The transition of transactions from POS to mPOS

In the past, customers had to wait in long lines at the cashier to pay in cash for their purchases. With technology starting to impact different industries, the payment industry is no exception.

The payment industry has come a long way from cash registers and magnetic stripe cards to digital wallets and contactless payments. From cash to POS (point-of-sale systems), technology has made the payment process faster and easier.

POS systems came into existence to replace the traditional cash registers, which were limited in functionality and prone to errors. The traditional POS initially came with a fixed terminal and consisted of a desktop or tablet, receipt printer, cash drawer, credit card machine, and scanner.

Today, businesses can choose from various POS systems that offer fast and convenient payment processing. Fast forward to the era of digital payments, customers can pay from anywhere, without even touching a terminal. How?

POS has eventually given rise to mPOS. Statistics suggest:

• The global POS market size of $25.28 billion in 2022 is anticipated to reach $81.15 billion by 2030.
• Mobile POS payments are projected to make an annual growth rate, a CAGR of 16.10% between 2024-2027 leading to an expected total amount of $63.91 billion by 2027.
• The MPOS payments market is expected to grow to 407.9 million users by 2027 (Statista).

What is mPOS and its technologies?

mPOS is the latest point of sale system, which can be a wireless device, such as a smartphone or a tablet, that acts as a cash register, or an electronic POS done wirelessly.

mPOS systems are different from traditional POS systems, allowing businesses to accept payments from anywhere and with any device. Further, one of the key technologies that enable mPOS systems is cloud computing. It allows mPOS systems to store and access data and applications over the internet without local servers or software installation.

Additionally, mPOS systems use wireless connectivity to communicate with other devices and networks using various technologies, such as Wi-Fi, Bluetooth, and cellular. This enables them to transmit and process data quickly and securely and integrate with other systems and services.

Different mPOS systems have different requirements. Some need a card reader device, and some only need an app and a mobile device.

Businesses can use a wireless card reader to accept payments, but an internet connection is a must. Businesses can also use an app that scans QR codes. By simply putting the QR code anywhere in the store without an internet connection. In this case, the customer needs to stay online with Wi-Fi or mobile data to make transactions.

What makes mPOS a game-changer for the payment industry?

• Easy installation: No need for costly or complex hardware or software.
• Automatic data backup: Cloud storage ensures data security and easy integration with other software solutions.
• Seamless updates: Change menu items or settings instantly over Wifi and sync them across all devices.
• Increased mobility: Accept payments anywhere, anytime, and with any device.
• Diverse payment options: mPOS supports diverse payment options including crypto, digital wallets, and buy now pay later.
• Faster checkouts: mPOS speeds up the payment process to make checkouts faster.

mPOS systems offer numerous benefits for businesses. Hence, they prove to be suitable for various types of small or mid-sized businesses like restaurants, retailers, service providers, and event organizers. Therefore, mPOS systems are not only a replacement for traditional POS systems but also a catalyst for innovation and growth in the payment industry.