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POS Business – How To Start A POS Business In Nigeria

• Entrepreneurs.ng
• June 16, 2020

POS business, also known as Agent banking business, is a legitimate way to make  money  in Nigeria. It is a profitable business in communities with no banks and cities where ATMs are insufficient to serve the community’s financial needs. If you prefer to learn by video,  watch the full video here.

See Also: Start Your Business in 30 Days.

POS or Agent banking business is an extension of the services offered by financial institutions to enable easy service offering to a wide range of customers.

Are you considering this business? Then visit  our shop page  to get the comprehensive guide which contains the cost breakdown of starting the business. Also, to learn how to structure your business right and ensure success, enrol for the Start Your Business in 30 Days Course.

Services Offered By POS Business Agents

POS (Point of Sale) business offers services like funds transfer and withdrawal, airtime sales, and bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills. It is used in several places where goods and services are sold/rendered: retail shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries, etc.

By creating easy access for financial transactions in different localities, the POS business has given individuals and business owners additional income. As a result, they are sometimes called bank agents.

Although not serving as direct employees of a bank, they deliver banking services on behalf of banks on an agreed commission. It is a profitable business and one of the best passive income sources.

Statistics Show That The POS Business Is Viable

Can you believe 2021 rounded off with a total of N6.43 trillion recorded POS transactions in Nigeria? According to NIBSS, this figure is in sharp contrast to N1.41 trillion recorded in 2017, N2.32 trillion in 2018, N3.2 trillion in 2019, and N4.73 trillion in 2020

The increase in e-payment transactions in Nigeria, a direct consequence of the rise in POS business operations, is wealth making opportunity that has come to stay. This development impacts millions of lives positively. Therefore, it’s time you take advantage of this opportunity and start the POS business.

Are you looking to start a POS business in your locality? Then, this article contains all the information you need to fully set up as a bank agent.

If you prefer to learn by video,  watch the full video here.  And subscribe to our channel for more business ideas and insights.

Overview Of The POS Business

The POS business began in 2013 after the Central Bank of Nigeria released its guideline on operations and management. Since then, it has remained one of the retail channels of several commercial banks to make their banking services reach many people.

A banking agent owns and operates a retail outlet. They conduct the financial transaction and allow clients to deposit, withdraw, transfer funds, pay bills, recharge airtime, inquire about customers’ account balances, and other related services.

POS business is thriving in rural and urban centres, with a higher volume of transactions recorded in the cities due to population density. It is similar to any other remote banking channel.

The banks equip the agents with a point-of-sale (POS) card reader, mobile phone, barcode scanner, personal identification number (PIN) pads, personal computer, etc. POS business operators are third-party agents and can serve as many banks as possible.

If you have an existing small business that brings in cash daily, you can diversify your revenue streams by venturing into the POS business.

Reasons Why The POS Business Is A Viable Business

POS or Agent banking services are becoming Nigeria’s mainstay of financial transactions. Here are the reasons why the business is lucrative for millions of Nigerians.

• The inadequate number of functional ATMs which leads to long queues
• Poor network service at ATM points and banking halls has pushed many customers to find alternative means of performing their transactions.
• And for the business operators, the low barrier entry requirements in starting POS business points provide the much-needed employment opportunities amid high unemployment rates.

 Aside from this, it also helps consumers easily withdraw money when the nearest ATMs are far away.

See Also: Distribution Business – How To Start A Wholesale Distribution Business

How To Start POS Business In Nigeria

As I have earlier stated, the POS business thrives more in rural areas or semi-urban centres, where there are no banks or few ATMs to serve the people. Hence, if you intend to venture into this business, the first thing is to ensure that the number of banks in your location cannot serve the community. This way, you are sure of making a profit.

In this article, I have highlighted a step-by-step plan for starting a POS business in Nigeria and the basic things you need to get started.

Are you considering this business? Then visit  our shop page  to get the comprehensive guide which contains the cost breakdown of starting the business.

Step 1: Have An Existing Business

The POS business has to do with finance and must be approached carefully. Besides, the Central Bank of Nigeria is very particular about the business entities qualifying as agents. So, commercial banks take extra care before authorizing an agent for their retail banking.

To be eligible, you must have an existing business in operation at least for 12 months. Also, you must have a shop or office from which you operate. Then, you must have been registered with the Corporate Affairs Commission as any of the following entities;

• Limited Liability Company
• Sole Proprietorship
• Partnership
• Cooperative Societies
• Public Entities
• Trusts or any other entity aside from faith-based or NGOs.

If you have any of the above requirements, doing a POS business or serving as a bank agent is possible.

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Step 2: Approach A Bank

Virtually all Nigerian banks allow agent banking services. As soon as you decide on the bank of your choice, the next thing is to approach the bank and get details of their requirement. The CBN guide allows being an agent for as many banks as you can serve.

You will need to fill out some documents/agreement forms on the transaction conditions. Then, the bank reviews the application in line with CBN internal criteria and agrees with you if you meet all requirements.

Also, you must have an account for a direct deposit for the business and provide some documents as part of the requirements for the proposal.

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Popular POS Service Providers

Some of the popular POS service providers include banks and other mobile money operators like:

• Polaris  bank
• First Monie POS Agency
• Flutterwave
• Opay POS Agency
• Monie Point POS
• Nomba (formerly Kudi) bank
• Zenith bank
• Access Closa Agency
• Quickteller
• UBA Monie POS agency

Requirements For POS Business

Some of the required documents include;

• Valid means of identification, e.g. Driver’s license, National ID card, International passport or voter’s card.
• 2 passport photographs
• 2 current account references
• Evidence of business registration (CAC Certificate)
• Tax Identification Number (TIN)
• Memorandum and Article of Association.
• Credit Bureau Report
• A minimum working capital of N50,000

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Step 3: Get The Equipment For Your POS Business

Once your application is considered, the bank supplies the needed tools and equipment for the business. Aside from the mobile phone, the following materials are usually provided by the bank:

• Point of Sale Terminal; a portable device that facilitates payments of goods and services at bank agent locations using payment cards.
• Card reader
• Barcode scanner to scan bills for bill payment transactions
• Personal identification number (PIN) etc.

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Step 4: Location Of Your POS Business

To thrive in the business, it’s advisable to choose public places with high human traffic volume like markets, busy streets, shopping malls, event centres, etc. The high volume of people movement will affect your daily profit as more customers patronize your service.

Once you have a good location, construct a shed or shop but create enough spaces for swift movement for you and the customers. Have a banner at the entrance to show the retail banking services you offer.

Factors To Consider Before You Choose A Location For Your POS Business

Network connection..

A good network service is very crucial to the success of your POS business. This is because the POS machine you will use for your business transactions is powered by a telecommunication network service, just like your mobile phone.

And as a result, a location with good network connectivity access will help the smooth and fast confirmation of transactions with your customers and their banks.

Crime Rate Level.

You also need to consider the safety factor when settling for a particular location for your POS business. This is because your business activity involves cash handling, and you may want to spend some time researching the crime rate of your intending business location.

In addition to the above, you can also have a special purse/pouch around your neck or a safe with a solid lock to prevent theft and burglary.

Proximity to ATM Points.

Positioning your POS business point close to existing ATM points is not bad. Often, those machines break down or are not loaded with cash, especially on weekends and public holidays. If you notice that an ATM is not dispensing cash, you can go there to advertise your service. Some people there in urgent need of cash might subscribe to your service.

Step 5: Render Services

The business is rendered through POS terminals, card readers, mobile phones, and bank-linked mobile wallets for real-time transaction processing.

The next step is to provide the service as soon as you have these.

Services Provided By POS Business Agents:

POS Agents provide the following services:

• Cash deposit and withdrawal
• Balance inquiry
• Funds transfer services (local money value transfer)
• Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
• Generation and issuance of a mini statement
• Cash disbursement and cash repayment of loans
• Agent mobile payments/banking services

See Also: 10 Networking Tips To Build And Grow Your Business Network

How Does The POS Business Work?

In a POS business, the client first request transaction like withdrawal, transfer, or bill payment and presents the debit card.

Next, the Agent selects the type of transaction on the POS terminal device, enters the amounts, inserts the debit card into the machine, and asks the client to enter the four-digit pin secretly.

Then, using the network, the General Packet Radio Service (GPRS) connects with the bank’s server to authorize the transaction. When successful, it immediately prints out the receipt.

This process can be repeated for as many customers as possible, as long as you abide by the transaction rules of your host (bank).

Type of POS Machines.

The mobile POS machine is the most popular version of the POS machine. However, there are other types like countertop POS and Tablet PC-based POS machines. These types can be more expensive to acquire and are commonly used in big supermarkets.

See Also: Top Business Opportunities In Lagos And How To Clinch Them

The Importance Of POS Business

With a POS business, banks now reach a larger demographic. Also, they offer more flexible and convenient access to existing and new customers.

In addition, they ensure customers’ safety and help reduce travelling long distances to have access to banking. Most importantly, it significantly boosts financial inclusion, especially for people in rural areas.

How Do POS Agents Make Money?

The business has provided job opportunities and financial stability by helping the Agent make money in the following ways;

Banks pay agents commission based on the volume of transactions on their behalf.

Service Charges

By rendering service to customers, you can also charge them a particular amount, especially on bills, taxes, and subscriptions.

Depending on your cash management policy, you can use cash deposits and net of withdrawal for your primary business.

By operating this business, you are not only increasing your stream of income, but you are also serving the needs of the people in your community. And with a location that sees high human traffic, you can be making as much as ₦7,000-₦15,000 daily.

Advantages Of POS Business.

Low barrier entry.

POS business offers low barrier entry for individuals as the startup capital requirement is not as much as that required by other businesses. Therefore, you can start your POS business with a sum of N50,000 or less.

It Does Not Need An Expensive Structure 

Everyone knows how expensive it is to afford annual shop rent in most places in Nigeria. But for POS business, there is no need for a fancy structure, at least while starting. Because, most POS businesses use a simple wooden kiosk as their business office.

Customer Traffic

Large financial transaction volume pass-through POS agency banking business in Nigeria and means significant business turnover for operators

Multiple Streams of Income: 

POS business is a good way of expanding your income net for those that may have a regular job that is not meeting their financial needs. In addition, the business offers a sustainable means of income and may even transition to a primary source of income if adequate attention is paid.

Disadvantages Of POS Business

As they say, everything that has an advantage has a disadvantage. Hence, you must contemplate the cons of a POS business before starting one.

POS business is a high-risk business as operators can be a target for robbery attacks. Hence it is crucial to be security conscious at all times.

Some individuals with criminal intentions sometimes patronize POS business operators intending to carry out fraudulent transactions. Therefore, you may need to be on the lookout for individuals with suspicious behaviours and also set up a KYC register where you will record customers’ phone numbers.  

Poor Network Service

Poor network connectivity is a significant threat to the smooth operations of your POS business. You will need to secure a location with a reliable network connection. Also, go for a smart POS machine with a 3G or 4G network capability.

Poor Electricity Supply

Unstable electricity supply is another critical challenge confronting most POS business operators here in Nigeria. The POS machines need to be charged as they run on rechargeable batteries, and this might prove difficult if your business location lacks adequate electricity supplies.

We will now look at how to start the POS business with different financial operators.

How To Start a POS Business With First Bank.

First bank POS agent is also known as Firstmonie agent.

According to First Bank Plc, The Firstmonie agent network is a bespoke channel through which FirstBank expresses its passion and commitment to broadening the opportunities and access to financial services for every Nigerian and African, especially within the low-income segment (the unbanked and under-banked population).

What You Need To Be A POS Agent With First Bank

To become a Firstmonie Agent, you need to have:

• An existing business
• A visible and accessible business location
• A valid means of identification (Voters’ card, National ID card, Drivers’ License, International Passport)
• Utility bill not more than three (3) months old
• Business registration documentation for corporate bodies
• How to become a First Bank POS Agent

Go to the FirstMonie agent banking website and fill out the form. Then, click on the “Send” button to submit your request to FirstBank.

To fast track your application, visit any FirstBank branch to check the status of your application. Remember to go along with the required documentation.

How To Start a POS Business With OPay.

To start your OPay POS business, you need to first sign up as an OPay agent on the OPay Agent Portal before you can then apply for a POS machine.

To request an OPay POS machine here are the requirements.

Download The OPay App To Your Device

You can find the app on Android and the Apple stores.

Sign In To Your Profile

This is after signing up on the app.

Upgrade Your KYC Status To Level 3

To upgrade your OPay KYC status to Level 3, follow these steps:

• Go to ‘Me’
• Click the picture icon (top left) to go to Account Details
• Click Upgrade to Level 3
• Upload your picture
• Upload a valid ID Card (Intl Passport, Voters’ Card, National ID or Driver’s License)
• Upload a recent utility bill (PHCN bill, water bill, rent receipt, LAWMA waste bill)
• Upload your BVN

The OPay team will review your update within 24-72 hours for either approval or a decline, and you will be notified through email and SMS.

Switch Profile To Merchant

Once your level 3 KYC update is accepted, you will need to switch your account profile to Merchant. To do that:

• Go to ‘Me’ on your account profile
• Click Upgrade to Merchant
• Fill in your Business Information (Name of business, address, etc.) and click Next
• Fill in the required information
• Click Upgrade

Merchant Apply

Now that you have switched to the Merchant profile, you can apply for a POS terminal for your business by following the steps below:

• Log in to the OPay app on your device.
• Choose the ‘Merchant Apply’ icon
• On the next page, enter all the necessary information as requested
• Upload your business transaction history for the past 3 months
• Take a snapshot of your business place and upload it to the portal
• Submit for review and approval.

OPay POS Cautionary Fee.

Opay POS attracts zero cost for agents with good transaction records with Opay, but a caution fee of NGN20,000 applies once your POS machine is approved. This amount must be available in your wallet.

New Opay agents who do not have sufficient transaction history can pay for and buy an Opay POS machine.

The prices are as follows:

• NGN50,000 for OPay Smart POS
• NGN35,000 for OPay Traditional POS
• NGN8,500 for OPay Mini POS.

How To Start POS Business With Bankly.

Bankly, a Nigerian fintech company founded in 2018 by Fredrick Adams and Tomilola Adejana provides a virtual savings wallet for the informal sector of Nigeria. Bankly POS agents register and operate their business under Bankly.

You can carry out the following transactions with Bankly POS.

• Transfer of funds
• Cash withdrawal
• Utility bills payment like airtime, data, electricity, etc
• Deposit cash to bank accounts
• Transfer funds to other beneficiaries

How To Become a Bankly Agent.

Download mobile app.

To get started, you have to download the Bankly Agent mobile application from the app store.

Create An Account

Sign up on the mobile app by providing the required KYC details.

Verify Your Account

Wait for a support personnel to verify your registration.

Go forth and start transacting and offering customers access to financial services

How To Request For Bankly POS Machine

To Request for Bankly POS machine, follow these steps.

• Login to your agent dashboard and click on Request POS
• Accept the POS Terms and Conditions.
• Continue reading to see the Daily POS Transaction Targets.
• Select the number of terminals you wish to use.
• To confirm your POS (point-of-sale) request, enter your transaction PIN.
• Click Done.

Requirements To Obtain a Bankly POS Machine.

• A valid means of identification such as your national ID card, Driver’s license, Voter’s card or international passport.
• Utility Bill
• Business certificate for registered businesses.
• Bank Account number
• Email address
• Telephone number

Bankly POS Transaction Charges

Bankly charges 0.3% for POS withdrawals and a flat rate of N35 for all transfers. In addition, you will be charged 5 naira for every 1000 naira that you withdraw on behalf of a customer. Furthermore, N10 will be charged for any transfer between N100 and N2000, while N20 will be charged for any transfer above N2000.

How Much Does It Cost To Become A Bankly POS Agent?

Signing up to be a Bankly agent is free. However, you will need to set aside a startup capital which can be a minimum amount of N20,000.

How long does it take to get a Bankly POS?

One day to a week.

How To Start a POS Business With Moniepoint POS

Moniepoint, a fast-growing mobile money platform, provides banking solutions that enable businesses to collect payments, access loans, manage operations and ultimately grow their business.

Transactions You Can Perform with Moniepoint POS

• Fund Transfer
• Airtime Purchase
• Payment of Utility Bills

How To Become a Moniepoint POS Agent.

• Visit Moniepoint’s official website.
• Fill out the registration form for Moniepoint agents and submit it.
• Make sure your email address and phone number are confirmed, and an agent will reach out to you after 48 hours of registration
• The Agent would provide you with information on what to do next, after which they would confirm you as an agent
• You can now log in to your Moniepoint POS dashboard to manage your account.

Requirements To Become a Moniepoint POS Agent.

• Business registration certificate.
• Utility bill
• Your bank account Number
• Verifiable identity card: National ID, Voters card, Int’l passport, etc.

Moniepoint POS Transaction Charges.

Moniepoint’s transaction charges are considerably low and one of the cheapest in Nigeria. Charges are based on the number of transactions you carry out across all banks. There is a fixed charge of N20 for all banks in Nigeria.

The withdrawal charge for up to N4,000 is simply N6.2. And this amount increases as the amount withdrawn increases.

How To Start a POS Business with Nomba POS (Formerly Kudi).

Transactions you can perform with nomba pos..

• Cash withdrawal and deposit
• Funds Transfer

How To Become a Nomba POS Agent.

• Download and install the Nomba app from the Google play store
• Launch the application on your android phone
• Sign up using your phone number and connect the app with your bank account
• Start transacting on the Nomba app
• Ensure you use it consistently for basic bills like electricity, airtime recharge, TV subscriptions, and more
• After about two weeks, Nomba will message you about your eligibility to receive a free POS.

How Much Does It Cost To Become a Nomba POS Agent?

To become a Nomba POS agent is free

How Much Does Nomba POS Charge?

Nomba charges 0.7% flat on cash withdrawals.

How To Start A POS Business With Paga

To become a Paga POS agent, email [email protected] or Log on to www.paga.com, select Agent and click on Become an Agent to get started. 

Once you are done, one of Paga’s field representatives will contact you for further instructions on the onboarding process.

Transactions You Can Perform with Paga POS.

How much does it cost to become a paga pos agent.

The agent sign-up is free, but if you want a POS terminal, you must pay N30,000.

Benefits Of Being a Paga Agent.

As a Paga agent, you will receive a commission for every transaction you perform. In addition, bonuses and other incentives are rolled out at intervals. The more transactions you complete, the more money you make.

How Much Does Paga POS Charge?

Paga charges 0.55% on withdrawal and N30 flat on every deposit of any amount.

Paga charges N5.5 on every N1000 a customer withdraws and N30 to transfer any amount on the POS or the app.

How To Start a POS Business With Baxi Box.

Services available on baxi..

• Bills and PayTv payments such as Dstv,Gotv,Electricity ,Smile,Spectranet, etc.
• Airtime (Mtn, Airtel, 9mobile, Glo)
• Cash-in and Cash-Out (Money transfer and money withdrawal)
• Account Opening, Insurance and vehicle paper renewal
• Educational products (Waec and Jamb)

Requirements For Getting a Baxi Box POS.

• A verifiable ID card such as International Passport, National ID Card, or Voters Card
• Business registration certificate
• Bank account number
• Valid email address
• Passport photograph

A cautionary fee of N10,000 for the Baxibox Mpos and N30,000 for Baxibox android POS applies also.

How To Become a Baxi Box Agent.

• Download the BaxiMobile App from your play store/Apple store. 
• Install the app on your device and complete the sign-up process
• Provide your BVN and verifiable address to upgrade your account to Baxi Flex or Baxi Pro.
• Navigate to Request for MPOS/POS and submit a request for a POS device.

How Much Does Baxi Box POS Charge?

Baxibox POS charges N30 flat for cash deposits and 0.55% on a single withdrawal transaction of N1 – N20,000. The percentage goes slightly higher as the withdrawal amount increases.

How To Start a POS Business With PalmPay

Transactions you can perform with palmpay pos.

• Payment of Bills
• Check customers’ account balance with their ATM

How To Request For a Palmpay POS Machine For Your POS Business.

•  Download the PalmPartner app from iOS or Android Playstore
• Complete the application form in the app
• Agree to the terms and conditions
• Upload the required documents and submit them.

Requirements For Getting a PalmPlay POS Machine.

• Business registration certificate (For registered businesses only)
• Bank Account Number

PalmPay POS Charges And Commission Structure

• Airtime top-up – 3% of the amount
• N10 only for bank transfers
• Bill payments are for FREE.

How To Start A POS Business With Wema Bank.

Transactions you can perform with wema bank pos.

• Money transfer
• Bills payment
• USSD on POS 
• Pay With Phone number 
• QR Code 

Benefits of Wema Bank POS To Customers

• Increased sales due to impulse buying by customers
• Reduction in pilfering as cash-handling is reduced
• Availability of multiple network technologies to ensure uptime
• Joint merchandising opportunities

Requirements For Starting Wema Bank Agent Banking Business.

• You need to have a verifiable existing business on the ground.
• You also need to be operating a Wema bank account.
• A valid means of identification such as a national identity card, international passport, driver’s license, and voter’s card.
• A minimum start-up capital is also required.
• A functional android mobile phone with data.

Steps To Get Wema Bank POS For Your POS Business

• Click here to download the Wema Agent Banking Expression of Interest Form
• Fill in the required details in the form carefully and correctly.
• Go with the form and the required documents already listed above to any Wema Bank branch nearest you.
• Your application will be documented, and they will give you further instructions on how to proceed.

Wema Bank POS Charges

The standard merchant service charge is 0.5% per transaction, capped at NGN1000.

How To Start a POS Business With Zenith Bank.

Zenith bank’s agent banking is a financial inclusion service adopted by the bank to extend its retail reach across all segments. As an agent, you are required to render basic financial services on behalf of the bank.

Transactions You Can Perform With Zenith Bank POS.

• Account opening
• Cash deposit
• Funds transfers

Requirement for Signing Up On Zenith Bank’s Agency Banking Platform.

• An existing retail/business outlet with a trading name
• An existing retail/business outlet in a physical geographical location for a minimum of 12 months
• The outlet can be a school, market, shopping mall, filling station or any business outlet with reasonable human traffic
• The outlet should accommodate a dedicated desk/counter and a minimum of one (1) staff to handle agent banking services
• Must have maintained a Zenith bank account for a minimum of 6 months

Implementation Requirements

• Proof of address (utility bill)
• Valid means of identification
• 2 Passport photographs
• Certificate of Incorporation
• Memorandum and Article of Association

For individual accounts:

• No sign-up fee is required
• Agent downloads agent banking app on an Android device

Benefits Of Using Zenith POS For Your POS Business

• Cash Management – opportunity to evacuate Cash off your retail premises
• Increase in sales/business opportunities as a result of an increase in footfall
• Additional income from transaction/services fees and commission 
• Opportunity to cross-sell your products/services to walk-in customers 

How To Start a POS Business With GT Bank.

Gt bank pos benefits to merchants.

• Withdraw & deposit cash in bank Accounts.
• Customer enquiries.
• Local funds transfer services

Requirements For Getting Gtbank POS For Your POS Business

• You need to possess GTB Current Account.
• Valid identification documents (Passport, voter card, National Identity, or driver’s license).
• You need to have an existing business location.
• You also need a utility bill as proof of your residential address.

How To Become a GTBank POS Agent

• Visit the nearest GTBank branch
• Meet the next available customer agent at the banking hall
• Request for a POS application form.
• When and if your application is approved. The GTBank will contact you to come and collect your GTbank POS.
• Alternatively, you can download the GTBank mobile money agent for m, fill it and take it to the nearest GTBank branch.

GTBank POS Charges

GTbank charges a fee of 0.75% for each payment or service made with the POS

How To Start a POS Business With Access Bank.

Transactions you can perform as an access bank closa agent.

• Cash Deposits
• Cash Withdrawals
• Funds transfer
• Bill Payments
• Account Opening

Benefits Of Using Access Bank POS For Your POS Business

• Banking services right at your doorstep
• Transactions are PIN protected
• Services are available to both Access Bank and other Bank customers
• Access to funds anytime, even after banking hours (weekends and public holidays)
• Save the cost of going to the branch or ATM
• Become an Agent today and make extra income

Minimum Requirements To Become an Access Bank POS Agent:

• A visible business location which is easily accessible
• Minimum working capital of  ₦50,000
• Valid identification – Voter’sVoter’s card, Driver’sDriver’s License, International Passport, National ID card
• Business registration documents for corporate bodies

Access CLOSA Agents Can Be Any Of The Following:

• Unregistered business – Individuals
• Registered businesses – Limited liability companies, Sole proprietorships, Partnerships, Cooperative societies
• Corporates with retail chains / large distribution network

How To Start a POS Business With EcoBank.

Services offered by ecobank xpress agents ..

• Opening of Ecobank Xpress Account
• Withdraw funds from your Ecobank Xpress Account
• Deposit funds into your bank account
• Transfer funds to any local and international bank in selected locations via Rapid Transfer, Western Union, Ria, Money Gram, Vigo, and Unity Link.
• Pay bills (TV, internet, utilities, etc.)
• Top up your airtime
• Redeem Xpress Cash e-token
• Reload Ecobank Cash Xpress (Prepaid) Card

Requirements To Getting Ecobank POS For Your POS Business

• A desktop with an internet connection
• An Android-enabled device with operation system version 5.0 to enable the download of Agent App
• A feature phone for USSD transactions
• CCTV and printer/copier (for international transfer agents only)
• Bank Verification Number (BVN)
• Valid means of identification: National ID (NIN Card), Driver’s License, Permanent Voter’s Card (PVC) or International Passport
• Utility bill of Agent’s operating address (not more than three months)
• Two (2) current/corporate account references or duly completed Character Reference Form

For Corporates/SMEs only:

• Corporate Affairs Commission (CAC) Documents for Registered Companies/certificate of registration
• TIN Number/Tax Certificate for Registered Companies

How To Become An Agent With Ecobank And Start Your POS Business

• Visit the Ecobank Xpress Point registration portal
• Fill out the merchant form
• Select Level of Education
• Enter a contact phone number
• Choose your type of business
• Enter the number of business locations you have
• Choose your device type (desktop, laptop, smartphone)
• Read and agree to the Terms and Conditions
• Tick the reCAPTCHA button to indicate you are not a robot.
• Click Submit.
• Once your application is received, An Ecobank representative will contact you within 72 hours.

How To Start A POS Business With UBA.

Transactions you can perform as a uba pos agent..

• Payments for purchase
• Balance enquiry
• Accepts all Cards (Visa, MasterCard, Verve)
• Other Value Added Services (Bill Payments, Air time vending)
• Merchant has access to view transactions online in real-time

Benefits of Using UBA POS For Your POS Business

• Increased Sales: Buyers spend more with cards
• Customer Satisfaction: Cardholders will have the flexibility of payment
• Speed of Checkout: No more queues, no more counting bills, giving change or waiting to write cheques
• Safety: With less Cash, you are less vulnerable to theft and pilfering
• Earn revenue on ”Cash-back” transactions: Buy goods, buy Cash

How To Request UBA POS For Your POS Business

i. Click here to download the registration form

ii. Fill out the registration form

iii. Submit the complete form at the branch closest to you

iv. After your request is approved, you will receive a confirmation email with your login information and contact details for your POS support officer

v. The POS terminal will be delivered to you within 3 – 7 working days.

Requirements For Getting UBA POS For Your POS Business

• A valid means of identification, e.g., international passport, driver’s license, national id card, or voter’s card
• A recent utility bill of your proposed operating site.
• A business location that is easily accessible and not too close to other agents
• A UBA account. You can use your standard individual or a corporate account for this purpose.

How To Start a POS Business With Quickteller Paypoint.

Quickteller Paypoint is the trade name of Interswitch Financial Inclusive Services (IFIS). Quickteller Paypoint agents earn a consistent income, offering services like Bill Payment, Funds Transfer, Cash Deposits, Cash Withdrawals, Insurance, and Airtime Recharge to customers in their community.

Requirements For Getting Quickteller POS For Your POS Business

• Applicant should have an existing business outlet
• A copy of identification card, driving license or international passport
• Proof of address by providing utility bills
• Must possess a functional Android phone
• Financial account bank details or statements
• A passport-sized photograph
• A complete Quickteller Paypoint agent registration form/agreement and account package
• A minimum startup capital of N10,000. The amount is the trading capital, and IFIS deposits it in the Quickteller Paypoint agent wallet upon setting up the business.

How To Become a Quickteller Paypoint Agent.

• Visit the Interswitch website
• Fill out the Quickteller Paypoint registration form correctly
• Deposit N10,000 to an account that will be provided for you
• A Quickteller officer will visit you to verify your office.
• The officer will give you another form to fill out and attach your passport photo
• Your account will be activated, and you will receive Quickteller Paypoint agent login details.

How To Start a POS Business With FCMB

Transactions you can perform with fcmb pos.

• Payment for goods and services  purchased
• Cash Back services
• Pre-Authorization service
• Cardless transactions
• Air time recharge
• Bill payment (PHCN, DSTV, etc.)
• Payment Reversal option
• End of the Day transaction report

Benefits Of Using FCMB POS For Your POS Business

• Earn monthly commission on service rendered to customers
• Become an FCMB representative in your business community.
• Priority service when there is a need to visit the branch.
• Leverage on FCMB corporate image
• Reduction of cash handling and the associated security risk.

Requirements To Become An FCMB Agent

• The prospective agent shop must be on the ground floor to enhance visibility and accessibility
• The prospective agent location should be in a strategically populated area with high foot traffic
• The prospective agent location should be some distance from the nearest ATM/Bank to establish convenience
• The prospective agent should show passion for driving the business
• Prospects must open an SB101 Account or use a co-operate account for operation.
• Prospects must have a minimum of N100,000 as trading capital to commence business
• The onboarding timeline is one month from the period prospect documentation is completed

How To Become FCMB Banking Agent

To become an FCMB banking agent, visit any FCMB branch in your locality and pick up an FCMB BANKING AGENT interest form from the customer service department.

What Does It Cost To Start A POS Business

We did the cost analysis of everything you need to start the POS business. Find the cost of starting the POS business in the POS business guide in our  shop.

A POS business is an additional way of getting income. Aside from your existing business, it is a way to expand service offerings and one of the best methods to cross-sell your products/services to walk-in customers.

The business needs to be situated in places with no bank branches or busy environments with enough security measures. You are sure to increase your daily revenue if you get everything right.

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130 thoughts on “pos business – how to start a pos business in nigeria”.

It’s well self-explanatory, I feel motivated to Venture into the business. Thanks once again for the write-up.

Hello Maspara,

We are glad you found the content useful.

We have a program that will prepare you to launch your business with expert guidance. Learn all about it here – https://www.entrepreneurs.ng/start-your-business-in-30-days/

Please, take a look at all the different ways we can work with you and increase your success here: https://entrepreneurs.ng/services/

And reach out to us on WhatsApp- 08038874148.

I love that thank you very much

I am so glad for this explanation. Now I think am ready to go into it

We are glad you found the content useful. Get the comprehensive guide from our shop .

I so happy to have gotten across this research….. thanks so much.

Thank you. Get the comprehensive guide with the cost analysis of starting the business from our shop

This is nice! But we need more information about the materials needed to start POS business

Thank you, Tosin

We are glad you found the content insightful. Please get the comprehensive guide which contains everything not covered in the article: https://www.entrepreneurs.ng/35-business-ideas/

This is a very understanding and useful article I have been anticipating to see. I have much believe that this article would energize me to venture into this type of business. I so much appreciate your words of encouragement. Thanks

Hello Muhammad,

We are glad you found the content useful and insightful.

Please get the comprehensive guide which contains the step-by-step guide and cost of starting the POS business and 3 other businesses. https://www.entrepreneurs.ng/35-business-ideas/ You can reach us directly on WhatsApp: 08038874148.

Thanks, does it need any educational qualification, secondly do I need to be involved in any business association before I could register?

Thank you for reaching out to us.

Get the comprehensive guide: https://www.entrepreneurs.ng/35-business-ideas/ it contains all the information you need.

Bravo and Appreciate your giving time to explain this important message.

this article is very helpful but do you recommend OPay?

Thank you for writing to us Anthony.

Please get our resources from our shop . You have step-by-step guides to start the POS business and other businesses.

Thank you so much for this article. You said before I can start a pos business, I have to have a earning pay. Can I as a student venture into it with adequate funding.

Thank you Debbie for writing to us.

Please get our resources from our shop. You have step-by-step guides to start the POS business and other businesses.

Thank you very much. Please I want to know if I will have to pay for the payment card reader at the bank and how much. Thanks again.

Hello Ernest,

Please, get the comprehensive guide from our shop: https://www.entrepreneurs.ng/shop/

I want to start a POS business but money is my problem. If I can see anyone that I can partner with.

Sincerely I understand your explanation and I loved your encouragement for new beginner…Thank so much!!

Good day Admin, I really appreciate you greatly for this write up. Pls am requesting for some ideas to write the POS business analysis, highlight the strength, weaknesses, opportunities & threat & some other key points in writing business plan as an existing POS Business agent. Thanks

Hello Clems,

Please get the comprehensive guide to start the POS business here: https://www.entrepreneurs.ng/product/start-your-own-pos-business/

Please I am not advising anyone to go for Cico POS. The network is extra very bad, you will regret buying the terminal. When making a transfer, it will be showing you pending and they will not reverse it until after one week. Still, you can’t transfer on your own wish, till they satisfy themselves.

Thank you for this. God bless you

Thank you for the explanations. But, the thing is, how much does one need to set up the pos business?

Thank you, Salome for writing to us.

We have a comprehensive guide that contains the cost breakdown of starting the POS business. Get it here: https://www.entrepreneurs.ng/product/start-your-own-pos-business/

Thank you for the necessary information granted, I really hope starting the business,the information is very enlightening. Thank You

You are welcome. Kindly subscribe to our blog to receive new updates.

Thanks for the useful information. God bless you. Please, how much capital do I need to start a POS now? Excluding building a kiosk or table and umbrella. Thank you.

Hello Ibrahim,

Thank you. We are glad you found the content useful. You will get all the details plus the investment amount you need by purchasing our step-by-step guide to start the POS business from https://www.entrepreneurs.ng/shop . Thank you.

Thanks for the information but can’t one start this business without owning a shop

Hello Prince,

We’re glad that you found the content insightful. To get comprehensive information on the steps to start the POS business, please visit https://www.entrepreneurs.ng/shop and get our guide. Thank you.

Interesting. I learnt alot. Thank you.

Thank you so much for this useful information..I appreciate.

Thank you for reaching out to us. Please get the full resource to start the POS and other businesses here: https://www.entrepreneurs.ng/shop/

This is awesome. Thanks for the info. Please I’ll like to get my insight on demerits of pos business and how to avoid them. Please are all banks in Nigeria poised to render the services to clients?

Hello Amadi,

We’re glad you found the content insightful. To get a comprehensive guide on how to start the POS business visit https://www.entrepreneurs.ng/shop .

This is marvelous. Thank you for writeup. It is incredibly educating.

We’re glad you found the content insightful. Get a more comprehensive guide with the cost of starting the POS business on https://www.entrepreneurs.ng/shop . Thank you.

I do appreciate your kind gesture. To register with CAC, how much is the cost?

To register your business with CAC, please send an email to [email protected] or call 08188122223. Thank you.

I love the write up, am planning to invest on POS

Thank you for reaching out to us. Please get our reached e-book on how to start the POS business here: https://www.entrepreneurs.ng/product/start-your-own-pos-business/ It has all the information you need to start the POS business up to the setup cost. Thank you.

I would like to know how much we charge in transfer, withdrawal, bills payments, Govt, DSTv, how do I charge on each of these?? Because I really love the business.

Thank you, Diamond, for reaching out to us. Please get our reached e-book on how to start the POS business here: https://www.entrepreneurs.ng/product/start-your-own-pos-business/ It has all the information you need to start the POS business up to the setup cost. Thank you.

What if one has already registered the terminal can it be changed to another

Hello Ebuka,

Please get our guide on how to start the POS business here: https://www.entrepreneurs.ng/product/start-your-own-pos-business/

It contains everything you need to know about starting and running the POS business. Thank you.

Nice Content.

Great Content. Well Explained.

I love this article, it is self-explanatory. Thinking of starting the business.

Am considering the business… Thanks for the information. It’s useful for me.

Thank you, Joy.

We’re glad you found the content useful.

We have a comprehensive proposal to start the POS business and the 34 most profitable businesses in Nigeria. Get the guide here: https://www.entrepreneurs.ng/35-business-ideas/

Thank you for the information. Please can I combine the POS business with my provision business in the market

Hello Praise,

Thank you for reaching out to us and we’re glad you found the content insightful.

You can find the answers you seek here: https://www.entrepreneurs.ng/35-business-ideas/

Let’s know if you have other concerns.

Thank you, sir. Please how long does it take for the bank to release the POS machine?

Hello Kelvin,

This will depend on the bank. Please, make further research. Thank you.

Thank you for the info. I want to know the best bank to use in starting a POS business because am very much interested in it.

Thank you on this information, my question thus; Can POS agent get two machines from the same bank to be operated in different locations?

Secondly can an agent get the machine from Lagos and Operate it in Ondo State?

Thank you for reaching out to us. We’re glad you found the content insightful. Moreso, we have an in-depth guide that will answer most of the questions you have concerning the POS business. Do get the crash course here: https://www.entrepreneurs.ng/35-business-ideas/

Thank you for this info. Am interested in the business. Is it possible to start it without a registered business name?

Hello Daniel,

It’s good you’re interested in starting the POS business. You need to get this guide: https://www.entrepreneurs.ng/35-business-ideas/

It’s a comprehensive proposal to start the POS business and 34 other businesses. It will answer your question and give you a head start on your entrepreneurial journey.

Thank you, very insightful.

You’re welcome Abimbola,

It’s good you’re interested in starting the POS business. Get this guide: https://www.entrepreneurs.ng/35-business-ideas/

It’s a comprehensive proposal to start the POS business and 34 other businesses. It will answer any questions you may have and give you a head start on your entrepreneurial journey.

I am interested, but how much is the pos machine I need to buy and own it.

Hello Christy,

Thank you for reaching out to us. We’re glad that you’re interested in starting the POS business.

We have a more comprehensive guide that contains the overall cost of starting the POS business and 34 other profitable business ideas.

Get it here: https://www.entrepreneurs.ng/35-business-ideas/

We’re here for you if you have any business concern.

Wow you guys have opened my eyes concerning anything about POS thanks alot.

We’re glad you found it insightful, Godwill.

There’s an even more comprehensive guide with the cost of starting the POS business and 34 other lucrative businesses in Nigeria.

This will give you a head start on your entrepreneurial journey.

Thanks for the info. I am so interested in it, but what if I do not have up to 50k, can I do the business.

Hello Pelumi,

There are so many ways to raise funding, most of which, we have covered on this platform.

Also, we have a comprehensive guide with a step-by-step guide to start the POS business and 34 other businesses.

You can get the crash course here: https://www.entrepreneurs.ng/35-business-ideas/

DO let us know if you have any other concerns.

I’m very interested in providus bank POS but, I’m living in Bauchi State. However, I have a good location where I’m operating different type of businesses. I also want to know the bank charges for the POS collection apart from my Capital of the transaction.

Hello Musa,

Please, get a comprehensive proposal to start the POS business here: https://www.entrepreneurs.ng/35-business-ideas/

It contains every information you need to start your POS business.

U are blessed

Highly Appreciated for this insight as I’m planning having a POS business But the idea of having another business before on can start POS Business is not encouraging at all.

Hello Oyewale,

It’s good that you have an interest in starting the POS business. We have a comprehensive proposal that will help you mitigate any challenge. Get it here: https://www.entrepreneurs.ng/35-business-ideas/

With the guide, you will successfully start the POS business and 34 other businesses.

Please I am so much interested in this business, I will like to carry out this business in my area because there’s no too much bank in my area.

Hello Lucky,

We’re glad you’re interested in starting the POS business. We recently published an in-depth guide that will serve as a crash course for starting the POS business and 34 other profitable business ideas. It contains the costs of everything you need to start the business.

Thank you very much for this wonderful information. My question is can someone start this POS business or must have another business before he can be able to have a pos machine

Hello Isreal,

We’re glad you found the content very useful. Your question was answered in the piece. Please know that we have a comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. We will send an email and also make the announcement on Entrepreneurs.ng once it’s launched. Thank you.

Hi and happy weekend. You guys are doing a great job by giving us information and not making us deformed. Kudos to you all!

Hello Tunji,

Thank you for your kind words.

I’m interested,,but how much exactly is needed to float the business?

Hello Collins,

We’re glad you found the content very useful. Please know that we have a comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. We will send an email and also make the announcement on Entrepreneurs.ng once it’s launched. Thank you.

Thanks for this helpful insight into the business.

We are glad you found the content insightful. Please know that we have a comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. We will send an email and also make the announcement on Entrepreneurs.ng once it’s launched. Thank you.

Please without me owning a business that means I’m not eligible to have my POS business ?

Hello Stephanie,

Thank you for reading. This is true at the time of our research. Please know that we have a comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. We will send an email and also make the announcement on Entrepreneurs.ng once it’s launched. Thank you.

Thanks, a lot for this write-up. My question is:- Which of the banks has a moderate fee for each transaction?

Thank you for writing to us. We have an in-depth guide that contains all you need to know about starting the POS business. Get it here: https://www.entrepreneurs.ng/35-business-ideas/

Very insightful. However, you did not specify how to operate the device. Is the bank going to teach the process?

Hello Henry,

We’re glad you found the content very useful. Usually, banks work with agencies that teach you the process. Please know that we have a comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. We will send an email and also make the announcement on Entrepreneurs.ng once it’s launched. Thank you.

Thank you so much, am trying to be in. Am so happy about this guidelines

Hello David,

We’re glad you found the content very helpful. You can start implementing all you learned from the guide. However, we have a more comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. This will be launched soon on Entrepreneurs.ng and we will make the announcement once it’s launched. Do keep tabs on Entrepreneurs.ng.

I am interested in this business but how to connect with them is my problem

Hello Abduls,

We’re glad you found the content very helpful. The guide is explanatory, you can approach a bank and find out their requirements. However, we have a more comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. This will be launched soon on Entrepreneurs.ng and we will make the announcement once it’s launched. Do keep tabs on Entrepreneurs.ng.

Thank you for a wonderful write-up, I plan on venturing into the POS business but the issue is that, can I employ someone to work for me?

Hello Wilmont,

Thank you for your reading. We’re glad you found the content insightful. Yes, you can employ someone to work for you. But, you have to understand how the business operates to be an effective business owner.

Also, we have a more comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS and other businesses. This will be launched soon on Entrepreneurs.ng and we will make the announcement once it’s launched. Do keep tabs on Entrepreneurs.ng.

How much can someone get to start up the business?

Thank you for reading.

We’re glad you found the content very helpful. We have a more comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. This will be launched soon on Entrepreneurs.ng and we will make the announcement once it’s launched. Do keep tabs on Entrepreneurs.ng.

Insightful pieces of information. Thanks for the write up. I’m already in the POS business. I sited my POS terminal in a residential area. I am using Opay POS at the moment while waiting for my bank agent processing to be completed. I am facing challenges of customers being debited in the process of withdrawing even when the transaction did not pull through. Please, is there a remedy for this? Because it is affecting the business.

Hello Emmanuel,

Thank you for sharing your experience. We’re happy for your progress. For the challenge you’re experiencing, you can talk to your provider and see if they have a solution for you.

If you want to master the POS business, we have a comprehensive guide coming out soon that contains the strategies and investment cost of starting the POS business and other businesses. In addition, you will learn how to market your business and succeed. Do keep tabs on Entrepreneurs.ng because we will make the announcement once it’s ready.

Pls help me out, how can one get the opay pos machine and what is cost ? Here is my phone 08039447070

Lovely, insightful, generous and eloquently offered business opportunity. I would like to hear more about your organization. Many thanks. Andrew

Thank you so much, Andrew.

We’re glad you found the content useful. Interestingly, we have a more in-depth guide coming out soon that contains the marketing analysis and investment cost of starting the business and other business ideas. Please keep tabs on Entrepreneurs.ng because we will make the announcement there.

Please stay safe.

I will follow the procedure and see how it goes!!

Hello John,

We’re glad you found the content insightful. It will interest you to know that we have a comprehensive coming out soon that contains the investment cost and marketing analysis for starting the POS business and other business ideas. Please, keep tabs on Entrepreneurs.ng because we will make the announcement as soon as it’s released.

Nice one! How much is pos device that comes from business org not from banks.

We are glad you found it useful. Interestingly, we have an even comprehensive guide coming out soon that will contain the investment cost and marketing strategies to start the POS business and other businesses. Keep tabs on Entrepreneurs.ng because we will make the announcement as soon as it’s launched.

Wow,really a lucrative business

Hello Purity,

We’re glad you found the content very insightful. Interestingly, we have an even comprehensive guide coming out soon that contains the investment cost and marketing strategies to start the POS business and other businesses. Keep tabs on Entrepreneurs.ng because we will make the announcement as soon as it’s launched.

I really like the write-up…So I will start the pos business

That’s very nice to hear Anuoluwapo. Interestingly, we have an even comprehensive guide coming out soon that will contain the investment cost and marketing strategies to start the POS business and other businesses. Keep tabs on Entrepreneurs.ng because we will make the announcement as soon as it’s launched.

Thanks for this information… I would like to start the business.

Hello Elijah,

We’re glad you found it useful. Also, we will like to tell you that we have a more comprehensive guide coming out soon that contains the investment cost and marketing strategies for starting the business. Please, keep tabs on Entrepreneurs.ng because we will make the announcement there once it’s published.

I will like to open a pos business

Hello Rita,

We are glad that you like the content and will like to start the POS business. Please know that we have a comprehensive guide coming out soon that contains the cost of the investment for starting the POS business and other business ideas. Do keep tabs on Entrepreneurs.ng because we will make the announcement as soon as it’s released.

It’s lucrative indeed.

Hello Johnson,

We’re glad you found the content insightful.

We have a comprehensive guide coming out soon that’s more comprehensive and contains the cost of the investment for starting the business. Please, keep tabs on Entrepreneurs.ng because we will make the announcement as soon it’s launched.

Thanks, but how much do I need to start the Pos business

Hello Mrs. Adetutu,

We’re glad you found the content insightful. We have a comprehensive guide coming soon that contains the financial breakdown and marketing strategies to start this business and other business ideas. Please, keep tabs on Entrepreneurs.ng as we will make the announcement when it’s launched.

It’s interesting really, I will like to start the business.

Hello Enoch,

We’re glad you found it insightful. We have a comprehensive guide that contains the financial breakdown of the investment you need to make for the business. Please, keep tabs on Entrepreneurs.ng because we will make the announcement once it’s released.

Thanks so much, very enlightening!

We are glad you found it insightful. We have a guide coming out soon that’s more in-depth. We will make the announcement on Entrepreneurs.ng once the guide is released. So, keep tabs on Entrepreneurs.ng.

So how much do I need to start this business

Hello Faith,

We have a guide coming out soon that contains the amount of investment you need to start the POS business and other business ideas. Please keep tabs on Entrepreneurs.ng as we will make the announcement as soon as it’s out.

I’m so happy about this guideline I thought is something very difficult before.

Thank you, Oluwaseun for reading. We are glad you found it insightful. Please click the share button and share it with your network.

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• Resources for Entrepreneurs > Starting a Business > How Do I Start a Business

How to Start a Point of Sale Systems Business

How Do I Start a Business

This advice is perfect for entrepreneurial folks who are thinking about starting a point of sale systems business. Read this before you begin your venture.

Thinking about opening a point of sale systems business? We tell you what you need to know to get started.

Creating a Business Plan for a Point of Sale Systems Business

One of the worst mistakes you can make as a small business owner is to not create a business plan.

The key benefit of writing a business plan is that it establishes both a framework and a roadmap for your business. If you don't have a business plan, your leadership will be handicapped, choosing short-term opportunities at the expense of long-term benefits.

The first step in creating a business plan is to develop a mission statement for your organization. From there, it's time to initiate the hard work involved with writing the rest of your point of sale systems company's business plan.

Look Over Competitors

Prior to opening a point of sale systems business within your community, it's a smart move to find out how you will fit in the competitive landscape. We've provided the link below to help you get a list of local competitors in your area. Simply enter your city, state and zip code to get a list of point of sale systems businesses in your town.

• Find Competing Point of Sale Systems Businesses

It's important to be aware of what the competition is doing. Take the time to visit the competition to properly assess their strengths and weaknesses.

A Good Source of Advice

As part of your due diligence on opening a point of sale systems business, the next step is to talk to somebody who is already in the business. It's very unlikely that the local competition will talk to you. It'd be crazy for them to teach you the business.

Fortunately, somebody who runs a point of sale systems business outside of your community may be willing to share their entrepreneurial wisdom with you, provided that you won't be directly competing with them. In that case, the business owner may be more than happy to discuss the industry with you. If you are persistent, you can find a business mentor who is willing to help you out.

The key question new becomes: how to find an entrepreneur who is running a point of sale systems business who is willing to talk to you but doesn't live nearby?

It's easy. Here's a link you can use to find a mentor outside of your area.

• Find an Experienced Point of Sale Systems Business Entrepreneur

Advantages of a Point of Sale Systems Business Purchase

Every entrepreneur dreams about building a highly successful company from the ground up. Yet point of sale systems business startups aren't easy - many fail within the first year.

So it makes sense that the idea of buying vs. starting a business should be carefully evaluated before you commit to an ownership strategy. By buying a profitable point of sale systems business, you'll shorten the amount of time it takes to achieve a return on your investment because you'll have the advantage of a proven operation and an existing customer base.

Is Franchising the Right Option?

As an entrepreneur, your chances making a success of your new business go up significantly if you decide to franchise rather than going it alone.

If you are thinking about opening a point of sale systems business, it's worthwhile to check out whether franchise opportunities in your space might increase your chances of success.

The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.

• What's the Best Franchise for You?

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These additional resources regarding starting a business may be of interest to you.

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6 Best POS Systems for Small Business 2024

Learn about the best POS systems for small businesses based on features, capabilities, and price.

All retailers need a point-of-sale (POS) system to accept customer payments and track sales.

But the best POS system for a furniture store with 50 established locations won’t be the same as the best POS for a small jewelry business running its first pop-up shop.

When deciding on the best POS system for your small business, it’s important to think about which features match your current needs and future goals.

This post is designed to help you find out what features a POS system for small business should have and how to choose the right point-of-sale for your store.

6 best POS systems for small businesses

• Shopify POS : Best overall small business POS
• Square : POS retail solution
• Lightspeed : POS for inventory management
• Toast : Best for the foodservice industry
• Clover : Best industry-specific POS
• Revel : Best for the hospitality industry

1. Shopify POS

Best small business POS for online and in-person sales

With devices to fit small businesses of all kinds, Shopify POS lets you sell everywhere your customers are. The POS system integrates seamlessly with Shopify’s ecommerce platform, so retailers can manage online and in-person sales from one intuitive place.

Shopify’s POS Go is perfect for pop-ups, markets, events, or employees on the sales floor. Look up inventory, check customer profiles, and create tailored shopping experiences while interacting with customers.

Shopify POS helps you run up to 1,000 physical stores alongside your ecommerce store, so you can understand where products are by location and availability when making a sale.

• Omnichannel sales
• Smart inventory management

Customer profiles

• Reports and analytics

Staff management

• Intuitive checkout
• Shopify Payments
• Customer relationship management (CRM)
• Marketing tools
• Hardware options
• Contactless payments
• Mobile selling

Payment processing fees: See pricing .

Monthly fee: Shopify plan required.

Retail solution for small businesses

Square offers a user-friendly interface and a range of features for small businesses. As a free POS system, Square offers basic sales tracking and reporting, plus the ability to accept payments without Wi-Fi. Services like payroll also integrate with the POS system.

• Customer accounts
• Third-party integrations
• Inventory management
• Mobile access
• Shift scheduling
• Loyalty program
• Employee management
• Electronic payments

Payment processing fee: 2.6% plus 10¢ per in-person transaction. 2.9% plus 30¢ for sales through Square Online Checkout.

Monthly fee: $0.

Learn more about how Shopify and Square compare .

3. Lightspeed

Inventory management for retailers

Lightspeed’s POS for retailers has a number of inventory management features, which make it an option for brands with multiple locations to manage. Lightspeed Retail offers one-on-one onboarding and an account manager with every plan.

• Multi-store capabilities
• Sales reporting and analytics
• Ecommerce integration
• Point of sale (POS)
• Purchase order management
• Hardware integration
• Payment processing

Payment processing fee: 2.6% plus 10¢ per in-person transaction. 2.9% plus 30¢ per online transaction.

Monthly fee: From $69 per month.

Learn more about how Shopify and Lightspeed compare .

For the foodservice industry

Toast is a POS system designed for the foodservice industry, with features like menu management, tableside ordering, and kitchen display systems. It’s popular with small restaurants and cafés.

Toast offers sales management across multiple locations, so you can publish different menus and set different prices at each location. Features like online ordering and customer loyalty programs may be paid add-ons depending on the plan you choose.

• Online ordering
• Kitchen display system (KDS)
• Reporting and analytics
• Digital menu boards
• Gift cards management
• Delivery tracking
• Tableside ordering
• Loyalty programs
• Mobile ordering
• Multi-location management

Payment processing fee: 2.49% plus 15¢ per in-person transaction. 3.50% plus 15¢ per online transaction.

Monthly fee: From $0.

POS system with industry-specific solutions

Clover POS provides tailored solutions for inventory tracking, customer management, and payment processing according to industry. It’s a versatile option for small businesses.

On the back end, Fiserv , which owns Clover, processes payments. But you can also choose your own service provider.

• Mobile payments
• Order tracking
• CRM integration
• Multi-location support
• Security and fraud protection
• Real-time reporting
• 24/7 customer support
• Barcode scanning
• Table layout and management
• Digital menu board

Payment processing fee: From 2.3% plus 10¢ per transaction.

Monthly fee: From $14.95 per month.

Learn more about how Shopify and Clover compare .

POS system for the hospitality industry

Revel Systems is a POS system that offers functionalities like CRM, loyalty programs, and online ordering. It’s suitable for small businesses in the hospitality industry, including restaurants, bars, and cafés.

Revel POS offers a digital outdoor display for drive-thrus plus delivery tools like driver tracking and text message updates.

• Cloud-based point of sale (POS)
• Quick service POS
• Self-service kiosk
• Enterprise management
• Offline mode
• API integration
• Accounting integrations
• Labor management
• Hardware solutions
• Split-bill functionality
• Customizable user permissions

Payment processing fee: 2.49% plus 15¢ per transaction.

Monthly fee: From $99.

What features should a POS for small businesses have?

Accept multiple types of payments, inventory tracking, sales reports.

A solid POS system for small business lets you process payments securely and comes with software to help you handle administrative tasks more easily.

The kind of business you manage and the types of sales you make will help you determine which features your POS system needs to have. For example, a small business POS system that works well for a brick-and-mortar florist may not work so well for an online beauty retailer running their first physical pop-up shop.

Here are the top five POS system features you should consider.

Statista projects that by 2024, digital and mobile wallets like Apple Pay and Google Pay will surpass card and cash payments—taking nearly 35% of payments market share.

With diverse payment types having become mainstream in the years since the pandemic, customers want the convenience of choosing from multiple payment options.

Your POS system should make accepting in-person and online payments simple. Most modern POS systems let you accept popular payment types, like:

• Contactless payments: These can include mobile wallet payments using Apple Pay or Google Pay and chip cards .
• Cash: Which you deposit into your cash register .
• Chip cards: Credit or debit cards with a near-field communication (NFC) chip to allow tap to pay.
• Magstripe cards: Which let customers swipe their card in your card reader.
• Card not present transactions: When a shopper pays with their card without the card being physically present. These payments usually take place when a customer makes a purchase over the phone.
• Gift cards: Digital or physical cards that can be redeemed for online or in-person purchases.
• Amazon and Facebook pay options: This allows customers to pay using their Amazon or Facebook accounts.

Shopify Payments is the fastest way to start accepting payments in-person, online, and on-the-go. It’s included in all Shopify POS plans, so you can skip lengthy third-party activations and go from setup to selling faster.

Many POS systems for small businesses help manage in-store inventory—but the best POS systems let retailers track inventory across multiple channels like their online store, physical locations, and storage units.

US retailers are sitting on around $1.35 in inventory for every dollar of sales they make. Tracking and managing inventory with a POS can help lower these costs and ensure you’re not tying up too much capital.

💡 Set reorder points in Shopify admin to get low stock notifications and ensure you have enough lead time to replenish inventory before quantities reach zero.

Maggie Owens, owner of the party supply and gifts shop Presley Paige , uses a POS system that seamlessly communicates between her online store and physical location. This helps her know exactly how much stock she has, so she can help customers find the product they’re looking for in-store.

“Offering store pickup for online purchases and managing them through our POS has been extremely helpful,” says Maggie. “Being able to track inventory in-store and send saved carts to customers who call in and want to put something on hold is useful too. This allows our in-store team to send customers items they didn’t purchase in-store, but mentioned wanting to purchase at a later date.”

According to a recent study, 60% of consumers say they will become repeat buyers after a personalized shopping experience with a retailer. By personalizing your offering to customers, you can improve brand loyalty and revenue.

A POS system that’s connected to your online store will help you gather, track, and manage customer data more easily.

For example, with Shopify POS, you can create customer profiles and view their entire purchase history, including details like:

• Everything they’ve bought at your store or online
• How much they’ve spent to date
• The number of times they’ve ordered
• How long they’ve been a customer

All of this customer data updates in real time and is located in one place. This helps customers, since your staff has more context and can serve them better. You can also use data to segment customer profiles and build email lists to keep customers engaged and increase repeat purchases.

💡 Encourage store staff to send the carts they save by email at the end of their shift. This is an accessible way to recover abandoned store sales and attribute more revenue to your store—even if the transaction happened online.

Look for a POS system for small business that compiles sales reports from data collected at both your physical locations and online. That way, you get a complete picture of how your business is performing.

💡 With Shopify, it’s straightforward to track sales by channel, store location, or product over time. To get started, view Sales reports in Shopify admin.

Your POS system should help you manage your team members as you grow and scale your business.

Look for management features like permissions and staff roles to make it easier to lead your staff. Using these features, you can set boundaries for actions that team members can do without supervisor permission, like refunding a customer or applying a discount to a product.

It’s also helpful to have visibility on staff’s performance, like their average transaction values, median units per transaction, and daily sales.

💡 With Shopify POS, you can assign different roles and permissions and set boundaries on what store staff can do in your POS system without manager approval—like changing a product’s price or applying a custom discount to a sale.

How to choose a POS system for your small business

Selecting the ideal point of sale system for your small business can be a daunting task—but it's a crucial one. A well-chosen POS system will streamline your customer experience and make inventory management much easier. Here are some key points to consider:

Compare POS providers

The first step in choosing a POS is to compare different providers. Each system has its unique strengths and weaknesses, and you need to find the one that suits your business model the best. Here are some Compare Pages to get you started:

• Shopify POS vs. Clover POS
• Shopify POS vs. Lightspeed POS
• Shopify POS vs. Square POS
• Shopify POS vs. Magento POS
• Shopify POS vs. QuickBooks POS

These comparisons will help you understand the differences in features, pricing, and usability among the most popular POS systems.

Decide which type of POS you need

Next, consider the type of POS hardware that will meet your business needs:

• Retail POS systems are designed for brick-and-mortar stores, allowing you to accept in-person payments, manage inventory, and track sales.
• Omnichannel POS systems are ideal for businesses that operate both online and offline. They provide a unified view of your sales and inventory and produce detailed reports to help you identify trends and opportunities faster.
• Mobile POS systems  are portable systems that process payments on the go. They're similar to traditional retail POS systems but offer the flexibility to process payments anywhere, anytime. They're also perfect for pop-up shops , events, and markets.

Review costs

For any business, the cost of a POS system will be a determining factor. It's essential to find a system that offers the features you need within your budget. When reviewing costs, consider the following:

• POS software fees. These are usually monthly or annual fees, with different plan tiers and corresponding prices. Higher-tier plans usually come with more advanced features, like advanced reporting and analytics.
• Hardware costs. These depend on the payment types you want to accept, the number of stores and staff you have, and the overall functionality you need.
• Payment processing fees. Every time you process a sale, your payment processor charges a fee. This fee is usually charged per transaction and taken as a percentage of the overall transaction amount. The amount you pay may change depending on the type of credit card a customer uses.

Determine inventory management needs

Good POS systems have robust inventory management features. They automatically update your inventory levels as you sell, return, or exchange products in both physical and online settings. This can significantly reduce the time spent physically counting items and reconciling inventory , as well as lowering the likelihood of errors.

Choose a POS for online and in-person selling

Nearly 50% of brands say that unifying their online and in-store operations and data is their biggest challenge—so a POS system that can integrate online and in-person selling can be a game-changer.

Choose a POS with built-in omnichannel selling features . Even if you sell exclusively in online or physical settings today, you may expand your sales channels in the future.

Get started with a POS system for small business

A small business POS system helps you accept more payment methods, accurately manage inventory, run sales reports, and more.

When choosing a POS system, consider your needs as a growing small business—what might suit some retailers might not be right for you. Think about which POS system features are most important to your team, budget, and future business goals.

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POS systems for small business FAQ

What should be included in a pos system.

• Point of Sale terminal : The primary device that connects to the payment processor and maintains the inventory and sales records.
• Barcode scanner : Read barcodes on items and quickly enter them into the system.
• Credit card reader : Process credit and debit card payments.
• Receipt printer : Prints customer receipts.
• Cash drawer : Store and secure cash payments.
• Inventory management software : Manage inventory and keep track of sales.
• Customer display : Show customers the items they are purchasing and their total cost.
• Security measures : Cameras, motion detectors, and other measures to protect against theft.

Do I need a POS system for my small business?

If you run a retail store, a POS system is essential for tracking sales and inventory. For service-based businesses such as a restaurant, a POS system can help you take orders and handle payments. For online businesses, a POS system may not be necessary but is still beneficial for tracking sales and managing inventory.

What is needed for a POS system?

A successful POS system needs hardware (barcode scanners, cash registers, receipt printers , payment terminals, etc.) and software for efficient transactions. Must-have features for POS systems include inventory management, sales reporting, customer relationship management, employee management, and secure payment processing.

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Start Your Point Of Sale Business in 9 Simple Steps

By alex ryzhkov, point of sale bundle.

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Are you considering starting a Point of Sale (POS) business but not sure where to begin? Look no further! In this blog post, we will guide you through a comprehensive checklist of 9 steps to help you open, start, and launch your own POS business successfully.

According to recent statistics, the POS market is experiencing significant growth, driven by the increasing adoption of digital payment solutions and the need for efficient business operations. With the right strategy and implementation, you can tap into this lucrative industry and carve out a successful business of your own.

From conducting market analysis to developing a business plan, securing funding, and building partnerships, each step in this checklist is crucial for laying a solid foundation for your POS business. So, let's dive in and explore how you can turn your entrepreneurial dreams into a thriving reality in the dynamic world of Point of Sale systems.

Market Analysis

Business plan development, funding acquisition, product development, legal compliance, partnership building, customer support system, continuous improvement, 9-steps to start a business.

Before diving into starting a Point of Sale business, it is crucial to conduct thorough industry and market research to understand the POS market dynamics. This will help you identify your target customers and assess competitor offerings and pricing structures. Here are some key steps to consider:

• Start by analyzing the current POS market trends and growth projections. Look for industry reports, market research studies, and trade publications to gather data on the size and scope of the market.
• Identify your target customers by segmenting the market based on demographic, psychographic, and behavioral factors. Understand their pain points, needs, and preferences when it comes to POS systems.
• Conduct a competitive analysis to evaluate the strengths and weaknesses of existing POS providers. Look at their product offerings, pricing strategies, distribution channels, and customer service practices.

Tips for Market Analysis:

• Utilize online surveys, focus groups, and interviews to gather insights directly from potential customers.
• Attend industry events, trade shows, and conferences to network with key players in the POS market.
• Stay updated on the latest technology trends and innovations in the POS industry to anticipate future market demands.

Creating a comprehensive business plan is essential for the success of your Point of Sale business. This document will serve as a roadmap, guiding your company's strategy and helping you secure funding. A well-thought-out business plan should outline your business model, marketing strategy, operational plan, financial projections, and long-term goals.

Business Model: Your Point of Sale business model should clearly outline how you will generate revenue, whether through one-time sales, add-on services, or maintenance fees. Consider your target market and competitors when designing your business model.

Marketing Strategy: Develop a marketing strategy that highlights the unique features of your Point of Sale system and targets potential customers effectively. Utilize online marketing campaigns, direct sales strategies, and customer satisfaction strategies to reach your target audience.

Operational Plan: Your operational plan should detail how your Point of Sale system will be implemented and maintained. Consider factors such as distribution channels, legal permit acquisition, and customer support systems to ensure smooth operations.

Financial Projections: Create detailed financial projections that outline your expected revenue, expenses, and profit margins. Consider factors such as funding acquisition, venture capital funding, and angel investments to support your financial projections.

Long-Term Goals: Set clear long-term goals for your Point of Sale business, including expansion plans, product upgrades, and customer satisfaction strategies. Continuously monitor and adjust your goals to ensure the growth and success of your business.

Tips for Business Plan Development:

• Conduct thorough market research to understand your target customers and competitors.
• Seek guidance from industry experts or mentors when developing your business plan.
• Regularly review and update your business plan to adapt to changing market conditions.

Securing the necessary capital to start and grow a Point of Sale business is a critical step in the process. Whether you are looking to approach potential investors, banks, or other financial institutions, having a solid business plan in place is essential to showcase the viability and potential of your business.

Consider exploring various funding options such as venture capital, loans, or angel investments to determine the best fit for your Point of Sale business.

Tip for Funding Acquisition:

• Prepare a detailed financial projection highlighting the potential return on investment for potential investors.
• Clearly outline the market opportunity and competitive landscape to demonstrate the growth potential of your Point of Sale business.
• Network and build relationships with potential investors to increase your chances of securing funding for your business.

Approach investors with a comprehensive business plan that includes your Point of Sale market research, business model, marketing strategy, and operational plan. Highlight the unique selling points of your Point of Sale solution and how it addresses the needs of your target customers.

When seeking funding from financial institutions, be prepared to provide collateral and demonstrate the revenue-generating potential of your Point of Sale business to secure a loan. Research various loan options and choose the one that best aligns with your financial needs and capabilities.

Angel investors can provide valuable capital and expertise to help accelerate the growth of your Point of Sale business. Make sure to pitch your business idea effectively, highlighting the scalability and profitability of your business to attract angel investors.

Overall, funding acquisition is a crucial step in the process of starting and growing a successful Point of Sale business. By exploring different funding options and presenting a compelling business case, you can secure the necessary capital to launch and scale your business.

One of the most critical aspects of starting a Point of Sale business is developing the hardware and software that will form the backbone of your operations. The POS hardware and software should be designed with a focus on usability , reliability , and features that specifically cater to the needs of small and medium-sized businesses.

When designing the POS hardware, ensure that it is user-friendly and intuitive for both the staff operating it and the customers using it. The hardware should be reliable, durable, and able to withstand the rigors of daily use in a business environment. Consider factors such as the size, design, and functionality of the hardware to ensure it meets the specific requirements of your target market.

Similarly, the POS software should be developed with a strong emphasis on usability and functionality. The software should be easy to navigate, with a clean and intuitive interface that enables users to quickly process transactions and access essential features. It should also be robust and reliable, with built-in security features to protect sensitive customer data.

One key consideration when developing POS hardware and software is the ability to easily update or modify the product for future enhancements. Technology is constantly evolving, and it is essential that your POS system can adapt to new features and functionalities as they become available. This flexibility will help ensure that your business remains competitive and can continue to meet the changing needs of your customers.

Tips for Product Development:

• Engage with potential users and gather feedback during the development process to ensure the product meets their needs.
• Consider scalability in your design to accommodate the growth of your business and the needs of your customers.
• Stay informed about the latest trends and technologies in the POS industry to incorporate innovative features into your product.

Obtain All Necessary Permits And Licenses Needed To Legally Operate A Point Of Sale System Business In The U.S. It is crucial to ensure that you have all the required permits and licenses to operate a Point of Sale business legally. This includes obtaining a business license, tax identification number, and any other industry-specific permits that may be necessary in your state or locality.

Consult With Legal Experts To Ensure Compliance With Federal, State, And Local Regulations. Seeking legal advice is essential to ensure that your Point of Sale business complies with all relevant regulations at the federal, state, and local levels. Legal experts can provide guidance on labor laws, consumer protection regulations, and data security requirements that may impact your business.

Secure Intellectual Property Rights As Necessary. If you have developed proprietary software or technology for your Point of Sale system, it is important to protect your intellectual property rights. This may involve obtaining patents, trademarks, or copyrights to safeguard your innovations from competitors.

Tips for Legal Compliance:

• Keep detailed records of all permits and licenses obtained for easy reference and renewal.
• Regularly review and update your legal compliance procedures to stay current with changing regulations.
• Consider investing in cybersecurity measures to protect customer data and comply with data privacy laws.

One of the key steps in launching a successful Point of Sale business is establishing strong partnerships with hardware manufacturers, software developers, and distribution channels. These partnerships are crucial for efficient production, continuous innovation, and broad market reach.

Building partnerships with hardware manufacturers is essential to ensure that you have access to high-quality POS equipment that meets the needs of your customers. Look for manufacturers that offer reliable and durable hardware that can withstand the demands of a retail environment. By partnering with reputable hardware manufacturers, you can provide your customers with the best possible POS solutions.

Similarly, forming relationships with software developers is important for ensuring that you have access to cutting-edge POS software that can meet the evolving needs of your customers. Collaborate with software developers to customize your POS software to suit the specific requirements of your target market. This will give you a competitive edge in the market and attract more customers to your Point of Sale business .

Lastly, establishing partnerships with distribution channels is essential for reaching a wider audience and expanding your market reach. Work with distributors to get your POS products in front of as many potential customers as possible. By leveraging distribution channels, you can increase your sales and grow your Point of Sale business effectively.

Tips for Successful Partnership Building:

• Research potential partners thoroughly to ensure they align with your business goals and values.
• Communicate clearly and regularly with your partners to maintain strong relationships.
• Be open to feedback and collaboration to drive innovation and growth in your partnerships.

Developing a comprehensive sales strategy for your Point of Sale business is crucial for driving revenue and growth. Your sales strategy should encompass direct sales, online marketing, and partnerships with wholesalers or retailers to reach a wider customer base and maximize sales opportunities.

Direct Sales: Direct sales involve selling your Point of Sale hardware and software directly to customers. This can be done through your own sales team or by leveraging online sales platforms. Develop a sales pitch that highlights the key features and benefits of your Point of Sale system to attract potential customers.

Online Marketing: Utilize online marketing tactics such as search engine optimization (SEO), social media marketing, and pay-per-click advertising to reach your target audience and drive traffic to your website. Create compelling content that showcases the value of your Point of Sale system and encourages visitors to make a purchase.

Partnerships with Wholesalers or Retailers: Forming partnerships with wholesalers or retailers can help you expand your distribution network and reach customers in new markets. Collaborate with established businesses in related industries to promote and sell your Point of Sale system in their stores or online platforms.

Tips for Developing a Successful Sales Strategy:

• Identify your target customers and tailor your sales approach to meet their specific needs and preferences.
• Offer flexible pricing models that cater to different customer segments, such as one-time purchase options, add-ons, and ongoing support services.
• Provide excellent customer service to build trust and loyalty with your customers, leading to repeat purchases and referrals.

Setting up a robust customer support system is essential for any Point of Sale business. Customers rely on their POS systems to run their daily operations smoothly, and when issues arise, they need quick and efficient support to resolve them. Here are some key steps to consider when establishing a top-notch customer support system:

• Maintenance Services: Offer regular maintenance services to ensure that customers' POS systems are running smoothly. This can include software updates, hardware checks, and troubleshooting common issues.
• Troubleshooting Support: Provide a dedicated support team to assist customers with any technical issues they may encounter. This team should be well-trained and equipped to offer quick and effective solutions to minimize downtime for customers.
• Maximizing System Use: Assist customers in maximizing the use of their Point of Sale systems. This can involve providing training sessions, resources, and tips on how to leverage the full capabilities of the system to enhance their business operations.

Tips for Setting Up an Effective Customer Support System:

• Invest in comprehensive training for your support team to ensure they are knowledgeable and responsive to customer needs.
• Implement a ticketing system to track customer issues and ensure timely resolution.
• Provide multiple channels for customer support, such as phone, email, and live chat, to cater to different preferences.

Continuous improvement is a key aspect of running a successful Point of Sale business. By implementing a process for continuous feedback collection from users to inform product upgrades and enhancements, you can ensure that your POS system remains relevant and competitive in the market. Additionally, staying updated with the latest technological advancements will help you keep your product up-to-date and meeting the needs of your customers.

Here are some strategies to effectively implement continuous improvement in your Point of Sale business:

Strategies for Continuous Improvement:

• Collect Regular Feedback: Set up a system for collecting feedback from your customers on a regular basis. This could include surveys, customer reviews, or direct communication with your clients. Analyze this feedback to identify areas for improvement in your POS system.
• Stay Updated with Technology: Keep abreast of the latest technological advancements in the Point of Sale industry. Attend conferences, participate in webinars, and engage with industry experts to stay informed about new trends and developments.
• Implement Agile Development: Adopt an agile development approach to software updates and enhancements. This will allow you to quickly respond to customer feedback and make necessary changes to your POS system in a timely manner.

By continuously seeking feedback from your users and staying updated with the latest technological advancements, you can ensure that your Point of Sale business remains competitive and relevant in the ever-evolving market.

Launching a Point of Sale business requires careful planning, strategic partnerships, and a customer-centric approach. By following the steps outlined in this checklist, entrepreneurs can position themselves for success in the competitive POS market. From conducting market analysis and developing a business plan to securing funding and building strong relationships, each step is crucial in establishing a profitable and sustainable POS system business. By prioritizing product development, legal compliance, and customer support, companies can differentiate themselves and provide value to their target customers. Continuous improvement and staying abreast of technological advancements will ensure long-term success in the dynamic POS industry.

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How to Choose the Right Point of Sale (POS) System

Ellen Cunningham

6 min. read

Updated April 11, 2024

A point of sale (POS) system can be a great addition to your business. Capable of far more than simply taking credit cards, POS systems offer features like inventory management, reporting, and even time clock options.

In my work for CardFellow, a leading resource for small businesses looking for credit card processing and terminals, I regularly test, research, and write overviews of equipment. As a result, I field a lot of questions about POS systems.

But one question  always  comes up: “There are so many options. How do I choose?”

The good news is that picking the right POS system doesn’t have to be a chore. Follow these three steps to find the right POS system for your business.

See Also:  How to Do Market Research

1. Know what’s most important to you

There are two approaches to deciding on a POS system: choosing based on features, or choosing based on costs.

Choosing by features

If particular features are the most important thing, you should choose a POS system first. But if low costs are a priority, you’ll actually want to find a credit card processor, then choose from the POS systems that processor can support.

Know which features you need

When I say that you should find your POS system first if specific features are most important, I’m talking about less common features. POS systems offer basic capabilities standard, including credit and debit card acceptance, reporting, and inventory management. For restaurants, the ability to split checks and add tips is also common.

So, what sort of features do you need to look for specifically? Here are the main ones:

• Online ordering for in-person pickup (restaurants)
• Delivery tracking for food or non-food businesses (pizza shops, florists)
• Age verification/ID prompt (liquor stores, tobacco sales)
• Integrated appointment or class calendars (healthcare, beauty salons, yoga studios)

If those features sound like must-haves for your business, it’s worth finding your preferred system first. Be sure to explicitly ask the POS company or processor if the feature you need is included, or check the POS company’s website.

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Use a product directory

The easiest way to research POS systems and find specific features is to use an online POS system product directory, like the one we have. These directories provide overviews of POS systems, so you can view important information quickly. You’ll be able to narrow down choices by the manufacturer, features, processor, and more.

Note that choosing your POS system first may limit your choice of processors, which can result in higher costs overall. We’ll get into that more in a minute.

Choosing by cost

If you scanned the list above and decided that standard POS system features will suit your needs, finding a processor first is likely to save you time and money. While POS systems (and costs to take credit cards) aren’t cheap, you may be able to reduce expenses by finding a competitive credit card processor and then choosing your system from the available options.

Picking a processor before a system gives you a much larger pool of options. Credit card processors usually offer multiple different brands and models of equipment, so you’ll still get to choose a system that fits both your needs and your budget.

When choosing a processor, start by getting quotes from multiple companies. A quick search online for credit card processing comparison sites can help you find services that will allow you to compare quotes privately, without sales calls. After you get quotes, you can ask about available POS systems. You’ll have a smaller range of choices, but the systems will be some of the most popular and user-friendly.

Many of the businesses I work with take this route when choosing a POS system, and find that it’s helpful to choose from tried-and-true popular systems even if it’s a smaller selection of the total systems on the market.

2. Decide if you’ll accept proprietary POS systems

Some POS systems are proprietary, meaning that you have to work with a specific processor in order to use that system. This isn’t inherently good or bad, but you should be aware of possible pros and cons.

A pro is that it may require you to do less research, as you won’t need to review pricing from multiple processors. You’ll get pricing from the processor that supports the equipment and that’s that.

A con is that you don’t have as much ability to negotiate your costs. Since the processor knows that you have to work with them to use the system, your competitive advantage disappears. You can’t simply go to another processor. Moreover, if you decide to switch processors in the future, you’ll have to purchase a different system, since your current one won’t be compatible with another company.

When making your decision, think about the worst case: If you switch processors for some reason, can you afford to buy new point of sale equipment even if your current system isn’t outdated? If not, a POS system that only works with specific processors might not be the best choice for your business.

You can identify systems that require specific processors by disclosures on the manufacturer’s website. It will often state the name of the credit card processing company that can support the system. By contrast, if it works with multiple processors, the site may mention that the system is “processor agnostic” or list multiple processing partners. If in doubt, you can also ask the POS manufacturer directly. They’ll advise on processors that support their system.

See Also:  What You Absolutely Cannot Afford to Forget When Pricing Your Products

3. Decide if you’ll lease or buy

Another consideration when deciding on a POS system is how you’ll pay for it. Since POS systems are more expensive than basic countertop credit card machines, you’ll want to think about what makes sense for you.

Some companies will offer the option to lease equipment instead of purchasing it outright. The benefit is that there’s little or no upfront cost, but remember that leasing equipment can cost you a lot over time. The monthly fee you’ll pay could add up to many times the retail cost of the system. Be sure to check the math yourself, and scope out what it would cost to buy the machine outright.

It’s also worth noting that leasing often comes with a contract that can’t be cancelled for four years or more. The contract is often with a separate leasing company, not your processor, so even if you stop using your POS system, you’ll still be on the hook for the equipment lease.

Purchasing a POS system outright is a bigger upfront commitment financially, but you’ll have the benefit of owning the equipment. Many POS companies offer free software updates, which will help keep your system current. If you choose to buy, you may want to consider purchasing a system with the newest technologies, like contactless (NFC) capabilities, so that you’ll be able to take a wider range of payment types.

See Also:  The Complete Guide to Choosing Your Business Structure

The tips outlined above will help you find the right system for your business in no time. Just remember:

Decide if you’ll shop by features or by processor

• Choosing by features:  Use a product directory to research POS systems and choose the one you want, then set up a merchant account with a processor who can support that system.
• Choosing by processor:  Choose a processor with competitive rates and fees. Then choose a POS system from the processor’s supported systems.

Ellen is the Marketing Manager for CardFellow, leading provider of free credit card processing comparison tools. She has a degree in English and spends her days researching and writing about everything related to credit card processing.

Table of Contents

• 1. Know what’s most important to you
• 2. Decide if you’ll accept proprietary POS systems
• 3. Decide if you’ll lease or buy

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The Complete Guide to Choosing a POS System

By Skye Schooley • February 6, 2024

If you sell goods or services, you will need a way to accept customer payments. While some businesses can make do with a simple cash register, many others rely on a point-of-sale (POS) system . A POS system not only allows you to ring up sales but also manage your inventory, employees and customers through a single software solution. This article will guide you through choosing the best POS system , with details on pricing, features and factors to consider.

What is a POS system?

A POS system is a combination of hardware and software that is used to ring up sales and accept customer payments. Since a POS system collects a wealth of data, it can also be used to record employee activity and performance, track and manage inventory, implement customer loyalty programs and generate reports.

While some POS systems are stationary, many are cloud-based and accessible on mobile devices, such as iPads and tablets, enabling you to process customer payments from multiple locations.

Who needs a POS system?

Virtually anyone selling a product or service could benefit from a POS system. While this isn’t an exhaustive list, here are some specific examples of businesses that need a POS system:

• Retail stores: Retailers like clothing and apparel stores , convenience stores, grocery stores, liquor stores, pharmacies and department stores all need POS systems that can process credit cards and show historical sales data, giving insight into profitable inventory and items that aren’t moving.
• Restaurants: Any type of restaurant, such as quick- and full-service restaurants, cafes, coffee shops and bars, need a POS system to ring food sales, print receipts, process customer payments and track inventory and ingredients. Mobile POS systems are often beneficial for these types of businesses.
• Hospitality and lodging: If you work in a lodging business like a hotel, motel, bed and breakfast or resort, you will need a POS system that can help you with booking rooms, managing occupancy and accepting guest payments. Typically, these businesses also have customer loyalty programs, which a POS system can help manage.
• Service-based businesses: POS systems can help service-based businesses, such as hair salons, spas, auto repair shops, fitness centers and medical offices, accept payments and gift cards, manage loyalty programs and track employee performance. If your service-based business allows online booking, your POS system should directly integrate with your booking tools as well, keeping service schedules up to date.
• Mobile vendors: Mobile vendors need mobile POS systems that can be utilized on the go. For example, a handmade crafts vendor may need a POS system with great mobile hardware and user interface/user experience to bring to trade shows and events for mobile payment processing. Similarly, food trucks and other mobile businesses need to track inventory and process payments from varying locations.

Some other enterprises that may need a POS system include event spaces, sports arenas, wholesale businesses, nonprofit organizations and events, car dealerships and educational institutions. Online businesses with physical brick-and-mortar stores can also find value in a POS system’s ability to keep all sales synced in one database.

How much does a POS system cost?

The overall cost of a POS system depends on what type of software and hardware features you are looking for. You’ll also have to factor in payment processing fees.

POS software costs

Cloud-based POS software is the most popular option. Many providers have tiered POS software plans for cloud-based solutions that typically cost between $25 and $300 per month. Some POS vendors offer free software but keep in mind that you get what you pay for. Free POS systems can work for some organizations, but they often have limited capabilities and require you to process payments through that POS vendor instead of a processor of your choosing.

POS hardware costs

Hardware prices vary. Some POS systems include hardware for free or the software works on any hardware device with an internet connection, allowing you to use whatever POS devices you already have. However, if you are looking to purchase a more robust POS register system, you can expect to pay $1,200 or higher. Peripheral equipment, such as tablet stands, cash drawers, card readers, receipt printers, barcode scanners and display screens, will cost extra.

Payment processing fees

When you use your POS system to process a customer’s payment, you’ll be charged payment processing fees. Credit card processing fees typically range between 1.3 percent and 3.5 percent per transaction. Some POS system providers require you to use them as your payment processor while others allow you to connect with a compatible third-party payment processor. Comparing payment processing fees from multiple processors will help you determine which is most in line with your needs and budget.

What are the benefits of a POS system?

While the specific benefits you gain from a POS system will depend on your business type and the features you utilize, there are seven key advantages a POS solution can offer:

• It improves efficiency: POS systems can improve your business’s overall efficiency by streamlining the sales checkout process, reducing transaction times and automating inventory management.
• It increases accuracy: POS systems can perform accurate calculations automatically, reducing the risk of human errors when pricing items or giving change. They can also provide real-time inventory updates, helping you maintain accurate stock records.
• It saves you money: A POS system automates many responsibilities. This reduces the need for your employees to perform these functions manually, thus allowing them to focus on revenue-generating tasks. POS systems with security features can also help you save money by preventing employee theft and fraud.
• It enhances your customers’ experience: POS systems speed up the transaction process and quick and efficient transactions contribute to a positive customer experience. Many POS systems can also track customer data and manage loyalty programs, enhancing your customer service.
• It improves employee performance: Many POS systems have employee management features so that you can track employee hours and sales. This information can be used to create friendly sales competitions, reward top performers and identify poor performers.
• It helps with recordkeeping and compliance: POS systems help businesses maintain accurate records for tax purposes, simplifying compliance.
• It can aid in strategic planning: POS systems provide valuable data on sales trends, customer preferences and inventory turnover, enabling businesses to make informed decisions.

What are the different types of POS systems?

There are three main types of POS systems: cloud-based, on-premises and hybrid systems. Choosing between these options depends on factors, such as the business’s size, budget, need for mobility and preferences regarding control and security.

Cloud-based POS

Cloud-based POS systems are hosted on remote servers and accessed over the internet. This is the most common type of POS system as it doesn’t require complicated information technology (IT) hardware or on-site servers. This setup is often subscription-based, easily scalable and cost-effective. Since a cloud-based POS is hosted by the POS vendor, updates and new features are typically handled by the service provider as needed. However, a cloud-based POS also requires your trust in the POS provider’s ability to secure your customer data since your information is stored on their servers.

On-premises POS

An on-premises POS system involves dedicated servers and technological infrastructure. The software and hardware are installed and maintained on-site. Generally, it is less flexible, more expensive and more challenging to scale compared to cloud-based solutions. Since you are responsible for system maintenance, updates and security, this type of POS solution often requires companies to have dedicated IT personnel or external support. However, the biggest advantage of on-premises POS systems is that your business has direct control over its data and security measures.

A hybrid POS is exactly as it sounds — it combines elements of both cloud-based and on-premises solutions. It typically involves a mix of on-site servers and cloud-based services and offers flexibility by allowing for both on-site and remote access. Hybrid systems may require a combination of on-site and remote maintenance. Businesses may handle some updates themselves, while others are managed by service providers. This type of POS system offers companies a balance between control of on-premises data and the flexibility of cloud providers.

What are the key features to look for in a POS system?

POS systems can include a variety of tools and functions. Here are some of the key features to look for in a POS solution.

Payment processing

Payment processing is the primary function a POS system performs. However, the type of payment processing available can vary based on the provider. For example, most POS systems support common payment methods like credit and debit cards, mobile payments and digital wallets. Some can also process gift cards and online transactions. If you need on-the-go payment processing, look for mobile POS software that can be accessed with mobile hardware like tablets and iPads.

Employee management

If you want the ability to track and improve employee performance, you’ll need a POS solution that offers employee management features. Some POS systems permit employees to clock in and out through the software. Not only is this useful for tracking employee hours, but it can also help you monitor worker sales and performance during each shift. You can use the employee data to reward top performers and identify underperformers. If you have multiple levels of employees, it can also be advantageous to look for a POS system with user permissions that allow you to control what features each worker can access.

Inventory management

Restaurants, retailers and any other business with inventory will want to look for a POS solution with inventory management features. Such tools can help track current stock levels so you know which items are selling, which ones aren’t and which need to be reordered. If you are in food service, it can be especially helpful to use a POS system that offers ingredient-level tracking. That way, not only do your servers stay informed on what food dishes are unavailable, but your kitchen staff also knows what ingredients need to be reordered.

Customer management and loyalty programs

Fostering customer loyalty can be a key driver in increasing sales. POS systems help with this through their customer management features. You can use the software to create customer profiles and store customer information to be used for personalized and targeted shopping experiences. For example, you might offer birthday gifts or anniversary discounts, send targeted coupons based on purchase history or create loyalty programs to reward returning customers for their patronage.

Reporting and analytics

The best POS systems can record data and generate reports on various aspects of your business automatically, helping you facilitate strategic planning and optimization. Detailed transaction logs and reports from a POS system can also help support accountability and audit requirements.

Integrations

POS systems can oftentimes integrate with other business solutions like scheduling and accounting software . This is ideal for companies looking to streamline their time tracking and payroll functions. Also, if you want to offer online ordering capabilities, you may want to look for a POS system that can integrate with popular online ordering platforms like Grubhub, Uber Eats and DoorDash.

What factors should you consider when choosing a POS system?

Although many POS systems include similar functions, each has its own pros and cons. There are several factors you should consider before choosing the right one for your business.

Pricing is a big factor to consider when deciding between different solutions. Once you identify what POS hardware and software features you need, evaluate vendor plans and add-on costs based on those specific requirements. Be sure to consider pricing for software, hardware, payment processing and any add-on features you might want.

A POS system can be used for many different functions and the POS features you find valuable will depend on your specific industry and business needs. For example, a retailer may want features to track clothing inventory while a restaurant may need more granular monitoring from meal inventory down to ingredient-level tracking. Look for a POS that has the features to meet your current and future business needs.

When choosing your overall POS system, it’s important to consider what type of devices you will need. Do you need stationary terminals? What about kiosks, card readers or a mobile POS? The type of hardware you need can play a significant role in determining which POS provider you go with because, although some POS software can work on any device with an internet connection, others will only work on specific hardware.

Most of the top POS providers have intuitive software, but some are more user-friendly than others. Look for a POS system that not only has the features you need but also displays them in a way that is easy for your employees and admin to access. Add-on features and integrations can also make a platform more user-friendly, so it’s critical to consider which of those you need as well.

Customer support

POS vendors offer varying levels of customer support, so look for one that matches your needs. Do you think you’ll need help with implementation? Do you want access to a support service that is available 24/7? How important is it to have a dedicated account manager? In addition to asking the provider about the support they offer, you can read customer reviews to see how helpful they are.

What are the top POS system vendors?

There are many great POS systems on the market. However, after extensive research and testing, I’ve identified the following providers as some of the best POS systems available:

• Clover: This comprehensive solution has credit card processing and POS features all in one system. It works with a variety of hardware devices and has features to help you process payments, track sales, manage your employees and do inventory.
• Toast: The Toast POS is available via multiple-tiered plans for restaurants of all sizes. It’s a cloud-based platform with an offline mode, online ordering and delivery services and 24/7 customer support.
• Lightspeed: This POS provider can support restaurants, retailers, e-commerce and golf organizations. It has features for payment processing, inventory management, marketing, reporting and more.
• Cake: Cake by Mad Mobile is a user-friendly restaurant management software and POS system. It has front-of-house and back-of-house features as well as loyalty and marketing tools. The vendor offers implementation training and provides excellent customer service.
• Shopify: This popular POS system is great for retailers, hospitality organizations and e-commerce businesses that need a scalable POS solution. It’s loaded with many useful features and integrations.
• Lavu: This POS solution is ideal for restaurants that want an iPad-based POS system . Although it already has many essential POS features, it can be customized through many native and third-party integrations.
• Helcim: Helcim is a payment processor first and foremost, although it has many POS features to help you manage your business. If needed, you can even take advantage of virtual terminal capabilities.

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Home » Blog » Point of Sale » Best POS Systems For Small Business In 2024

💳 Save money on credit card processing with one of our top 5 picks for 2024

Best POS Systems For Small Business In 2024

A point of sale system is a hub of operations. The best POS systems for small businesses provide everything you need to keep business operations running smoothly.

WRITTEN & RESEARCHED BY

Expert Contributor

Last updated on Updated March 8, 2024

REVIEWED BY

Lead Staff Writer

The best POS system for small businesses helps small business owners accept digital payments, manage inventory and customers, and provide financial insights affordably.

We analyzed dozens of POS software based on pricing, features, ease of use, small business POS hardware availability, POS transaction fees , and software contract terms to help you find the best POS system for your individual business needs.

Table of Contents

What Is A POS System For Small Business?

How to choose a small business pos system, compare the best small business pos systems, lightspeed retail: best for managing retail & rental inventory, lightspeed retail, why we chose lightspeed retail pos system for managing retail & rental inventory, lightspeed retail pos pricing, lightspeed retail pos features, hardware cost & options, payment processing costs, contract requirements/warnings, square pos: best free option, why we chose square as the best free pos system, square pos pricing, square pos features, shopify pos: best for multichannel & international sales, shopify pos, why we chose shopify pos for multichannel & international sales, shopify pos pricing, shopify pos features, contact requirements/warnings, touchbistro: best for small full-service restaurants & food trucks, touchbistro, why we chose touchbistro pos system for small full-service restaurants & food trucks, touchbistro pos pricing, touchbistro pos features, toast pos: best for midsize & multilocation restaurants, why we chose toast pos for midsize & multilocation restaurants, toast pos pricing, toast pos features, clover pos: best all-in-one system, why we chose clover pos as the best all-in-one system, clover pos pricing, clover pos features, revel pos: best for niche & larger businesses, why we chose revel pos system for niche & larger businesses, revel systems pos pricing, revel systems pos features, lightspeed restaurant: best for fast-paced restaurants & hotels, lightspeed restaurant, why we chose lightspeed restaurant pos system for fast-paced restaurants & hotels, lightspeed restaurant pos pricing, lightspeed restaurant pos features, helcim pos: best for service & subscription-based businesses, why we chose helcim pos system for service & subscription-based businesses, helcim pos pricing, helcim pos features, korona pos: best for high-risk businesses, why we chose korona pos for high-risk businesses, korona pos pricing, korona pos features, payment processing, retail pos review methodology, which pos software for small business is right for you, which point of sale software is easy to use, what is the best small business pos with a loyalty program, what are the types of pos systems, can i use my phone as a pos, what pos systems are compatible with android devices, what's the difference between a pos system and a pos terminal.

Learn More About Our Top Picks

Read more below to learn why we chose these options.

Table of Contents [ hide ] [ show ]

10 Best POS Systems For Small Business

Faqs: best pos system for small business.

The definition of a POS system  is software that, when connected to a card reader and register interface such as an iPad, allows you to take digital forms of payment when selling in person at a retail storefront, restaurant, or on the go.

The main benefits of a POS system include streamlined day-to-day operations, better insight into your sales, and a higher number of engaged customers.

Cloud-based POS systems are becoming the norm and are a much more accessible alternative to the more traditional locally installed POS systems of the past. These are typically run from a semi-portable tablet or proprietary countertop hardware system.

To choose the best POS system for your small business, consider your:

• Current sales volumes
• POS hardware requirements
• Technical know-how
• Desired POS software contract terms

For a more detailed breakdown of POS pricing, features, hardware, and what to avoid, check out our article on how to choose a POS system .

The best POS systems for small businesses are affordable, easy to use, and have the features your business needs to operate efficiently.

Our top choices include:

• Lightspeed Retail : Best For Managing Retail & Rental Inventory
• Square POS : Best Free Option
• Shopify POS : Best For Multichannel & International Sales
• TouchBistro : Best For Small Full-Service Restaurants & Food Trucks
• Toast POS : Best For Midsize & Multilocation Restaurants
• Clover POS : Best All-In-One System
• Revel POS : Best For Niche & Larger Businesses
• Lightspeed Restaurant : Best For Fast-Paced Restaurants & Hotels
• Helcim POS : Best For Service & Subscription-Based Businesses
• KORONA POS : Best For High-Risk Businesses

Read our Review

Equipment Cost

• Impressive inventory management
• Excellent rental item management
• Intuitive multi-store features
• Several niche third-party integrations available
• Add-ons can be expensive
• Early cancellation fee
• Must use Lightspeed for payment processing

Lightspeed Retail tablet POS, store management dashboard, and loyalty program points on smartphone.

We believe that Lightspeed Retail is easily one of the best retail POS systems because of its excellent inventory management features, built-in B2B/B2C retail sales capabilities, simple multilocation management, and highly customizable loyalty program. We also like that Lightspeed has so many third-party software integrations available, which allow you to do everything from managing work orders to integrating security cameras to performing retail sales/consumer behavior analytics.

Lightspeed Retail is also one of the best POS systems for rental businesses , specifically because of the system's quoting, reservation, and extensive inventory management capabilities. Whether you rent out photography equipment, party furniture, or wedding venues, Lightspeed Retail can work as a POS system for your small business.

Note:  Lightspeed Retail offers a 14-day free trial, no credit card is required.

If you want Lightspeed’s customizable loyalty program builder but don’t need the highest-level plan, you can get a lower-level plan and talk to Lightspeed about a  Lightspeed Loyalty  add-on.

Note: Each plan comes with one location and one register. You may purchase additional registers for $59/register/month. With each new location, you get another register. For example, if you have two locations, you’ll get two registers, one in each location, but will only pay the added location fee. If you purchase a third register license, you’ll pay the added location fee and an additional $59/month.

Lightspeed offers several proprietary add-ons such as Lightspeed Subscriptions, plus third-party integrations like Booxi appointment scheduling software and Hubtiger rental software.

All business owners will appreciate Lightspeed’s customizable loyalty program, extensive inventory management features, work order monitoring, and Lightspeed eCom capabilities.

The unique inventory matrixing system makes it simple for retailers to sell items in singular departments or across departments, add inventory tags to items, and attach items to a vendor. When you’re running low on something, you get a low-stock alert, and then you can look up a vendor and order several things at once.

Lightspeed Retail add inventory item from the admin dashboard.

Retailers will appreciate Lightspeed’s unique shopping features, such as purchasing online for in-store pick-up, item holds/layaway, and an online customer return/exchange portal.

If you rent out items, venues, or services, Lightspeed Retail has excellent form builders, appointment scheduling, and a dedicated reservation app.

Lightspeed is also great for wholesalers. It has a quote system, catalog builder, customer accounts, pricing adjustments/discounts by customer group, minimum order requirements, and wholesale to individual item breakdowns.

Lightspeed Retail B2B order quote.

Finally, we are impressed by Lightspeed’s multi-location features, which include:

• Stock transfers across locations
• Pricing variations, depending on the location
• Allowing customers to choose where to pick up online items
• Loyalty points syncing across locations so customers can collect/redeem points at all stores

Lightspeed Retail card reader, iPad POS device in case, eCommerce site on PC and smartphone device.

You can purchase a Lightspeed Payments-compatible WisePOS Ecard reader for $299 and an iPad for $329. You must buy your card reader directly from Lightspeed to ensure it is compatible with Lightspeed Payments, the company’s required payment processor.

Lightspeed offers accessories such as an iPad stand for $199, a cash drawer for $129, a barcode scanner for $199, a label printer for $124, and a receipt printer for $399.

Contact a Lightspeed representative and ask about a discount on a retail POS hardware bundle.

In-house payment processing with Lightspeed Payments is required for all Lightspeed Retail users in the US and Canada (Lightspeed is one of the best Canadian POS systems .) The rate is 2.6% + $0.10 for all in-person card present payments and 2.9% + $0.30 for all online payments.

To get the best prices, you are required to sign up for at least an annual Lightspeed plan. However, there are early termination fees for canceling a plan, so we recommend starting with a monthly plan until you’re sure Lightspeed Retail is a good POS for you.

Also, you must verify that you have received your Lightspeed hardware within five business days of receiving it. If you don’t, the equipment is not covered under Lightspeed’s 30-day warranty (14 days for Apple products.)

Choose Lightspeed Retail If You Want...

• Advanced inventory management features
• Intuitive multilocation management capabilities
• Features designed with the rental industry in mind

Get Started With Lightspeed Retail

Read our in-depth review

Jump back to comparison chart

Exclusive Promo: Get 20% off your first hardware purchase from Square POS with coupon code MerchantMaverick20 . Offer valid until 9/30/2024. Claim your discount .

• Feature-packed free plan
• Retail, restaurant, and service-based business software
• Works on most mobile devices
• Affordable POS hardware
• Payment processing is high for higher-volume merchants
• Account stability issues (rarely)
• Basic inventory management

Square iPad stand and card reader.

We love that Square software offers so many features for free, along with affordable hardware options, and transparent monthly fees and payment processing rates. This is why Square is one of our best free POS systems .

There are subscription options for retail, restaurant, and service-based business types with nearly all the tools new businesses need to succeed. On all Square plans, you can add Square POS software on an unlimited number of smartphones, iPads, Android devices, and browsers. Since you don’t need any additional equipment except a card reader, the barrier to entry is even lower.

Note:  Square’s free plan is absolutely free to use, with no special conditions or limitations. Paid plans come with a 30-day free trial.

All Square plans allow you to install the Square POS app on an unlimited number of devices. If you have multiple locations, you pay for each location.

The free plan is completely free to use forever, can be installed on an unlimited number of devices, and you can start using Square immediately. Paid plans are billed by device and location.

Popular Square add-ons include:

• Square Loyalty:   $15+/month
• Square Payroll:  $35+/month
• Square Marketing:   $15+/month
• Square Invoices Plus:  $20/month
• Square Online (Paid Version):  $29/month Plus plan; $79/month Premium plan

Restaurants may purchase a Square KDS subscription for $20/device/month on the free Square For Restaurants plan, while those on the paid plan can install the Square KDS app on an unlimited number of devices.

All Square users have access to these features for free, which is very uncommon among POS providers:

• Free retail and takeout/delivery ordering website
• Free Square checkout links to take invoice payments and make sales without a website
• Free appointment scheduling link for small service-based business owners
• Unlimited POS devices so businesses can take payments in several ways

Square POS online store builder.

Square For Retail  users can sell products in person, on their website, on social media sites like TikTok and Instagram, and list products on Google so users can discover them. Products are synced across all sales platforms, so inventory is always updated.

TikTok for Business Store Manager connected to Square Online store.

Square For Restaurants  (one of our  best free restaurant POS systems ) allows you to take orders quickly with conversational modifiers, accept tips, manage orders from multiple ordering platforms, take online orders through a personalized ordering site, and Order with Google. Using Order with Google, people searching for restaurants near them will discover your restaurant and order from your Google Business Profile .

Square POS Order With Google integration.

Small business owners such as salon or nail business owners can use Square Appointments (one of our best salon POS systems ) to allow people to book appointments on their website, Instagram, Google, and through a button embedded into emails and other webpages. You can also send automated appointment reminders, set up time tracking to bill by the hour, and access team management capabilities, all on the free Square Appointments plan.

Square POS appointment booking channels.

Square handheld POS system, Square Register, and Square iPad stand.

All Square POS apps are compatible with iOS devices. You can use Square on Android devices and tablets, but you may face a few feature limits on these operating systems.

To take chip card and digital payment types, small business owners only need the $49 Square Bluetooth card reader . Square also introduced a feature in November 2022 called Tap to Pay on iPhone, which allows iPhone users to take tap payments (tap credit/debit cards and digital wallets) within the Square app, no hardware required. We still recommend getting a physical card reader to accept chip card payments.

The Square Stand is a $149 iPad stand with a built-in card reader, so you can take orders on an iPad and swivel it around for customers to review their orders and pay. The Square Terminal is a $299 handheld POS terminal, so servers and mobile-first businesses can take payments on the go.

The company also offers several Square POS hardware kits and accessories.

Square requires you to use Square Payments , the company’s built-in payment processing on all plans. You are charged a flat 2.6% + $0.10 per tap, dip, or swipe card/digital wallet payment (2.5% on paid Square Plus plans). Manually keyed-in card payments and invoice payments have a rate of 3.5% + $0.15, while the payment processing fee rate for online store payments is 2.9% + $0.30.

Square has highly flexible month-to-month plans with no penalties for canceling early or remaining inactive. The company also has a generous POS hardware warranty.

One of the only caveats is that Square has an aggregated merchant account model , which means that businesses do not get their own dedicated merchant accounts. This may, in rare cases, lead to withheld funds on transactions that Square’s algorithm flags as high-risk or even sudden account termination for some merchants.

Choose Square If You Want...

• An affordable POS system that doesn’t skimp on features
• Multi-industry support (retail, food, and service-based)
• Easy-to-use POS hardware

Get Started With Square POS

• Syncs eCommerce and in-person sales
• Sell on social media and marketplaces
• Lots of add-on apps available
• Excellent international sales features
• No offline payments mode
• Possible transaction fees
• Many Shopify features cost extra

Shopify POS order for in-store pickup.

We believe that Shopify is the best POS system for small business owners who want to sell in person as well as on their own eCommerce website and other platforms like Etsy, Amazon, eBay, and/or TikTok. This is because Shopify provides an excellent online store builder, the Shopify POS "Lite" app, and access to 8,000+ Shopify software integrations.

Shopify is also an excellent option for international sellers. The company will automatically translate your website into different languages and currencies, plus you can change up your catalog offering and set shipping, tax, and duty fee collection for different predefined geographical regions.

Note: Shopify offers a three-day free trial, no credit card is required.

Shopify’s eCommerce pricing plans range from $39/month to $399/month. You get 25% off if you pay for an entire year upfront. Each eCommerce plan offers the “Shopify POS Lite” app for $5/month.

For more retail features, such as store pickup and unlimited staff accounts, you’ll need the $89/month/location Shopify Pro subscription, which is added to your monthly eCommerce plan. Additionally, while there are many free Shopify apps on the company’s app market, some require you to sign up for a paid subscription.

Your payment processing rate decreases on higher-level plans. Once small businesses start processing a more substantial amount of payments, they should strongly consider upgrading to save money in the long run.

Shopify’s in-person sales solution integrates well with the company’s eCommerce software, making Shopify an excellent POS with eCommerce sales option. With Shopify, retailers can:

• Sell on their own website for in-store pickup, local delivery, curbside pickup, or shipping
• Sell on social media platforms including Facebook, Instagram, TikTok, Twitter, WhatsApp, and Snapchat
• Sell on marketplaces such as Amazon, eBay, Etsy, and Walmart Marketplace
• Connect to dropshipping apps to start their own dropshipping business
• Sync inventory across all sales channels

Shopify garden POS center succulent listing on Etsy online marketplace.

Shopify’s free in-store sales features include the ability to take partial payments/deposits, schedule discounts and generate digital coupons, put items on layaway, and take custom payment types.

The paid Shopify Pro POS app adds functions like exchanges, purchase ordering functions, and stock transfers between locations.

Shopify online store with in-store pickup available.

Shopify’s newly released Shopify Markets tool makes this POS system a great choice for small sellers who want to take their first steps toward international commerce. While other POS providers, and even other eCommerce store builders, require you to pay more or just aren’t equipped to handle international sales, Shopify has created global selling software and offers it with every Shopify store at no added cost.

With Shopify Markets, small business owners can easily translate their store into multiple languages, accept different local currency payment types, create different shipping settings for different geographical areas, and limit their content/offerings by region.

Create a new shipping profile with Shopify Shipping.

We do have to note that most of Shopify’s best features will come in the form of an app from Shopify’s app market. The market has over 8,000 apps, with more being added every day. With a Shopify add-on app, you can create product catalogs, start an email marketing campaign, and sell subscriptions and memberships — your only limit is your imagination (and, in some cases, your willingness to pay an added monthly software subscription fee).

Shopify POS register stand with a card reader.

The Shopify app runs on most phones and tablets. Like Square, Shopify now has Tap to Pay on iPhone, which allows iPhone users to take contactless payment types on their phones, no hardware required.

There are many Shopify POS hardware options available. The Shopify Chip & Swipe Reader , which is the bare minimum requirement for taking chip card and mobile wallet payments, starts at $49. The $219 Shopify Retail Kit includes an iPad stand, Shopify card reader, Shopify card reader dock, and iPad stand mount.

Shopify also allows you to build your retail kit, where you can pick and choose which iPad equipment, barcode scanners, cash drawers, and receipt printers you’d like to include in your bundle. This gives small business owners more choice while also ensuring that every piece of hardware is compatible with the Shopify POS app.

Processing with Shopify Payments is included on all plans, or you can use an external processor for an additional transaction fee. In-person payment processing fees for Shopify Payments range from 2.4% to 2.7%, depending on your plan. Online processing fees range from 2.4% to 2.9% + $0.30.

Note: If you choose to use a third-party payment processor, Shopify will charge a transaction fee ranging from 0.5% to 2% per transaction. This fee will be in addition to the fee you have to pay your third-party payment processing provider. If you can get much better rates from somewhere else, then paying the transaction fee to Shopify may be worth it.

All Shopify plans are billed month-to-month, which means there is no long-term commitment. You can spring for an annual plan for better pricing.

Most Shopify requirements surround payment processing. To use Shopify Payments, you must meet Shopify product sales guidelines and purchase a card reader directly from Shopify (no high-risk businesses allowed.) To use a Shopify-approved third-party payment processor, you must use a card reader sold by that payment processor and pay an added transaction fee ranging from 0.5% to 2%.

Choose Shopify POS If You Want...

• Social media and marketplace eCommerce integration
• A huge add-on app marketplace
• International sales support

Get Started With Shopify POS

Online Ordering

• Excellent waitlist and reservation management app
• Strong offline mode
• Multiple payment processor options
• Affordable software license payment setup
• No self-serve kiosks
• Inconsistent customer support
• Early termination fee

TouchBistro tablet restaurant ordering system.

We like that TouchBistro offers several features for full-service restaurants, including comprehensive waitlist and reservation management that is built into TouchBistro’s POS and KDS software, catering order management, and a strong customer management portal.

We like TouchBistro’s unique locally-installed solution, which allows businesses like food trucks and catering companies to take orders and payments wherever they are, with no WiFi required. The offline capabilities of this hardware setup are what makes TouchBistro one of the best food truck POS systems .

TouchBistro also offers a unique POS software license setup that is very cost-effective for businesses with three or more POS devices required. For single-register setups, TouchBistro is comparable in price to providers like Lightspeed and Clover.

TouchBistro offers the following plans, but the company requires every small business owner to get a custom quote, so your pricing may be different than listed below:

• Solo:  $69/month for one software license; $105/month for one iPad and software license bundle
• Dual:  $129/month for two software licenses; $209/month for software and hardware
• Team:  $249/month for five software licenses; $359/month for software and hardware
• Unlimited:  $399/month for unlimited licenses; custom pricing for software and hardware

The company also charges a nonrefundable setup fee that starts at $200 and includes your hardware setup plus software walkthrough.

There are also add-ons available at the following prices:

• Online Ordering: $50/month
• Loyalty Program: $99/month
• Marketing: $99/month
• Gift Cards: $25/month
• Reservations: $229/month

Note: While the TouchBistro Reservations app is admittedly pricey, there are no per-order fees that you would get by pairing your POS software with third-party reservation management software.

TouchBistro’s best small business POS features include offline sales capabilities, upselling features, reservation and waitlist apps, and catering features. The system also has an affordable loyalty program builder, which is useful for converting more customers (but we understand if aspiring fine dining establishments don’t want to implement one.)

As servers take orders, they get upselling suggestions in real-time, plus comprehensive item information, including nutrition and allergen facts, to describe dishes. Patrons who order online get automated upselling suggestions that update in real time as they add and remove items from their orders.

The best full-service restaurant features include:

• Reservation System: Customers can make reservations from your web app, Google Business Profile, or by phone. TouchBistro has created a separate reservation app so that you can view and modify reservations, send reminder emails/phone messages about upcoming reservations to reduce no-shows, and create floor plans specifically for managing reservations.
• Waitlist:  The waitlist is part of the TouchBistro Reservations app. With it, you can allow customers to add themselves to the waitlist online when your restaurant is currently full, send customers SMS notifications about their waitlist status, and enforce waitlist cutoff times.
• Customer Dining Preferences:  You can ask for dining preferences/allergies when taking reservations. VIP diners are noted in customer reports, and their preferences can be saved for future orders to create a personalized dining experience.
• Customer Accounts:  You can allow billing to customers’ house accounts with saved payment types. You can also take partial or full balance payoffs and allow customers to preload credits to an account.

TouchBistro restaurant POS waitlist/reservation settings.

Catering companies will appreciate these features:

• Taking Catering Orders:  Caterers can create a quote and take notes for a future order, require a deposit for future orders, and choose how far in advance someone can order. You can also set concrete event start and end times.
• Delivery Customization: Caterers can set different delivery zones, increase fees depending on the delivery zone, and set minimum order amounts per delivery zone. If a customer inputs an address outside your delivery zone, an automated message will ask the customer to contact you to discuss a custom order.
• On-Location Sales:  TouchBistro is a unique hybrid system that allows for online and offline sales. You can bring items that are on your catering menu with you and sell them on location.

TouchBistro POS system delivery parameters.

TouchBistro countertop iPad POS, iPad stand, handheld iPad POS, cash drawer, card reader, and receipt printer.

TouchBistro is an iPad POS system that runs on iPads and iPad Minis, which you may source yourself or purchase from TouchBistro.

TouchBistro also supports hardware from third-party suppliers such as  Chase Payments Solutions  (formerly Chase Merchant Services), Square, Star Micronics, Verifone, and Epson.

Check with TouchBistro before purchasing any hardware to make sure the hardware models are compatible with TouchBistro software. Alternatively, you can contact TouchBistro for a quote on hardware and make your purchases through the POS company.

TouchBistro offers an in-house payment processing solution, TouchBistro Payments (powered by Chase), which uses an interchange-plus pricing model. You have to contact TouchBistro for a custom quote.

Interchange-plus pricing can help you get the lowest payment processing rates, depending on your business size, model, and merchant account terms.

You may use third-party payment processors such as Square, TSYS , Worldpay (a company we don’t typically recommend), or Barclaycard to process payments.

TouchBistro offers annual contracts. Like most POS providers, you’ll get better pricing with longer contracts. However, TouchBistro will charge an early termination fee for canceled accounts, so consider getting a shorter contract before committing to anything in the long run.

Choose TouchBistro If You Want...

• An easy-to-use and comprehensive waitlist and reservation management app
• A reliable offline mode
• To choose your payment processor

Get Started With TouchBistro

• Restaurant-grade Android hardware
• Complete restaurant management ecosystem available
• Outstanding customer service
• Excellent tableside and online ordering features
• Must buy Toast hardware
• Complicated pricing structure
• High online payment processing rate

Toast handheld POS system drink ordering.

We love that Toast provides every restaurant feature a small business owner could need, packaged into separate products, so you purchase only what you need.

We believe that Toast has some of the best kitchen display systems, self-serve kiosks , and tableside ordering capabilities from any restaurant POS provider. Plus, the company has developed an excellent loyalty program, multilocation management features, and an in-house delivery system builder.

We also appreciate Toast’s Android-based hardware line. Toast’s countertop and handheld POS hardware are extremely durable and able to withstand drops and spills without needing to be replaced. The Toast Go 2, Toast's proprietary handheld POS system, is one of the best handheld restaurant POS systems on the market today.

Note:  Toast offers the pay-as-you-go Quick Start Bundle plan that requires no upfront purchases or monthly fees. However, you will still need to sign a multi-year contract to use Toast.

Toast’s $0 upfront Quick Start Bundle plan looks like a good deal, but to get this deal, you have to pay much higher per-order fees, to the point where it could be worth it to purchase your POS equipment upfront and pay a monthly fee if you can afford it. If you can’t afford it, find a way to finance your purchase or switch to a paid plan as soon as you have the money to do so.

On the $69/month Core plan, you’ll have to pay an additional $75/month if you want to add digital ordering, which includes online orders to takeout and Toast delivery services. The $165/month Growth plan comes with digital ordering at no extra cost.

On the Quick Start Bundle plan, you can add the digital ordering and marketing suite (includes digital ordering, loyalty, gift cards, and email marketing) for no monthly cost, but Toast will increase your per-order payment processing fees again to a relatively high percentage.

You can purchase these popular Toast software add-ons at the following prices:

• Digital Ordering:  $75/month
• Third-Party Ordering Platform Sync:  $30/month for Grubhub, DoorDash, or Uber Eats; $75/month for all three
• Loyalty:  $50/month
• Gift Cards:  $50/month
• Kitchen Display:  $25/month plus one-time hardware purchase
• Self-Serve Kiosk:  $90/month plus one-time hardware purchase
• Email Marketing:  $75/month
• Catering & Events:  $100/month

Other popular add-ons, such as  Toast Payroll  and Toast Scheduling, require you to get a custom quote which will be determined based on factors like the number of employees and locations you own.

If you plan on purchasing multiple Toast products at once, make sure to ask about a discount for bundling products.

Toast’s most unique features are its very customizable loyalty program, multiple ordering methods, the Toast Go 2 handheld POS (one of the best handheld restaurant POS systems), and the extensive number of auxiliary products that create self-contained restaurant management software.

Toast’s extensive loyalty program, which is one of the best rewards programs , automatically:

• Prompts customers to sign up on customer-facing displays, receipts, self-serve kiosks, and online orders before or after they finish ordering
• Automatically connects a loyalty account to a credit card so customers can automatically earn points just by using their card
• Allows customers to sign up with a phone number or email and send a welcome gift or loyalty points
• Generates a loyalty account portal that customers can log into to see their points and add new payment methods/contact information
• Notifies servers and customers when they have loyalty points available to use (also applies for self-serve and online orders)

Toast restaurant POS loyalty program signup prompt.

Toast also offers many ways for customers to order, including self-serve kiosk ordering, tableside ordering, ordering online through your own in-house ordering system and  all major third-party delivery services , and calling ahead for in-store pickup.

Toast self-ordering kiosk.

With Toast Delivery, you can assign drivers to orders, add custom delivery fees, send customers order updates in real-time, and set tipping rules for delivery orders. Toast’s highly customizable pickup and delivery options are what make Toast one of the best pizza shop POS systems .

The software’s special multilocation management includes varying menus (and pricing) by location, custom tax settings for each location, and customers can collect/redeem loyalty points at any location. In addition, franchisees and location managers allowed to change menus may easily do so without disrupting the setup of any other location.

Toast also has a complete employee payroll, 401(k) management, and employee scheduling products, whereas most other restaurant POS systems require third-party integrations to get all these features.

Toast online ordering on a smartphone, Toast admin dashboard on PC, Toast KDS, Toast Go 2 handheld POS, Toast countertop POS.

Toast software only works with Toast’s proprietary Android POS hardware, which is more heat and spill-resistant than iPads, which every other POS system but Square and Clover relies on.

Toast hardware comes at the following prices:

• Toast Go 2 Handheld POS:  $627
• Countertop POS:  $875
• Outdoor Wi-Fi Access Point:  $104
• Kitchen Printer:  $269
• Cash Drawer:  $134
• KDS:  $629 + $25/month
• Self-Serve Kiosk Terminal:  $809 + $90/month

On the pay-as-you-go Quick Start Bundle plan, you can get the handheld POS for no upfront cost and no monthly fees, as long as you agree to pay higher per-transaction payment processing fees. If you pay upfront for your POS hardware, you’ll pay between $69/month and $165/month for your POS software.

In general, we do not recommend the pay-as-you-go plan because the higher per-order fees will cost you more than the original price of the hardware once you get in enough orders.

If you can, pay for your POS hardware upfront. Otherwise, look into equipment financing to help you cover the costs of the restaurant hardware you need in your establishment.

Toast offers flat-rate payment processing for individuals on the Quick Start Bundle plan, and those on the Standard plan who opt into the starter kit. Payment processing ranges from 2.49% plus $0.15 to 3.49% plus $0.15 per order and depends on whether you pay for your tablet POS hardware upfront, and whether you add the digital ordering package to your starter kit for no monthly fee, but an increase of 0.4% in payment processing fees.

Any plan with a custom hardware quote will also have a custom payment processing fee.

We highly recommend that if you can pay a predictable monthly fee, you should do it. You’ll almost always save money in the long run. For example, while a 0.4% increase in payment processing fees to get an entire digital ordering suite with the loyalty program included doesn’t seem like much, it will add up over time.

Toast’s standard contracts are two years, require Toast payment processing, and come with a large early termination fee. Consider signing up for a short-term plan before committing for the long run.

Choose Toast If You Want...

• POS hardware designed specifically for restaurant use
• A complete restaurant management ecosystem
• An easy way to take tableside orders

Get Started With Toast POS

• All-in-one POS package
• Easy to set up and customize
• Possibility for lower payment processing fees
• Excellent hardware choices
• Hardware can be expensive
• Some Clover resellers are shady
• Possible long contract terms

Clover POS register, receipt printer, and cash drawer.

We appreciate that Clover provides a self-contained POS solution where your software, hardware, add-ons, and payment processing all come in one package. This makes Clover one of the easiest POS systems to work with.

However, while Clover is easy to use, it’s still a flexible, scalable solution. You can choose from lots of POS hardware and industry-specific software plans, and (unlike Square) you can purchase Clover hardware from one of many Clover resellers and get your own custom payment processing rates.

This is a huge advantage for businesses looking for the best payment processing rates possible.

If your base Clover plan doesn’t have everything you need built into it, there’s an entire app market with software add-ons that are as easy to install as smartphone apps. You can find apps to engage customers, streamline operations, and add specific industry-specific features like age verification or event ticket management.

The  Clover pricing  above is for business owners who purchase their POS hardware upfront from Clover.com. We recommend the Clover Register plan to most retailers.

If you decide to enroll in Clover’s “pay monthly” plan so that you can pay for your hardware over time, you’ll pay one monthly fee for both your hardware and software. That fee will range from $60/month to $185/month, depending on your hardware package.

Additional devices are $9.95/month/register if you have all your registers in one location. If, for example, you have two Clover Minis in two different stores, you’ll have to pay the full Register subscription cost for both Minis.

All Clover users can use Clover’s offline payment mode, customer database building, loyalty program setup, integrations with some of the best payroll software for small businesses , and 450+ add-on apps available to create the POS system that fits their business’s every need.

Restaurant and bar owners will appreciate Clover’s pre-authorization function, perishable inventory management apps, online ordering page, self-serve kiosks, and surcharges for large parties.

Retailers and grocery store owners will appreciate these retail-centric features:

• Buy online, pick up in-store/delivery options
• Integrations with scales, barcode scanners, etc.
• Customizable inventory management and item tracking
• Item returns via virtual terminal

Clover’s ID verification app, EBT payment acceptance capabilities, and lottery sales app make Clover one of the best grocery store POS systems .

Clover countertop POS system, handheld POS system, barcode scanner, cash drawer, and card reader.

Clover hardware starts at $49 for a Clover Go Bluetooth credit card reader, which pairs with your smartphone, but most small businesses wanting a complete countertop POS will go with the $1,699 Clover Station Solo .

Other hardware options include a portable Clover Flex for $599, a Clover Mini for $799, or a Station Duo for $1,799.

In June 2023, Clover released its own proprietary KDS hardware and software, essentially built to rival the Toast KDS. The Clover KDS costs a one-time fee of $799 and a monthly software fee of $25/month/device. It is heat resistant and has special speakers that make it easy for kitchen staff to hear alerts for things like new incoming orders.

If you use Clover’s parent company, Fiserv , for payment processing, you’ll get the following flat-rate payment processing:

• Card-Present Transactions:  2.3% + $0.10 per transaction
• Card-Not-Present Transactions:  3.5% + $0.10 per transaction

Card-not-present transactions include any phone order, third-party ordering platform order (e.g., Grubhub and Order With Google), invoice payment, online order on a Clover-hosted website, manually-keyed-in card payment, and any form of payment that is not a swipe/chip/tap card payment, cash, or check.

If a large amount of your revenue comes from online or phone orders, choose a different payment processor or POS provider for your restaurant.

If you purchase your Clover hardware and software from Clover.com, you will need to sign a 36-month or 48-month contract, with the potential for large early termination fees if you decide to cancel your contract before your term is up.

However, by signing a merchant agreement with one of these best Clover resellers , you can get short-term contracts, no early termination fees, and better payment processing rates and fees.

Choose Clover POS If You Want...

• A fully customizable POS package
• Numerous POS hardware options
• Potentially lower payment processing fees

Get Started With Clover POS

• Several hardware and software integrations available
• Lots of custom/niche restaurant and retail features
• Choice of payment processor
• Long-term and minimum two-terminal contract requirement for best pricing
• Expensive for many smaller businesses

Revel iPad POS system with built-in swipe card reader.

We love that Revel is an extremely customizable POS solution with built-in features for niche business types.

Unlike many other POS systems, you don’t have to choose between retail, restaurant, and service business software plans. This is great for hybrid businesses that serve food and retail items, retail products and appointments, and more. Revel also offers several proprietary add-ons, business reports, and third-party integrations for business owners to streamline operations and thoughtfully expand their offerings.

This POS is also a great option for businesses with multiple stores and wanting to franchise. Revel has excellent multi-establishment hierarchy settings that help you manage brands, individual establishment permissions, royalty payments, product settings, and more. There are also lots of product transfer settings that help you monitor the location of any product at any given time.

With this very customizable system, it's one of the best options for even very specific niches, which is why Revel makes our list of the best golf course POS systems and best drive-thru POS systems .

Revel’s advertised pricing requires a two-terminal minimum, three-year contract, and you must agree to use Revel Advantage, Revel’s in-house payment processing solution.

However, most businesses will want to add on Revel products such as its delivery software, online ordering platform, highly customizable loyalty program, and multi-location management functions. A Revel representative will give you a custom quote for all these software add-ons.

There is also a $674 one-time implementation fee.

Note: Because of this relatively steep initial investment, we recommend Revel to small business owners who know they will need niche features, and to those who are looking to upgrade their current POS system to one that allows for more customization, offers better multilocation management features, and allows you to choose your payment processor.

Revel offers one of the most comprehensive feature sets of any POS software on this list, mainly because you have access to both retail and restaurant management features.

No matter what type of business you run, you’ll appreciate these unique Revel features:

• Loyalty Program:  Includes custom rewards point setup, gift options, and automated loyalty points marketing for customers who haven’t stopped by in a while
• Online Ordering:  Online ordering for local delivery with real-time driver monitoring and shipping with auto-generated third-party shipping rate calculations; third-party delivery platform integrations
• Purchase Ordering:  Purchase order generation with set par levels, vendor management, and partial/full order receiving
• Employee Management:  Includes scheduling, time clocks, employee roles, and payroll, all within the Revel dashboard
• Multi-Establishment Management:  Create different parent and child establishments, and unique brands, charge royalty fees, and push changes across single, multiple, or all establishments
• Inventory:  Revel offers inventory matrixing, custom attributes, stock unit conversions, waste management, loss reports, and automated perishable food/liquid inventory tracking

Revel POS system multi-establishment hierarchy settings.

All restaurant types can make good use of Revel’s kitchen display systems, which will accept all order types, including third-party ordering platform orders, takeout orders, in-house delivery orders, catering orders, phone orders, and any custom order type you specify.

Revel Systems catering function.

Full-service restaurants will appreciate Revel’s table monitoring system, which allows servers to transfer customer orders to different sections (such as moving from the bar to a table), change a customer’s seat at the table, monitor table turnaround, facilitate order sharing and splitting, and charge items to house accounts. You can also set up catering, charge service fees based on party size, and set up waitlists/reservations.

Quick-service restaurants will enjoy self-serve kiosk software availability, customer display screens so customers can confirm their orders, digital menu integrations, omnichannel order management, customer order-status screens (which can be branded to match your restaurant’s aesthetic), and even drive-through order management capabilities.

Revel customer-facing order status screen.

Any business that provides services such as catering, rentals, or repairs will appreciate Revel’s built-in appointment booking system and predefined service charges. Revel also has an open-ended item feature that allows you to charge a custom fee depending on how long you spent on a service, how long a person rented an item or venue, or any other cost parameter.

Revel POS appointment/reservation booking on POS.

Revel Systems POS register, customer-facing display, receipt printer, and card reader.

Revel offers POS hardware and accessories for Revel users, which you’ll get a custom quote for.

Alternatively, with Revel’s written permission, you may purchase Revel-compatible hardware on your own. The company asks for written permission to ensure that you are spending your money on hardware that will work and can avoid having to return any equipment to third-party providers.

Revel offers its own in-house payment processing solution, Revel Advantage, on which you will get a custom quote. The company advertises flat-rate payment processing.

You will most likely be required to pay an additional monthly fee to integrate with compatible outside payment processors such as First Data,  Heartland , TSYS, Chase Paymentech, Worldpay, and  Elavon .

Revel’s standard contract is three years, with a substantial early termination fee depending on how far you’re into your contract before canceling.

While you’ll get the best prices with a longer contract, we recommend making extensive use of your demo, asking lots of questions to your Revel account representative, and even signing up for a month-to-month plan until you’re sure that Revel is the right fit for your growing business.

Revel typically offers a discount for users who bundle their software, hardware, and payment processing into one bill. We recommend that you get an estimate on hardware and payment processing rates from outside companies and bring that estimate to Revel to see if they’ll match it.

Choose Revel Systems If You Want...

• Strong offline capabilities
• Features for niche businesses like restaurants with a drive-thru or golf courses

Get Started With Revel POS

• Loyalty program builder available on all plans
• Excellent inventory management
• KDS connects to third-party delivery platforms
• Convertible standing to tableside ordering kiosks
• Add-ons can get expensive

Lightspeed Restaurant tablet POS user interface.

We love that Lightspeed Restaurant has created such a user-friendly system for servers, kitchen staff, and managers.

Lightspeed Restaurant is one of the best restaurant POS systems because it easily ties together orders from all ordering touchpoints, including all third-party delivery platforms, and displays them on intuitive kitchen displays and expo screens. Like Revel, Lightspeed offers customer order status update software that you can display on screens in your restaurant, which will make distributing takeout orders easier at carryout-heavy establishments.

The system has excellent inventory and order management features for restaurants and comes at a slightly more transparent price compared to other feature-rich restaurant POS systems on this list. The company also offers a loyalty program builder on all plans, making this the most affordable POS system with loyalty program capabilities.

Lightspeed also has several hotel management integrations that allow you to centralize your room reservations, charge restaurant bills to a room number, monitor room cleanings, and more. There are restaurant reservation integrations for full-service hotel restaurants and liquid inventory management capabilities that will help hotel bars cut down on liquid wastage.

These plans are for one license per register. Additional registers cost $59/register/month.

Note:  Lightspeed lists these plans online, but you must get a custom quote to find out how much you’ll be paying in fees and whether you’ll pay on a monthly or annual basis.

Lightspeed add-ons like Lightspeed Delivery, an online portal that automatically syncs all your in-house and third-party app orders within your POS, are available as an additional paid monthly subscription. Several third-party software apps are also available for an additional monthly fee as well.

Lightspeed’s best features for quick-service and fast-casual restaurants include:

• Order Types: Allow customers to order from anywhere via QR code, web-based app, third-party integration such as Grubhub or DoorDash, self-service kiosk, or from servers at registers
• Order Status Display Screens:  Integrate an order pickup screen with your POS and kitchen display software so that customers can see the status of their meal preparation; include a customer-facing display so that customers can ensure their order is right before pushing it through to the kitchen
• Kitchen Display Management:  Lightspeed offers one of the  best kitchen display systems ; bump screen makes accepting online orders for delivery, pickup, or dine-in easy; break tickets up by single item, station, or employee
• Inventory & Wastage:  A wastage tracking module is available on Lightspeed plans, as well as detailed product purchasing, item production, and stock-taking features
• Loyalty Program: On all Lightspeed Restaurant subscription plans, you can integrate your POS with a strong loyalty program that collects customer data for marketing campaigns

Lightspeed Restaurant self-order menu for customers to order with a tablet stationed at their table or a standing kiosk.

Hotels have several property management software available to integrate with Lightspeed, including StayNTouch, Oracle, Preno, and Protel. Alternatively, on Lightspeed’s highest-level plan, you may integrate your current property management system with your POS software. With either solution, you can accept reservations, charge meals from different restaurants to an individual’s room, break up group meals into individual charges, and offer room service with one software.

Lightspeed Restaurant integration with hotel management software.

Lightspeed Restaurant iPad and iPad stand, kitchen printer, cash drawer, and receipt printer.

Lightspeed Restaurant hardware is all iPad-based, which means that you’ll need to bring a separate card terminal to the table for tableside payments or take a card up to the front for payment.

You may purchase your iPads yourself or through Lightspeed at $329 per device. The iPad stand costs $199, the kitchen bump bar costs $199, the cash drawer costs $129, and the kitchen printer costs $299.

It’s important to purchase your card reader (Lightspeed supports Verifone products) from Lightspeed to make sure your Lightspeed Payments account is configured correctly with the hardware.

Lightspeed has an in-house payment processor, Lightspeed Payments, which all merchants in the US and Canada are required to use (Lightspeed Restaurant is one of the best Canadian restaurant POS systems ). The company charges the following payment processing fee for individuals on the Starter and Essential plans:

• Card-Present Payments:  2.6% + $0.10
• Online Payments:  2.9% + $0.30
• AMEX Card Payments:  3.5% + $0.10

Those on the Premium plan will get a custom payment processing rate, which should be lower than the above rates.

Lightspeed lists monthly pricing, but you must get a custom quote and sign a service contract. Your service contract will tell you whether you’re expected to pay monthly or annually. If you do not pay your fees on time, Lightspeed will charge a late fee. There are no returns on software subscriptions.

If you purchase your hardware from Lightspeed, you must verify that your hardware purchase is accurate. Lightspeed’s 30-day limited warranty will not apply to your purchase if you don’t. There is a restocking fee if you return a Lightspeed hardware purchase.

If you cancel your Lightspeed account, Lightspeed will charge an early termination fee, which can get pretty steep depending on the length of your contract and whether you got any discounts on your initial purchase.

Our advice: Start with a month-to-month subscription before committing to Lightspeed for the long term.

Choose Lightspeed Restaurant If You Want...

• A KDS that can take orders from any source
• An affordable customer loyalty program
• Excellent inventory management features

Get Started With Lightspeed Restaurant

• Completely free POS software
• Works on any system (smartphone, tablet, computer)
• Interchange-plus payment processing
• Excellent invoicing and subscription management
• No built-in loyalty program
• Very few third-party integrations
• Not for small businesses making less than $5,000/month

Helcim POS register interface on iPad.

We believe that Helcim, which is completely free for all users, is generally more beneficial for B2B/B2G businesses, service-based businesses such as veterinarian offices and carpet cleaners, and businesses selling subscriptions. This is because of the software invoicing, card storage vault, and custom online checkout designer.

At the POS register, employees can link payments to invoices and cards on file, charge products and services to business accounts, and generate new invoices from the register.

We also like that Helcim works on any type of device. The card reader is also inexpensive, lowering the barrier to entry even more for small businesses.

Helcim’s POS software is completely free to use. You only pay Helcim’s payment processing fees.

Helcim’s free POS system offers all standard POS functions, and it’s easy for employees to add products, discounts, tips, and customer accounts during transactions. You can also add custom transaction notes and checkout fields, pre-authorize cards, save orders for later, and accept checks on the POS, which is not something that many POS systems have built into their register interface. You can sell individual items and sell to businesses using customer portals and large catalogs.

Helcim free POS system advanced pricing for B2B wholesale item listings.

Helcim’s invoicing and recurring payment features are what set Helcim apart from the other providers in this list and make it a viable option for B2B and B2G businesses. Helcim’s invoicing features include:

• Generate invoices from the touch screen POS and link a customer to it
• Accept partial invoice payments from the touchscreen POS and virtual terminals
• Custom drag-and-drop invoice creation and payment settings
• Set full and partial invoice due dates
• Send reminders to customers about upcoming and overdue invoice payments
• Set recurring invoice payments with a card or account on file
• Create automated and manual tax settings for invoices

Helcim POS custom invoice theme designer.

Helcim’s subscription management includes prorated billing, so you only charge customers for the days they use their subscription and metered billing. With this billing method, you charge based on monthly usage data and the ability to add one-time fees and add-ons. Customers will get an automated reminder when their card is about to expire.

You can also create free trials for customers, and if a customer cancels their subscription, you can get feedback that will help you understand why they canceled to optimize your subscription business.

Helcim POS subscription manager.

Helcim’s POS and web pages (including checkout carts, subscription signup, approvals, and client portals) can be built with a drag-and-drop builder, so your pages will have only the information you want, and they will all be custom-branded. This is useful for businesses that only need certain information fields, like those selling services, as you can remove fields like the shipping address. It’s also for businesses that require unique ordering fields, such as custom jewelry making using photos submitted by customers.

Helcim iPad POS system and card reader.

Helcim’s card reader costs $99. Helcim software is compatible with just about all smartphone, tablet, and desktop devices, no matter the operating system.

Additionally, in June 2023, the company launched the $349 Helcim Smart Terminal , a mobile POS system that, like the Square Terminal and Clover Flex, includes an integrated POS register, credit card/ mobile wallet reader, and receipt printer.

There are also a few compatible receipt printers available.

Helcim  offers interchange-plus payment processing for all businesses. There are no minimum sales volumes or transaction numbers. This is highly uncommon among POS providers.

The company offers a sample “find your custom rate” tool on its website. As an example, if a professional services business makes less than $50,000 per month and has an average transaction size is $250 with an even mix of in-person and online payment types, that business will get an estimated processing fee of 1.94% plus $0.08 for in-person payments and 2.51% plus $0.25 for online transactions.

The company also started offering a cash discount program with merchant accounts for business owners who would like to pass their credit/debit card processing fees to customers. The company will uniquely allow business owners to give customers the choice to pay a “convenience fee” if they choose to pay with a card or pay through a bank account, which has lower fees for business owners than card payments.

Helcim offers very flexible month-to-month contracts with no early termination fees, much like Square does. Each business owner gets a merchant account when they sign up with Helcim.

Choose Helcim If You Want...

• A completely free POS software option
• Invoice and subscription management features

Get Started With Helcim POS

• Lots of payment processor options
• Works with most POS hardware
• Excellent loss prevention features
• Affordable advanced inventory management
• No built-in eCommerce

KORONA POS checkout interface on a touch screen.

We like that KORONA is such a flexible POS system in terms of payment processor and hardware accessory choices. Unlike providers such as Square and Shopify, KORONA integrates with high-risk payment processors , which is very useful for high-risk businesses  like vape shops and liquor stores. The system allows you to integrate just about any cash drawer, barcode scanner, and receipt printer.

The POS system for small business owners also has lots of register security functions, such as the ability to restrict item voids, returns, and cash drawer opening. The company’s self-serve kiosks also include loss prevention features such as RFID tags to reduce theft.

Note:  KORONA offers an unlimited free trial, no credit card is required. You sign up for a paid plan once you're ready to accept customer payments.

KORONA offers two monthly plans as well as the following add-ons:

• Food:  $10/month/terminal; includes restaurant software features like menu, table, and server management
• Plus:  $20/month/terminal; includes advanced inventory management features like order level optimization and the ability to create different product pricing for each location
• Invoicing:  $10/terminal/month; includes features like quotes, rentals, and invoicing
• Ticketing:  $50/month/gate; includes features like ticket tiers and printing, customer management, and entry gate management
• Franchise:  $30/month/franchise; includes features like automated royalty payments and consolidated inventory management
• Integration:  $45/month/integration via KORONA’s open API

Other features, such as self-serve kiosk hardware and software, require a custom quote.

KORONA’s most unique POS features are its loss prevention features, affordable inventory management, and franchise capabilities.

You’ll get these loss prevention features with KORONA:

• Forced drawer closing, blind till counts, and restricting cash drawer access to open only when they make a sale
• Require manager approval for item voids, price changes, item returns, and inventory changes
• Run cash drawer reports at any time, at the end of shifts, and set maximum allowed balance differences
• Cashier balance and time tracking reports
• Restrict which cashiers can grant permissions to other cashiers (used for managers who need to be able to use registers but will also need to create new cashiers and associated cashier permissions)
• Custom self-checkout kiosk hardware and software with RFID tag monitoring to reduce item theft

KORONA POS system cashier permissions.

KORONA’s basic retail plan includes several inventory management features that other POS systems only offer on higher-level plans. These features include:

• Price and shelf labels with barcode printing automations
• Pack to single item conversion (great for a liquor store POS system )
• Inventory counts and adjustments from the KORONA POS mobile inventory app
• Supplier interface integrations with vendor shipment tracking

While KORONA’s advanced inventory management is now a separate add-on as of August 2023, the add-on is affordable and worthwhile unless you have several terminals. The advanced inventory allows you to create set reordering points with automated reordering, generate custom product performance reports, create individual store listings and prices, and perform financial forecasting.

With KORONA’s franchising add-on, you can create custom royalty payment systems, automate royalty payments, manage franchisee communication between all locations, set ordering preferences and reordering points per location, and get franchise insight reports.

We also have to note how unique the company’s self-checkout kiosk hardware is. The secure self-checkout system is one of the reasons why KORONA is one of the best convenience store POS systems .

KORONA self-checkout kiosk with RFID tagging and automated scanning.

KORONA POS terminal, cash drawer, credit card terminal, and receipt printer.

KORONA integrates with POS terminals by PartnerTech and AURES Group. Both are durable proprietary countertop POS terminals with large screens. The company also offers self-checkout hardware for a custom price.

You may also purchase compatible card readers from Genius, PAX, Dejavoo, and eConduit. You’ll likely get a credit card reader from your merchant services provider that you can connect to KORONA.

Epson is the most common provider of receipt printers and cash drawers, but you can connect any USB printer and cash drawer to KORONA. You can also connect any USB barcode scanner.

KORONA does not offer in-house payment processing but does integrate with several payment processors, including Merchant Warehouse and Merchant Payment Systems.

You can also integrate KORONA with several merchant service providers through PAX and Dejavoo payment devices.

KORONA offers month-to-month contracts with no early termination fees. You can pay for an annual contract and get one month free.

The provider also offers an unlimited free trial, which means that you can’t take payments, but you can try out the software for as long as you need to before committing to it.

You do have to be careful about your merchant agreement and make sure the terms are fair for your business. High-risk business owners should expect to pay a little more for payment processing than other lower-risk business owners.

Choose KORONA If You Want...

• Loss prevention features
• High-risk industry support
• Franchise management capabilities

Get Started With KORONA POS

Merchant Maverick has been researching and reviewing POS providers since 2012. Our writers have tested over 100 different point of sale systems, evaluating pricing, features, ease of use, customer service, and user reviewers. Read more about  how we rate POS providers .

Weighted Rating Breakdown

When comparing different POS software systems, we consider many data points, including relative pricing, the depth of niche features offered, the price of hardware, and any associated payment processing fees. Our lists of the best providers include only apps we’ve deemed worthwhile from multiple vantage points. The POS vendors we pick share qualities such as widespread availability, accessibility, user-friendliness, and reasonable pricing. We also look carefully at niche features, such as check-splitting, inventory management, eCommerce, loyalty programs, gift cards, and more.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the providers included meet our internal standards for quality and reputation.

Vendors evaluated

Attributes assessed per vendor

Features weighed

Combined years of experience

The right POS system for your small business will fit your business’s size, type, and budget. Learn about equipment financing if you don’t have the funds to purchase your POS system outright and small business funding if you need more capital to start your own business or accelerate your small business’s growth.

Are you having problems with your current POS system? Check out our article on the most common POS problems and solutions for help!

Square, Clover, and Shopify are point of sale software options that are extremely user-friendly and feature free trials.

Lightspeed Retail POS offers the best retail loyalty program, while Toast POS offers the best restaurant loyalty program.

The two main types of POS systems are on-premise and cloud-based. On-premise POS systems store data locally and don’t need to be connected to the internet, while cloud-based POS store data online and need the internet to function.

You can use your phone as a POS if you choose a POS system with a mobile app and a Bluetooth-compatible credit card reader.

Square, Helcim, Shopify, and KORONA POS are compatible with Android devices. Toast and Clover offer proprietary POS devices built on the Android platform.

A POS system is a combination of software and hardware that allows you to make sales and take payments with a card reader. A POS terminal is a standalone card reader that captures card data.

You can process transactions without a full POS system, but you can’t process transactions without a POS terminal.

• Latest Posts

Nicolette Kier

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Nigerian Price

Pos business in nigeria & cost of starting (june 2024).

The POS business is one of the most profitable business ideas in Nigeria today. POS is an acronym for Point of Sale. This business involves dispensing cash to individuals after withdrawing it from their bank accounts. The POS business also allows the transfer of funds across accounts as well as payment of utility bills.

This business began to gain more popularity during the coronavirus lockdown. During this period, people needed funds but couldn’t go to the bank because of the lockdown. The demand for cash resulted in several POS stands cropping up all around the country. These individuals met the demand for a fee. In this post, we will look at how to start this business in Nigeria as well as the starting cost.

Starting Cost of POS Business in Nigeria

Wondering how much it will cost to start a POS business in Nigeria? Well, let’s be factual with you, there isn’t a specific starting cost. Your starting cost depends on the scale at which you want to run the business. The main capital you need for this business is the cost of the machine and the funds you’d be dispensing to your clients. This should be anything from N50,000.

Certain fintech companies offer free POS machines to entrepreneurs. However, they have specific requirements that you must satisfy to qualify.

Cost of POS Machine in Nigeria

What if you don’t want to go the route of fintech companies that offer free POS machines? How much will it cost to purchase a POS machine for your business? The cost of the machine is dependent on the company or bank that you want to purchase from or work with.

There is a fixed price for POS machines. Prices range from N20,000 to N75,000. In some cases, they are even as high as between N150,000 and N200,000. What determines the cost of the machine is its specifications and its different features. Part of the specifications includes the network support of the device. Some of the machines only support 2G and 3G while others support 4G. As you will expect, the latter will be costlier than the former.

PRICES LAST UPDATED: SEPTEMBER 23, 2023.

List of pos companies and banks and their charges.

When going into the POS business in Nigeria, you must be clear on the charges of the different service providers. There are certain hidden charges that you must be wary of. We have done some background work on your behalf to get some of the charges from these companies and banks. Check out the list below to find out:

• Baxi Box POS CHARGES

0.55% flat for withdrawals

N30 flat for the transfer – no stamp duties

• Payforce POS Charges

Deposit: N25

Withdrawals: (0 – N5000) = N25, (N5,001 – N16,500) = 0.6%, (N16,501 – N100,000) = N110, (N100,001 and above) = 0.11%

• Kudi POS Charges

Withdrawal: (below N4500) = N25, (N4,501 – N25,000) = 0.6%, (Above N25,000) = N150

Transfer: N45

• Paycentre POS Charges

Withdrawals: (0 – N10,000) = 0.55%, (N10,001 – N15,000) = N65, (N15,001 – N20,000) = N75, (N20,000 Above) = N80.

For transfers: (0 – N5,000) = N10.5, (N5,001 – N50,000) = N26.25 , (N50,000 and above) = N50.00

• Moniepoint POS Charges

Withdrawal: 0.5% (N1000 – N19900), 100 Naira Flat for (N20K – N1,000, 000)

Deposit: N12 Naira

• Kashzoo POS Charges

Withdrawals: N1,000 – N5,000 = N30, N5,001 – N10,000 = N45, N10,001 – N20,000 = N76, N20,001 – N40,000 = N85, N40,001 – N100,000 = N110, N100,001 – N200,000 = N150

• Kolomoni POS Charges

Withdrawals: N1000 – N19900 = 0.5%

Deposits: from N2000 and above = N100

Note that these prices may change depending on government and company policies. However, we will update this post once we notice any price changes.

Getting a POS Machine in Nigeria

Now that you know how much it costs to purchase a POS machine, there is a new question that we must answer. Where do you get a POS machine in Nigeria? As we have mentioned above, you can either purchase a POS machine from a bank or a fintech company. Some of the popular providers include:

• Access Bank CLOSA agent
• Ecobank Xpress point
• Firstmonie POS
• Monie Point POS
• Quickteller Paypoint
• Zenith Bank mobile money agent

There are other providers but based on our research, we believe that these are the best on the market currently.

How to Start a POS Business in Nigeria

Just like it is for every business, there are certain steps that you should take when starting the POS business in Nigeria. Check them out below:

Feasibility study and business plan

Before you begin this business, you need to first carry out a detailed feasibility study. Check your immediate environment for how much it will cost to start the business. Make inquiries from different service providers and speak to other operators of this business. Doing this gives you a clear indication of what to expect. With your findings, you can come up with a business plan for your business.

Choose a location

The location of your new business determines to a large extent whether you will succeed or not. We suggest that you choose a location that has a lot of human traffic. Also, ensure that your environment is safe and free of hoodlums. Ensure that your location isn’t close to ATMs or banks so that you can enjoy lots of patronage.

Raise capital

From your feasibility study, you should have an idea of how much you need to start this business. It is time to raise the funds to begin the business. You can raise capital through several methods including:

• Personal savings
• Loans from family members and friends

Submit your application

The application process to become a POS agent is slightly different from one provider to another. Find out what requirements you must satisfy from the provider you choose and submit your application. The process takes from between a few days to about a month. After doing this, you can start running your business.

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Home > Business > Business Startup

How To Write a Business Plan

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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

• Write your executive summary
• Do your market research homework
• Set your business goals and objectives
• Plan your business strategy
• Describe your product or service
• Crunch the numbers
• Finalize your business plan

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Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

• Idea: What’s your business concept? What problem does your business solve? What are your business goals?
• Product: What’s your product/service and how is it different?
• Market: Who’s your audience? How will you reach customers?
• Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

Compare the Top Small-Business Banks

Data effective 1/10/23. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

Related content

• 5 Best Business Plan Software and Tools in 2023 for Your Small Business
• How to Get a Business License: What You Need to Know
• What Is a Cash Flow Statement?

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How to Start a Profitable POS Business in Nigeria (Part One)

If you are looking for information on how to start a POS business in Nigeria, you are in the right place. Due to the CBN’s cash withdrawal policy in 2023, there has been an increasing demand for POS transactions. POS, short for Point of Sales, has become a fast growing and lucrative business in Nigeria. 

As more people embrace electronic payments, POS stores where you can carry out various types of transactions are popping up in almost every street in Nigeria. Rural areas in Nigeria are also not left out of this trend considering the overall need for financial inclusion. In this article, we give you a step-by-step guide on how to set up a successful POS business.

Content In This Article

Overview of POS business in Nigeria

In Nigeria, small businesses or individuals register with payment processing companies or banks to acquire POS terminals. These POS operators then take a percentage of each transaction done at their terminal as a fee or a service charge. The convenience provided by POS machines has made the business popular in Nigeria, providing an income stream for individuals operating as agents or business owners daily.

According to the Nigerian Inter-Bank Settlement System, the POS industry saw an increase of  27.85% in 2023. The total value of POS transactions grew from ₦8.39 trillion in 2022 to ₦10.73 trillion in 2023.

This is one of the reasons we say the POS business in Nigeria is fast growing and lucrative. Q1 of 2024 already records the total value of POS transactions at ₦2.62 trillion, with 315 million transactions carried out. The number of registered POS businesses also increased from 2,537,442 people in Q1 of 2023 to 3,730,441 people in Q1 of 2024.  This shows that the  business is profitable for both banks and vendors.

Despite its growth, the POS business in Nigeria is not without challenges. For example, fraudulent activities such as card skimming and cloning are huge issues that can lead to financial losses for both customers and operators. 

Furthermore, frequent network issues, downtime, and high crime rates in certain localities make it difficult for customers to use the service. To ensure the security and reliability of their services, POS operators must implement measures to address these challenges. 

Our Thoughts on the Future of POS Businesses in Nigeria

In business, it is important to pay attention to market trends in your industry. Is the market increasing or decreasing? Has it flat-lined over the years? These metrics are important because they help you make plans towards growing in an increasing industry or exiting a declining one. While the POS business seems to be at a peak, we believe new payment technology such as cryptocurrency and electronic wallets i.e Apple Pay, Google Pay, etc, could make the POS technology obsolete.

We predict that this could happen within the next 5 – 10 years of technological development. For instance, although the number of POS vendors increased in the first quarter of 2024, the total number of transactions carried out reduced by 19.03%. This decline in number of transactions can be a direct correlation to the increase number of POS operators. However, data tells us many stories, which means, it can also be something else…

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Looking at it from a different point of view, the drop is also reflected in the total value of transactions carried out in Q1 of 2024, which came to a total value of ₦2.62 trillion, a ₦225.73 billion drop from the ₦2.84 trillion recorded in the same quarter of 2023. These might be due to the boom that Nigerian POS businesses faced in March 2023 as a result of the country’s cash scarcity. These could also be early signs of decline, a similar phenomenon to  the call centers of the early 2000’s. At Biztraction, we always advise entrepreneurs to make data-driven decisions, as a result entrepreneurs in this industry across the value chain can start thinking of what’s next. 

How Do POS Agents Make Money?

POS businesses can generate a daily return of between ₦5,000 to ₦20,000 or even more, but this depends on several factors such as location, number of daily customers, percentage of fees charged, and commission rates paid by their principal. Typically, when a customer performs a transaction such as a ₦5,000 withdrawal, the agent collects a charge fee of about ₦200. The POS provider takes a certain percentage, while the remaining amount goes to the agent’s wallet. The payment of this charge fee by the customer forms a significant part of the agent’s income. Furthermore, the bank or POS provider also pays the agent a daily or weekly commission based on the number of transactions they have carried out using their service or wallet.

How to start a POS business in Nigeria

Starting a point of sale (POS) business in Nigeria can be a profitable venture, but like every other business, it requires careful planning and execution to succeed. We are here to guide you through the basic process you should undertake before you start a POS business in Nigeria.

Step One: Market Research

Conducting market research is essential to understanding the potential demand for POS services in the area you plan to operate. This will help you identify your target audience, and competition, and assess their strengths and weaknesses. Before you start a POS business in any location, you should ask the following questions:

Is it an Urban or Rural environment? 

Urban areas have a higher population, and this gives POS agents a higher opportunity for more transactions, unlike rural areas. However, the cost of running a POS business might be lower in rural settings.

Is there a large amount of foot traffic in the area? 

Starting a POS business in a market, university, or other areas with high foot traffic would give you access to a large inflow of transactions. This is because the success of a POS business lies in the volume of transactions you carry out daily.

How many POS businesses are already in the area? 

Knowing the number of similar businesses and the amount of foot traffic in your target area helps you estimate the number of transactions you would make. If the number of existing POS businesses in your target area is high, odds are that you would have a lesser number of transactions or market share. The sweet spot is to discover an area with few existing businesses and a larger human traffic.

Is the area secure with access to stable internet? 

Some of the challenges of the POS business in Nigeria are stable internet and security. This is a very vital aspect to consider so that you don’t lose your investment.

Can I increase the value for my customers? 

Any business with better strategies and increased value for customers will always be successful. What incentives can you introduce to your customers that other POS businesses are not doing? How can you get customers to stay loyal to your business despite having other businesses in your region? In one way, it boils down to customer service and the experience that people get when they do business with you, and in another sense, it has to do with the strategies you develop to set you apart from competitors. 

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Step Two: Business Registration and Permits

Recently the CAC mandated all POS operators to register with them. Irrespective of the kind of business you want to start, it is good practice to register with the appropriate authorities . 

POS agents also have to register with a bank or a Fin-tech partner to process transactions. Most of these institutions have a registration process, and Biztraction covers all the necessary processes and fees from major banks and Fin-tech partners in the POS business in Nigeria: A complete guide on everything you need . 

Step 3: Set-up Location

The cost of renting a suitable location will vary depending on your location and the size of the space. You would also need to set up your location with other necessary equipment that helps the business run smoothly. For instance, a generator or alternative power source can cost between ₦80,000 to ₦150,000. A solar option for power could reduce your cost of running the business. You would also need an internet connection to ensure your transactions go smoothly. Other equipment costs such as furniture and office supplies will depend on the size and style of your location, but it can range from ₦50,000 to ₦100,000. Depending on your budget, there are affordable options you can explore to reduce the cost of setting up the business.

Step 4: Hire and train staff

Hiring reliable and trustworthy staff and providing them with adequate training is crucial to the success of your POS business. The cost of hiring staff will depend on their skill level and experience, but it can range from ₦100,000 to ₦300,000 per year. 

Step 5: Develop a marketing strategy

Developing a marketing strategy to create awareness about your business is important. This may include creating a website, social media marketing, or using traditional advertising methods such as flyers and posters. The cost of marketing depends on the type and channels used, but it can range from ₦50,000 to ₦200,000. Providing excellent customer service is another crucial strategy that encourages customer loyalty and repeat business. This may involve hiring a customer service representative or training your staff on customer service skills. 

Final Thoughts

Starting a POS business in Nigeria can be a profitable and rewarding venture with the potential to contribute to financial inclusion in the country. It is important to keep up with the evolving regulatory landscape in Nigeria and ensure compliance with relevant laws and regulations governing the operation of a POS business in the country. This includes business registration with CAC , obtaining approval from the Central Bank of Nigeria (CBN) to deploy POS terminals and adhering to the rules and guidelines set by the Nigerian Communications Commission (NCC) and other relevant agencies. With these steps, we are certain you can establish a successful and sustainable POS business. We also researched on the estimated cost you would need to start a POS business in a different article.

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You are welcome.

Very educative write-up. Thanks to the team.

Hi, thanks a lot for this POS business breakdown and all, it’s really beautiful.

But please, can you write about “Converting Airtime To Cash Business” in Nigeria..? After buying the excess airtime and paying customers for selling to them, how do they make money from the airtime…?

Thank you, Japhet.

We would look into it and send an email if we write on converting airtime to cash

There are so many business that they will make using that money. 1 they will start a provision store

Nice article by the way, really informative

Thank you so much for this

Thanks for the hints , but I don’t understand this part “Evidence of business registration (CAC Certificate)” What if someone doesn’t have a business at hand before , maybe a salary earner that want to start the business

In 2024, the CAC has mandated all POS operators to register their businesses. However, the association responsible for managing POS operators are in talks CAC

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Complete Sample POS Business Plan in Nigeria (+ PDF)

The point of sale (POS) industry in Nigeria is rapidly expanding as cashless payments gain widespread acceptance.

This creates lucrative opportunities for entrepreneurs to launch POS businesses by providing digital payment services to businesses and consumers.

Developing a solid business plan is crucial for successfully starting and running a POS venture in Nigeria.

This article will provide a complete sample business plan for a POS startup in Nigeria.

Table of Contents

How to write a business plan for POS business in Nigeria

Here’s a breakdown of how to write a solid business plan specifically for a POS business in Nigeria, including essential sections to focus on:

1. Executive Summary

• Business Overview: Briefly describe your POS business, target market , and the specific financial services you intend to offer.
• Mission Statement A concise statement outlining the purpose and goals of your business.
• Competitive Advantage: Highlight what sets your POS business apart from others in the market.

2. Company Description

• Business Structure: State whether you’re registering as a sole proprietorship or a limited liability company.
• Ownership and Management: List the owners of the business and outline their roles and responsibilities.
• Location: Specify the chosen location for your POS business and its advantages

3. Market Analysis

• Target Market: Identify the demographics and needs of your intended customers (e.g., residents in a specific neighborhood, students, market traders, etc.)
• Competition: Analyze existing POS agents in your area, their strengths, weaknesses, and pricing strategies.
• Industry Trends: Discuss growth trends in the POS sector and how they might influence your business.

4. Services Offered

• Core Services: List the specific POS services you provide (withdrawals, transfers, bill payments, airtime, etc.)
• Potential Additional Services: Explore options for expanding your offerings in the future (e.g., mobile money, savings products).

5. Marketing and Sales Strategy

• Branding: Outline your plan for creating signage, banners, and marketing materials.
• Pricing: Set competitive fees for your services.
• Promotion Strategies: Detail how you’ll get the word out about your business (flyers, social media, partnerships, etc.)
• Customer Retention: Focus on ways to build loyalty through excellent service and potential reward programs.

6. Operational Plan

• POS Provider: State your chosen POS provider(s) and why you selected them.
• Security: Outline security measures to protect customer data and your assets (surveillance, safe cash storage, etc.)
• Staffing: If applicable, indicate if you’ll hire additional employees or manage the business yourself.

7. Financial Projections

• Startup Costs: Itemize the expenses for equipment, rent, branding, and initial cash float.
• Revenue Projections: Create realistic estimates for transaction volumes and income over the first year.
• Expenses: Account for operational costs like transaction fees, rent, utilities, etc.
• Profitability: Project your net income and potential break-even point.

8. Conclusion

• Summarize the key strengths of your POS business.
• Reiterate your commitment to providing excellent financial services to your community.

Tips for Writing a Strong POS Business Plan in Nigeria

• Keep it Concise: Your business plan doesn’t need to be excessively long. Focus on clarity and essential information.
• Data-Driven Support your assumptions with market research data and realistic financial projections.
• Seek Feedback: Have someone with business experience review your plan for clarity and feasibility.

Additional Resources:

• Small and Medium Enterprises Development Agency of Nigeria (SMEDAN): https://smedan.gov.ng/
• Tony Elumelu Foundation: https://www.tonyelumelufoundation.org/

Complete Sample POS Business Plan in Nigeria

Free pos business plan sample download, executive summary.

POS Niger is a startup that provides point of sale (POS) services to small businesses in Lagos, Nigeria. As digital payments usage surges across Nigeria, POS Niger fills a growing need for secure, reliable POS solutions tailored to small businesses. Our offerings include:

• POS terminal sales and rentals
• Integration with local and international payment gateways
• Staff training on using POS devices and software
• Maintenance support and technical assistance

POS Niger aims to deploy 500 POS terminals in our first year focused on Lagos Island and Ikeja business districts.

Our pricing model involves a one-time integration fee and recurring monthly subscriptions for maintenance support.

The startup requires N12 million for inventory, shop rental, staffing, and working capital. Funding will come from the founders’ capital injection and angel investors.

Additional funding will be sourced through POS device vendor partnerships and bank loans.

The promoters are Donald Duke and Sheila Adams who have over 10 years combined experience in payments processing and retail software consulting for top Nigerian banks.

Their expertise will be leveraged to build POS Niger into the leading local provider of POS solutions for Lagos small businesses.

The POS terminal market in Nigeria is projected to keep growing over 50% yearly.

Our target clients of small shops, cafes, boutiques represent over 90% of Nigerian businesses.

With increasing POS adoption, there is minimal competition tailored to SMEs.

POS Niger will capture significant market share through our competitive pricing, localized support and strategic distribution partnerships.

Products and Services

POS Niger offers the following products and services:

POS Terminal Sales and Rentals

• We will sell or rent out POS terminals from top brands like Innovault, Paystack, Global Payments etc.
• Both fixed (countertop) and wireless POS systems will be retailed.
• Customers can purchase outright or rent via monthly payments.
• For rentals, we handle repairs and replacements.

Payment Gateway Integration

• We will integrate the POS systems with prominent payment gateways in Nigeria like Flutterwave, Paystack, Wema, OPay etc.
• This allows receiving payments via cards, mobile money, bank transfers etc.
• We will charge a one-time integration fee per POS device activated.

Staff Training

• Our staff will train client employees on properly operating the POS software, devices and transactions reporting.
• Standard operating procedures will be provided for reference.
• Additional offsite group training sessions will also be conducted.

Maintenance Support

• We will provide 24/7 phone and email support for any POS terminal issues faced.
• Qualified technicians will address malfunctions through remote troubleshooting or onsite visits.
• Software patches and upgrades will be implemented remotely.

Business Advisory

• Our team offers POS business advice on matters like best practices, fraud prevention, dispute resolution etc.
• We will help clients maximize the benefits of deploying POS solutions.

Market Analysis

Nigeria’s POS industry generated around N3 trillion in payments volume in 2019 per the Nigeria Interbank Settlement System (NIBSS) data .

Transactions have been growing at a 50% CAGR over the last decade, indicating massive expansion of cashless payments.

The global POS terminals market is also projected to reach $154 billion by 2026 according to Verified Market Research .

Hence, the rapid growth offers huge opportunities for POS terminal deployment and associated services in Nigeria.

While large retailers dominate in urban centers, smaller informal businesses represent over 90% of Nigerian enterprises.

Over 60 million MSMEs form the bulk of the economy. This segment is the primary target market for POS Niger.

Target Customers

• Small shops, boutiques, salons, bars, restaurants, cafes
• Startups and small businesses across industries
• SMEs in business districts within Lagos State
• Vendors, artisans, local stores with potential for POS adoption

Competitor Analysis

Major competitors include:

• Banks – Offer POS services but mainly target corporate clients rather than SMEs.
• Global terminal vendors – Players like Ingenico have large market share but lack localized support.
• Payment gateways – Offer basic POS package without after-sales support.

Our differentiated focus on SMEs, integrated offerings and value-added services provide competitive advantage over current players.

Our POS solutions will be affordably priced for the target mass market segment through:

• Low one-time integration fee of N25,000
• Competitive monthly rentals from N15,000 based on device type
• Flexible purchase prices starting from N68,000 for basic terminals
• Volume pricing discounts for bulk orders

Distribution Channels

To ensure widespread distribution we will leverage:

• Direct sales to walk-in customers at our outlet
• Business development executives for outbound sales
• Strategic partnerships with device vendors for joint sales
• Online marketing and social media promotions
• Referrals from business associations and SME networks

Marketing Plan

Our core marketing strategy focuses on cost-effective tactics to generate awareness andTrials among target SMEs within Lagos.

Promotions Mix

• Door-to-door: Sales agents will conduct in-person demos and leave brochures at SMEs within target localities.
• Email marketing: Regular email campaigns to engaged SME databases with promotions.
• Social media: We will run Facebook and Instagram ads focused on Lagos small businesses.
• Sales literature: Print flyers, brochures and catalogues will be distributed via chambers of commerce, associations etc.
• Business directories: Listings on SME hubs like Nigeria Yellow Pages will be secured.
• Referral incentives: Promotions to encourage customer referrals and reviews.
• Online content: SEO-optimized blogs/articles on payments issues SMEs face.

To build a professional brand image:

• A recognizable company logo reflecting our POS services will be created.
• Staff will have customized branded t-shirts, caps and name tags.
• Well-designed office branding will be erected including light boxes.
• Promotional items like calendars and diaries will be gifted to customers.

Partnerships

We will actively network with:

• Industry associations to jointly promote our solutions to their SME members.
• Coworking spaces, incubators and SME hubs to engange their startup/small business communities.
• Relevant events like payments forums and retail tech conferences to create visibility.

Our lean marketing strategy centers on cost-efficiency to maximize ROI from each initiative. The focus is on personalized outreach and leveraging partnerships to boost visibility among the target SME segment.

Operations Plan

Our POS outlet and office will be located along a commercial street in Ikeja GRA due to the area’s mix of small businesses, accessibility for customers, and availability of support services.

• We will maintain an average monthly stock of 50 POS terminals plus receipt papers and other consumables.
• Devices will be sourced directly from top brands to get wholesale pricing and warranties.
• Inventory will be monitored using spreadsheets with automated reorder levels set.
• Sales Manager: Experienced retail sales professional to lead business development
• Customer Support Reps: Two reps with tech troubleshooting skills to offer assistance
• POS Technicians: For onsite installation, maintenance and repairs.
• Accountant: For managing daily accounts, payroll, taxes and compliance.

External services firms will be engaged as needed for legal, IT, security etc.

Our core business processes will include:

• Customer onboarding from KYC to integration and deployment
• POS terminal procurement, configuration, installation and activation
• Payment verification, reconciliations and settlement
• Issue logging and resolution based on SLAs
• Software updates, backups and data security protocols
• Inventory tracking and order management
• Sales reporting, invoicing and collections
• POS software, CRM system and accounting software will be deployed on the cloud.
• Inventory management using spreadsheet applications
• Email marketing and analytics tools will be utilized
• Security cameras and remote data backups will be implemented

Key Takeaways

Here are key takeaways from this sample business plan for a POS startup in Nigeria:

• Offer a mix of products including POS hardware sales, rentals, integration, training and support services.
• Target small businesses in high commercial locations as your core customer segment.
• Use a lean marketing mix focused on direct outreach, partnerships and digital promotion.
• Secure a visible location in a secure commercial area optimal for customer traffic.
• Build processes for customer acquisition, deployment, issue resolution, inventory management etc.
• Assemble a skilled team covering sales, technical support and back-end functions.
• Implement the right mix of software, hardware and tools to enable operations.
• Continuously enhance offerings based on customer feedback for sustainable growth.
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Write your business plan with help from industry experts

Use this free bar business plan template to easily create a great business plan that organizes your vision and helps you start, grow, or raise funding for your bar.

What's inside? Exclusive insights into how to:

• Build a strong  bar business plan
• Write an executive summary
• Establish a bar operations plan
• Conduct market and financial analyses
• Create a  bar marketing strategy

What is a bar business plan?

A business plan is a written document that describes in detail how your bar defines its objectives and how it’ll go about achieving its goals. A  bar business plan is the blueprint that outlines your entire vision, and it explains in detail how your business will take shape and operate.

How do you write a business plan for a bar?

Whether this is your first time writing a business plan or you’re a seasoned pro, it’s always helpful to work off of a template designed for your industry. When writing your business plan, be sure to include elements like a branded cover page, an executive summary, a company overview, a market analysis, a marketing plan, an operations plan, and a financial analysis. For more information on how to write a bar business plan,  read this article .

Use the Bar Business Plan Template to build a concrete strategy

In most cases, opening a new bar, expanding to a new location, or giving your existing concept an overhaul requires outside capital from investors. But before anyone invests in your dream, they need to see that you’ve got a concrete plan for success. The business plan provides them with a complete description of your strategy. Download the free Bar Business Plan Template to organize your vision and ensure that nothing is overlooked. For a guide to writing a business plan specifically for a bar, learn from this resource:  How to Write a Bar Business Plan . Related bar business resources:

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SoftPoS: The backup plan for failed payments

With UK Finance recently sharing that a staggering 93% of card transactions in the UK are contactless payments , it’s clear that a robust digital payment infrastructure is no longer a luxury for merchants; it’s a necessity. But what happens when the chip and pin devices we’re familiar with malfunction? 

We all remember the chaos caused by recent tech outages at major retailers like Tesco, Sainsbury’s and McDonald’s , with limited payment options frustrating customers and in some cases, forcing temporary closures. These outages highlight a critical vulnerability: a reliance on traditional payment systems which can leave businesses exposed to significant financial losses. Downtime caused by malfunctioning hardware translates to lost sales and potential reputational damage, which can take years to be resolved.

This is where software point of sale (SoftPoS) shines, offering a simple, fast, and more convenient way to accept payments using the NFC-enabled smartphones or tablets we have in our pockets. SoftPoS is set to play a pivotal role in shaping the future payments landscape, but by offering a suitable backup solution for when hardware payments fail businesses, it truly carves out a niche for itself in the evolving world of payments.

The importance of having an alternative solution

The IT disruptions faced by a number of prominent UK businesses earlier in the year serve as a stark reminder that existing systems are not infallible. These businesses face a pressing decision; invest in alternative payment methods to safeguard the customer experience and revenue of the business, or continue to provide a traditional payment solution and risk facing the costly disruptions associated with unexpected tech failures.

While traditional point-of-sale systems have served as the backbone of payment processing for decades, they are not without their vulnerabilities. Security breaches involving compromised card data are a persistent concern for businesses and consumers alike. 

Skimming devices attached to card readers can steal sensitive information during transactions. SoftPoS technology, by leveraging secure mobile device technology and tokenisation of sensitive data, can potentially mitigate these risks. Additionally, cloud-based security features and regular software updates offered by SoftPoS providers can further enhance the overall security of a business’s payment infrastructure.

SoftPoS solutions can serve as a safety net in situations where the primary card machine breaks down, whether due to a malfunction, battery issues, or technical problems that are beyond the immediate expertise of employees. By having an implemented SoftPoS solution, businesses can avoid lost sales and maintain customer trust during outages.

Cost-effective maintenance

Traditional payment methods, while familiar, often rely on expensive hardware that requires ongoing maintenance. This can be costly, and hardware malfunctions can lead to additional service call fees and downtime. 

SoftPoS, on the other hand, offers a more cost-effective solution. Updates can be delivered online, minimising downtime and making it perfect for fast-paced environments. Additionally, SoftPoS eliminates the need for costly terminals, streamlining the payment process and reducing operational costs associated with payment processing and reconciliation. 

Established companies can realise significant savings by implementing SoftPoS across their stores, removing the sole reliance on expensive point-of-sale hardware at each location. This frees up capital for other business investments and simplifies the management of their payment infrastructure.

A flexible future for omnichannel businesses

While traditional payment methods struggle to adapt to diverse business models, SoftPoS thrives. Pop-up shops, service providers, and smaller retailers can leverage existing smartphones and tablets, eliminating the need for dedicated hardware. This flexibility, coupled with its ease of setup, makes SoftPoS a convenient and cost-effective solution for businesses of all sizes.

Looking ahead, SoftPoS holds immense potential to transform the future of payments. As consumer preferences shift towards contactless transactions and mobile wallets, SoftPoS is well-positioned to become a primary payment method. Its inherent flexibility can cater to a wide range of businesses, from established retail chains to on-the-go operations and service providers. 

Furthermore, seamless integration with loyalty programs and real-time sales data empower businesses to optimise operations and enhance customer engagement. With continuous advancements in mobile technology and growing consumer demand for secure and convenient payments, SoftPoS is poised to play a central role in shaping the future of secure and adaptable payment solutions across all industries.

Stay Ahead of the Financial Curve with Our Latest  Fintech News  Updates!

Brad Hyett, CEO of phos

Brad Hyett is the CEO of phos, the leading software point of sale (SoftPoS) business which enables legacy technology providers and financial institutions to quickly bring ‘Tap to Pay’ solutions to market. As one of the first payment leaders to recognise the potential of SoftPos technology - which allows merchants to turn their smartphone or tablet into a contactless payment terminal - Brad established phos as the market leader in Europe and successfully closed its acquisition by Ingenico, the global leader in payment acceptance solutions in 2023. Prior to joining phos, Brad was the MD Europe at BlueSnap, a market leading global payment solution for B2B and B2C businesses, where he spearheaded the company’s expansion into Europe. His experience also includes opening the UK division of SlimPay, a direct debit specialist and delivering on the new business strategy for The Logic Group, a Barclaycard company, across Europe.

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• payment infrastructure

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L.A. consumer group calls FAIR Plan insurance reforms an industry ‘bailout’

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A new law that could force homeowners across California to cover billions of dollars of insurer losses caused by a catastrophic wildfire is generating pushback from a leading consumer group, which has called it an industry “bailout.”

State Insurance Commissioner Ricardo Lara announced Friday he had reached an agreement with the California FAIR Plan that would allow losses suffered by the state’s insurer of last resort to be recouped by surcharges on residential and commercial insurance policies statewide in an “extreme worst case scenario.”

The FAIR Plan, which insures property owners who cannot get or afford traditional policies, is backed by licensed insurers such as State Farm and Allstate. As the program is structured, they are on the hook to pay claims if the FAIR Plan runs through its reserves, reinsurance and catastrophe bonds.

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March 29, 2024

Under Lara’s agreement, if that happens and those insurers suffer large losses, they could seek to be reimbursed by their own policyholders. The deal allows insurers that are assessed by the FAIR Plan to cover up to $1 billion in residential losses and up to $1 billion in commercial losses to ask the insurance commissioner to allow them to surcharge their policyholders for half of the assessed amounts. They also could seek surcharges on policyholders for 100% of losses that exceed those limits. Homeowners would not be surcharged for commercial losses.

“It’s outrageous and outside the law for the insurance commissioner to force consumers to bail out home insurance companies and then call that consumer protection,” said Carmen Balber, executive director of Los Angeles-based Consumer Watchdog .

Gabriel Sanchez, Lara’s press secretary, defended the agreement, saying, “It would be easy to listen to the elites and the entrenched interests defending a system that clearly isn’t working. Commissioner Lara is focused on hearing from the public, following the data and creating realistic, long-lasting solutions for everyone in this state.”

The FAIR Plan assessment is the latest element of Lara’s Sustainable Insurance Strategy, a package of executive actions intended to stabilize the California market, which has seen insurers stop writing new policies and decline to renew existing policies amid a sharp increase in claims for wildfires damage.

Just this week, firefighters are battling the massive Park fire in Butte, Tehama and Shasta counties, where 100 structures have been destroyed, 4,200 were threatened and 26,000 people were forced to evacuate as of Monday. It is the sixth-largest fire in state history.

Is this the solution to California’s soaring insurance prices due to wildfire risk?

The insurance industry will soon have the ability to use wildfire models when setting rates. Homeowners in high risk areas already know how these models have made policies hard to get and hard to afford.

July 26, 2024

As insurers have pulled back from high-fire risk neighborhoods, the number of residential FAIR Plan policies has more than doubled since 2019 to about 408,000 as of June. Commercial policies similarly increased to 11,026.

The FAIR Plan has a market share under 4%. Policyholders are concentrated in canyons, hillsides and other high-risk neighborhoods, vulnerable to fire and catastrophic insurance losses. The plan’s loss exposure was $393 billion as of June, even though the plan’s policies are more limited than those available through the regular commercial market.

Lara said Friday in a release announcing the agreement that “modernizing the FAIR Plan is a crucial step in our strategy to stabilize California’s insurance market.”

The FAIR Plan’s financial risk is overwhelmingly due to its residential policies, which account for about 95% of its $393 billion in total loss exposure, according to the insurer.

The Insurance Department downplayed a worst-case scenario, noting that even the 2018 Camp fire in Butte County that ravaged the town of Paradise, destroying or damaging more than 19,000 structures and causing some $16.5 billion in damage , did not deplete the FAIR Plan‘s reserves.

The Insurance Department contended that the agreement was actually favorable to consumers because under current law there is nothing prohibiting the insurers from seeking policyholder assessments on all FAIR Plan losses they must cover.

“The agreement ... requires insurance companies to share the burden, something not clearly outlined before. That protects consumers by providing predictability which leads to stability,” Sanchez said.

Balber disputed that reading of the law and said Lara has not been able to get legislative authority for the insurer policyholder assessments, so he proceeded under questionable executive authority. “We have several questions about the legality of this proposal and are looking into it,” she said.

Consumer Watchdog has called for requiring insurers to offer policies in wildfire-prone neighborhoods to homeowners who have taken steps to reduce fire risks on their property as the best method to reduce enrollment in the FAIR Plan and stabilize the state’s insurance market.

Another key element of Lara’s FAIR Plan reforms call for the insurer to offer greater commercial coverage — up to $20 million per structure and $100 million for any one location.

Dan Dunmoyer, chief executive of the California Building Industry Assn., said the trade group has been seeking higher commercial coverage limits due to the rise of insurance premiums, which have slowed the construction of condominium complexes that builders insure.

He estimated that astronomical insurance rate increases have slowed condo construction by about 70% in the last 12 months, with fewer than 6,000 units built.

“Our view on this is: Get some competition in the marketplace, expand commercial coverage, let us build the most affordable for sale homes in California, which are condos,” he said.

The American Property Casualty Insurance Assn., an industry trade group, called Lara’s plan “an important step toward restoring the FAIR Plan’s financial stability and ensuring consumers have access to the coverage they need.”

The deal reached by Lara with the FAIR Plan is a binding legal stipulation and it requires the insurer to develop a “Plan of Operation” within 30 days detailing how it will carry out the agreement. It has 120 days to submit a rate plan for offering the higher commercial coverage.

The FAIR Plan was sued last week by four California residents who claim its policies offer subpar coverage for fire and smoke damage. The proposed class-action lawsuit seeks to represent more than 300,000 of the plan’s residential policyholders. The plan also is facing a lawsuit from more than 1,000 homeowners in Los Angeles who say the plan wrongly denied their claims.

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Laurence Darmiento covers finance, insurance, aerospace and dealmakers in Southern California for the Los Angeles Times. He joined the paper in 2015 as an assistant business editor and has overseen finance, real estate and Washington business coverage. Previously he had been the managing editor of the Los Angeles Business Journal and was a reporter for the Los Angeles Daily News and other outlets. A New York native, he is an alumnus of Cornell University.

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• Best POS Systems For Small Business In Canada

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Best POS Systems For Small Business In Canada For August 2024

Updated: Jul 2, 2024, 10:02am

Fact Checked

The best point-of-sale (POS) systems do more than just process transactions. These systems can also streamline your daily workflow by combining tools such as employee scheduling, customer loyalty programs and inventory tracking into one sleek platform. Granted, choosing the right system can be a challenge. That’s why we analyzed leading providers across various metrics to bring you this list of the best POS systems for small business in August 2024.

Featured Partner

Best POS Systems of 2024

• Why You Can Trust Forbes Advisor Small Business

Shopify POS

Lightspeed POS

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• Best Payment Gateways
• Cheapest Credit Card Processing Services
• Best Restaurant POS In Canada
• Best Stripe Competitors
• Best Credit Card Machines In Canada

On Shopify’s Website

Pricing starts at

$7 per month for casual sellers $51 per month ($38 per year) for retail sellers

Mobile payments

Key features

Syncs with Shopify online store, smart inventory management

• Clover: Best for Integrations
• Square POS: Best for Businesses on a Budget
• Shopify POS: Best for Retail Businesses
• Lightspeed POS: Best for Customer Loyalty
• eHopper POS: Best for Omnichannel Businesses
• Aloha Cloud: Best for Next-Day Payments
• Erply: Best for Inventory Management
• Revel Systems: Best for Hospitality Businesses
• KORONA POS: Best for High-Risk Merchants
• PayPal POS: Best for No Monthly Fee

The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey.

To find the best POS systems for small businesses, we considered over 20 of the top POS providers in the space and narrowed it down to 13, which we then evaluated across three key categories and 12 different metrics. Our ratings consider factors such as transparent pricing, employee self-sufficiency, compatibility with third-party integrations, access to customer support and ratings. All ratings are determined solely by our editorial team.

BEST FOR INTEGRATIONS

Price starts at

Contact sales for pricing

Versatile POS, invoicing, employee management

Clover offers a wide range of plans and pricing options to fit any budget, although its hardware costs are high. When you apply for a Clover Account without purchasing hardware, you can enjoy a 90-day trial period where the monthly software fee is waived, which serves as its free trial. It is easy to use and has a host of features that can help businesses of all sizes manage their transactions more effectively.

One of the biggest benefits of Clover is its integrations. There are hundreds of software apps available in the Clover App Market that can manage various aspects of a business. These apps integrate seamlessly with Clover devices, making it easy for businesses to get started.

Who should use it: Clover is a good point-of-sale system for businesses of all sizes. Its wide range of features and integrations make it a versatile solution that can be tailored to fit the needs of any business.

Learn more:  Read our Clover POS Review

• Monthly fee waived the first 90 days if not getting hardware
• Extend the functionality of your POS with integrations from the Clover App Market
• Wide range of hardware available
• Attractive pricing on its monthly plans
• Pricing isn’t disclosed online and can vary when choosing a Clover partner to order through
• Hardware is expensive

BEST FOR BUSINESSES ON A BUDGET

$69 is the hardware starting price (plus processing fees)

Easy to use, free reader, create customer loyalty programs

Square POS is a great option for businesses that are on a budget because it has no monthly fee—just pay the reasonable processing fee of 2.65% for all major credit card transactions and 0.75% plus $0.7 per every Interac chip and PIN or tap transaction. The hardware starts at $69 It’s simple to operate and doesn’t require any training to get started.

Take payments in person, over the internet, by phone or at the farmer’s market. Collecting leads, marketing via email or text, and creating customer loyalty are also possible with this point-of-sale system.This software is perfect for businesses that want to expand their selling beyond a physical location because it easily integrates with Instagram and Facebook, all while managing your entire business from one place.

Who should use it: Businesses on a budget that need an easy-to-use POS system with no monthly fees.

• Free forever plan available
• Includes a free card reader
• Receive better processing fee rates with a high volume of transactions
• Very customizable with numerous add-ons available
• Potential payment delays
• Processing fees could cut into profits
• Its buy now, pay later rates are very high

BEST FOR RETAIL BUSINESSES

$7 per month for casual sellers, $119 per month for retail sellers

Yes, 3 days

In-person and mobile POS, order management, customer profiles

Shopify POS is a point-of-sale software used by businesses of all sizes. It turns any mobile device into a point-of-sale terminal, and is fully integrated with Shopify’s other tools and services. It’s especially well suited for businesses that sell both online and in physical stores, as it allows for unified reporting of sales data from both channels.

Additionally, it offers a wide range of features for inventory management, staff management and customer relationship building. Its hardware is sleek and easy to use, and comes with built-in payment processing.

Learn more:   Read our full Shopify POS Review.

Who should use it: Shopify POS is a solid choice for businesses looking for a comprehensive point-of-sale solution.

• No credit card required for its free trial
• Works for omnichannel businesses
• Syncs inventory between online and off-line orders
• No transaction fees when using Shopify Payments
• No free option
• Not the most affordable option
• Must pay for hardware

BEST FOR CUSTOMER LOYALTY

$119 per month, ($89 per month when paid annually)

2.6% plus $0.10 processing fee, dedicated account manager, integrated payments

Lightspeed POS offers a point-of-sale system that is both easy to use and scalable, making it a great choice for businesses of all sizes. The system is EMV compatible and PCI compliant, ensuring that your customers’ data is protected. Lightspeed also offers inventory management and reporting features, allowing you to keep track of your sales and profits in real time.

With its built-in membership and subscription tools, Lightspeed Subscriptions makes it easy to keep your customers engaged and coming back for more. You can offer exclusive deals and discounts to members, as well as monthly boxes filled with their favorite products. The system has secure automated recurring payments that make it a breeze to manage all your memberships and subscriptions.

Who should use it: Businesses that want a customer loyalty program should use Lightspeed POS.

• Each plan includes a register
• Industry-leading customer loyalty options
• Inventory management
• Account manager for every company
• It’s expensive compared to its competitors
• Must request a quote for hardware pricing

BEST FOR OMNICHANNEL BUSINESSES

Free; $29.99 per month (billed annually)

Unlimited transactions, pre-authorization, cash discount, tip management

The eHopper POS system is perfect for small businesses with multiple sales channels. Its free plan is ideal for companies that don’t process many transactions, as there’s a 300 transaction limit per month. However, its paid plans include both unlimited products and transactions.

With a one year contract, paid plans start at $29.99 per month, billed annually. Month-to-month contract pricing starts at $39.99 per month. For a true omnichannel experience, choose the OmniChannel plan starting at $39.99 per month (month to month). This plan gives e-commerce and loyalty features not commonly found in other plans.

Who should use it: Businesses that sell in store, online and through marketplaces such as Facebook and Instagram will find the best value in eHopper’s OmniChannel plan.

• Paid plans include a free business website
• Free processing in the U.S.
• Unlimited products and transactions on paid plans
• Menu builder unavailable under free plan
• Its free Essentials plan doesn’t come with the cash discount or surcharge option that eHopper is best known for

BEST FOR NEXT-DAY PAYMENTS

Free; $65 per month

No, demo only

Next-business-day payments, email marketing, loyalty

Formerly known as NCR Silver, Aloha Cloud is a cloud-based POS system for restaurants. It helps manage the front and back of house, retain and grow your customer base and gives you actionable insights into your business. It offers a free Starter plan, but you’ll pay higher processing rates of 2.99% plus $0.15 per transaction. Its Premium plan starts at $175 per month and comes with a lower payment processing rate of 2.25% plus $0.15 cents per transaction.

Who should use it: Restaurants that want next-business-day access to their funds.

• Free forever plan
• Email marketing and loyalty included with both plans
• Access to funds the next business day
• 24/7/365 customer support
• Personalized onboarding
• Payment processing rates are high for its free plan
• Inventory costs extra
• Pricey paid plan

BEST FOR INVENTORY MANAGEMENT

Free; $39 per month

CRM, mobile app, API access

Erply stands out for its robust functionality and broad applicability. With its tiered pricing, the platform is structured to cater to different business needs—from basic POS requirements for small shops to complex inventory systems for larger retailers. The ease of integration with a variety of payment providers and the adaptability of its mobile app are key strengths, allowing businesses to operate seamlessly.

Erply’s premium packages come with advanced CRM and API access, supporting improved customer interaction and enabling better business automation. Additionally, the platform offers an impressive range of customization features and scalability, particularly advantageous for growing businesses. The capability to provide industry-specific solutions, demonstrated through its detailed POS and inventory management system, makes Erply a preferred choice for diverse business types.

Who should use it: Erply is ideal for businesses of varying sizes, from small stand-alone stores to large-scale franchises and enterprises. However, you’ll need its paid plan for inventory management features.

• Paid plans come with an inventory database and backend management
• Offers a variety of payment processors
• Paid plans have API access
• Inventory management not available for its free plan
• Limited customer support on free plans

BEST FOR HOSPITALITY BUSINESSES

$99 per month

(per terminal, two-terminal minimum)

In-house payment processing, kiosk and mobile orders, delivery orders, multi-location management

Revel Systems shines particularly for its versatility and robust feature set in the hospitality sector. Its POS software is comprehensive, encompassing everything from intuitive point-of-sale functionality to employee management and customer relationship management. Revel is also highly adaptable to different order methods—traditional, kiosk, mobile and online—ensuring a seamless ordering experience for customers.

Its capability to manage multiple locations from a single dashboard is a significant advantage for businesses with multiple outlets. In-house payment processing, coupled with support for diverse payment types, enhances the ease of transactions. Revel’s flat processing fee structure helps businesses manage their expenses more effectively. And when you pair it with its POS hardware rather than sourcing your own outside Revel, you know the software is compatible, which is crucial for high-traffic hospitality businesses.

Who should use it: Revel Systems is best suited for hospitality businesses, particularly those operating across multiple locations.

• Accept delivery, kiosk, online and mobile orders
• Manage multiple locations from one dashboard
• Dedicated account manager
• Steep onboarding fee (starts at $674)
• Two-terminal minimum

BEST FOR HIGH-RISK MERCHANTS

$59 per month ($79 per month CAD)

No transaction fees, API access, e-commerce store

KORONA POS stands out for its comprehensive offering that caters well to high-risk merchants. It provides an impressive feature set that includes e-commerce integration, employee time tracking, loyalty program integration, EMV and mobile payment options, retail inventory management tools and CRM capabilities. The system does not bind businesses with contracts or hidden fees and offers unlimited users and sales.

Another distinct advantage is its compatibility with high-risk merchant industries such as CBD, liquor, wine, dispensary and vape, which many other POS systems do not support due to the inherent risk. KORONA POS further supports scalability, making it an excellent choice for businesses looking to grow or manage multiple stores. Its 24/7 professional support ensures businesses receive help when needed.

Who should use it: KORONA POS is best suited for high-risk merchants who prefer a fixed monthly fee instead of transaction-based fees.

• No transaction fees
• Includes an e-commerce store
• Unlimited users
• Unlimited sales
• Works with high-risk merchants
• Need an Enterprise plan for ticketing and event management
• No pre-built integrations on its first three plans

BEST FOR NO MONTHLY FEE

(commercial transactions start at 2.90% plus a fixed fee)

No monthly fee, inventory management, daily performance reports

PayPal POS , now integrated with the restaurant POS called TouchBistro, charges no monthly fee. Instead, you’ll pay a per-transaction fee. These rates depend on how the transaction occurs, such as if it’s a commercial or QR code transaction. Transaction fees start at 2.90% plus a fixed fee based on the currency received. For example, each Canadian dollar received carries a $0.30 fee.

QR code transactions that are $10 or below cost 2.40% plus a fixed fee and any QR code transaction that’s $10.01 and above cost 1.90% plus a fixed fee. With PayPal POS in Canada, you don’t need any new hardware beyond your existing tablet or smartphone.

Who should use it: Businesses that want to pay a per-transaction fee rather than a monthly fee

• No monthly fee, just pay transaction fees
• Accept commercial and PayPal QR code payments
• No additional hardware necessary
• Transaction fees can get expensive

A POS system, also known as a point-of-sale system, is a hardware and software solution used to conduct transactions. This could be anything from selling a product to managing inventory or tracking customer data. A POS system can be as straightforward as a card reader or as complex as an all-in-one solution that includes features such as loyalty, scheduling, front of house, inventory management, customer relationship management (CRM) and e-commerce.

POS systems are used by businesses of all sizes in a variety of industries, including retail, restaurants, hospitality and services. If you’re running a business that relies on transactions of any kind, then a POS system is likely a good fit for you.

To choose the best POS system, first consider whether or not the system offers the tools and features your business needs—now and in the future. Ideally, a POS system should make it easy and affordable to accept payments no matter where you are selling or how customers are paying. Additionally, look at the bigger picture in terms of pricing. Depending on your sales volume, it may or may not be worth opting for a POS system with a higher monthly rate if it comes with the benefit of lower transaction costs.

Here are a few key factors to consider when choosing a POS system:

• Plans and Pricing: There are a few elements to consider in regard to POS pricing. Not only is there generally a monthly fee to use the service, but there are also varying payment processing fees. Oftentimes, the higher the monthly fee, the lower the transaction fees. For this reason, it’s worth considering your sales volume and determining which plan is the most cost-effective. On top of that, there are also fees associated with purchasing hardware to factor in.
• Software and Hardware: In addition to the POS software, it’s worth considering whether or not you will also require POS hardware, such as terminals and card readers. Even if it’s not something you currently need, it’s worth considering if you might need it in the future as your business grows.
• Features: Though POS systems should offer the same features more or less, most also offer unique features. For example, some may offer features designed to meet the needs of certain industries or use cases, such as a POS system with the option to split the bill for restaurant patrons.
• Ease of Use: The best POS systems are easy to set up and intuitive to use.
• Customer Support: One of the other key factors in the decision-making process–and one of the most overlooked, is the inclusion of high-quality support that is not only available 24/7 but available via a variety of channels from live chat to phone support.

POS Software Features

When choosing a POS system, the first step is to consider what features you need. Do you need basic transaction processing or do you need more advanced features such as loyalty, appointment scheduling, inventory management or email marketing?

Here are some common POS software features to look for:

• Credit card processing: All POS systems will process credit and debit cards, but some systems will require you to use a specific payment processor. Others will let you choose your own processor.
• Loyalty: If you want to offer loyalty programs or gift cards, look for a system that offers this feature.
• Appointment scheduling: If you’re in the business of appointments, such as a salon or spa, look for a system that offers online booking and appointment reminders.
• Inventory management: If you need to track inventory levels, look for a POS system that includes this feature. Some systems will even let you automatically reorder when inventory gets low.
• Customer relationship management (CRM): If you want to track customer data, look for a system that includes a CRM feature. This will let you keep track of customer purchase history, contact information and more.
• Reporting: All POS systems will offer some kind of reporting, but some will be more robust than others. If you need detailed reports on your business performance, look for a system that offers this.
• E-commerce: If you want to sell online as well as in store, look for a system that offers an e-commerce solution. This will let you manage inventory and orders from one central platform.

POS Hardware Features

In addition to software, you’ll also need to consider hardware when choosing a POS system. The type of hardware you need will depend on the type of business you have and the features you’re looking for.

Here are some common POS hardware features to look for:

• Touch-screen display: A touch-screen display is a common feature on POS systems. This lets you easily navigate the software and enter information.
• Receipt printer: A receipt printer is a must-have for any POS system. This lets you print receipts for customers.
• Barcode scanner: If you need to scan barcodes, look for a POS system that includes a barcode scanner.
• Cash drawer: A cash drawer is another must-have for any POS system. This lets you store cash and keep it organized.
• Payment terminal: If you want to accept credit and debit cards, you’ll need a payment terminal. Some POS systems come with a built-in terminal, while others require you to use a separate one.

Types of POS Systems

There are many types of POS systems on the market, from simple card readers to all-in-one solutions. The best POS system for your business will depend on your specific needs.

Here’s a rundown of the different types you might encounter.

Restaurant POS A restaurant POS system is a specialized type of POS system that’s designed for restaurants. These systems typically include features such as table management, kitchen display systems and online ordering. Most will also have inventory management, so you can auto-reorder ingredients as they get low.

Retail POS A retail POS system is designed for retail businesses. These systems typically include features such as inventory management, customer loyalty programs and gift cards. Some retail POS systems also offer appointment scheduling and reporting.

iPad POS An iPad POS system is a type of mobile POS system that uses an iPad as the main point-of-sale terminal. These systems are becoming increasingly popular due to their portability and ease of use. Many iPad POS systems come with built-in features such as credit card processing, scheduling and receipt printing.

Mobile POS A mobile POS system is a type of POS system that can be used on a mobile device, such as a smartphone or tablet. People are relying more on these systems because of their portability and easy setup. Many mobile POS systems come with built-in features such as credit card processing, inventory management and receipt printing.

Android POS An Android POS system is a type of mobile POS system that uses an Android device as the main point-of-sale terminal. Due to their mobility and simple-to-use interface, these systems are increasing in popularity, too. Most Android POS systems come with features such as credit card processing, barcode scanning and receipt printing.

Cloud POS A cloud POS system is a type of POS system that’s hosted in the cloud. This means that all of your data is stored online, making it easy to access from anywhere. Cloud POS systems are becoming more popular because they’re easier to set up and use than traditional POS systems. They also typically come with features such as inventory management, customer loyalty programs and gift cards.

POS Terminal A POS terminal is a type of POS system that’s designed for businesses that need to process credit and debit cards. These terminals typically come with features such as EMV compliance, PCI compliance and fraud prevention.

The cost of a POS system will vary depending on the type and features you need. Generally, the more features you want, the more you can expect to pay. Some companies lend you a POS system in exchange for a monthly fee, while others require that you purchase the system outright.

More expensive POS features include:

• Credit card processing: To process credit and debit cards, you’ll need to pay a monthly fee for most POS systems.
• Inventory management: Some POS systems come with inventory management, while others require you to purchase a separate system.
• Customer loyalty programs: To offer customer loyalty programs, you’ll need to pay a monthly fee for most POS systems. Most have this as an optional add-on, rather than a built-in feature.
• Reporting: Most POS systems come with reporting, while others require you to use a third-party integration. For more advanced reports, you may need to pay for a higher-tiered plan.
• Online ordering: Restaurants that want to offer online ordering will need to pay a monthly fee for most POS systems, in addition to any third-party costs such as fees for DoorDash or Uber Eats.

To reduce costs, you can look for a POS system that comes with a free trial period. This will allow you to test out the system before committing to a long-term contract. You can also look for discounts, such as seasonal promotions or referral programs. However, the easiest way to pare down costs is to only pay for the services you need.

When considering the cost of a POS system, you’ll also need to factor in the costs of hardware, such as receipt printers and barcode scanners. These can range in price from a few hundred dollars to a few thousand, depending on the quality and features you need.

After paying for hardware and software, you usually have to pay processing or transaction fees. These are typically a percentage of the total sale, plus a small per-transaction fee. For example, if you’re paying 2.5% plus $0.10 per transaction, and you make a sale for $100, your total fee would be $2.60.

Sample Processing Fees for In-Person Transactions

When you’re choosing an option, you’ll need to decide whether you want a point-of-sale (POS) system or a cash register. Both have their pros and cons, so it’s important to choose the one that best suits your needs.

POS systems are typically more expensive than cash registers, but they offer more features and functionality. Cash registers only track sales and print receipts, while POS systems can track inventory, customers, employees and sales. POS systems also typically offer features such as loyalty programs, gift cards and reporting, while cash registers typically do not.

POS systems are a good choice for businesses that want to track inventory, customers and sales. They’re also a good choice for businesses that want to offer loyalty programs, gift cards and reporting. However, they’re unnecessary for businesses that only need to track sales.

The cost of a cash register is less than a POS system, but offers fewer features. Cash registers can track sales, but they typically cannot track inventory, customers or sales tax. Cash registers also rarely offer features such as loyalty programs, gift cards and reporting. However, they are a good choice for businesses that only need to track sales. They’re also a good choice for businesses that cannot afford a POS system.

Once you’ve chosen a POS system, you’ll need to learn how to use it. Luckily, most POS systems are easy to use and come with training materials or customer support.

If you’re using a cloud-based POS system, you’ll need to create an account and log in. Then, you can start adding products, customers and employees. Most cloud-based POS systems come with a built-in tutorial to help you get started.

If you’re using a self-hosted POS system, you’ll need to install the software on a computer. Once it’s installed, you can start adding products, customers and employees. A built-in tutorial is included with most self-hosted POS systems to assist you in getting started.

A POS system involving hardware will require you to set up the hardware, such as receipt printers and barcode scanners. This is a more complex process, and in some cases, even requires an onboarding specialist on-site or to walk you through the process over the phone. Once the hardware is set up, you can start adding products, customers and employees.

Once you’ve added all your products, customers and employees, you’re ready to start using your POS system. To make a sale, you’ll need to add the items to the order and then process the payment. Most POS systems can process payments by credit card, debit card, cash or cheque.

After the payment is processed, you can print or email a receipt to the customer. Some POS systems also allow you to send text or email receipts.

Reporting is an important feature of most POS systems. With reporting, you can track sales, inventory and employees. This information can help you make informed decisions about your business. Most POS systems offer a variety of reports, such as sales reports, inventory reports and employee reports. Some POS systems also offer custom reporting. This is the key to getting the most out of your POS system—use your reports to gather insights into your business and make changes accordingly.

To provide the most comprehensive and accurate ranking of the best POS systems for small businesses, we reviewed and analyzed several providers in the POS sector. Our methodology evaluates each system across five key categories, totaling a broad range of metrics. These metrics are then weighted according to their importance to small businesses. The following sections detail our evaluation process.

Pricing (10% of score)

Pricing plays an integral role in selecting a POS system. In this category, we scrutinize the cost of each system, including monthly fees, transaction costs and hardware prices. We also evaluate whether there’s a free trial or free version available, the pricing of initial and additional card readers and the potential for hidden charges.

General Features (30% of score)

General features cover the essential functionality of the POS system, accounting for 30% of the total score. We look at whether the system caters to retail and restaurant businesses, offers mobile payment options, includes built-in payment processing, provides inventory management capabilities and supports software integrations. We also evaluate the POS system’s compatibility with e-commerce platforms.

Additional Features (20% of score)

Additional features provide enhanced functionality that may prove beneficial to certain businesses. We look at whether the POS system supports multiple locations, offers employee scheduling, enables contactless payments, provides hardware bundles, manages gift cards, has self-service capabilities, generates reports and analytics, includes a free card reader, offers table management for restaurants and facilitates loyalty programs.

Ratings and Reviews (10% of score)

We consider real user feedback and reviews from trusted platforms such as Trustpilot, G2 and Capterra to contribute to our evaluation. The number of reviews, as well as the rating on each platform, are both assessed. The ratings and reviews category forms 10% of the overall score, providing a snapshot of user satisfaction and system reliability.

Expert Score (30% of score)

Our expert score is derived from firsthand experience and professional insight into each POS system, making up 30% of the total score. We look at standout features, value for money, popularity and ease of use. This involves examining any learning curve associated with the system, the intuitiveness of the platform and the prevalence of upsells or hidden costs. The expert score helps to provide a thorough understanding of the overall quality, usability and affordability of each system

There are a number of important 2024 POS system trends emerging. Here are the ones you should be paying attention to so that your business stays competitive.

Cashless and Touchless Transactions Continue to Gain Momentum

The COVID-19 pandemic was a major impetus behind the shift toward cashless and touchless payment options. In a world concerned with hygiene and lowering transmission rates, technologies that allowed touchless payment became an essential part of purchasing infrastructure. This technology includes tap-and-go credit and debit cards and digital wallets that can be accessed through a smartphone or smartwatch.

These payment methods are not only hygienic but also offer the consumer increased speed, convenience and security in their purchases. These factors have contributed to the continued popularity of these methods even as the pandemic has subsided. Approximately 51% of Americans are now using contactless payment in some form and, in 2020, 67% of retailers reported that contactless payment capabilities were included in their infrastructure.

More Advanced POS Hardware and Software

Gone are the days when POS systems had to be run from large, clunky, stationary computer systems. Hardware that works with POS systems is now more advanced and mobile than ever, allowing more flexibility for store associates and the business as a whole. Expect to see more smartphones, tablets, Bluetooth technology, secure order pickup lockers, electronic shelf labels and smart self-checkout solutions in 2024.

This more advanced hardware has been made possible by both physical and virtual improvements in technology. Without the advancements in software powering these devices, they would have offered a more limited level of functionality.

Cloud-hosted POS Systems are the Future

Cloud-based technology has taken the business world by storm in recent years and will continue to do so into 2024 and beyond. POS systems based in the cloud can be updated and integrated easily with other business operations, and they back up and store data securely automatically. Cloud POS systems also come with significantly lower price tags―usually in a software-as-a-service (SaaS) format―making them more accessible to businesses that also have budget constraints.

Increased Mobility

The cloud allows POS systems to operate over an internet connection, which has paved the way for these systems to be used on mobile devices. Traditionally, POS systems would be tethered to centralized computer stations reliant on physical connections. Now, this software can be used on mobile devices in any location, increasing the system’s flexibility and improving a business’s overall productivity.

Improvements in Self-service Kiosks and Infrastructure

With the rise of cloud technology, self-service infrastructure is also advancing in leaps and bounds. In addition to traditional self-service checkouts, such as you’d see in a grocery or retail store, self-service can now be used in other applications, such as all-in-one restaurant ordering/payment and brand-new storefronts in which checkout and payment isn’t necessary at all (Amazon Go). In 2024, we will see a greater emphasis on these technologies as they are convenient, cost-effective and can reduce errors in the ordering and checkout process.

Shopping Experience

A customer’s shopping experience can be personalized by offering messages, offers and products that are selected and tailored to a customer’s individual behavior and preferences. Companies can also show that they value their customers by ensuring that they proactively direct them to their preferred channels, keep their checkout information at the ready for increased convenience, allow them to switch between applications and communication channels effortlessly and connect them automatically with the best resources to meet their needs.

Customers know that companies collect data about them every time they use the internet, and they now expect that this data will be used to improve their experience with the company. There is no doubt businesses will continue to allocate resources to make these services a priority.

Related: Best Credit Card Machines In Canada

What is the best POS system for a small business?

The Square POS is Forbes Advisor’s selection for the best POS system for small business of 2024. It takes our top pick because of no monthly fees, low cost hardware and needing no training to use, making it ideal for businesses on a budget.

Clover’s massive amount of third-party integrations makes it our second top pick for best POS systems. It integrates with apps such as DocuSign, Xero, Mailchimp and WooCommerce to expand the functionality of your POS.

In our third spot is Shopify POS , which is great for businesses of all sizes. It turns any mobile device, be it a tablet, smartphone or something else, into a point-of-sale terminal, and is fully integrated with Shopify’s other tools and services. It’s ideal for businesses that sell online and at brick-and-mortar locations.

What does a POS system do?

A POS system is a software and hardware system that businesses use to take payments, track sales, manage inventory and connect to other business systems. With its reports and analytics, business owners can also make informed decisions about their business.

How do I choose the right POS system for my business?

The best POS system for your business depends on a variety of factors, including the type of business you have, your budget and the features you need. For many situations, it makes sense to invest in the best system you can afford, and preferably, the system can grow with your business.

How much does a POS system cost?

The cost of a POS system depends on the features you need and the size of your business. Some systems are free, while others can cost hundreds or even thousands of dollars per month.

Do I need a POS system?

If you have a brick-and-mortar store, then a POS system can be a valuable tool for managing inventory, processing payments and tracking sales data. Even if you don’t have a physical store, a POS system can be helpful for managing online orders and shipping.

How do I set up a point-of-sale system?

Most point-of-sale systems come with onboarding documentation that walks you through the process of setting up your system. Typically, the process involves creating an account, adding products, customers and employees, and then connecting hardware such as receipt printers and barcode scanners.

Can I use a POS with an e-commerce store?

Yes, you can use a POS with an e-commerce store. In fact, many POS systems integrate with popular e-commerce platforms, such as Shopify and WooCommerce. Inventory syncs between your POS system and e-commerce store, so you can keep track of stock levels in real time.

What are the four types of POS systems?

The four types of POS systems include Legacy (traditional, on-premises hardware systems), Tablet-based (use tablets as the main interface), Mobile (operates on smartphones and mobile devices) and Cloud-based (hosted on the internet, allowing data to be accessed from anywhere).

Kathy Haan, MBA is a former financial advisor-turned-writer and business coach. For over a decade, she’s helped small business owners make money online. When she’s not trying out the latest tech or travel blogging with her family, you can find her curling up with a good novel.

Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she manages a column at Inc. Magazine.

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NationsBenefits® Announces Direct Point-of-Sale (POS) Integration at Tak Shing Hong dba TS Emporium, Enabling Health Plan Members to Purchase Healthy Groceries and OTC Products

NationsBenefits and TS Emporium Partnership Enhances Healthcare Access for Diverse Populations in Los Angeles

NationsBenefits , the market leader in supplemental benefits and healthcare fintech solutions, today announced a new partnership with Tak Shing Hong dba TS Emporium, the largest provider of traditional Chinese medicine, American Ginseng, and Asian delicacies in the United States. The partnership allows Medicare Advantage and Medicaid members to use their NationsBenefits Benefits Mastercard® Prepaid Card* at any of the five TS Emporium's locations in the greater Los Angeles area to purchase approved healthy foods, groceries, pantry staples, and general wellness essentials. Adding TS Emporium to NationsBenefits' retail network means members will be able to use their prepaid card at their preferred retailer in their own neighborhoods.

Starting June 15, 2024, members can enjoy the benefits of this partnership with a seamless shopping experience at TS Emporium locations in City of Industry, Rowland Heights, Monterey Park, and San Gabriel. This initiative reflects NationsBenefits' mission to eliminate barriers to healthcare access by serving diverse and unique populations at the local and community levels.

"We are thrilled to partner with TS Emporium, a staple in the Los Angeles community for over 40 years," said Michael Parker, COO of NationsBenefits. "This collaboration not only provides members with greater access to nutritious food products and essential wellness items but also supports our goal of serving diverse communities with culturally relevant options. This partnership allows members to get the most out of their benefits by enabling healthier choices at point-of-sale.”

“Our goal is to promote the benefits of American Ginseng, traditional Chinese medicine, and nutritious goods so everyone can enjoy healthier lives. By partnering with NationsBenefits, we can better serve the health of our community by offering far more convenient access to these essential products. We are extremely proud to join the NationsBenefits retail network to expand the reach of our products to more people, especially in the effort to support the local communities that our stores serve,” said Caroline Jang of TS Emporium’s Media Department.

The NationsBenefits Benefits Mastercard® Prepaid Card* program equips health plan members with a personalized prepaid card that allows easy access to funds distributed monthly, quarterly, or annually to purchase eligible items and services. This initiative is part of NationsBenefits' broader strategy to promote food as medicine, empowering members to make healthier choices and drive better health outcomes.

For more information about the collaboration with TS Emporium, visit NationsBenefits.com .

About NationsBenefits®

NationsBenefits® is a leading provider of supplemental benefits and fintech solutions and outcomes to the healthcare industry. NationsBenefits partners with managed care organizations to provide innovative healthcare, data analytics, gap closure, and fintech solutions aimed at driving growth, reducing costs, and delighting members. Combining its cutting-edge technology with targeted retailer partnerships, NationsBenefits empowers health plans to deliver impactful supplemental benefits to optimize member experiences and drive better health outcomes. By simplifying processes to make smarter choices and expanding access to benefits solutions, NationsBenefits aims to improve each of its members’ quality of life through its revolutionary and comprehensive suite of offerings. To learn more, visit NationsBenefits.com .

About TS Emporium

For over 40 years, TS Emporium has been the largest provider of traditional Chinese medicine, American Ginseng, and Asian delicacies in the United States. With five stores in the greater Los Angeles area, TS Emporium is dedicated to promoting the health benefits of its unique products and enhancing the well-being of its diverse customer base. For more information, visit www.tsEmporium.com .

*The Benefits Mastercard® Prepaid Card is issued by The Bancorp Bank, N.A., Member FDIC, pursuant to license by Mastercard International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Card can be used for eligible expenses wherever Mastercard is accepted. Valid only in the U.S. No cash access.

Lynette Vargas, 954-416-2687, [email protected]

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731948400/en/

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