Best POS Software
Buyer's Guide
Managing businesses in today’s over-saturated markets and increasingly complex environments is a cumbersome and exhaustive task. As a result, most companies dealing with financial transactions widely adopt point-of-sale systems to streamline operations, achieve greater flexibility and improve customer services. POS software replaces traditional cash registers to help you manage inventory, sales, employees and customers.
With several vendors available in the market, choosing the right solution for your business can be overwhelming. To make your search easier, we have created this guide to equip you with enough knowledge to begin pursuing the right point-of-sale system for your unique requirements.
Executive Summary
- Point of sale systems serve as a centralized location for managing primary business components such as sales, inventory, purchases, employees and customers.
- POS platforms compile data on moving supplies, stagnant commodities and customers’ buying history to help maximize profits and eliminate waste.
- Key software features include inventory management, data reporting, payment processing, employee management and eCommerce.
- Be sure to talk to vendors about their services and software capabilities before purchasing a solution.
- What Is POS Software?
- Deployment Methods
- Primary Benefits
- Implementation Goals
- Basic Features and Functionality
- Advanced Features To Consider
- Current and Upcoming Trends
- Software Comparison Strategy
- Cost & Pricing Considerations
- The Best POS Software
- Questions To Ask Yourself
- Questions To Ask Vendors
- Next Steps
- Product Comparisons
- Additional Resources
What Is POS Software?
Point-of-sale, or POS, systems are stations where customers pay for products and services. They unify inventory management, sales, payment processing, workforce management and customer relationship management (CRM). These systems are crucial to efficiently run various businesses, like retail stores and restaurants.
Point-of-sale systems offer multiple tools and advanced technologies to facilitate contactless payments, improve online sales, generate performance insights, integrate with third-party apps and more. Some solutions also offer a mobile app to let users access key software functionality on their smartphones, tablets and other handheld devices remotely.
Deployment Methods
According to your business priorities, you can choose from various deployment strategies to effortlessly run your day-to-day operations. Software components range from cloud, on-premise to hybrid models.
Cloud-Based
Cloud-based point-of-sale systems offer numerous advantages to users like centralized payment processing, inventory management, customer loyalty rewards and more. You can manage various locations and point-of-sale terminals using tablets or mobile devices, making it ideal for restaurant owners or merchants. They also work in sync with most POS hardware like cash registers and printers.
The cloud facilitates online data storage and processing, avoiding the need for servers or skilled IT staff to maintain the services. If you have a robust internet provider, then a cloud model is an ideal option for your business.
The different types of cloud-based deployment include:
- Public Cloud: The vendor maintains server infrastructure and the system is available either for free or on a pay-per-user subscription. Examples include Totara, iSpring Learn and Moodle.
- Private Cloud: Similar to a public cloud setup, but only a single entity owns the system and hosts it on their private server. Canvas and Docebo are popular options for this model.
- Hybrid Cloud: It enables you to divide your workload between public and private hosting. For example, you can host confidential data on a private cloud, and use a public cloud to run applications that depend on this data.
On-Premise
On-premise or server-based solutions require a dedicated server to host the software and an additional hardware setup. They are highly customizable due to on-site hosting. These solutions are independent of internet connection and don’t rely on vendors. You may require skilled IT personnel for handling the system in larger organizations.
- Auto Parts Store
- Bakery
- Bookstore
- Cafe POS Systems
- Cell Phone Store POS
- Clothing Store Inventory
- Consignment
- Convenience Store POS Systems
- Dispensary
- Equipment Rental
- Food Delivery
- Food Truck POS Systems
- Furniture Store
- Gift Shop Inventory
- Grocery POS Systems
- Gun Shop
- Hardware Store
- iPad POS Systems
- Jewelry Store
- Liquor Store POS Systems
- Merchandising
- Merchant Service Providers
- Mobile POS Systems
- Online Ordering Systems
- Pharmacy
- POS Systems For Bars
- POS Systems For Small Business
- Restaurant Management
- Retail Management
- Retail POS Systems
- Shoe Store POS Systems
- Spa
- Sporting Goods POS
- Tablet POS Systems
- Touchscreen POS Systems
- Web Based POS Systems
Hybrid
A hybrid point-of-sale system offers both cloud-based and on-premise integrations. Hybrid solutions utilize a server and backup data in the cloud. As a result, they don’t interrupt processes during internet connection failures and backup data upon reconnecting to the internet.
Hardware Components
Additionally, the integration of point-of-sale systems in your businesses incorporates software and hardware components. Here is a list of standard hardware components required to run your POS systems:
- Monitors, Tablets or iPads: You can use monitors to view product databases and sales reports and enable employees to clock in and out. Portable devices like tablets and iPads are more popular and accessible options in place of bulky monitors.
- Credit Card Readers: It helps process in-store payments via credit cards. You can invest in EMV-compliant credit card readers that add an extra layer of security by reading the chip instead of a magnetic strip, safeguarding your customers’ financial information.
- Barcode Scanners: Scans barcodes to get product details and adds them to the checkout total, automating checkout processes. You can also adjust stock levels automatically through its integration with inventory management systems.
- Cash Drawers: Contactless payments have become a norm in businesses worldwide. Nonetheless, cash payments are still preferred by many, and you need a cash drawer to store cash for transactions securely.
- Receipt Printers: Printers are a must for providing customers with paper receipts containing a snapshot of purchase details and amount. Receipts also come in handy and act as proof while making returns or exchanging items.
Primary Benefits
Let’s go over some of the ways POS systems can help your business.
Simplified Operations
With the right tools in hand, you can simplify and manage multiple operations like purchasing items, dispatching goods, processing payments, handling appointments and more. You can save complete information and data in a single point-of-sale system without any requirement for registers or dedicated staff.
Customizable Reporting
Comprehensive reporting capabilities enable you to collect and analyze data related to sales, profits and expenses. You can utilize the collected information to measure business performance by tracking KPIs like average sales, sell-through, inventory turnover, return rate and more. This in-depth visibility helps identify areas of improvement and take necessary actions to drive profitability.
Ease of Use
A cloud-based POS system provides a user-friendly, interactive interface. Users can optimize their viewing experience for various devices like laptops and mobile devices, transactions on the go on portable cash registers and complete repetitive tasks accurately with automation tools.
Better Security
Data breaches can put you at risk of losing customers, especially when their personal information is at risk. POS systems come with a range of security features to protect your customer data from security issues like malware or data leaks. Some popular components include encrypted payments, two-factor authentication, data backups, system upgrades and antivirus protection.
Improved Accuracy
Minimize manual entry and reporting errors with user-friendly digital and touchscreen interfaces. Point-of-sale systems enhance accuracy across the entire operation by eliminating the need to manually enter items and prices or upload data into back-office systems.
Detailed Receipts
Provides customers with receipts containing details such as product description, costs and savings. You can also customize receipts to incorporate specifics related to return policies, vouchers, loyalty reward programs and other critical details or promote social media platforms.
Personalized Services
You can leverage the power of customer data to create tailored shopping experiences unique to their top preferences and needs. For example, by tracking a customer’s purchase history, you can determine their favorite products and recommend them similar items for purchase during checkout. It facilitates cross-selling and keeps your customer’s happy.
Expert recommendations and analysis on the top POS Software
Implementation Goals
While deploying a new solution or upgrading an old one, you expect certain outcomes from the software. Here is a set of implementation goals that you can achieve with the right solution in place:
| Goal 1 Increase Productivity | Advanced tools and features save time spent on inventory and sales figures, freeing employees for other crucial tasks. Also, the intuitive interfaces are easy to comprehend and reduce manual work, which can improve overall productivity and render quicker services to customers. |
|---|---|
| Goal 2 Make Informed Decisions | Companies leverage the power of AI to capture real-time customer data for providing insights into buying frequencies and shopping trends. You can use this data to critically analyze and devise purchasing strategies, target consumers and make informed marketing decisions. |
| Goal 3 Faster Service | Expedite your checkout processes using barcode scanners to ring up items. Faster checkouts can ensure a smooth buying experience and reduce long waiting queues to prevent customers from walking out. You can also allow customers to order and pay online for in-store pickups or include self-service kiosks at stores. |
| Goal 4 Improve Capabilities | Process smooth and efficient transactions at the point of sale using advanced hardware tools. You can scan barcodes, process payments via credit or debit cards using card readers and print receipts at the time of checkout. You can also manage inventory, track sales data and generate data reports using touch-screen displays. It helps improve the customer experience, increase efficiency and boost profits. |
| Goal 5 Engage Staff | You can evaluate each employee’s performance based on real-time data to incentivize top performers and identify areas of improvement. Share regular feedback with staff members, create action plans based on their job roles and define performance indicators to improve engagement. |
Expert recommendations and analysis on the top POS Software
Basic Features and Functionality
Every solution is different, and its features vary from vendor to vendor. However, there are a few common features that most point-of-sale systems include:
| Payment Processing | Accept, verify and process payments through multiple methods, including cash, checks, magstripe credit cards, EMV chip cards, mobile wallets and more. Flexible payment modes strengthen your customers’ purchasing power, resulting in increased revenue and higher customer satisfaction. |
|---|---|
| Inventory Management | Managing inventory is one of the most significant features of point-of-sale systems that lets you keep tabs on all products. It combines with sales data to provide information on current stock and items running low, ensuring uninterrupted supply. Digitally count and scan products, store stock by product variants like size, color and material, use serial numbers to identify inventory items, set up reorder triggers and more. Integrated supplier purchases allow you to track all purchases made from suppliers in order to keep track of product quantities, predict expenditures and record sales. |
| Invoice Tracking | Record and monitor all your transactions from a single and centralized cloud-based location. Manage various customer and supplier invoices, including sales, orders, supplier purchases, repairs, rentals, consignments and inventory transfers. Estimating your inventory and keeping track of commodities and services becomes convenient with automated management of sales and purchase data. |
| Sales Reporting | Get insights into sales with easily accessible and elaborate data. Create detailed sales reports based on employees, products, time, cost of goods sold, total retail amount, net profit and profit percentage, gross profit margin and more. Analyze your sales performance through snapshots and charts available in easy-to-read formats. |
| Notifications | Get valuable insights into sales activity, and monitor cash flow and inventory levels with real-time notifications. For example, you can schedule a reminder when a particular item is sold out and quickly restock it to avoid losing potential sales. Notify customers about restocked products, failed or completed transactions, order status and similar information to keep them updated in real-time. |
| Employee Management | The success of an organization largely depends on the performance of its workforce. A POS platform can efficiently manage employees to boost their productivity levels. Enforce schedules for employees based on forecasted activities to save time. Allow your employees to clock in and out on a POS terminal and create access control to ensure safety. Analyze employee performance to reward top-performing employees and provide additional training to underperforming ones. |
| Hardware | Connect your software to a range of hardware devices like cash registers, mobile tablets, touch-screen displays and barcode scanners to streamline workloads and process quick checkouts. |
| Security | Process encrypted transactions, enable two-factor authentication to prevent unauthorized logins, whitelist applications, run antivirus programs and regularly update your system to prevent security breaches. |
Expert recommendations and analysis on the top POS Software
Advanced Features To Consider
| Customer Relationship Management | Integrating CRM capabilities with point-of-sale systems gathers essential customer data to better understand your customer groups and target market. Track your customer’s buying history to personalize communications, marketing and services. Maintain a patron database containing customer information such as name, contact number, age, birthday and email address. Utilize this database to create built-in loyalty programs to extend incentives, discounts and special deals to build customer loyalty and encourage them to make a repeat purchase. |
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| Third-Party Integrations | Connect your existing systems such as CRM, eCommerce, payments and employee management with popular third-party apps like Salesforce, Quickbooks, Shopify and Xero. |
| Multi-Store Management | Modern systems allow you to manage multiple stores within the same software. Enable inventory tracking, reporting, purchasing, transfers and more across all stores from a centralized location. Corporate chains, franchises or buying groups can maintain uniformity through the network by linking several stores to a central place. |
| Contactless Payments | Use a range of contactless payment options like credit and debit cards, mobile wallets, QR codes and loyalty points to process fast and secure checkouts. |
| Loyalty Programs and Gift Cards | Advanced platforms include loyalty programs in the system or integrate with third-party programs to garner loyalty, boost sales and grow business. Utilize data related to purchasing histories and buying trends to generate rewards, coupons, gift cards, bonus points or prize draws for regular buyers. |
| Ecommerce | Improve business outreach and boost sales with a branded eCommerce platform. Accept orders, process payments, offer discounts and rewards, process refunds and more. Track in-store and offline business activities on an interactive dashboard. |
| Mobile Application | Most solutions offer a mobile app downloadable on iOS and Android devices. Perform key business operations like inventory and order management, payment processing, sales reporting and more on the go. |
Expert recommendations and analysis on the top POS Software
Current & Upcoming Trends
With advancements in technology, new solutions continue to develop with evolving business needs to keep up with the latest changes and trends. In this section, we have listed some industry trends to help you keep a competitive edge.
Omnichannel Retail
Omnichannel retailing is a fully integrated commerce approach that allows transactions across multiple channels, caters to customers present everywhere and offers a unified brand experience. With an increase in online shopping and smartphone usage, the global omnichannel retail commerce market is set to grow at a CAGR of 13.6% from 2022 to 2030.
Additionally, the effects of the COVID-19 pandemic continue to boost online sales, with digital commerce in the U.S exceeding $1 trillion in value in 2022.
To accommodate these buying behaviors, your point-of-sale systems should integrate in-store and eCommerce data for delivering a seamless customer experience and helping businesses sustain themselves in the market.
Data-Driven Business Decisions
Modern platforms collect real-time data and represent it in an actionable format to better communicate required improvements. Companies utilize this data to understand customers, sales and revenue patterns to strengthen business decisions, enhance customer experience and boost ROI.
A comprehensive point-of-sale system with advanced features and technologies can help spot trends, get insights into buyer habits and accordingly, improve market strategy to promote your services and brand.
Businesses harness the collective power of data analytics and advanced technology tools powered by AI to enforce digital transformation, which can deliver better services, personalized assistance and a seamless experience while shopping in-store or online.
Cloud-Hosted Platforms
Cloud-hosted POS software continues to remain popular among all types of businesses like restaurants, retail stores and hotels, with a predicted market growth of $26,355 million by 2030.
Cloud POS software is a scalable, flexible and more cost-efficient option for business management than legacy systems. It allows you to manage all front-end and back-office operations from anywhere with an internet connection. Some features include inventory management, real-time data reporting, payment processing, self-checkout, eCommerce and CRM.
As a result, more and more businesses are transitioning to cloud-based POS systems to run their offline and online stores, personalize shopping experiences and process bulk purchases. They also reduce upfront costs — all you have to do is download the software from the vendor and it's ready to use.
Mobile Payments
With the increasing adoption of smartphones worldwide, companies are moving from conventional networks to mobile POS solutions as they help cater to the growing demand for cashless and contactless payments.
According to a FIS report, digital wallets are among the fastest-growing payment methods, accounting for 32% of global POS payments. The use of mobile payment options like Google Pay, Apple Pay and PayPal continues to increase. Apps like these support convenient payments and checkouts from anywhere, leading to better customer experiences and more sales.
Integrated Customer Loyalty Offers
Appreciating customer loyalty with reward programs is likely to attract more transactions. Integrating customer loyalty programs into your point-of-sale systems can increase customer retention and drive profits. In fact, 56% of companies state that loyalty programs improve their sales and deliver great ROI.
Digitized reward schemes make it convenient for customers to sign up for rewards, unlike physical reward cards that you can lose and have to present at the checkout counter during every purchase. These programs ensure continuous customer loyalty and build brand value. Also, the data gathered from regular buyers can help make strategic promotions to engage more consumers.
Mobile POS
Mobility is a major advantage modern POS systems have over traditional solutions. With the mPOS systems market projected to register a CAGR of 10% from 2023 to 2032, it's no surprise untethered POS solutions are becoming popular among retailers and restaurateurs alike.
Handheld devices like mobile phones, tablets and iPads allow your employees to move around the store to take orders, generate bills and complete payments on the go. You can also sync all sales data into one system and allow them to look up items, calculate sales, track order status and more for multiple stores on a single device.
Self-Service Options
With the advent of self-service kiosks, business owners don’t have to worry about being short-staffed on busy days or tackling long checkout lines. These systems help customers complete purchases on their own, without any assistance from employees. Buyer’s can easily scan items, make payments, generate invoices and place orders from a single point of sale.
Almost a third of retailers in an Aptos survey indicated that they have self-service stations. They take the workload of processing checkouts off your staff members, giving them more time to attend to customers around the store.
Other POS trends that are becoming popular among businesses include personalized shopping experiences, artificial intelligence, hardware and store technology upgrades, and savings-oriented subscriptions.
Expert recommendations and analysis on the top POS Software
Software Comparison Strategy
Implementing POS software is vital for the hassle-free functioning of your businesses and ensuring your clients’ satisfaction. However, choosing the right solution can be complex, with a wide range of vendors offering various tools and technologies available in the market.
Before beginning your research, you can talk to your colleagues and fellow business owners about the tools they use to get insights into various industry solutions. It helps you determine current business challenges and the features needed to address them.
In order to find a suitable solution, it’s important to perform an in-depth comparison of the best point-of-sale systems that align with your organization. Compare top solutions in terms of factors like features, pricing, customer support options, scalability and security and shortlist a few options that best serve your requirements.
You can also use the basic and advanced features mentioned above as a foundation to figure out your business-specific requirements.
While comparing vendors, make sure you consider recommendations from their current customers, go through company websites, read online reviews and understand their pricing structure before committing to a purchase.
Cost & Pricing Considerations
Broadly, the cost of point-of-sale systems depends on the hardware and software that you select and the cost of processing payments. Your business size, sales volume, the number of locations and other business-specific requirements play a key role in determining the pricing.
If you’re buying hardware and software to use with various terminals, consider the price of terminals, licensing the product per terminal and credit card software for each terminal. To reduce the cost, you can also buy refurbished terminals or rent them monthly to avoid certain peripherals like iPad stands or scanners.
Make sure that the hardware and software are compatible with each other as they are not universally compatible.
Cloud-based or mobile POS solutions are comparatively cheaper, with all transactions taking place in the cloud. You can use your smartphones or tablets to swipe credit cards. They come with a monthly fee or per card swipe charges and a small fee for the limited hardware required.
Some more costs associated with a POS system include:
- User accounts
- Additional hardware
- Plan upgrades
- Mobile app
- Customizations
- E-commerce and online ordering
- Marketing tools
- Third-party integrations
As you can see, there is no direct way to address the question of POS pricing. You will have to estimate various factors, requirements and budget to find the right solution for your business.
Expert recommendations and analysis on the top POS Software
The Best POS Software
Now that you’re equipped with basic knowledge about point of sale systems let’s examine some leading solutions. SelectHub’s research analysts have compiled the highest-rated products, and here is a quick overview of our top picks.
Lightspeed
Lightspeed is a point-of-sale software provider designed for retail, hospitality and golf merchants. Its capabilities include inventory management, data reporting, contactless payments, eCommerce and multi-location management. The solution’s suite of hardware tools includes receipt printers, cash drawers, USB and Bluetooth scanners, and mobile tap terminals.
Easily manage multi-channel inventory from a single location. Source
Erply
Erply is a cloud-based software that provides POS solutions to small and mid-size retail businesses. It offers various features, including multi-store management, analytics and reporting, inventory tracking, POS hardware and an online marketplace. Its multi-location capabilities allow you to manage offline and online store operations from a central dashboard.
Store all customer information centrally for easy reference. Source
NCR Silver
NCR Silver provides software and hardware solutions to banks, restaurants, telecom companies and other retail businesses. Its POS solution offers real-time inventory tracking and management, CRM and marketing tools, workforce management, contactless payment options and analytical reporting.
Evaluate business performance based on data reports. Source
Shopify
Shopify POS offers payment processing and business management solutions to businesses of all sizes. Software features include inventory management, analytics and reporting, eCommerce, CRM and marketing management. You can also access the solution on the Shopify mobile app which offers instant access to inventory movement, business analytics, employee activity, visitor traffic and more on your smartphone.
Monitor staff activity and actions to improve sales and engagement. Source
Square
Square is a mobile POS system that offers key functionalities for successful business management, including reports and analytics, marketing campaigns, inventory tracking, payment processing, eCommerce and more. It also provides hardware solutions like the magnetic chip readers, credit card terminals, register kits, cash drawers and receipt printers.
Sell your products online to improve sales. Source
Expert recommendations and analysis on the top POS Software
Questions To Ask Yourself
Use these questions as a starting point for internal conversations:
- What’s my business size?
- What’s the overall budget?
- Do I need on-premise, cloud-based or hybrid deployment?
- Which type of equipment do I require?
- What features do I need?
- Do I plan to grow my business?
- Do I need omnichannel capabilities?
Questions To Ask Vendors
Use these questions as a starting point for conversations with vendors:
About the Software
- Can the POS integrate with existing software?
- What payment methods does the hardware accept?
- Does the POS have mobile capabilities?
- Does it sync in-store and online platforms?
- Can I access back-office functions remotely?
- Which add-on features does the software offer?
- Does the software offer a mobile app?
About the Vendor
- Which industries does the POS serve?
- Do you offer an integrated loyalty rewards program?
- Are there any hidden fees involved in payment processing?
- Is there any proprietary hardware available?
- Are training and support provided?
- Can I speak to your current customers?
- Do you provide 24/7 technical support?
Expert recommendations and analysis on the top POS Software
Next Steps
By now, it must be clear how point-of-sale systems contribute to the profitability of your organization. Investing in reliable POS software can make your business more flexible and cost-focused, save time and improve your relationship with customers. Utilizing this guide’s detailed information about standard benefits, features, trends and more, you can find a solution that best accomplishes your company’s objectives.
Ready to start your search? Get started today with our free software comparison report to compare leading market solutions and find the right option for your business.
Product Comparisons
- Lightspeed vs. Erply
- NCR Silver vs. Erply
- NCR Silver vs. Shopify
- Square vs. Shopify
- Lightspeed vs. NCR Silver
- Square vs. NCR Silver
- Shopify vs. Erply
- Lightspeed vs. Shopify
- Lightspeed vs. Square
- Square vs. Erply
Additional Resources
Top 10 POS Software Leaders by Analyst Rating (of 820 products)
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