Oleg Lola, founder and CEO at MobiDev, a custom software engineering & consulting company.
My interest in point-of-sale (POS) software development began over a decade ago when, back in 2013, MobiDev had a chance to work on an inspiring task to revamp the POS system for one of our clients. The challenge that seemed very straightforward at the start turned out to be a continued collaboration over time, with the result of a successful POS product.
At present, POS solutions have developed far beyond simple payment processing instruments. In the current situation, POS systems operate as hubs for omnichannel processes, customer engagement and data analysis, delivering powerful insights for businesses across industries. In this article, I explore how retail SaaS businesses can leverage key trends in POS technology, including cloud-based systems, AI-driven analytics, advanced hardware and emerging payment methods, while striking the right balance between innovation and practicality.
Cloud-Based POS Software Is At Its Peak
Cloud technologies have transformed how companies organize their business operations, including sales. With a nearly $5 billion valuation for the global POS cloud market in 2023, it’s estimated to reach over $36 billion by 2032, expanding at a CAGR of 24.7%. In comparison to standard on-premises solutions, cloud POS systems can offer more flexibility, real-time data access and better scalability.
Among other advantages of cloud technologies in the POS domain is relatively easy deployment, as these systems are typically ready to use. There’s no need for specialized hardware beyond basic components like credit card readers, and these solutions offer easy accessibility, as the operation can be managed from any place with an internet connection. This promotes effective mobile workloads. Moreover, in some cases, the cloud approach is more cost-effective, as businesses will save on initial expenses with pay-as-you-go models, avoiding the costs connected to traditional systems.
However, implementing cloud-based POS solutions comes with some challenges and, therefore, the process requires careful planning. It’s crucial to evaluate nonfunctional requirements first and then select a cloud platform such as AWS, Azure or Google Cloud. Focusing on security and integration will help make the transition smooth and enable optimal performance quickly.
Leveraging AI And ML For POS Data Analytics
The capacities of artificial intelligence (AI) and machine learning (ML) have significantly transformed POS systems in retail and hospitality. For example, in the food and beverage industry, these technologies automate critical operations like inventory management, foster effective demand forecasting and planning, and offer more personalized experiences for different types of clients.
For marketing, AI can help modify and adjust campaigns to customer preferences to make marketing efforts more accurate. AI and ML also make working with data more effective, as analyzing high-volume data allows businesses to get valuable insights faster and easier. These insights provide opportunities to recognize and leverage emerging trends in the market.
However, using AI algorithms requires specific expertise in data modeling and privacy compliance. Businesses should work with AI specialists to develop effective solutions while sticking to regulations like the GDPR and CCPA to protect customer data.
New Advances In POS Hardware
New tools, such as kitchen display systems, self-service kiosks and electronic shelf labels, are changing the way businesses function. These devices aren’t just about the technology itself—they’re about positive changes in efficiency, client satisfaction and business visibility.
For instance, kitchen display systems act as a replacement for kitchen printers, introducing “a new digital” to hectic kitchen workflows. They allow orders to move quicker with better accuracy, leading to improved customer satisfaction. Self-service kiosks are a game changer in times of labor shortages and clients who don’t want to interact with people while getting food. They can improve service, lower costs and offer more convenience for the customers. With Bluetooth, POS solutions can attach peripherals like mobile card readers for more mobility. Also, there’s the development of pickup lockers, which make buy online, pick up in-store (BOPIS) services smoother and more convenient.
For businesses, the key isn’t just to get a fancy new device but to understand what solutions are tailored to their business needs and client expectations.
Expanding Payment Methods And Biometric Authentication
The growing expectations of clients are redefining how payments work. Adjusting POS systems to satisfy these preferences isn’t optional anymore—it’s a necessity to stay competitive.
Cryptocurrencies, like bitcoin and ethereum, are becoming valid payment options. The advantages include speed, safety and an increasing audience of crypto-savvy clients. There are also NFC wristbands, which present a contactless payment method that’s gaining in popularity. They’re part of the wearable tech trend, making payments easier and even fashionable.
To keep up with this trend, understand the audience of your POS system. What payment options are they already utilizing? For many businesses, incorporating flexible platforms like Stripe or PayPal can be a starting point, as they offer diversity in payment methods and ensure compliance with financial regulations.
Another trend is biometric authentication. Using fingerprints and facial recognition isn’t just sci-fi anymore. They’re useful instruments for decreasing fraud and preventing bad actors from accessing sensitive systems.
To leverage this trend, companies should adopt biometric methods adjusted to the specifics of the business and focus on data security. AI consulting may help create a transparent implementation road map to offer more convenience while protecting customers.
Striking The Right Balance
POS technologies are super exciting, but they also hide a trap. It’s quite easy to get caught in the fancy new features they offer without thinking about whether they’re right for your business. Striking the balance between innovation and staying practical is where the magic happens.
One thing I always stress is that you can’t innovate just for the sake of it. A jazzy feature that looks fantastic in theory but doesn’t solve a pain point for your business is just a waste of resources and time. Every decision should start with a clear understanding of your operational challenges and your customers’ expectations.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
