A pos terminal is a hardware system that includes software and a card reader for processing customer transactions. It can be a larger countertop kit or a mobile device with all-in-one functionality. Regardless of the type, the key purpose of a POS terminal is to make it easy for customers to pay. Modern POS systems also provide additional features to support business operations, including inventory management, insights into sales trends and customer behavior, and employee scheduling and wages.
Unlike the grandfatherly cash register, POS systems enable you to maximize customer lifetime value (CLV), which is the total projected revenue earned from each customer account. To do this, you need to know your customers’ buying patterns and behaviors. For example, many POS systems allow you to see which products sell well and on what days of the week. In addition, they provide data about product performance across price points.
Other POS terminal benefits include a variety of payment options. For instance, some systems allow customers to swipe their cards with a tap on the terminal and make mobile payments via NFC-enabled digital wallets. Others support magstripe credit cards with chip technology, as well as Apple Pay, Google Pay, and other digital solutions.
Lastly, a POS terminal can be installed with on-site or cloud-based software. On-site software requires a server to run and can be more expensive than web-based systems. pos terminal