Any merchant who transacts in the offline world (like brick-and-mortar stores or even mobile businesses) needs a modern point-of-sale (POS) system. The right solution will enable you to ring up sales with ease, as well as manage the various components of your business.
But what exactly is a POS system and how do you select the right solution for your business?
To answer that question, we’ve put together a guide on all things point-of-sale. Below, you’ll learn why POS systems are essential, what features to look for in a solution, and how to find the best POS systems and hardware in the market.
Let’s get started.
TL;DR
- A POS system facilitates in-person transactions by enabling merchants to ring up the sales. Modern POS devices come with advanced features like mobile POS abilities, contactless payment options, inventory management, and more.
- A wide range of businesses can use POS systems, including those in retail, hospitality, or consumer services.
- You should look for various features in the right POS system, including ease of use, integrated payment software, and PCI compliance. Make sure to evaluate your needs and do careful research to find the best POS device for your business.
What is a POS system?
Whether it’s a restaurant or retail POS system, they all serve a similar function: it’s a solution that facilitates in-person transactions by enabling merchants to ring up sales.
But that’s just the tip of the iceberg.
Today, POS systems that small businesses use go beyond traditional POS solutions that only process payments. Most cloud-based and new POS devices are designed with advanced features such as:
- E-commerce integration capabilities
- Contactless payment options
- Mobile POS abilities
- Reporting and analytics
For many users, the POS is the central hub for their business operations. Everything is tracked and monitored, including customer management, payment processing, and inventory management. As such, merchants are increasingly using POS software to run their businesses. So much so that the POS software market is expected to hit $27 billion by 2030.
What is a POS system used for?
As a small business owner, you are probably used to doing everything yourself. However, wearing the hat of CEO, marketing manager, accountant, and all these other roles can become overwhelming.
With overwork being the most common cause of burnout for business owners, now is the time to learn how to work smarter, not harder. A POS system offers a great stepping-stone for this quest.
With the right POS system, you can streamline or automate many tasks, including:
Ringing up sales
The primary function of a retail POS system is to ring up sales. As such, point-of-sale solutions typically come with a sales screen or monitor where cashiers can add products to the sale.
In addition, POS systems often connect with your payment processor, allowing you to accept credit cards, and other methods (e.g., contactless and mobile payments).
Inventory management
Most modern POS systems can also track and record inventory movements. So whenever you make a sale, the system updates your stock levels accordingly.
You can easily monitor things like restocking, returns, and sales with the right POS technology.
Tracking business financials
Modern POS systems can integrate with existing accounting systems. Thanks to this capability, your tax preparation needs are simplified significantly.
Reporting and analytics
Many point-of-sale systems for restaurants, retail, and small businesses also come with reporting and analytics capabilities so you can track your sales, product performance, top customers, and more.
All that data can then be used to make more informed decisions in your business.
Supervising employees
Many POS systems have employee management capabilities, enabling you to monitor sales per employee, staff activity, and more.
The types of businesses that use POS systems
Point of sale systems are seen throughout multiple industries. Chances are, if you own a business, you have probably used this type of system at one point or another. Some of the industries that use POS systems include:
Retail
POS systems are a staple at retail stores that sell physical goods. Below are a few examples of the types of business that benefit most from point-of-sale solutions:
- Clothing and shoes
- Electronics
- Food
- Pet supplies
- Entertainment
- Beauty supplies
- Alcohol
- Tools
- Home goods
Hospitality
You will likely interact with a POS system when you go to a restaurant, a bar, or stay at a hotel. Some of the other businesses in the hospitality industry that utilize a POS include:
- Restaurants
- Bakeries
- Travel agencies
- Coffee shops
- Flight attendants
- Wedding services
- Chauffeurs and drivers
- Housekeeping
- Valets
Consumer services
Consumer services include any situation where you receive a service instead of a physical product. For example, you have received consumer service if you get your car washed or your hair and nails done.
Some other businesses that fall into this category include:
- Salons and barbershops
- Spas
- Therapists
What should merchants look for in a POS system?
As you can see, POS systems are used in multiple industries and offer many benefits. Now that you know how beneficial it can be, it is time to explore what type of POS solution your business needs. Some factors to consider when evaluating a POS system include the following.
Ease of use
Setting up a POS system should not require an engineering degree. Instead, you should find one that is user-friendly. The system also needs to be easy enough to use that you don’t have to constantly refer to your manual or call for help from tech support constantly.
Integrated payment processing
Finding a POS system that provides integrated payment processing will help you streamline all payment transactions. That’s because the payment processor and POS system will exchange all needed data automatically.
If you don’t have a system with payment processing, you have to enter customer debit card and credit card information manually. That means each time a sale is made or a customer makes a payment, you have to spend more time keying in the information, which then opens up room for human error.
Hardware considerations
The type and size of your business will dictate the type of hardware needed. Your checkout process also impacts your needs. Having a cash drawer, credit card reader, and iPad or Android tablet is beneficial if you have a small retail business.
More advanced equipment is available for larger operations, including barcode scanners, receipt printers, and terminals.
Inventory management capabilities
If you’re a small business owner, you may think you don’t need this feature. This is especially true if the retailer doesn’t carry many different items. However, it’s worth noting that inventory management in store is more than knowing how much stock you have on-site.
With this feature, you can track your inventory in real-time and avoid manually counting every item. It can also send you notifications or alerts if stock levels are too low and provide inventory reports. This will help you identify the extremely popular products and those that aren’t as popular.
Choosing a POS system with inventory management will help you plan and ensure you stay stocked in the products your customers order most.
PCI compliance
Payment security is a must-have feature. This is particularly the case for smaller businesses because these entities are victims of almost 43% of all cyberattacks.
All POS systems should comply with all data security standards set by the PCI (Payment Card Industry). It’s also wise to find a solution that will help you further safeguard customer’s payment information. Some of the features that make this possible include:
- Data tokenization
- End-to-end encryption
Employee management
POS systems featuring employee management capabilities can help you manage your staff each day and help you save money and time. With this functionality, your employees can clock in and out using the system. If you choose a more robust system, you can set limits that prohibit employees from clocking out before inputting their tip amount for their shift.
It’s also possible to set permissions based on different worker’s seniority and role in the company. This ensures employees can access the features they need and nothing else in the system.
You can also find systems that will split, pool, and track tips among servers. This eliminates having to handle this task manually.
Customer support
It doesn’t matter how tech-savvy you are. Having access to a POS system’s customer support team is invaluable.
Even if you don’t run into issues as you set up the system, it is still wise to choose a POS system that offers 24/7 support. This support may be offered via phone, email, or live chat.
Cost
If you’re trying to find the best POS system for your small business, you’ll need to factor in the total cost. Most POS systems these days charge monthly or annual subscription fees, based on factors like number of users or outlets, size of your catalog, types of features, and more. Make sure to get the total cost of ownership, which includes things like maintenance costs, and check to see if there are any hidden fees.
The top POS systems in the market in 2025
It can feel overwhelming trying to find the best point-of-sales system for your business, with so many options on the market offering a range of features at various price points. Getting to know the top POS system options is a good way to narrow down your choice, so here are our top picks for you to consider for your small business.
Clover
Clover offers a range of POS software plus hardware packages, and the right option depends on your needs.
The Station Solo and Station Duo both offer a 14” merchant-facing display that allows you to ring up sales with ease. The Duo has an additional customer-facing display. These devices are ideal if your location has a checkout counter and you have plenty of space where you can interface with customers. The Station Solo costs $1,349, while the Station Duo is priced at $1,649.
If you want a compact and portable point-of-sale system, then the Clover Mini (priced at $749) may be a better fit. The Clover Mini’s dimensions are 6.47” H x 8” W x 3.73” D so it’s perfect if you have limited space on your checkout counter.
Now, if you don’t have a checkout counter at all or want a handheld POS system, then you’ll love Clover Flex. Priced at $499, the device lets you take payments, track sales, and manage your inventory all from the palm of your hand. If you’re interested in using the Clover POS system for your business, we carry a range of their payment equipment at Stax.
Shopify
Shopify is considered one of the best e-commerce platforms around today. If you are currently using Shopify for your online store and online ordering, it makes sense to use Shopify’s POS for your offline operations. With this option, you can update and manage your inventory in real-time, manage transfers between locations, create customer loyalty programs, accept payments anywhere in the store, accept gift cards, and more.
The Shopify POS service is free if you have a Shopify plan. You will simply have to pay the processing fees.
Shopify’s services start at $29 for the basic plan and go up to $299 per month for the advanced option.
Square
Square is probably one of the most popular POS systems around and positions itself as an all-in-one solution that offers an extensive range of solutions like customer relationship management and eCommerce integration into its POS software solution. They’re most well-known for their mobile POS system, but also offer retail, restaurant, and online payment services. They’re a viable option for smaller businesses, although we’ve done a deep dive into the Stax difference when compared to Square here.
Pricing for Square starts at as little as $0 in terms of monthly fees, and instead charges 2.9% + 30 cents per transaction. Their Premium version (which includes premium customer support, QR code ordering, and website themes for new accounts) costs $79/month when billed annually, and you pay 2.6% + 30 cents per transaction.
Lightspeed
Lightspeed is a POS and payments platform with a strong global presence. Its POS systems are most commonly used in the retail, restaurant, and golf industries. They’ve acquired many companies along the way, including ShopKeep, Vend, and Upserve.
In addition to the essential POS services, they offer various resources and services like bill splitting through Lightspeed Payment, and Order Anywhere, allowing customers to order and pay from their table using a QR code. It’s an accessible POS system that can be used by both smaller and larger restaurants and retail providers.
You can start with a free trial (no credit card required), and pricing starts at $89/month for retail POS systems, and $189/month for restaurant POS systems. Pricing varies based on the number of locations and registers, making it a flexible option for rapidly-growing locations.
How to choose the right POS system for you
Before you run off and settle for the first POS system, it’s important to remember that every business is unique. That’s why you need to carefully consider what you need and want from the system even before you shop around for a POS solution. There are numerous POS systems in the market, so it’s important to have clarity on your requirements, so you can set your sights on the right systems. So, if you’re unsure how to find the best POS system for your small business, follow these steps to ensure you end up with the right solution for you.
Determine your needs
First, start by thinking about what it is you want, as well as what you need. For example, think of the hardware: do you need a mobile system, a POS that integrates with your credit card machines, or a larger POS device? What’s your workflow? Do you need inventory management features? Where are you selling products: exclusively brick-and-mortar, or a mix of that, eCommerce, or other platforms? What integrations do you need, like CRM or eCommerce integrations? And perhaps most importantly, what’s your budget? How much can you spend, and if there are certain nice-to-have features, would it be worth spending more money for them?
Finally, don’t just look at where your business is today; spend some time thinking about where you’d want your business to be. Do you plan to expand to new locations or markets? If so, find a POS solution that will scale alongside you.
Research providers
Once you’ve done this, start looking at different solutions to figure out if the vendors provide the features and tools you need. Ability and usability are essential in any POS, so you should consider this when you begin evaluating different system options. If you don’t know where to start, you can research some of the providers we mentioned earlier in this article, or check out other lists with top point-of-sales systems.
When you have a handful of providers, take a deep dive into their offerings. We recommend watching their videos and reading their case studies, but don’t stop there. Check out reviews on sites like Capterra, Trustpilot, or G2. These are independent, third-party reviews from both users and experts, and will help provide you with a good understanding of the pros and cons, giving you insights you may not get directly from the provider. Finally, you can talk with other merchants or peers in the field, to glean their firsthand insights on using the POS systems you’re most interested in onboarding.
Compare features and offerings
A modern POS should have some standard features, like reduced processing times, PCI compliance, an easy-to-use interface, and affordable costs. However, even these features may vary from provider to provider.
Create a list of all the features that you want to have. You can also discuss the ones used by other business owners who operate in a similar capacity—knowing what POS systems these people use can help you figure out the best POS and worst POS options available. Carefully assess how each potential POS system you’re interested in handles these features. Do you need to pay more for certain features? Are some features completely not available? Keeping careful track of the differences in capabilities will help you make an informed decision on which providers offer the most features you want for the most competitive price. At this point, you should have narrowed it down to the top two or three, which brings us to the final step where you can…
Try out the software
At this point, you should have a good sense of what your future point-of-sale software might be. Reach out to the POS software vendors on your shortlist and ask them for a free trial or live demo. This allows you to see how it works in real-time, the best way to evaluate how the POS system will actually perform for you. Think upfront of what you’d like to test: while processing sales is a no-brainer, you may want to look at the analytics, try generating reports, or even test out inventory management. Make sure you involve all relevant colleagues to get their feedback, and once you’ve settled on a clear winner, you’re ready to get set up for POS system success!
While it may seem like a lot to get through, we promise that by taking these steps, you’ll find the right POS system that matches your business needs, both now and down the road.
Contact us to learn more about the right solutions for your business and how the Stax all-in-one platform can help your business accelerate growth.
Contact usFAQs about Point of Sale (POS) System
Q: What is a Point of Sale (POS) system?
A POS system is a solution that enables in-person transactions by facilitating merchants to process sales. Today’s POS systems come with advanced features such as e-commerce integration capabilities, contactless payment options, mobile POS abilities, and reporting and analytics. For many businesses, the POS system is the central hub for their operations, tracking and monitoring everything from customer management to payment processing and inventory management.
Q: Why is a POS system important for businesses?
A POS system is vital as it helps streamline or automate many tasks related to business operations. It aids in ringing up sales, managing inventory, tracking business financials, reporting and analyzing business data, and supervising employees. With the advanced features of modern POS systems, businesses can make more informed decisions and improve their efficiency.
Q: What industries commonly use POS systems?
POS systems are used across multiple industries including retail, hospitality, and consumer services. Retail businesses selling physical goods, hospitality businesses like restaurants and hotels, and consumer service providers like salons, spas, and therapists are among the major users of POS systems.
Q: What should a merchant consider when selecting a POS system?
When selecting a POS system, merchants should consider factors such as ease of use, integrated payment processing, hardware considerations, inventory management capabilities, PCI compliance, employee management features, customer support, and cost. The choice of POS system should align with the specific needs and operational requirements of the business.
Q: What are some top POS systems in the market?
Some of the top POS systems in the market include Clover, Vend, NCR, Upserve, and Shopify. Each of these systems offers unique features and capabilities tailored to different business types and sizes. The choice of POS system should be based on the specific needs and operational requirements of the business.
Q: How can a business choose the right POS system for its needs?
Choosing the right POS system involves understanding the specific needs and requirements of the business, creating a list of desired features, and evaluating different solutions based on these criteria. It’s also advisable to take a trial or demo of the software to understand its usability and functionality better before making a decision.
Q: What is the future outlook for the POS software market?
The POS software market is expected to grow significantly, reaching $18.1 billion by the year 2027. This growth is driven by the increasing use of POS software by merchants to streamline their business operations.
