suited to you. This expert guide from Access2Pay will help you expand your understanding of POS systems and make the best choice for your business.

The point of POS software is to streamline and optimize your business, improve your customer service, and boost sales. However, if you choose a system that is actually not suited to your business, it could have the opposite effect. It can be a challenge to choose the right POS system, but it is absolutely a matter you should prioritize. Selecting the right POS system is not just a matter of finding a reputable vendor who sells a solution of high quality. While quality does matter, the actual design and functionality of the system are equally important. The type of POS system you select must be able to operate with your business. Not all solutions – even those of uniformly high quality – will be able to do that, so you need to choose carefully. You can start by understanding all the various types of point-of-sale systems that are available to you.

Most POS experts would break down the standard system offerings into five different types: traditional, cloud-based, mobile, self-service kiosk and multichannel (or omnichannel).

The traditional or legacy POS system is probably familiar to most consumers and anyone who has spent a significant amount of time working in retail or the service industry. The biggest difference between this system and the others on this list is not so much the hardware that is used, or the location of the system, but rather the place where data is saved. In the case of traditional systems, data is saved on local hard drives. That means that all of your transactions and other information are saved to one device (or other devices on your closed network), and you can only access that data from those devices. The hardware used in these systems is usually proprietary, meaning the software can only be used with specially designed hardware.

In contrast with legacy systems, cloud-based POS systems offer considerably more flexibility and mobility. In this case, all data is stored in the cloud, instead of on any local devices. This means that your data can be accessed from anywhere, as long as you have a suitable device and an internet connection. These systems accommodate all payment methods and do not usually require any proprietary hardware. They also integrate easily with other tools in your tech stack.

A mobile POS system runs on mobile hardware, like a tablet or smartphone. One of the great benefits of these systems is that you and your staff can effectively take the point of sale to your customers. You can check inventory or even process sales anywhere in your store without having to interrupt your customers’ shopping experiences. Mobile systems are generally easy to set up and enable fast onboarding.

A self-service kiosk POS allows customers to browse, order and pay for products or services without the direct assistance of store staff. They are typically placed in high-traffic areas within stores where they can significantly improve customer service efficiency and reduce wait times. Self-service kiosks are not suitable for every business. You would need to think carefully about the suitability of this system. They offer customers a great deal of independence, so they are most suited to stores where staff interaction is not essential. A self-service kiosk can be a very useful cost-saving measure, as it will eliminate the need for extra staff during peak hours.

Multichannel systems are designed to integrate and manage sales and inventory across several sales platforms, such as in-store, online and mobile. These POS setups seamlessly merge your operations across all these platforms so that, when an online customer completes an order through your e-commerce platform, your inventory levels across all platforms will be instantly updated. Staff at your brick-and-mortar store will see inventory figures that reflect the sale that has just been closed online.

The differentiators described above are technical or operational ones, meaning they refer to the specific manner in which each system runs. There are other ways of differentiating POS systems – for instance, by industry. POS systems are not necessarily industry-agnostic. A system that works for a grocery may not be appropriate for a clothing store. Let’s take a look at some industry-specific POS systems.

Retail businesses have tended to make use of large-scale, proprietary legacy POS systems, complete with cash drawers, credit card machines and barcode scanners. For large-scale businesses, these systems are still appropriate, although many will now use cloud-based systems, rather than keeping their data onsite. Smaller retailers can now make use of much more compact and efficient mobile systems, operating from tablets or smartphones with touchscreens and handheld card readers.

In the hospitality industry, businesses need POS systems that integrate with their property management systems (PMS). In this way, the payment processing and booking functions are seamlessly merged, creating greater efficiency for the business and more convenience for the guests.

POS requirements for salons, spas, gyms and similar businesses have much in common with those used in the hospitality industry. Sales and scheduling functions need to be closely integrated, so you don’t need to move between two different systems to manage the various functions of your business. You should be able to make a booking, process a payment and manage your customer loyalty program through the same interface.

POS software differs depending on the nature of the system and the functions it is expected to perform. Each of the different types of POS systems has slightly different software. However, at the same time, each software package has a similar set of basic functions, such as inventory management, sales management, etc. Some systems offer more features than others, while some provide only the bare basics.

Inventory management is similar in function across all types of POS software. The key difference is in the storage and accessibility of data. Legacy systems store all data on-site, meaning that information can only be accessed within the business premises. Mobile and cloud-based systems enable access from anywhere by way of tablets, smartphones and other devices.

Customer management features differ substantially from one system to another, although all vendors are working hard to enhance them so as to make their offerings more competitive. Customer management can be effectively carried out on any POS system – whether traditional or mobile. However, if you run your business on multiple platforms, you need to ensure that your customer management software is properly integrated across all of them, so that both online and in-store buyers can benefit from them.

As will probably be clear by the brief descriptions we have already provided of the different types of POS systems, each one involving a different hardware set-up, from a single mobile device to a complex network of countertop POS equipment.

Traditional POS systems feature countertop hardware systems that consist of devices such as desktop computers (or similar devices that act as registers), cash drawers, barcode scanners, receipt printers and credit card readers. These systems have tended to work well in the past, and they are still appropriate for large-scale operations. However, with complexity often come more opportunities for faults and breakdowns, meaning that these systems require more maintenance. They are also more expensive to set up.

Mobile POS systems are the simplest to set up and operate. They typically involve one or more mobile devices, augmented by wireless card readers. Provided your mobile devices are in good condition and you have a good internet connection, there is not much that can go wrong with these systems.

Self-service POS terminals sometimes require proprietary hardware that may need to be set up by technicians. However, some of them can also be run off any tablet equipped with a touchscreen. It depends on the system. Hardware requirements thus differ substantially from one vendor to another.

With all these options, how do you choose the right POS for your business? While it may seem a little overwhelming at first, you can narrow your search by keeping a few key considerations in mind.

Access2Pay is an ideal POS solution for almost any business. It is a cloud-based platform that works just as well in a large-scale retailer as in a pop-up store. It is exceptionally easy to use, comes with comprehensive training and technical support, and allows complete integration with other software, across platforms and between locations.

All POS systems should provide the following key features, and these features should be of an exceptionally high standard for optimal business functioning.

Aside from simple sales processing and inventory management, POS systems should allow you to access all the data your system collects as you add inventory items and make sales. For this purpose, POS software should include well-developed reporting and analytics functions. These functions give you the power to manage your business more efficiently, personalize your service and prevent overstocks and stockouts.

The most important thing about payment processing software is that it is fast, efficient and flexible. Sales should be closed in a matter of seconds, and your system should be able to accept all payment options.

As already mentioned, your POS system must be able to integrate seamlessly with any other software in your tech stack. Your accounting, payroll and property management software should merge with your payment processing and inventory systems. This helps to make your business more efficient and easier to run. There is no need to consider a POS option that does not facilitate this kind of integration.

As you consider your POS options, take these pros and cons into consideration:

Cloud-based systems offer a number of benefits, including:

Some possible downsides to consider:

The benefits of on-premises systems include:

The cons of this kind of system include:

If you are considering a mobile POS solution, think about the following pros and cons:

Pros:

Cons:

If you would like to learn more about the different types of POS systems, and why Access2Pay is the perfect fit for your business, contact us today.