what is softpos Hands holding a smartphone with Avantis Direct logo and a credit card, surrounded by coins, a calculator, glasses, and financial documents

What is softpos

What is Softpos (Software Point of Sale) Softpos is a game-changing technology that lets merchants accept card payments directly on their smartphones or NFC-enabled devices—no extra hardware needed. Unlike traditional POS systems or even mobile POS (mPOS) devices, SoftPOS leverages the power of mobile phones, turning them into robust payment acceptance tools.

Taking a closer look at the topic, it’s important to highlight that while the main features have been extensively discussed, there are certain fundamental aspects that deserve a deeper exploration.

what is softpos Hands holding a smartphone with Avantis Direct logo and a credit card, surrounded by coins, a calculator, glasses, and financial documents

History of SoftPoS (what is SoftPoS)

The journey to SoftPoS began with the introduction of plastic payment cards in the mid-20th century. Initially, merchants used manual imprinters to capture card details, which did not allow for real-time transaction approval. Although the first attempts to use electronic authorization started as late as in 1970s and were relatively slow, they provided foundation for the electronic Point of Sale terminal introduced in 1979.

As technology evolved, so did POS systems, addressing the need for faster transactions and reducing dependency on special bank connections. Mobile POS (mPOS) emerged as a cost-effective solution, leveraging mobile devices to connect with card platforms. However, mPOS still required additional hardware like card readers.

SoftPoS is the next evolution of PoS in this evolution process where there is no need for any other hardware and can fully leverage on modern smartphones. This cutting-edge method relies on advancing, practical, and uncomplicated payment structures that take into account the progress made in payment infrastructure from the last few decades, thereby ensuring that today’s merchants can benefit from it without facing the usual complications.

Key Features of SoftPoS

  1. No Additional Hardware Needed: With SoftPoS, there is no physical terminal or any mPOS card reader needed for facilitating the transactions. As little as an NFC-capable smartphone or tablet is all that one needs when using this solution.
  2. Bank and Device Agnostic: That makes SoftPoS the perfect solution because it can integrate with any bank or acquirer, and operate on any NFC-capable Android gadget.
  3. Multiple Payment Methods: Besides contactless cards, SoftPoS can accept payments from various mobile wallets and even QR code-based payments, catering to a wide range of consumer preferences.
  4. Security: SoftPoS solutions themselves ensure compliance with high levels of data protection, such as PCI DSS, P2PE or tokenization schemes.

Benefits of SoftPoS for Businesses

  1. Cost-Effective:
    • Reduced Hardware Costs: Since no additional hardware is required, businesses save on the costs associated with purchasing and maintaining POS terminals.
    • Lower Transaction Fees: Some SoftPoS providers offer lower transaction fees compared to traditional POS systems, reducing operational costs.
  2. Flexibility and Mobility:
    • On-the-Go Payments: SoftPoS allows businesses to accept payments anywhere, whether at a physical store, a market stall, or on a delivery route.
    • Scalability: SoftPoS is suitable for businesses of all sizes, from micro-merchants to large enterprises, and can easily scale with the business.
  3. Enhanced Customer Experience:
    • Speed and Convenience: Transactions are processed quickly and efficiently, reducing wait times and improving the overall customer experience.
    • Digital Receipts: SoftPoS can send digital receipts via email or SMS, contributing to a seamless and eco-friendly customer service.
  4. Business Integration:
    • Inventory Management: SoftPoS can integrate with inventory management systems, providing real-time tracking and automation of stock levels.
    • CRM Integration: By integrating with Customer Relationship Management (CRM) systems, SoftPoS helps businesses manage customer interactions and personalize services.
  5. Advanced Analytics:
    • Sales Insights: SoftPoS provides detailed insights into sales patterns, helping businesses make informed decisions about inventory, staffing, and promotions.
    • Customer Behavior Analysis: Analyzing transaction data helps businesses understand customer preferences and optimize marketing strategies.
a man holding a credit card next to a phone

Difference between softpos and mpos

It is important to note that mPOS solutions differ from SoftPOS.

  • SoftPOS (software point of sale) and mPOS (mobile point of sale) are two evolving approaches to mobile payment processing, each serving different needs of merchants.
  • SoftPOS turns a smartphone or NFC-enabled device into a payment terminal without requiring additional hardware. It leverages the device’s built-in NFC capabilities and relies on software security measures such as PCI DSS compliance, encryption, and tokenization. This approach is cost-effective, easy to set up, and highly portable, making it ideal for micro traders and on-the-go trading. The upcoming MPOC standard will further improve SoftPOS capabilities and may replace mPOS in many scenarios.
  • mPOS uses a secure card reader connected to a smartphone or tablet via Bluetooth. This configuration provides robust security through dedicated hardware, making it reliable for offline PIN transactions. mPOS remains popular among small businesses and large enterprises that require secure hardware-based payment processing.

Smartphone with Avantis Direct logo displaying a payment screen, with a credit card on a blue background

The future of SoftPoS

SoftPOS benefits from the widespread use of smartphones and other contactless payments systems. The potential of blockchain along with AI will extend to security, the compatibility of such apps will not be limited to Android, and the integration of apps will be easier with business tools. Web interfaces and app-based methods are going to make it even easier to adopt SoftPOS for businesses, thus solidifying its position as the convenient and cost-effective future for payments.

In addition, the organizations between SoftPoS suppliers and monetary establishment and fintech organizations and versatile organization administrators will enhance the environment, implementing a integrated and seamless payment solution for the organization across all types.
Software-based point of sale addresses a huge progression in the manner shippers can acknowledge installments, separating boundaries forced by conventional equipment subordinate frameworks. By zeroing in on security, client experience, joining, and local subtleties, organizations can open the maximum capacity of SoftPoS. As this innovation develops, it will without a doubt reshape the eventual fate of retail and installments, making exchanges more open, proficient, and secure for everybody.

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