Point of sale is any location where a transaction is processed. Similarly, the POS system is a combination of hardware and software where all retail aspects like inventory management, customer management, and sales converge are present. Several retailers still use traditional management methods, losing out benefits of a point of sale machine through which they could grow their business. Without a POS system, operations take more time to process, and critical data regarding the sale is also lost.
There are two types of POS systems: POS, Location POS, and Cloud POS. In the case of on-location POS, the retailer buys a software license and installs it on a computer; software update cost and hardware cost are also a future expenditure. In the case of large businesses, skilled IT staff is needed to operate the system. Whereas Cloud POS needs to be bought online, and one or two individuals are sufficient to manage POS Cloud POS and have lower upfront costs.
Critical Features Of Point Of Sale System
POS provides the ability to simplify the critical daily routine of retail management with efficiency. Modern POS provides flexibility, at the time of transaction processing, and increases business success rate by offering tools to run the business smoothly.
- A point of sale machine’s main task is managing sales by giving a detailed report on sales based on product specifications, profit margin, employee, date and time of the transaction, etc.
- POS system aids in managing the inventory by analyzing how much and when there is a need to order stock. It scans and counts the inventory by classifying products and can track multiple products at multiple locations, ensuring efficient ordering of products.
- POS records purchases and interacts with customers via marketing tools as having strong relations with customers is key to business growth. POS systems have Customer Relationship Management(CRM) to identify all data regarding customers like email, product preferences, age, address, etc.
- POS also serves as a tool for managing employees. It tracks an employee’s performance and sets sales targets. It can create a schedule and email it to employees.
Mobile Point Of Sale Machine (mPOS)
Mobile point of sale refers to the transaction at the point of sale, which is processed through smartphone applications; payment is processed contactless by initiating smartphone interaction with the preferred payment terminal. In this electronic point of sale (Epos), the transaction is transferred by Standard Near Field Communication (NFC) or scanning a QR CODE to process payment. Consumers pay by escalating an online bank transfer electronically saved credit/debit card or via E-wallets.
Mobile Point Of Sale System (mPOS) Growth In India
As consumers trust digital modes of transactions lately, the POS market is also witnessing reforms to cope with the technological advancements and evolving consumers’ payment preferences. India’s POS mobile market is expected to grow at a CAGR of over 16% by 2022. The mobility offered by mPOS has led to growth in demand for products as it allows merchants to accept payments via several options like credit/debit card, UPIM, wallets, etc. Also, convenience, mobility, and low upstart cost make the mobile Point of Sale machine a significant contributor to market demand and supply growth. Retailers and merchants benefit from availing of this service at low rates; in the market, a fair POS billing machine price starts from 5000 to 20000 INR.
The amount of transactions in the mPOS sector is expected to grow by USD 23,035m by 2021. The transaction value shows a positive growth pattern with CAGR FOR 2021-25 at 22.2%, amounting to the total transaction value of USD 51,439 by 2025. Several consumers using the mPOS system as a preferred mode of transaction is expected at 392.4 billion by 2025. Market research predicts the average transaction per consumer to be USD 80.4 IN 2021. Although indicators predict overall healthy growth in the mPOS sector, the Indian market still has untapped potential as by 2030, a billion Indians will have access to the Internet.