How To Develop A Point Of Sale (POS) Software: A Complete Guide

Managing a five-star restaurant or a modest retail store requires a variety of administrative, managerial, and marketing responsibilities. A point-of-sale (POS) system helps you grow your company in the long run in addition to managing daily operations. POS systems, which were formerly thought to be expensive instruments only suitable for big organizations, have developed to accommodate companies of all shapes and sizes.

Projections show that the POS systems market will triple in size over the next several years due to its current expansion. With approximately $2,489,471 million in transaction value, POS systems are transforming the payments sector. They are essential because they give organizations a productive means to handle transactions, keep track of data, and monitor cash flow.

In today’s competitive landscape, businesses are increasingly turning to software development firms to create POS software tailored to their specific needs. This demand has fueled a burgeoning sector in POS software development, promising substantial career growth and significant revenue potential.

In this article, we’ll guide you through the steps to develop POS software, ensuring it meets all the essential requirements and sets you up for success. Join the POS revolution and take your business or career to new heights.

What is Point Of Sale (POS) Software?

Point of sale (POS) software is the software that allows POS hardware to complete transactions. It works as the backend for in-person transactions, processing credit card payments, calculating product prices with any taxes and fees, and printing or emailing receipts. Any tablet or smartphone may be made into a point-of-sale system with the help of POS software. Thanks to its qualities like adaptability and effectiveness, point-of-sale (POS) software has become an essential tool for companies trying to improve customer service and streamline operations.

Key Statistics on the POS Software Market

• Global POS software market size in 2022 was valued at USD 11.99 billion and is expected to grow at a CAGR of 10.8% from 2023 to 2030.
• Global POS software market size in 2023 reached USD 11.8 billion, projected to reach USD 23.1 billion by 2032 with a CAGR of 7.6% from 2024 to 2032.
• Global POS software market size in 2020 was USD 14.58 billion, with a projected CAGR of 11.34% from 2021 to 2026. North America held over 30% revenue share in 2019.
• Global POS software market size in 2021 was USD 9.68 billion, expected to grow to USD 22.73 billion by 2030, with a CAGR of 10.8% from 2023 to 2030.

Why Are Businesses Interested in Developing POS Systems?

A Point of Sale (POS) system is not merely a tool for processing transactions; it’s a comprehensive solution that helps businesses streamline operations, enhance customer satisfaction, and gain valuable insights. If you want to stay ahead of the competition, investing in developing a custom POS system can be a game-changer for your business.

Benefits of Building a POS Software

1. Important Business Insights

A point-of-sale system gives users access to important information such as inventory levels, sales figures, and past purchases made by customers. You may boost business growth and efficiency by making well-informed decisions with the help of customizable reports and analytics.

2. Streamlined Workflow

Automate and integrate critical procedures to enable real-time data access, quicker customer rotation in restaurants, and speedier checkout times in retail. This lowers human error and guarantees timely supplies by improving back-office administration and precise inventory tracking.

3. Enhanced Customer Loyalty

Make use of your POS system’s customer database, CRM, or loyalty programs to provide individualized services, memberships, and discounts. Knowing and meeting the requirements of your clients is the key to building customer relationships and increasing client loyalty.

4. Employee Satisfaction

Establish employee profiles with login credentials, system access, and incentive schemes to efficiently manage your workforce. A contented workforce drives greater motivation and productivity among employees, which improves business performance.

5. Competitive Advantage

Personalized point-of-sale software improves your particular business procedures, boosting customer loyalty, employee retention, and cash flow. You may lose out on these important advantages therefore the expense of not having a custom point-of-sale system can be substantial. Make a POS system purchase to be competitive and successful in your field.

Types Of POS Systems

There are several types of POS software, and all of them differ from one another, such as:

1. Mobile Point Of Sales (mPOS)

This POS system is integrated into mobile devices, such as smartphones, tablets, or other related gadgets. mPOS is set up in such a manner that devices such as card readers and barcode scanners can be integrated into the system pretty easily and quickly. This type of POS system seamlessly manages inventory, monitors real-time sales monitoring, and does a lot more.

Suggested Application: Whether you’re a street vendor, a farmer’s market seller, or a vendor at fairs and events, a POS system simplifies your transactions and management. It’s also invaluable for freelance or contract workers, contracted professional services, and music merchandise vendors, offering seamless payment processing and inventory tracking. Mobile service providers, daycare operators, limo services, and lawn care businesses can all benefit from the convenience and efficiency of a POS system, ensuring smooth operations and satisfied customers.

2. Cloud  Based Point Of Sales (Cloud POS)

This type of POS runs on a cloud system and is maintained by utilizing data centers offered by the POS vendors. This can be integrated easily into existing frameworks and functions smoothly. This type of POS works well for all businesses owing to the features offered by them.

Suggested Application: CloudPOS offers specialized solutions tailored to the unique requirements of restaurants, golf shops, retailers, omnichannel businesses, e-commerce platforms, occasional use scenarios, and quick-service restaurants. With its customizable features, seamless integrations, and dedicated support, CloudPOS empowers businesses to streamline operations, enhance customer experiences, and drive growth. Choose CloudPOS for a POS system that adapts to your business needs and helps you succeed in today’s competitive landscape.

3. Terminal POS

This type of POS is used in stores & outlets, such as grocery stores, restaurants, and other similar stores. They offer pioneering services that help deal with issues in the industry. Terminal POS maintains certain standards, which can be integrated easily into any framework. At the same time, they are even cheaper and economical.

Suggested Application: A POS system is perfect for full-service restaurants, busy retailers, grocery stores, and boutiques. It streamlines operations and boosts efficiency for antique stores, book or magazine shops, salons, spas, and electronic stores. Upgrade your business with a POS system and experience seamless transaction processing, better inventory management, and enhanced customer satisfaction. Make your operations smoother and more efficient with a POS system!

4. Tablet POS System

Looking for a cost-effective way to upgrade your point-of-sale (POS) system? iPad and Android POS solutions are gaining popularity because they don’t need a big upfront investment. You can often use a tablet you already own. Some services are free with credit card processing, while others have a small monthly fee but let you pick your own card processor. Plus, they work with add-ons like barcode readers, cash drawers, and tablet stands. Whether you need a basic setup or something more advanced for inventory and employee management, there’s a solution for you.

Suggested Application: Mobile vendors, quick-service restaurants, coffee shops, or gift shops can streamline operations and enhance customer satisfaction using this system. Small retail stores, professional services, pizzerias, juice bars, sandwich shops, and ice cream parlors can all benefit from the convenience and efficiency a POS system offers. It’s also a great fit for art galleries, small theaters, and salons, providing seamless transaction processing and improved management. Upgrade your business operations with a POS system and see the difference it makes!

5. Self-service kiosk POS

Kiosk POS systems are designed for specific tasks. For instance, they can help customers buy movie tickets or handle parking payments. You can also use them in big stores for customers to check prices and see what’s in stock. They’re handy for things like checking in at the doctor’s office or applying for jobs. Sometimes, mobile apps do similar jobs, like checking in or finding products.

Suggested Application: This system is ideal for ticket sales, transportation passes, and patient check-ins. It’s also perfect for grocers, product lookups, HR management, and parking services. Enhance your efficiency and streamline operations with a POS system, providing seamless transactions and exceptional service in every aspect of your business!

6. Multichannel POS Systems

A multichannel POS system is super useful if you sell stuff in different places, online and offline. It puts all your sales together from your website, social media, and stores. This way, you won’t run out of things to sell because everything’s tracked in one system, and your stock levels are updated everywhere at once.

Suggested Application: Whether you’re a brick-and-mortar store with an online presence, an e-commerce company venturing into physical spaces, or an online seller hosting pop-up events, a POS system is your key to seamless operations. Manage both online and offline sales effortlessly, expand your reach, and provide a consistent customer experience across all channels.

7. Open-source POS Systems

Open-source POS systems give you the flexibility to tailor your software to fit your exact needs, but the expertise of software engineers needed for customization often comes with a high price tag. This cost can be a significant consideration, especially for small businesses or startups with limited budgets. However, for larger enterprises with unique POS requirements, the investment in open-source solutions may be justified by the ability to create a highly customized and efficient system.

Suggested Application: For large or enterprise-sized businesses, a POS system is a game-changer. It streamlines operations, improves efficiency, and provides valuable insights to help you scale and succeed. Upgrade to a POS system and unlock the full potential of your enterprise!

How Does POS Work?

POS systems are like modern cash registers but more innovative and more versatile. They calculate purchase amounts, handle sales tax, process payments, and keep track of transactions—all while offering much more.

Here’s how it works:

1. POS Hardware

This includes devices like card readers for in-person sales, countertop terminals for brick-and-mortar shops, customer displays for order transparency, kitchen displays for efficient restaurant operations, and self-ordering kiosks for customer empowerment. These devices streamline your operations and enhance customer experience.

2. POS Software

You have two main options: on-premises software installed on your terminal and cloud-based software accessible from anywhere. On-premises software suits small businesses with one terminal, while cloud-based systems sync data across terminals and devices, offering flexibility and accessibility. Popular providers like Clover, Square, Toast, and Shopify offer robust solutions tailored to your business needs.

How To Build Your Own POS System In 2024?

In 2024, creating your own point-of-sale system will demand planning and knowledge of the essential elements. Here’s a quick start guide to get you going:

1. Specify What You Need

Determine the precise features and capabilities that your point-of-sale system requires. Consider elements such as payment methods, customer administration, inventory control, reporting and analytics, transaction processing, and system interface with other programs, such as accounting software.

2. Select Your Technology Stack

Make sure your point-of-sale system has the proper hardware and software. This covers card readers, barcode scanners, receipt printers, POS software, and POS terminals or devices. Choose between an on-premises or cloud-based system for scalability and remote access.

3. Create Point-of-Sale (POS) Software

If you’re developing custom software, collaborate with skilled developers to construct a user-friendly interface. It should comprise of strong transaction processing powers, safe payment processing, inventory management, reporting tools, and integration with external services such as accounting platforms and payment gateways.

4. Integrate Payment Processing

Select reliable payment processors and include your point-of-sale system with them. To safeguard client payment information, ensure security requirements like PCI DSS are followed.

5. Test and Improve

To find and address any flaws or problems, your POS system should undergo a complete testing process. Examine the device’s and operating system’s compatibility, security, performance, and usability. Get beta users’ opinions, then make changes to the system in response to their suggestions.

6. Collaborations

Building a POS system requires technical expertise, cooperation with hardware and software vendors, and adherence to industry standards and regulations. Consider partnering with experienced developers or POS solution providers to streamline the development process and ensure a successful implementation.

Must have Features and Functionalities of POS Systems

POS systems are versatile tools that cater to various industries, each with its unique needs. Here are some generic features and functionalities commonly found in POS systems:

1. Inventory Management and Control:

• Barcode scanning for efficient inventory tracking
• Product categorization for organized stock management
• E-commerce integration for seamless online sales

2. Payment Management & Accounting:

• Cash management and PCI compliance for secure transactions
• Receipt module and card payment integration for streamlined payments
• Commission and discount management for sales incentives

3. Reporting and Analytics:

• Demand forecasting and sales reports for informed decision-making
• Export to different file formats and integration with accounting systems
• Tax and VAT reporting for financial compliance

4. Team Productivity Tracking & Employee Management:

• User accounts with access control permissions
• Timesheets and roaster management for efficient staff scheduling
• Training mode for employee onboarding and skill development

5. Customer Management:

• Customer profiles and history for personalized service
• Loyalty program management and gift card integration for customer retention
• Dietary and nutrition preferences management for tailored experiences

6. Additional POS Capabilities:

• Table management and delivery management for restaurants
• Handheld ordering and online ordering for convenience
• Reservations and waitlist management for efficient customer service
• Kitchen and menu management for food establishments
• Mobile access and multi-location support for scalability

Pricing Model For POS System

In the case of a Point-of-Sale system, there are mainly two basic criteria to purchase, such as:

1. One-Time Full Payment

This payment method is not so much in use, as the business is required to pay a huge sum initially, and the cost involved here is much more. However, this way of purchasing is quite profitable and useful in the long run.

2. Pay Per Month

Though quite popular & trendy, in the long run, in this model, one must pay more. Basically, there are two options: 1) pay-per-use and 2) pay-per-registration. Here, the actual costs are determined with a combination of features & stores.

Other than this, there are chances of additional cost in the form of:

• Charges to integrate additional functionalities.
• The cost of hardware/software might differ from organization to organization.
• Base price may differ from vendor to vendor for customer services. However, there are a few companies that may not charge anything, even for free training or live chat.

What Do Businesses Look for When Buying/Developing A POS System?

In today’s fast-evolving business environment, a Point of Sale (POS) system is more than just a tool for processing transactions. It’s a solution that drives efficiency, enhances customer experience, and fuels business growth. Here’s a detailed look at what businesses seek in a POS system:

1. Comfort

Companies value a point-of-sale system that is simple for their employees to use. To ensure effective operations, a user-friendly interface with clear instructions and simple navigation is necessary. By reducing learning, businesses can save time on training and concentrate more on expanding their company.

2. Effective Stock Management

This is essential for companies to avoid inventory problems like overstocking or stockouts. Real-time inventory level tracking is made possible by a strong point-of-sale system that makes use of functions like product classification, barcode scanning, and stock alerts. Businesses are able to maintain organization, maximize inventory, and make well-informed decisions regarding purchases and restocking.

3. Sales Monitoring

Businesses must have thorough analytics and sales tracking for their best-selling items, sales trends, and consumer purchasing patterns. They can find growth opportunities, modify pricing tactics, and efficiently arrange promotions by creating thorough sales records. This data-driven strategy improves judgment and propels profitable company ventures.

4. Payment Flexibility

Various payment methods, including credit/debit cards, smartphone payments, and contactless payments, are supported by modern point-of-sale systems. Offering a variety of payment options to consumers improves their convenience and satisfaction, which boosts sales and loyalty.

5. Order Billing

Efficient order billing is a must for a smooth checkout experience. POS systems generate detailed and accurate bills and receipts instantly, streamlining the payment process for customers. Integration with accounting software further simplifies financial management, ensuring accurate recording and reporting of transactions.

6. Return Management

A streamlined return management process is essential for efficiently handling returns, refunds, and exchanges. POS systems with clear return policies and easy procedures enable businesses to manage returns seamlessly while maintaining accurate inventory records. This enhances customer satisfaction and builds a good name in the industry.

7. CRM Capabilities

Customer relationship management features in POS systems help businesses build strong relationships with their customers. Storing customer data, purchase history, and preferences allows businesses to personalize marketing efforts, implement loyalty programs, and offer targeted promotions. These CRM capabilities develop customer engagement and loyalty, driving repeat business.

8. Loyalty Programs

Integrated loyalty programs within POS systems push customers to return and make repeat purchases. By offering rewards, discounts, and points-based systems, businesses can encourage customer engagement and increase loyalty. This strengthens the bond between the company and its customers, leading to long-term relationships and higher customer retention rates.

9. Comprehensive Reporting

With the assistance of POS systems’ extensive and configurable reporting capabilities, businesses may obtain critical insights into their sales, inventory, profitability, and trends. The generation of reports in a variety of formats allows firms to better analyze and identify areas for development, streamline data analysis, and reach well-informed strategic decisions that support growth.

10. Security

Data security is the top priority for organizations when selecting a point-of-sale system. They look for systems that meet industry standards like PCI DSS and have robust security features like encryption, secure payment processing, and user access controls. Safeguarding customer information and controlling data breaches is essential to maintaining integrity and confidence in business operations.

Best 5 Popular Point Of Sale Software Systems

In today’s dynamic business landscape, choosing the right Point of Sale (POS) software is paramount to optimize sales, manage inventory, and enhance customer experiences. Here are five popular POS systems known for their robust features and industry-leading capabilities:

1. Shopify POS

The flexible Shopify POS (Point of Sale) system links payments, inventory control, in-person and online transactions, and customer information. Shopify POS makes managing your retail business simpler, regardless of whether you’re selling in-person or online.

Ready to transform your retail experience? Contact EmizenTech today to integrate Shopify POS seamlessly and enhance your business operations.

2. Lightspeed

This is a versatile and robust point-of-sale (POS) solution favored by retail, restaurant, and golf businesses. It offers a unified platform that effectively integrates in-person sales, online selling, payments, and reporting. Compatible with any device, Lightspeed POS ensures convenience across various business setups.

Discover the power of Lightspeed POS for your business—partner with EmizenTech for a smooth implementation and optimized performance.

3. Square Point of Sale (POS)

Recognized for its ease of use and adaptability, POS offers a variety of tools to businesses for managing payments, monitoring inventory, and generating sales reports, making it appropriate for a wide range of business kinds in different sectors.

Simplify your business operations with Square POS. Get started with EmizenTech for seamless integration and enhanced functionalities.

4. PayPal POS

PayPal POS makes it possible for companies to securely take payments, keep track of inventory, and view sales data instantly, all of which contribute to efficient operations. 

Securely accept payments and manage your business with PayPal POS—partner with EmizenTech for a seamless integration experience.

5. KORONA POS

With features like multi-location support, loyalty programs, and sales management, KORONA POS is a feature-rich system designed for retail, hotel, and other businesses.

Unlock your business’s potential with KORONA POS. Trust EmizenTech for customized solutions and smooth integration.

Things To Keep In Mind Before Developing A POS Application

A good and functional Point of Sale (POS) application depends on considering several important factors. The following are the crucial factors to bear in mind when developing a POS system:

1. Understanding Business Needs and Goals

To start, conduct a thorough analysis of the competition, the market, and your client’s particular needs. This knowledge aids in forming the POS system to fit the desired requirements of the target market and be in line with corporate objectives.

2. Types of POS Systems

There are different types of POS systems, each suitable for specific business setups. Choose a system that is ideal for businesses on the move, providing portability and minimal inventory management. 

3. Components of a POS System

A well-rounded POS system comprises hardware, software, and functional logic. Choosing the right hardware components like cash registers, barcode scanners, and printers is crucial. Developing user-friendly software interfaces and coding functionalities for sales processing, inventory management, and reporting ensures an efficient system.

4. Deployment and Maintenance

A POS system’s efficacy depends on its proper deployment and continuous maintenance. Guarantee a seamless implementation procedure and offer all-encompassing assistance to tackle any problems and upgrades, guaranteeing the system functions flawlessly and fulfills changing business requirements.

5. Essential Things to Think About

Set a competitive price for the system that provides value without sacrificing quality. To improve user experience, make the user interface intuitive and simple to use. Put strong security measures in place to protect private information and connect with other systems for smooth functioning. Finally, scalability should be considered when designing the system to allow for future expansion and modifications to business needs.

Technology Stack For Point Of Sale Software Application Development

How Much Does It Cost To Develop A Point Of Sale Software System?

One has to keep various factors in mind, for development of a POS system. Various factors like

• App development platform
• Number of basic & advanced features
• 3rd party API & Platform integrations
• Development team region
• Timeline to complete

However, to give an idea, the development of a POS system usually costs between $40000-$50000 with basic functionalities; however, to get a POS system with advanced features and compatibility with mobile, it is certain to cost somewhere between $65000-$90000.

How Can EmizenTech Help You With The POS System?

At EmizenTech, we specialize in POS system development and integration, offering tailored solutions to enhance your business operations. Our expertise lies in perfectly integrating POS systems with various e-commerce platforms. These include such as Shopify, Magento, Adobe Commerce, Shopware, and more.

We can also integrate POS functionalities directly into your e-commerce store, ensuring a smooth and efficient sales process for your online customers. Additionally, we can incorporate POS capabilities into your e-commerce mobile application, providing a seamless omnichannel experience for your users.

For your offline outlet business, we can develop a complete POS system that includes software for both PC and mobile devices. This allows you to manage your operations from anywhere, ensuring flexibility and convenience. Our solutions are designed to blend well with your hardware, providing a comprehensive and efficient POS experience.

As a trusted software development company and e-commerce solutions provider, we are committed to delivering high-quality, customized POS solutions that meet your business needs. Let EmizenTech empower your business with advanced POS capabilities for enhanced efficiency and growth.

Conclusion

Developing Point of Sale (POS) software requires careful planning, efficient coding, and rigorous testing. This complete guide has provided insights into the essential steps involved, including defining requirements, designing the user interface, integrating payment gateways, and implementing security measures. To ensure a successful POS software development project, consider partnering with Emizentech, a trusted software development company known for its expertise in building robust and tailored POS solutions. Contact us today to transform your business operations with cutting-edge POS software.