loading
blog-img

What Is a POS System?

A smooth checkout process improves customer experiences. Learn what a point-of-sale platform consists of and why you need one.

 A coffee shop customer holds up her smartphone to a point-of-sale card reader to pay for her beverage.
If your business has a brick-and-mortar location, you will need to invest in some kind of point-of-sale hardware to process customer payments in a variety of ways. — Getty Images/Jacob Wackerhausen

A point-of-sale (POS) system streamlines the checkout experience, allowing your small business to process payments, record customer loyalty points, and update inventory. POS vendors offer flexible solutions for brick-and-mortar and online companies. Although many industries use POS software and hardware, Grand View Research reported that retailers "held the largest share of more than 34.35% of the overall revenue."

But how does POS software and hardware differ from a credit card terminal, and do you need one? We'll cover what a POS system is from components to pricing, how to choose one, and examples of the top vendors in the POS sector.

POS system: Definition, purpose, and components

An electronic POS system processes payment transactions and logs purchases for accounting records. It replaces traditional cash registers or manual calculations at physical locations. E-commerce businesses also use POS platforms to facilitate and track online sales.

Free consultation for this Service

Your email address will not be published.