A mobile point-of-sale (mPOS) system is a sophisticated blend of software and portable hardware designed to process business sales. It empowers small business owners to transform pretty much any smartphone or tablet into a checkout point, thereby breaking free from the confines of a traditional POS system.
At the heart of an mPOS setup are tasks such as processing mobile payments, calculating sales totals, tracking inventory status, and collecting other data points crucial to modern businesses. It thus serves as an all-around solution for managing transactions, offering substantial advantages over its traditional counterparts.
One key benefit of using an mPOS system is its flexibility and mobility. No longer bound by the limitations of physical checkout counters, you can bill customers anywhere - be it within your store premises, at bustling events or even while travelling.
This adaptability promotes a more interactive and customer-friendly shopping experience that can help differentiate your brand in today's marketplace.
Another compelling advantage of mPOS is its ease of setup. Unlike conventional POS solutions which require several components (ranging from mini desktop computers to scanner devices and printers), setting up mPOS requires just one primary mobile device working in sync with compatible software.
Now let’s dive into the details and take a closer look at how a mobile POS system works, and what it can do for your business.
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Mobile Point of Sale (mPOS) systems are revolutionising the way businesses handle transactions, offering flexibility and convenience by turning smartphones and tablets into fully functional sales terminals. This technology is useful to anyone who regularly accepts or processes payments, so read along if that sounds like you. But first, what does a POS system do?
Put simply, POS stands for Point of Sale. A POS system is the hardware and software that allows businesses to manage sales transactions and accept various payment methods. It has a credit card reader to accept payments so both businesses and customers can go through the checkout process efficiently when making purchases in store. POS systems come in all shapes and sizes, so in this blog we'll explain all there is to know about mobile point-of-sale (mPOS) systems to help you streamline your payment process.
What is a Mobile POS System?
A mPOS system consists of a portable hardware device (such as a smartphone or tablet) combined with mobile POS software that work together to process sales transactions.
This technology enables mobile devices to serve as checkout points that can be used anywhere with an internet connection.
A mobile Point of Sale system can handle a wide range of functions, including facilitating contactless payments, tallying sales figures, monitoring inventory levels, and tracking other business data.
These functionalities not only simplify payment processing, but also offer a wide range of additional benefits to the modern retail sector.
No longer bound by the limitations of physical checkout counters, you can bill customers anywhere - be it within your store premises, at bustling events or even while travelling.
How does an mPOS system work?
Most smartphones or tablets can be transformed into a mobile point-of-sale terminal easily and quickly by downloading a POS app. Upon partnering with an mPOS service provider, the business will need to install their app on their device.
For some older mobile POS software, it is necessary to connect a hardware card reader to the device via its USB-C or lightning port, which enables the processing of NFC (Near Field Communication) or chip payments.
Some of these dedicated readers come with additional features like barcode scanners and receipt printers, and sometimes these systems can be paired with Bluetooth receipt printers. The previously common practice of using card readers that connect through the audio jack has gradually become obsolete.
More recently, however, mPOS apps are designed to leverage the built-in NFC reader in smartphones without requiring any external hardware - a feature called Tap to Pay, whereby customers can tap their card or contactless device on the merchant’s Apple or Android smartphone or NFC enabled tablet.
Typically, mPOS apps serve as payment processors for credit and debit card transactions. No customer information or payment details are stored directly on the mobile device, which enhances security measures over traditional methods.
After payments are processed, the funds can be transferred into a business bank account, and some systems even offer seamless integration with other POS systems within businesses, thus forming an integrated payment system solution.
What is the difference between fixed POS and mobile POS?
Traditional POS systems are fixed terminals usually found on a countertop in retail stores, requiring specific hardware and setup to process payments. In contrast, a mobile POS system (mPOS) leverages portable devices like smartphones or tablets to let businesses accept payments anywhere with an internet connection.
The flexibility of mPOS is ideal for pop-up shops, food trucks, or even larger businesses looking to manage multiple locations efficiently. The portability of mPOS solutions means businesses can complete purchases directly on the sales floor, reducing wait times and enhancing the customer experience.
While traditional POS systems are great for permanent and larger locations, mPOS solutions provide versatility for businesses needing to process transactions on the go, offering better service with minimal added cost. Whether you’re a small business or a larger operation, an mPOS provider can help streamline your payment processing without the need for bulky hardware.
What are the Advantages of a Mobile POS System?
Here’s some key advantages of a mobile POS system. For more points, read our article on the 7 key benefits of mPOS devices.
- Mobility and Flexibility: Unlike traditional countertop POS systems, an mPOS system is portable, allowing businesses to move the terminal to wherever the customer is, enhancing the customer experience by reducing wait times and enabling more personalised interactions.
- Ideal for Businesses without Permanent Locations: The portability of mobile POS systems makes them perfect for pop-up shops, food trucks, and vendors at fairs or markets. Even service-based businesses like home repair or cleaning services can process transactions on-site without the need for complex setups
- Supports Multiple Payment Methods: Mobile POS devices can handle various payment options, such as contactless credit or debit cards, mobile wallets like Apple Pay and Google Pay, and even QR code payments, providing customers with better service and convenience.
- Industry-Specific Features: Some mPOS solutions are tailored to the needs of the food and beverage industry, allowing orders to be sent directly from servers to kitchens or enabling customers to place their own orders at the table.
- Lower Investment Costs: Compared to full-size POS terminals, mPOS systems require a lower initial investment, making them an affordable option for small businesses with limited budgets looking to quickly start taking payments.
- Enhanced Security: Mobile POS systems are designed with secure payment processing in mind. They handle the entire transaction within the mPOS terminal, ensuring no sensitive data is stored elsewhere, which enhances security and reduces risks for small businesses.
What components do you need for a mobile POS system for your business?
For the latest generations of mPOS software, all you need is a tablet or smartphone with the app installed on it. Most mPOS devices are compatible with any Android or iOS tablet or smartphone, so all you need to do is download the app from Google Play or the Apple’s App Store.
However, some providers require you to have additional POS hardware, such as a mobile card reader, barcode scanner, or printer.
For the apps that don’t require any additional hardware, you can use a mobile POS with your phone or tablet’s camera to scan barcodes at checkout. Needless to say, this POS option is not only the cheapest, but also the easiest to get started with.
If you’re not sure what the best mPOS for your business is, we’ve put together a guide on how to choose the best mobile POS system.
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