Soft POS is a preferred payment method for retailers in the UK

Are your customers increasingly using contactless payment apps? Would you like to save big on card transaction fees? A software POS system could be the right answer for you.

In the rapidly evolving retail landscape, technology enablers are also upgraded periodically. While traditional POS systems have been around for decades, a new kid on the block, soft POS, is transforming the retail POS system industry. Soft POS allows you to use your near-field communication (NFC)-enabled smartphone as a contactless payment tool.

 

Let’s dive into an exploration of this relatively new mobile POS technology, understand its application in the retail sector, and look at some of the prominent players in the market.

What is soft POS?

Soft POS, or Software Point of Sale, allows merchants to accept contactless payments directly on their NFC-enabled Android or iOS smartphones, eliminating the need for supplementary hardware such as card readers. This is one of the best POS for small businesses and mobile vendors seeking to optimise their payment processes by utilising Near-Field Communication (NFC) to facilitate transactions.

What are the benefits of soft POS?

This mobile POS system comes with a host of benefits for small businesses in the UK.

 

●     Cost-effectiveness: Typically, traditional POS systems require a hefty upfront investment in hardware and periodic maintenance. A merchant account with a payment processor and a smartphone is all you need to activate your soft POS system. The impact on your setup costs will be significant.

●     Improved accessibility: Soft POS enables merchants to accept online payments at any location, including a pop-up shop, a market stall, or a customer's doorstep. This mobility is essential for businesses that operate outside of a fixed location, as it offers convenience and flexibility.

●     Enhanced customer experience: In this fast-paced world, customers are looking for quick-fix solutions for their shopping needs. Contactless payment apps, powered by soft POS technology, are a great alternative to time-consuming card-based payments.

●     Integration with legacy systems: Businesses can save all customer data, sales data, and inventory information in one place with soft POS because it works well with current retail POS systems. Without interrupting the present setup, this integration ensures a seamless changeover and uninterrupted functioning.

Real-world use cases

●     Temporary stalls and pop-up stores: Mobile POS is particularly advantageous for market stalls and pop-up retail outlets. Vendors can avoid carrying bulky hardware to set-up their payment interface. All you need is a smartphone with internet connectivity.

●     Delivery business: Soft POS facilitates the collection of payments during the delivery process for businesses that provide delivery services. This feature is particularly beneficial for mobile service providers, home-based enterprises, and food delivery services.

●     In-store payments: A POS system with contactless payment apps can help floor staff expedite checkouts by meeting the customer at different touchpoints within the store to process payments.

The best POS for small businesses

The soft POS market in the UK, estimated to grow at a CAGR of 18.8% until 2030, is the driving factor behind several new entrants and established players consolidating their positions. We have shortlisted some of them based on cost-effectiveness, ease-of-use, scalability, and integration capabilities.

Wonderful

Wonderful is an emerging soft POS system for small businesses with scalable solutions to cater to the requirements of larger organisations. Its easy-to-install mobile POS leverages your Android or iPhone’s NFC interface to convert your smartphone into a contactless payment terminal. Wonderful’s One app offers instant bank payments to process transactions immediately and provide real-time payment settlement. Your customers can easily make payments using QR Pay or by accessing links on their WhatsApp, SMS, or email for a safe payment experience. One app also offers a full transaction history, which mobile businesses can access on-the-go. These highly useful services come at just £19.99 for 2000 monthly transactions, making them ideal for small businesses in the UK.

Viva wallet POS

Another strong soft POS player is Viva Wallet POS, recognised for its extensive European presence. Their technology lets retail stores accept many contactless payment methods, including cards, pay by bank, and digital wallets, using only their Android devices. Their PCI DSS-compliant POS system securely supports multiple currencies and integrates with Woocommerce payment gateways.

myPOS Glass

myPOS Glass is a user-friendly mobile POS that works seamlessly on Android and iOS platforms, making it convenient for mobile vendors and small businesses to accept online payments with ease.

Square

Square has traditionally led payment gateways, including soft POS. Square Terminal gives customers a complete payment system with hardware and software. It supports mobile payments and connects with Square's business management capabilities, unlike other soft POS systems. This Woocommerce payment integration offers enterprises a flexible and scalable payment processing solution.

How does a soft retail POS system differ from its traditional counterparts?

James Ritty, an American shopkeeper, created "Ritty's Incorruptible Cashier," which became the first POS system for small businesses to enter the market in 1879. However, retail POS systems have come a long way since then. To understand the differentiation that modern POS systems have created, let’s look at traditional and soft POS separately.

Traditional POS system

Traditional POS systems use card readers, barcode scanners, and receipt printers. These trustworthy systems offer sophisticated inventory, sales, and customer relationship management features. However, they can be fairly expensive for small enterprises and startups to afford upfront and continuous upkeep. Further, fixed installations limit the flexibility and scalability of traditional POS systems.

Soft POS system for small business

On the other hand, soft POS systems use smartphones to offer a flexible, affordable option. Soft POS requires only an NFC-enabled Android or iOS device and a merchant account, reducing setup and operational costs. Businesses can accept payments in-store, in pop-up stores, or on the go with this technology. Soft POS solutions also interact effortlessly with retail POS systems, offering a complete and scalable payment processing option that can meet organisations' changing demands.​

Conclusion

Some of the best POS for small businesses include the modern-day soft mobile POS, which presents a flexible, affordable, and secure platform for accepting payments. From facilitating mobile payments for delivery services and pop-up stores to improving the in-store customer experience, its retail applications are extensive. To keep up with the dynamic retail industry and other emerging trends, an increasing number of organisations are embracing soft POS and capitalising on its advantages.

 

Players like Wonderful, myPOS Glass, Square, etc. are at the forefront of this changing face of retail payment methods.