Understanding POS Machine
The POS machine is a kind of electronic data terminal equipment that is commonly used in supermarkets, restaurants, gas stations, and other commercial places of payment. The POS machine can manage transaction information and perform reconciliation and settlement functions.
For both buyers and sellers, the input application of the POS machine is favorable. Consumers can choose the non-cash payment method that suits them, and the POS machine and the merchant’s ERP system carry out real-time interaction and data synchronization to realize comprehensive management of turnover, inventory management, membership points, and other aspects.
The construction of a POS machine is mainly divided into hardware structure and software structure. Hardware includes a card reader, scanning gun, display screen, etc., while software includes a POS application program and background management system. The close cooperation of these systems ensures the smooth completion of payment services.
The Development History of the POS Machine
As early as 1879, American brothers James Ritty and John Birch invented the world’s earliest mechanical cash register, which was designed to prevent employee theft and misappropriation of public funds. This was also the prototype of the POS machine. Currently, the initial POS machine function is still very single, only due to recording business transactions.
By the end of the 1960s, Japan had taken advantage of the momentum of the rapid development of electronic technology. The successful development of electronic cash registers with intelligent, networked features to become a commercial sales force for labor management, accounting management, and merchandise management using effective tools and means.
The birth of the third generation of POS machines was in the mid-80s. The difference between the electronic cash register, which has strong online real-time processing capabilities, POS-integrated computer hardware and software, and the formation of intelligent commercial workstations that can work independently or in a network environment.
As technology progressed, POS systems introduced bar codes in the 1970s. Graphical interfaces in the 1980s, and online ordering in the 1990s. In the 21st century, with the development of mobile Internet and intelligent technology, the speed of change of POS machines is further accelerated. They not only support network payments and mobile payments but are also part of the customized service. This greatly improves business efficiency.
Problems Faced By POS Machine At The Moment
Although the use of modern POS machines has brought a lot of convenience to our lives, there are still shortcomings at present. First of all, security. Despite the high-security performance of modern POS machines, there is still the risk of being hacked and data leakage. Especially in the Internet environment, POS machines, and network connections, security is more likely to be threatened.
Second, maintenance. The current POS machine maintenance cost is quite high. Because it needs to carry out regular maintenance, upgrading, and replacement of hardware equipment, which will cause a great burden on merchants.
Third, POS experience. There are still problems, such as a rudimentary operating interface, slow response time, and slow printing speed. All these problems will cause inconvenience to users.
The Future Of POS
In the Internet era, the demand for handheld terminals is growing, especially in emerging markets and developing countries, and the potential of the POS machine market is even more enormous. For example, the POS market in South Africa, Argentina, and other countries is developing rapidly. There is still a lot of room for growth in the size of the POS market in these countries. POS is no longer limited to payment transactions and will be expanded to leasing, finance, security, and other fields in the future.
POS vendors have begun to develop a new type of POS based on cloud computing and big data analysis. Which can help merchants realize online operations, sales data analysis, member management, and other functions. It provides merchants with more comprehensive and accurate services. At the same time, the POS can provide customized services to merchants. For merchants to customize the POS version of their own business, the POS machine will become a merchant’s “intelligent hardware assistant.”
The Soft POS
The Soft POS is a new development in the mobile payments market. It is suitable for any market with a high penetration of contactless and mobile wallet payments. It works with any bank and acquirer and any NFC-enabled Android phone or device.
Soft POS technology bridges the gap between the past and the future. It leverages the existing card payment infrastructure developed over decades and brings it into the 21st century. It makes this infrastructure available on cell phones and other devices that have become an integral part of our lives. And even more importantly, our lives revolve around mobile devices.
So far, the high popularity of smartphones has created huge market opportunities for soft POS technology. Modern people are innovatively looking for more convenient ways to face every payment behavior. For small and medium-sized merchants who get insufficient service at traditional POS terminals, soft POS will be a good alternative.