The POS full form in banking is the point of sale. And softPOS, or Software Point of Sale, is a groundbreaking new technology that allows merchants to accept card payments directly on their phones or other devices without the need for any additional software. Since the outbreak of the pandemic, millions of people have started using digital payment options, giving the industry a significant boost. Using e-wallets, cards, and UPI to make payments has become the new normal.
The existing mechanisms for accepting digital payments are becoming obsolete. There is a critical need for an interactive payment ecosystem that benefits both businesses and consumers at every level of the payment process. This is where softPOS helps. But currently, the software POS systems work with the Android operating systems only. It is a simple application that shops may install on their cellphones to convert them into payment-accepting POS devices.
In this blog, we’ll talk about:
- What is softPOS?
- POS full form in Banking
- Features of softPOS
- Challenges of using softPOS
- How does softPOS work?
Let’s get started.
What is softPOS?
A softPOS, also known as software point-of-sale, is a cutting-edge system that uses Near-Field Communication (NFC) technology to facilitate the commencement of transactions between customers and business owners.
It enables business owners to use their own mobile devices, such as tablets or smartphones, as point-of-sale terminals, hence eliminating the need for further investments like those required by its predecessors. This technology is particularly groundbreaking as it eliminates the need to handle additional hardware such as a card machine or physical POS devices. It eliminates the need for POS devices.
In addition, this entirely software-based system is capable of performing more tasks than simply taking payments on behalf of business owners. The reliability of soft POS can be attributed to factors such as:
- It is responsible for the storage and processing of payment information.
- It produces receipts for payments in real-time.
- It produces extremely thorough purchase reports.
- It manages the company’s inventory
- Provides discounts and exclusive deals instantly.
The functionality of the merchants’ softPOS systems can be easily customised by the merchants themselves to meet the requirements of their businesses. Although softPOS is presently supported by Android phones only, Apple is making the necessary efforts to assist businesses that use iOS devices in leveraging the new software POS technology and accepting payments more fluidly.
POS Full Form in Banking
POS full form in Banking is point-of-sale. These terminals used in businesses today are becoming more advanced, packed with features, simple to operate, and can be purchased for a variety of budgets. The benefit that the softPOS brings to this situation is that it is a straightforward app or SDK (software development kit), which enables the creation of an infrastructure for the acceptance of payments that is both inexpensive and simple to disseminate.
The programme can easily downloaded be onto an NFC-enabled device, transforming it into a POS terminal without the need for any additional gear such as a card reader or separate installation. This makes it possible for any merchant to begin receiving payments immediately. According to a report, the softPOS makes it possible for businesses to take payments made by card, UPI, QR code, and payment link-based transactions quickly and easily, even on their existing cellphones and other devices.
Features of softPOS
Any innovation or technology is only adopted in the market if it is simple to use, smooth, user-friendly, and complements the existing system. SoftPOS meets this criterion and provides significant value to its stakeholders. Some features of softPOS that make it a firm choice are listed below.
1. Wide range of payment options
SoftPOS enables merchants to receive payments in a variety of ways. This not only enhances conversions but also provides a better client experience.
Some payment methods are as follows:
- Dynamic UPI QR code scanning
- Tap and pay with NFC technology
- Accept payments via payment links
- Record cash collected on the spot
2. Increases store flexibility
Merchants can greatly improve in-store customer purchasing experiences with softPOS:
- Reduce queue congestion
- Provide a seamless checkout process
- Removes the restriction of having a limited/fixed number of checkout locations.
3. Simple reconciliation
Unlike its competitors, softPOS simplifies reconciliation for merchants. They can easily switch between payment methods and have a high success rate.
4. Use contactless technology using softPOS
Merchants can use softPOS to leverage tap and pay technology as well as other techniques such as payment connections and QR code scanning. This helps to:
- Reduce cash reconciliations
- Reduces the possibility of error
- Record more per-day transactions
- Prevent the transmission of viruses and bacteria
5. High usability
SoftPOS is incredibly user-friendly for both customers and merchants. Customers can make contactless payments in a variety of ways. Also, the merchant can readily receive payments (both directly and through intermediaries) within minutes. There is no need for extensive training or expensive hardware.
This aids in:
- Increasing conversions and decreasing failed transactions
- Providing an exceptional consumer shopping experience
- Increasing average order value
- Developing a loyal client base
6. Allows for quick and on-the-go access checkout
Regardless of a merchant’s business, softPOS enables them to accept payments while on the go. A food delivery agent, for example, can accept payment using their softPoS-enabled smartphone while delivering an order to a consumer.
7. It solves compliance difficulty
SoftPoS systems adhere to all applicable regulations. This means that a merchant does not need to become burdened with compliance rules and legalities. Rather, simply download the app and begin collecting payments right away.
8. Pocket friendly
SoftPOS’s nature, mechanics, and technology make it one of the most adaptable, affordable, and efficient choices available in the market today for all types of merchants. From little Kirana shops to large department stores, everyone may benefit from softPOS and gain a competitive advantage.
Other important features of SoftPOS are:
- NFC antenna-based touch-free payment.
- Secure Sockets Layer/SSL server verification.
- Authorisation and session data for mobile app authentication.
- Full operational security.
- Review transaction history based on payment statuses.
- Provide full and partial refunds as needed.
- Provide real-time discounts and cash-backs.
- Adapted functions to meet the needs of the business.
Challenges of using softPOS
While the above-mentioned features of softPOS make it attractive, there are also some drawbacks. Let us now examine them.
1. Not all cards are contactless-enabled
Many existing cards do not support contactless payments. This means that merchants employing a softPOS system cannot take payments from contactless-enabled cards.
To capture this client niche, they would need to have an additional card reader attached to their smartphone.
2. Not all phones support NFC
To use softPOS, a merchant needs to have an NFC-enabled smartphone. This is a significant disadvantage for organisations that have phones. To accept digital payments, they will need to purchase an NFC-enabled smartphone or employ an alternative to softPOS.
3. Only available for Android OS
Apple recently stated that iPhones will be able to function as POS devices as well. However, at the moment, softPOS is only available to individuals who own an Android phone. That is, businesses or merchants using Windows or iOS cannot use softPOS.
4. Long-term upgrading obstacles
Although softPOS is as simple as downloading the software on an Android smartphone, there are significant long-term upgrade problems that come with contactless technology. As technology evolves and updates are made to smartphones, the long-term viability of softPOS as a payment accepting tool is called into doubt.
How does softPOS work?
The present retail payment system was established forty years ago when the internet and mobile phones did not exist. Despite the explosive growth of e-commerce, more than 85% of all consumer purchasing is still conducted in brick-and-mortar stores. While e-commerce has been a pioneer and promoter of technical advancement, the retail payment experience was left behind in the previous century.
SoftPOS technology connects the past to the future by utilising the decades-old card payment infrastructure and bringing it into the twenty-first century. The POS software is a new development in the mobile payments sector, appropriate for any market with high contactless and mobile wallet payment penetration. It provides a solution for accepting contactless payments to unserved and underserved merchants while providing a superior alternative to standard POS terminals for SMEs.
Conclusion
SoftPOS is a superior and more advanced point-of-sale system than its predecessors. Thousands of businesses are currently utilising softPOS to strengthen their SME operations. It enables small businesses to do more than simply accept payments. They can generate digital catalogues, record transactions in an online ledger, reconcile accounts on the fly, and even respond to client inquiries.
Furthermore, this is only the tip of the iceberg. Soon, merchants will be able to utilise artificial intelligence and computer vision-powered technologies to provide consumers with a “scan, check, and go” experience. This also means a shopping experience devoid of cashiers.
SoftPOS will not only assist merchants in improving their performance but also raise their sales and revenue tremendously.
FAQs
1. What is POS Full Form in Banking?
Ans: The full form of POS is the point of sale.
2. Is NFC a requirement for softPOS?
Ans: Yes. To use softPOS, a merchant must have an NFC-enabled smartphone.
3. Does softPOS work on all devices?
Ans: SoftPOS is currently only compatible with Android OS devices. However, Apple says it is in the process of making softPOS accessible to iOS users.
4. Using softPOS, can merchants search and filter payment history?
Ans: Yes, softPOS solution providers allow retailers to quickly view payment history. They can search by a customer’s mobile number, invoice number, payment method, transaction status, and date, among other things.
5. Using softPOS, can merchants accept payments using QR codes?
Ans: Yes. On softPOS, merchants can quickly generate and distribute dynamic QR codes to their customers. This becomes softPOS a very dynamic payment-accepting device and captures a larger portion of the population that is now equipped to pay using QR codes.
6. What modes of payments does softPOS support?
Ans: Business owners can conveniently accept card, UPI, QR code, and payment link-based payments through the softPOS.
