ResourcesTypes of POS systems: features, pros & cons
Feb. 14, 2024
Retail Management

Types of POS systems: features, pros & cons

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What is a POS system?

A point-of-sale system is a business tool that helps retailers process payment transactions and helps customers make purchases easily. It calculates applicable tax and makes your retail staff close sales quickly.

POS systems are critical to ensuring that your daily business operations are performed smoothly, without any hurdles. They often consist of hardware and software, which together act as a central repository of all payment-related transactions.

Modern POS systems can be reimagined as advanced cash registers that store and retrieve inventory-related information, process different payments, and collect customer data when necessary. They also make implementing and managing different loyalty programs and promotions easy.
While POS systems are mostly used by cashiers and employees who process payments, they are also essential for marketers and customer service agents. Advanced POS systems help marketers cross-sell and up-sell products, implement loyalty programs and ensure enhanced customer satisfaction metrics.

What makes modern POS systems special?

Modern POS systems have changed dramatically in recent years.

Those following an omnichannel philosophy offer a consistent experience across different POS devices or interfaces. This allows customers and staff to start buying on one POS and continue on another.

For example, regardless of the type of POS used, a customer can continue their buying journey from where they left.

If they wish to return an item they purchased online, they can walk into the nearest physical store and find the same information on its POS screen. Similarly, customers can view the same discounts and special offers on all touchpoints.

However, knowing what your business and customers need is essential before investing in a POS system.

 

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How to compare POS systems?

Before deciding to purchase a POS system, comparing them based on different attributes is essential. To begin with, ask the following questions or make these comparisons:

  • What type of POS system do you need, and what is the nature of your business?

You'll learn more about the different types of POS systems below. However, make sure that you understand your business requirements keenly.

  • Where and how do your customers interact with you?

You will need an omnichannel POS system to generate online and offline sales across different touchpoints.

  • How good is the loyalty management module?

Customers love it when you offer loyalty programs. It not only makes them feel special but also brings tangible value to their lives in the form of discounts, special offers, and exclusive previews. Hence, compare the features of loyalty management on your shortlisted POS systems.

  • Does your shortlisted POS system handle complex promotion campaigns?

Make sure that your sales and marketing teams speak to the vendor or evaluate the features before you make a decision.

  • Does it support multiple ecommerce sites?

It isn't uncommon for business owners to have multiple retail sites for different brands. Hence, ensure your POS system seamlessly manages inventory across multiple sites for different brands.

  • What value does it bring to the customer?

The customer is still the king, and nothing is more important than enhancing customer experience. The most vital feature you must consider is how consistent your customers' purchase experience will be and what value a POS system brings to customers. Quick checkouts, secure management of customer data, and omnichannel support are some of the essential features that help enhance customer experience.

Other essential attributes you need to consider are the POS's price, the sort of tech support you can expect from the vendor, if the POS is scalable, etc. Hence, to make accurate comparisons of various POS systems, it is essential to understand one's business goals, how the business operates, and the kind of training and support mechanisms provided by the vendor.

Types of POS systems

There are multiple POS systems available with different features that cater to various needs and requirements. Some perform essential functions such as processing payments on mobile devices, while others also help run loyalty programs, offer discounts, and manage backend operations in addition to processing payments.

In recent years, the types of POS systems have mushroomed and range from mobile POS systems to self-service kiosks that your staff and customers can use at retail locations. Other POS systems cater to online businesses and e-commerce units with particular needs. While some are offered as a cloud service, others possess both online and offline processing capabilities. These POS systems are essential for retailers who provide an omnichannel shopping experience.

Let's take a look at the different types of POS systems available.

7 Common types of POS systems

What is a desktop POS system?

A desktop POS system is a software program attached to your cash drawer. The software program is configured on the desktop or connected to the central head system. Regardless of how it is deployed, operators can perform various payment-related functions. Usually, vendors customize desktop POS systems according to the users' needs.

Key features

  • Process payments
  • Calculate taxes per transaction
  • Store customer information and data
  • Retrieve historical data as per requirements
  • Report generation and insights

Pros

  • Versatile and can be used in several situations
  • Easily customizable and applicable in a variety of retail situations
  • Option to buy a bundle or different modules separately

Cons

  • They require IT support
  • Staff may require intensive training
  • They are not 'plug and play'

What is it used for?

Desktop POS systems are used in various retail situations, especially brick-and-mortar stores. It is an excellent solution for quickly processing payments in small and large retail units with dedicated staff to make entries and perform checkout operations.

 

What Is a Handheld POS System?

Handheld POS systems are portable devices that allow your staff to process payments on the go. They are perfect for situations where payments must be processed away from the cash register. Some use cases include on-field sales and large retail stores where customers may want to avoid walking up to the cash counter. It can reduce long lines and queues and offer table payments where necessary. Many retailers also use handheld POS systems at pop-up shops and fairs.

Key features

A portable solution to process payments
It can be customized to suit various business use cases
Perfect for sales staff who work in the field
Helps record transactions digitally

Pros

Seamlessly completes orders and sales
Offers customers the convenience of paying where they are
Eliminates the need to walk to the cash register

Cons

Requires internet or cellular connectivity for payments to go through
Printing receipts depends on the availability of stationery.

What is it used for?

Handheld POS systems are widely used in the retail industry. They are often seen at events and large retail stores. They help eliminate the need to walk up to a cash register to process payments. They offer the convenience of processing payments anytime, anywhere.

 

What Is a Smartphone POS System?

A smartphone POS system is a dedicated POS app installed on cell phones. These POS applications convert cell phones into modern, advanced POS systems that anybody can use anywhere. As most smartphones are equipped with cameras, they can also read QR codes, help customers make purchases quickly, and allow for the uploading of product catalogs. 

Key features

  • Mobile-enabled payment processing
  • Access to customer data
  • Ability to implement loyalty programs
  • Retrieve historical information to provide better customer service
  • Implement an omnichannel shopping experience

Pros

  • Mobile POS systems are affordable and easy to use
  • Smart BYOD policies will ensure the safety and security of customer data
  • Eliminates the need to invest in new hardware
  • Available on subscription and per-transaction-fee models

What is it used for?

Smartphone POS systems are used across industry verticals to process payments seamlessly without investing in specialized hardware. They allow staff to process payments and fulfill orders right from the comfort of their smartphones. It also helps companies implement an omnichannel shopping strategy.

 

What Is a Tablet POS System?

Tablets are mobile devices with larger screens. This gives retailers an advantage over cell phones as checkouts, collection of customer feedback, tip requests, etc., become easier. Tablet POS systems can be customized and configured more than cellphone POS systems. You can also use it as a desktop POS system by placing it next to the cash register.

Key features

Performs just like a smartphone POS system with added benefits
Can scan barcodes and double up as desktop POS systems
Helps collect customer feedback, request for tips, etc.
Easily customizable and applicable in a variety of retail situations

Pros

Tablets have a larger screen and allow for more functionalities
It is more straightforward to implement sales and marketing campaigns right from the POS
Perfect for both in-store and on-the-field retail situations.
Available for both iOS and Android tablets

Cons

Tablets require additional investment as employees may not readily have tablets.
It tends to be more expensive than when hardware is accounted for.
Some employees may find it hard to type on tablets.

What is it used for?

Tablet POS systems are used to fulfill orders and ensure smooth checkouts. They offer the mobility and convenience of cell phones with extra functionalities. They're perfect for weaving in loyalty management, cross-selling and upselling, and collecting customer feedback at the end of the checkout.

 

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What Is a Self-Service Kiosk POS?

Customers sometimes prefer completing the checkout process, especially at large stores with long queues. Self-service Kiosk POS systems have an interface allowing customers to enter information and complete checkout. They can also scan barcodes and complete checkout quickly and easily. A self-service kiosk POS can be deployed on tablets and dedicated POS interfaces.

Key features

Customers can enter the necessary details independently and complete the checkout process.
Offers a quicker and easier alternative to retailers
Multiple functions can be interacted with as per requirements

Pros

Eliminates long lines at the cash register
Customers can take the initiative to complete the payment process
Helps increase sales by reducing the checkout time
Offers convenience and diversity of features

Cons

Every customer may not be comfortable with self-checkout
Removes the human element from the shopping experience
Some customers may need assistance, negating the initial purpose of self-service POS
Devices may fail, necessitating repairs.

What is it used for?

A Self-Service Kiosk POS allows customers to complete the checkout process independently. They can quickly scan products, make payments, and collect receipts without human intervention. It can be creatively implemented in several retail situations.

 

What Is a Multichannel POS System?

A multichannel POS system integrates e-commerce websites and cash registers at brick-and-mortar stores. Customers can purchase your products both online and offline. Although a multichannel POS system reaches out to customers on different channels, such as online stores, physical stores, and mobile apps, from a single interface, it treats them as separate sales avenues. As a result, data remains siloed, and customer experience will be inconsistent. For example, customers' online purchases cannot be returned at the retail store's POS and vice versa. Promotions and inventory levels may differ between channels, reducing customer satisfaction and causing confusion.

Key features

Integrates online and offline shopping channels
Helps retailers to process payments across channels
Stores data in a single repository
Allows retailers to generate valuable reports and make forecasts.

Pros

You can tap into both online and offline sales traffic
Offer customers multiple touchpoints on which they can shop
Consolidate customer and payment data on a single repository
Integrate your sales and marketing across touchpoints

Cons

It results in a siloed customer experience
Staff will not have access to customer interactions on different touchpoints
It does not support a streamlined customer journey between various touchpoints

What is it used for?

Multichannel POS systems are used to provide payment solutions to merchants who sell on both online and offline platforms. It allows retailers to collect payments on e-commerce websites and at brick-and-mortar stores while being able to view data on a single interface. However, one must remember that data is synced in real-time across touchpoints, leading to a siloed experience.

 

What Is an Omnichannel POS System?

An omnichannel POS allows retailers to maintain a consistent experience across touchpoints for customers and staff. As customers seek convenience and a seamless shopping experience, an omnichannel model helps retailers be where the customer is. All data is managed centrally , and regardless of the touchpoint on which the customer arrives, customers can start from where they left off. On the other hand, your staff can provide a consistent shopping experience to customers in real-time across touchpoints such as social media, email, brick-and-mortar stores, etc.

Key features

A single source of truth that's updated in real-time
Central management of promotions, inventory, and loyalty program
Access to historical data and previous interactions
Allows consistent experience regardless of the touchpoint on which the customer makes a purchase.
There are fewer abandoned carts thanks to seamless integration between different channels.

Pros

Retailers can offer customers a seamless shopping experience across touchpoints
Customer service and marketing campaigns can be calculated in real-time for all touchpoints, no matter which one.
Ensure seamless inventory management across touchpoints.

Cons

There are no real cons to using an omnichannel POS. It helps your business grow and enhances customer satisfaction.

What is it used for?

Omnichannel POS delivers a seamless shopping experience to customers and error-free and accurate marketing and sales operations for retailers. It also helps manage inventory better, clear stock, and implement loyalty programs, discounts, and promotional offers.

 

Which POS system is best suited for your needs?

By definition, the omnichannel shopping experience includes all mobile platforms, social media, websites, and brick-and-mortar stores. Customers may start shopping on a particular platform and later return to a different platform, so an omnichannel POS is the most flexible solution, which can be further customized according to business needs.

Although Self-Service Kiosk POS, Tablet POS, Mobile POS, etc., offer flexibility, these can all be integrated into an omnichannel POS. An omnichannel POS system is the right solution as it provides a consistent customer experience across different touchpoints in real-time.

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Frequently Asked Questions

Product Information & Types of POS Systems

What is a POS system and how does it work?

A POS (Point-of-Sale) system is a business tool that helps retailers process payment transactions and enables customers to make purchases easily. It calculates applicable tax, stores payment-related transactions, and acts as a central repository for sales data. Modern POS systems also manage inventory, customer data, and loyalty programs. Learn more.

What makes modern POS systems special?

Modern POS systems offer omnichannel experiences, allowing customers and staff to start transactions on one device and continue on another. They support real-time data synchronization, consistent promotions, and seamless returns across online and offline channels. See Priority POS.

What are the main types of POS systems available?

The main types include desktop POS, handheld POS, smartphone POS, tablet POS, self-service kiosk POS, multichannel POS, and omnichannel POS systems. Each type caters to different business needs, from mobile payments to integrated omnichannel experiences. Explore Priority POS.

What is a desktop POS system and what are its pros and cons?

A desktop POS system is software attached to a cash drawer, configured on a desktop or central system. Pros: versatile, customizable, and suitable for various retail situations. Cons: requires IT support and staff training, not plug-and-play. Learn more.

What is a handheld POS system and where is it used?

Handheld POS systems are portable devices for processing payments on the go, ideal for field sales, events, and large stores. They offer convenience but require internet connectivity and may need external receipt printers.

What is a smartphone POS system and what are its benefits?

A smartphone POS is a dedicated app that turns cell phones into POS devices. Benefits include affordability, ease of use, no need for new hardware, and support for loyalty programs and omnichannel shopping. Available on subscription or per-transaction models.

What is a tablet POS system and how does it differ from smartphone POS?

Tablet POS systems offer larger screens for easier checkouts, feedback collection, and tip requests. They are customizable and suitable for both in-store and field use. Tablets may require additional investment and some staff training.

What is a self-service kiosk POS and what are its advantages?

Self-service kiosk POS systems allow customers to complete checkout independently, scan products, and pay without staff assistance. Advantages include reduced lines, faster checkouts, and increased sales. Some customers may need help, and device reliability is important.

How does a multichannel POS system work?

Multichannel POS systems integrate online and offline sales channels, allowing retailers to process payments across platforms. However, customer experience may be siloed, with separate data and inconsistent promotions between channels.

What is an omnichannel POS system and why is it recommended?

An omnichannel POS system provides a seamless, consistent experience across all touchpoints—online, mobile, and in-store. It centralizes data, promotions, and loyalty programs, enabling customers to start and finish transactions anywhere. This is the most flexible and recommended solution for modern retailers.

Which POS system is best suited for my business needs?

For businesses seeking flexibility and a consistent customer experience, an omnichannel POS system is recommended. It integrates mobile, tablet, self-service, and desktop POS into a unified platform, supporting seamless operations and customer journeys. See Priority's omnichannel POS.

How do I compare POS systems before purchasing?

Compare POS systems based on business type, customer interaction channels, loyalty management, promotion campaign support, multi-site management, customer experience, price, scalability, and vendor support. Read more.

What features should I look for in a POS system?

Key features include payment processing, tax calculation, inventory management, customer data storage, loyalty program support, omnichannel capabilities, customizable modules, and robust reporting tools.

How does Priority POS support loyalty programs and promotions?

Priority POS enables easy implementation and management of loyalty programs and promotions, allowing marketers to cross-sell, up-sell, and enhance customer satisfaction. Learn more.

Does Priority POS support multiple ecommerce sites and brands?

Yes, Priority POS can manage inventory and transactions across multiple ecommerce sites and brands, ensuring seamless operations and centralized data management.

What value does Priority POS bring to customers?

Priority POS enhances customer experience with quick checkouts, secure data management, omnichannel support, and consistent promotions across all touchpoints.

Is Priority POS scalable for growing businesses?

Yes, Priority POS is cloud-based and scalable, supporting businesses as they grow and expand to new locations or channels.

What kind of support and training does Priority offer for POS systems?

Priority provides professional and implementation services to ensure smooth onboarding and optimal utilization of its POS solutions. Learn more.

Features & Capabilities

What features does Priority Software offer for retail management?

Priority Software provides end-to-end retail management solutions, including ERP, POS, unified commerce, inventory management, order management, replenishment, procurement, and omnichannel CRM. Explore features.

Does Priority Software support omnichannel commerce?

Yes, Priority Software supports omnichannel commerce, enabling seamless customer experiences and centralized management of promotions, inventory, and loyalty programs across all channels.

What integrations are available with Priority Software?

Priority Software offers over 150 plug & play connectors, RESTful API, ODBC drivers, SFTP file integration, and embedded integrations with leading vendors for hospitality, ERP, and retail. See integrations.

Does Priority Software provide an open API?

Yes, Priority Software provides an Open API for seamless integration with third-party applications, enabling custom workflows and tailored solutions. Learn more.

Is technical documentation available for Priority ERP?

Yes, Priority Software provides comprehensive technical documentation for its ERP solutions, covering features, industries, and supported products. Access documentation.

Use Cases & Benefits

Who can benefit from Priority Software's POS solutions?

Retailers of all sizes, from small businesses to global chains, benefit from Priority's POS solutions. Industries served include apparel, electronics, convenience stores, cosmetics, and more. See industries.

What problems does Priority Software solve for retailers?

Priority Software addresses pain points such as lack of real-time insights, operational inefficiencies, inventory inaccuracies, disconnected customer experiences, and high IT costs. It centralizes data, automates workflows, and supports omnichannel operations. Read more.

How does Priority Software help with inventory management?

Priority optimizes inventory levels, improves forecasting, demand planning, and supply chain efficiency, reducing overstocking and increasing revenue. Learn more.

Can Priority Software support multi-location retail operations?

Yes, Priority Software supports multi-location operations, enabling centralized management of inventory, promotions, and customer data across all stores and channels.

How does Priority Software improve customer experience?

Priority enhances customer experience with centralized customer data, loyalty program capabilities, efficient promotion engines, and seamless omnichannel support, resulting in higher satisfaction and retention.

Are there real-world success stories of Priority Software customers?

Yes, customers like Solara Adjustable Patio Covers, Arkal Automotive, Dejavoo, Nautilus Designs, TOA Hotel & Spa, Dunlop Systems, and Global Brands Gallery have achieved measurable improvements in workflows, order volume, data accuracy, and customer retention. See case studies.

What feedback have customers given about Priority Software's ease of use?

Customers consistently praise Priority Software for its intuitive interface and user-friendly design. Reviews highlight efficiency, quick learning, and minimal reliance on IT teams. Priority ERP has a 4.1/5 rating on G2. Read testimonials.

Competition & Comparison

How does Priority ERP compare to Microsoft Navision?

Microsoft Navision has reached end of life, forcing businesses to migrate. Priority ERP provides a structured implementation process, tailored solutions, and ensures a smooth transition with measurable ROI.

How does Priority ERP compare to Acumatica?

Acumatica focuses on cloud ERP but lacks industry-specific features, has limited WMS, a steep learning curve, and unpredictable pricing. Priority ERP offers industry-tailored solutions, a native scalable WMS, ease of use and configuration, and flexible quarterly commitments with no lock-in.

How does Priority ERP compare to Microsoft Dynamics 365?

Dynamics 365 requires heavy customization for industry needs and isn’t built for highly regulated industries. Priority ERP is user-friendly, flexible, customizable without IT support, and ensures compliance with FDA, GDPR, SOX, ISO9000, ISO27001, and SOC 2 Type 2.

How does Priority ERP compare to SAP Business One?

SAP Business One is powerful but complex, expensive, and lacks multi-company capabilities. Priority ERP is affordable, easy to use, maintains the same platform, and supports true multi-company operations with automatic inter-company processes.

How does Priority ERP compare to Sage X3?

Sage focuses on accounting, not full ERP. Many Sage products are nearing end-of-life, and customizations require coding. Priority ERP integrates accounting with analytics, automation, and industry features, supporting no-code customizations for apps, portals, workflows, and automation.

How does Priority ERP compare to NetSuite?

NetSuite is a strong cloud ERP but is expensive and enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and has no lock-in contracts while delivering industry-specific functionality.

How does Priority ERP compare to Microsoft Business Central?

Business Central requires heavy coding for industry features and lacks specialized functionality for industries like manufacturing, retail, and pharma. Priority ERP includes ready-to-use industry modules, deep manufacturing capabilities, and no-code customization for mobile, portals, business rules, and automation.

How does Priority ERP compare to Odoo?

Odoo is open-source but has scalability limits, performance issues, long learning curves, and high implementation failure rates. Priority ERP provides structured implementation, scalability, proven methodologies, experienced partners, and quick user adoption.

How does Priority Optima compare to Oracle Hospitality OPERA?

OPERA is costly, complex, and has slow support. Priority Optima is scalable, cost-effective, intuitive, and offers responsive support and flexible customization with a broad Marketplace for integrations.

How does Priority Optima compare to Cloudbeds?

Cloudbeds can lack depth for complex operations and may have inconsistent support. Priority Optima serves all hospitality types with a comprehensive suite, reliable support, and a user-friendly design.

How does Priority Optima compare to Mews?

Mews can require significant training and has a cluttered interface. Priority Optima is designed for quick adoption, efficient workflows, and a clean, user-friendly interface.

How does Priority Optima compare to Protel?

Protel has a steep learning curve and slow support. Priority Optima delivers an intuitive interface, responsive support, modern mobile capabilities, and efficient implementation with competitive pricing.

How does Priority Retail Management compare to ERP competitors like Microsoft, Oracle, Acumatica, and Sage?

These ERP providers offer generic capabilities and lack specialized retail management features. Priority Retail Management delivers a comprehensive ERP suite enhanced for retail, supporting multi-location, omnichannel, and high-volume environments—all in one platform.

How does Priority Retail Management compare to POS and unified commerce providers like Aptos, LS Retail, Retail Pro, Enactor, and Oracle Retail?

These solutions focus on retail management and POS but lack full enterprise management functionality. Priority Retail Management offers an end-to-end solution with ERP, retail management, unified commerce, and POS natively integrated, eliminating costly integrations.

Technical Requirements & Support

What technical requirements are needed for Priority POS systems?

Priority POS systems require compatible hardware (desktop, tablet, smartphone, or kiosk), internet connectivity for cloud-based features, and may need integration with existing retail infrastructure. See documentation.

How does Priority Software ensure data security and compliance?

Priority Software ensures compliance with major standards including FDA, GDPR, SOX, ISO9000, ISO27001, and SOC 2 Type 2, providing robust data security and privacy for all users.

What kind of implementation support does Priority Software provide?

Priority Software offers professional and implementation services, including onboarding, training, and ongoing support to ensure successful deployment and optimal use of its solutions. Learn more.

Where can I find more resources and product tours for Priority Software?

You can access product tours, articles, webinars, videos, and brochures on the Priority Software resources page. Browse resources.

Pricing & Plans

How can I get pricing information for Priority POS and retail solutions?

You can request pricing details for Priority POS and retail solutions by visiting the pricing page or contacting a sales expert for a tailored quote. Get pricing.

Are Priority Software solutions available on subscription or per-transaction models?

Yes, Priority POS solutions are available on subscription and per-transaction-fee models, providing flexibility for different business needs.

Customer Proof & Recognition

Who are some of Priority Software's notable customers?

Priority Software is trusted by companies such as Ace Hardware, ALDO, Kiko Milano, Estee Lauder, Columbia, Guess, Adidas, Hoka, Toyota, Flex, Dunlop, Electra, IAI North America, Outbrain, Brinks, eToro, Gevasol, Checkmarx, GSK, Teva, Alexander Schneider, Analog Devices, Dejavoo, and Cherwell. See customer list.

Has Priority Software received industry recognition?

Yes, Priority Software has been recognized by leading analysts such as Gartner and IDC, and ranked #1 by TEC in 2025. See Gartner recognition.