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Point-of-sale (POS) systems have experienced tremendous technological advancement and improvement in both function and accessibility in recent years. Rather than continue with out-of-date software, many businesses are choosing to invest in updating old systems to take advantage of the benefits it can offer sales and retail operations. Point Of Sale Machine

There are a number of important 2023 POS system trends emerging in the new year. Here are the ones you should be paying attention to so that your business stays competitive.

$0.08 per swipe; $0.15 per keyed-in transaction

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.

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 2023.

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-based technology has taken the business world by storm in recent years and will continue to do so into 2023 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. “With the cloud, individuals and small businesses can snap their fingers and instantly set up enterprise-class services.” ― Roy Stephan, founder and CEO, PierceMatrix

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.

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 2023, 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.

As is the case for most industries, artificial intelligence (AI) has been moving to the forefront of trending technology in the world of POS systems and shows no signs of slowing. AI allows companies to optimize the efficiency and effectiveness of operations while improving customers’ shopping experience. AI enables companies to automate more processes and analyze collected data in a way that showcases the strengths and weaknesses of operations. It can also suggest opportunities for improvement that impact a company’s goals and bottom line.

Omnichannel commerce refers to a retail experience that crosses a variety of platforms, such as physical retail locations, app-based interfaces, online storefronts and social shopping options. Around 73% of customers report that they prefer to shop through multiple channels and successful business practices in the future must adapt to this trend.

As cloud technology becomes more commonplace and businesses look to expand their customer base and maximize profits, we expect to see more companies investing in multichannel models that focus on providing an integrated customer experience.

POS systems can provide valuable data to marketers that allow them to personalize customers’ experiences further with a brand. Study on the subject has revealed consumers are 80% more likely to return to a company that has provided them with a personalized customer service 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.

Just as customers now expect a streamlined and personalized shopping experience, they now expect the same from their loyalty programs. One-size-fits-all, points-based loyalty programs are no longer enticing. As companies move toward more customizable loyalty programs, they’ll work to seamlessly integrate them into their POS system. A company that can combine the two successfully will likely experience more customer retention and satisfaction.

SaaS and subscription services in general affect POS systems in more ways than one. On the business operations end, POS services themselves are now commonly marketed in the SaaS framework, with companies paying a monthly or yearly subscription fee for access to cloud-based POS systems. On the customer side, subscriptions are on the rise and POS systems must be able to accommodate the functions essential to providing customers with subscription-based services if they are to remain competitive in today’s market.

Some reports indicate 53% of all software revenue was generated from a subscription model in 2022. Additionally, a study by Zion Market Research revealed the market value of subscription and billing management was $3.8 billion in 2018 and is projected to increase to $10.5 billion by 2025. Staying on top of this trend is going to be critical for POS software companies wishing to remain relevant.

$0.08 per swipe; $0.15 per keyed-in transaction

With many options to choose from when it comes to POS systems, the task of sorting through them and determining which one best suits the needs of your business can feel insurmountable. We reviewed dozens of POS systems and selected the ones we believe to be the best at what they do, based on factors such as fees, hardware costs, ease of use and available features. Check out our list of the best POS systems for small businesses to help you decide which is right for your needs.

A POS system is an interface composed of hardware, software and payment processing services that allow customers to buy goods and services from a retailer either in-store or online. Systems for POS are the modern version of cash registers but with greater functionality.

The pros of using POS systems in a business greatly outweigh the cons, but POS systems have a few downsides. Connectivity issues, transaction fees, maintenance, security concerns and hardware damage are a few of the disadvantages that come with relying on a POS system.

Any computer or tablet system that allows a retail associate to scan your items and look up product stock is a POSsystem. This system also communicates with the card reader where you swipe, tap or insert your credit or debit card when paying for items.

Newland Payment Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency.