The COVID-19 virus is bothering many businesses with its different versions. The adoption of contactless payment technology has significantly helped retail businesses globally to enable them to drive their business forward, ensuring safety. A software-based technology, softPOS, is an emerging tool in the digital payments club. SoftPOS offers greater convenience to retail merchants due to its size and mobility.
As per experts, currently, the number of merchants using softPOS tech is 6 million. The total number of merchants using software-only Point of Sale (softPOS) solutions will cross 34.5 million globally by 2027. A rise in contactless payments largely drives these numbers. They expect the volumes to jump from 195 billion in 2022 to 408 billion by 2027.
What is softPOS?
A softPOS solution enables businesses to accept payments using an app on a mobile phone without needing additional hardware. It eliminates the need for a merchant to invest in a traditional POS device and allows ‘Tap and Pay’ through cards, wallets or wearables. Hence, softPoS terminals are comparatively cheaper than hardware-based POS.
SoftPoS technology converts a smartphone into a contactless payment acceptance device. In addition, the software also allows merchants to accept payments by sending links (payment link sent through an SMS/email to customers, who can pay for it remotely) and QR codes, among others.
It comes with many other features, like allowing merchants to operate an electronic ledger, record all transactions, including cash, and create a catalogue of items available with the merchant for sale.
How does a softPoS work?
Cashfree payment gateway provides an easy onboarding process for a merchant, which is self-explanatory and takes just a few minutes. The software application requires a few steps for installation. The merchants have to upload their basic details and complete relevant KYC formalities, and it’s done! Once the merchant goes live with softPOS, it can start accepting payments through their android phones/tablets. It is the most suitable payment method for digital natives and cardholders to experience seamless shopping.
Use cases of softPOS
Offline retail merchants: The softPOS application will not require additional hardware, thus reducing the cost to small businesses and improving the customer experience by speeding up the payment process. There is tremendous potential for softPOS growth in small and medium enterprise emerging markets.
Businesses relying on multiple delivery agents: Businesses relying on delivery agents (food delivery, grocery delivery, etc.) require flexible solutions. Merchants can add any number of agents, and the payment collection is centralised. The team only needs to carry their mobile phones/tablets to process the payment. They no longer need to carry expensive devices.
Service-based businesses: Plumbers, electricians, and other service providers can accept payments via mobile phone using a softPOS solution and serve customers faster.
Transport and Delivery: People working either as taxi drivers or food delivery persons can accept payments faster. It helps them save time and deliver service to a few more customers daily.
How softPOS helps retail merchants?
SoftPOS is a cost-saving tool and will allow deeper penetration of digital payments into hitherto under-served rural and urban parts of the country. Merchants can operate their mobile phones as a full-fledged payment solution. SoftPOS offers many benefits, from enhanced customer experiences and operational cost savings to expanding the retail footprint beyond traditional boundaries.
- Business expansion: Merchants can expand the footprint of their stores by using softPOS at stalls in events and festivals. SoftPOS expands your business and creates avenues into different areas of commerce.
- Enhanced Flexibility: SoftPOS expands flexibility in-store. It offers an improved in-store shopper experience by reducing waiting time and faster checkout.
- Increased access to sales data: A softPOS combines the basic functionality of a cash register with the increased capability of computer software and the adaptability of a web-based system. It’s a system that businesses can rely on for everything they need to manage their business, including data collection, accounting, product and inventory management, and sales processing.
- Minimum expenses: The softPOS solution saves money. SoftPOS requires just a single hardware/device to install the mobile POS application and accept payments. Merchants can also introduce a Bring Your Own Device (BYOD) model or use enterprise mobile devices for payments at POS.
- Easy installation: The software can be installed and used on the mobile phones of business agents. SoftPOS helps retail businesses to quickly and easily roll out new products and reach more customers than ever before. Simple user interfaces on android smartphones mean minimal training for workers is required to get up and run.
- Easy upgradation: One can easily integrate value-added services on the app. A POS embedded in software rather than hardware is much easier to upgrade than hardware-specific systems, helping to make mobile POS systems better able to adapt to the speed of technological change.
It is only a matter of time before the softPOS option gains popularity. Long queues at the retail store, insertion of cards, and remembering PIN and entering the same on the device will be confined to the history books. SoftPOS gives us a glimpse of what the future of payments will look like: more accessible, secure and hygienic—enhancing both the consumer and the merchant experience.
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