For many modern businesses, utilizing a Point of Sale (POS) system is a crucial element that enhances sales optimization. This involves aspects like deriving marketing insights from product demand and effectively managing expenses, inventory, and staff.
Often, POS-related terms are used interchangeably, leading to confusion between POS transactions, POS systems, and POS terminals.
Here are three essential points to understand about Point of Sale (POS)
Defining POS: Point of Sale (POS) refers to the location where transactions occur, involving customers, merchants, and the purchase of products or services through a POS system. Any monetary exchange processed through POS software is termed a POS transaction.
This transaction relies on electronic equipment, notably the POS terminal for processing credit card payments. The POS system encompasses both software and hardware components, including a display unit, data entry device for product information, barcode scanner, receipt printer, cash register, and software interface.
Evolution of POS: The inception of the POS system can be traced back to the 1970s when IBM introduced the first system. In those early days, terminals were connected to a central “controller” for processing. The past decade has witnessed the prevalence of three primary in-store payment methods: cash, cards, and alternative payment methods (APMs).
MPOS – Mobile Point of Sale
MPOS, or Mobile Point of Sale, involves transactions processed through mobile wallets, primarily smartphone applications. Notable providers include ApplePay, Google Wallet, and Samsung Pay. MPOS transactions are contactless and may use methods like scanning QR codes or Near Field Communication (NFC). Customers can use digitally stored credit or debit cards (Host Card Emulation) or mobile wallet applications for payments.
Understanding the workings of the POS system and its components is vital, as it is often considered the heart of a business. It plays a pivotal role in core tasks such as inventory management, staff management, price adjustments, and labor reporting. POS systems empower businesses to gain insights into their offerings, track progress, and maintain digital records across various business aspects.
“The Rising Popularity of E-wallets in Asia” showcases the transformative impact of mobile and smartphone technologies on payment methods, making transactions faster and more convenient than ever before.
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