February 7, 2025

POS know-how has impacted the retail trade far and extensive ever since its debut within the Nineteen Seventies. Earlier than the trendy POS system, transactions had been guide, cash-based, and tangible. Nonetheless, with the arrival of know-how, the POS has modified how retailers do enterprise and the way shoppers do their buying.

Although the primary POS was centered on processing money funds in a clear, trackable approach, it shortly advanced to facilitate credit score and debit card transactions. And now? POS methods can do a complete lot extra than simply course of funds. They’ve became mini enterprise administration command facilities!

So, what are the most recent tendencies in POS methods? Under, I break down the POS retail tendencies of 2024 which are impacting the trade now and into the long run.

Cloud POS

Enterprise has transitioned to principally cloud-based options — and that features the POS. Cloud POS methods are more and more turning into the norm, changing the old-school conventional point-of-sale terminal that makes knowledge troublesome to entry and handle.

In line with Straits Research, the worldwide cloud POS market measurement was price $3,987 million in 2022 and is forecasted to be greater than $30,205 million by 2031 — that’s a compound annual progress charge (CAGR) of 24.7%.

The cloud POS is a major level of sale innovation​ as a result of it has made knowledge, agility, and mobility accessible to companies of all sizes. Particularly in a world the place retail is now not single-channel, cloud POS know-how permits companies to sync knowledge and guarantee operations run easily no matter their enterprise measurement or location(s).

A retailer with 100 bodily areas, its personal web site, and a thriving Amazon presence can profit from the cloud POS similar to the small mom-and-pop store that’s managing a single retail location plus on-line channels.

With cloud POS know-how, you’re now not tethered to a selected place or a hardwire connection. You may entry your small business know-how from anyplace, at any time.

AI and automation

AI and automation are additionally altering nearly each side of the enterprise panorama. I wager there are methods you already use these applied sciences that you just don’t even notice!

The pattern can also be impacting the POS — and in a great way. 100% of retail enterprise homeowners surveyed by Square Future of Retail report say automation has improved their enterprise indirectly.

That very same survey discovered that monitoring is the highest space of automation for 43% of companies, and the most important profit is an improved buyer expertise for 47% of companies. One other 45% have seen improved worker retention and profitability because of automation.

What position does AI play in fashionable POS methods?

On the subject of POS know-how, AI and automation occur in a ton of potential use circumstances:

  • Automated reordering for stock
  • Fraud detection and prevention
  • AI-powered pricing changes
  • Loyalty and rewards applications
  • Electronic mail advertising

Consumers from Sq.’s report say they’d help retailers automating:

  • Checkout: 31%
  • Product search: 22%
  • AI-generated product descriptions: 22%
  • Dynamic pricing: 21%
  • Product suggestions: 18%
  • Product evaluations: 15%

Seemingly, the probabilities are actually infinite. I’m excited to see this pattern play out and develop every year with revolutionary point-of-sale methods​.

Cost choices

Immediately’s shoppers like comfort and choices. And that is true for funds made on the POS terminal. I bear in mind when it was only a money or credit score world—now, prospects can select to pay for his or her purchases in some ways.

In line with Sq., right here’s the way it breaks down by way of the fee strategies retailers settle for:

  • Money: 58%
  • Cellular pockets apps like Apple Pay or Google Pay: 57%
  • QR code funds: 52%
  • Conventional card funds: 47%
  • Touchless card funds: 44%
  • Purchase-now, pay-later (BNPL) choices like Clearpay: 43%

POS know-how is advancing in a approach that accommodates these ever-changing fee preferences. Actually, fashionable POS tendencies present that the platforms have integrated new options and performance to course of totally different fee strategies and supply choices like subscriptions, cryptocurrency, saved funds, invoice splitting, and present playing cards.

Cellular POS

Cellular POS, or mPOS, is one other scorching pattern. The worldwide mPOS market is estimated to be price round $3.78 trillion, in keeping with Statista. Greater than 2 billion mPOS customers are anticipated by 2028. And nearly a quarter of shoppers need to use cellular checkout choices.

So why is that this trending? Similar to shoppers are extra cellular, so are associates. Now, associates can meet consumers the place they’re on the gross sales flooring and course of the transaction on the spot. Clients don’t have to attend in line on the POS terminal — they will try wherever they’re at.

However this extends previous transactions, too. An mPOS makes it simpler for retail workers to carry out varied duties, comparable to barcode scanning, stock counts, and many others.

Buyer self-serve

Self-checkout is one other pattern in retail, and whereas it initially made its mark in grocery shops, different verticals are exploring the pattern, too. That is largely consumer-driven — with Square Future of Retail reporting that two-thirds of consumers favor to do duties independently, like trying out or seeing if a product is in inventory.

Shoppers are more and more feeling empowered to do issues independently, influencing the way forward for POS.

When requested what duties they’d wish to carry out on their very own with the assistance of know-how versus with a dwell workers member, right here’s what the respondents mentioned:

  • Checking product stock: 29%
  • Ordering out-of-stock merchandise: 26%
  • Gathering details about a product: 26%
  • Choosing up an merchandise ordered on-line: 24%
  • Utilizing cellular checkout or in-store terminals: 24%
  • Arranging residence supply: 23%

Why? They love the effectivity and comfort of with the ability to do issues themselves. “Clients are searching for velocity,” writes Bob Phibbs, The Retail Doctor. Self-checkout can present that effectivity.

These shopper preferences proceed to affect point-of-sale market tendencies​.

Biometric safety

Safety needs to be a prime concern for companies — to guard each themselves and their prospects. POS know-how typically comes geared up with safety to safeguard all events concerned. PCI compliance, knowledge encryption, and two-factor authentication are just some examples.

Nonetheless, one safety pattern that can affect POS know-how in 2025 and past is biometric safety features. This consists of issues like fingerprint identification and facial recognition.

Biometric funds are experiencing a surge in progress, with Juniper Research forecasting a CAGR of 113.6% from 2024 by 2028. Some even count on it to turn out to be the norm throughout the subsequent decade.

Companies are more and more implementing these safety measures on their POS methods. This may be for workers or admins who log in to the POS system and authentication for buyer funds.

And never solely does biometric authentication assist enhance safety, nevertheless it additionally makes login and connection extra environment friendly. And bear in mind, consumers love effectivity and comfort.

7 greatest POS methods to strive in 2025

These are our picks for one of the best POS methods obtainable to small companies trying to faucet into these tendencies:

  1. Greatest total small enterprise level of sale system: Square
  2. Greatest POS for retail and e-commerce: Shopify
  3. Greatest restaurant POS: Toast
  4. Greatest for desktop compatibility: Lightspeed Retail
  5. Greatest iPad restaurant POS: TouchBistro
  6. Greatest for common fee processor compatibility: Clover
  7. Greatest for high-risk companies: KORONA POS