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SoftPOS – also known as Software Point of Sale – is a modern technology that allows merchants to use their phones or devices to accept card (or contactless) payments.
Historically, merchants have always needed specialised hardware – Point of Sale (POS) terminals – to accept card payments.
However, with the innovation of SoftPOS, the need for additional hardware is obsolete, meaning businesses now have more flexibility and mobility when taking payments from customers.
This guide will delve into the world of SoftPOS, highlighting what benefits it could bring to your business, as well as how SoftPOS technology differs from mPOS.
What is SoftPOS?
SoftPOS is defined as a technology which uses devices, such as mobile smartphones, tablets, or even smartwatches and iPads, to process payments.
This eliminates the need for a physical card reader, or a POS terminal (which, traditionally, has been the way most card payments have been made).
But SoftPOS utilises the modern era of technology, allowing the mobile phone (or device) to become a game-changer in business transactions.
Using SoftPos allows the device to really become the hub of the business – quickly, efficiently and safely processing payments.
What is the Difference between SoftPOS and mPOS?
So, how is SoftPOS different from mPOS?
Firstly, mPOS stands for Mobile Point of Sale. You may be wondering how this differs from SoftPOS which, as mentioned, is known for encompassing the mobile phone, or device, into its technology.
But, they are two different systems – and operate in separate ways.
SoftPOS vs mPOS
- Portability: SoftPOS doesn’t require an external card reader, while mPOS does. This means SoftPOS allows for more flexibility than mPOS – merchants can be mobile and move around different locations with ease.
- Expensive contracts: With these external card readers, this hardware can be expensive, meaning merchants can often be locked into costly contracts for this equipment.
- Battery life: mPOS devices need charging, which can be easily forgotten during a busy day of selling goods. Although smartphones also need charging, this is easier to remember as it’s already a staple part of our daily routines.
- Errors and issues: mPOS can also be prone to hardware issues, such as malfunctions and de-bugging errors, while mobile phones are much less likely to malfunction.
- Security: Fraud is more of a concern with mPOS, as the application receives its data from the device and sends it to the acquirer. This poses the risk of someone intercepting the transaction and manipulating the purchase value. SoftPOS, on the other hand, doesn’t require any Bluetooth connection, and as per PCI regulations, there’s mobile software protection on the device itself to prevent fraud from occurring.
- Sustainability: mPOS relies on hardware for transactions and, when updates are required, new hardware must be purchased. This can be costly and unsustainable for the environment. SoftPOS, however, removes any POS pollution and reduces the overall costs.
SoftPOS is defined as a technology which uses devices, such as mobile smartphones, tablets, or even smartwatches and iPads, to process payments.
This eliminates the need for a physical card reader, or a POS terminal (which, traditionally, has been the way most card payments have been made).
But SoftPOS utilises the modern era of technology, allowing the mobile phone (or device) to become a game-changer in business transactions.
Using SoftPos allows the device to really become the hub of the business – quickly, efficiently and safely processing payments.
What is the Difference between SoftPOS and mPOS?
So, how is SoftPOS different from mPOS?
Firstly, mPOS stands for Mobile Point of Sale. You may be wondering how this differs from SoftPOS which, as mentioned, is known for encompassing the mobile phone, or device, into its technology.
But, they are two different systems – and operate in separate ways.
SoftPOS vs mPOS
- Portability: SoftPOS doesn’t require an external card reader, while mPOS does. This means SoftPOS allows for more flexibility than mPOS – merchants can be mobile and move around different locations with ease.
- Expensive contracts: With these external card readers, this hardware can be expensive, meaning merchants can often be locked into costly contracts for this equipment.
- Battery life: mPOS devices need charging, which can be easily forgotten during a busy day of selling goods. Although smartphones also need charging, this is easier to remember as it’s already a staple part of our daily routines.
- Errors and issues: mPOS can also be prone to hardware issues, such as malfunctions and de-bugging errors, while mobile phones are much less likely to malfunction.
- Security: Fraud is more of a concern with mPOS, as the application receives its data from the device and sends it to the acquirer. This poses the risk of someone intercepting the transaction and manipulating the purchase value. SoftPOS, on the other hand, doesn’t require any Bluetooth connection, and as per PCI regulations, there’s mobile software protection on the device itself to prevent fraud from occurring.
- Sustainability: mPOS relies on hardware for transactions and, when updates are required, new hardware must be purchased. This can be costly and unsustainable for the environment. SoftPOS, however, removes any POS pollution and reduces the overall costs.
SoftPOS is defined as a technology which uses devices, such as mobile smartphones, tablets, or even smartwatches and iPads, to process payments.
This eliminates the need for a physical card reader, or a POS terminal (which, traditionally, has been the way most card payments have been made).
But SoftPOS utilises the modern era of technology, allowing the mobile phone (or device) to become a game-changer in business transactions.
Using SoftPos allows the device to really become the hub of the business – quickly, efficiently and safely processing payments.
What is the Difference between SoftPOS and mPOS?
So, how is SoftPOS different from mPOS?
Firstly, mPOS stands for Mobile Point of Sale. You may be wondering how this differs from SoftPOS which, as mentioned, is known for encompassing the mobile phone, or device, into its technology.
But, they are two different systems – and operate in separate ways.
SoftPOS vs mPOS
- Portability: SoftPOS doesn’t require an external card reader, while mPOS does. This means SoftPOS allows for more flexibility than mPOS – merchants can be mobile and move around different locations with ease.
- Expensive contracts: With these external card readers, this hardware can be expensive, meaning merchants can often be locked into costly contracts for this equipment.
- Battery life: mPOS devices need charging, which can be easily forgotten during a busy day of selling goods. Although smartphones also need charging, this is easier to remember as it’s already a staple part of our daily routines.
- Errors and issues: mPOS can also be prone to hardware issues, such as malfunctions and de-bugging errors, while mobile phones are much less likely to malfunction.
- Security: Fraud is more of a concern with mPOS, as the application receives its data from the device and sends it to the acquirer. This poses the risk of someone intercepting the transaction and manipulating the purchase value. SoftPOS, on the other hand, doesn’t require any Bluetooth connection, and as per PCI regulations, there’s mobile software protection on the device itself to prevent fraud from occurring.
- Sustainability: mPOS relies on hardware for transactions and, when updates are required, new hardware must be purchased. This can be costly and unsustainable for the environment. SoftPOS, however, removes any POS pollution and reduces the overall costs.
SoftPOS is defined as a technology which uses devices, such as mobile smartphones, tablets, or even smartwatches and iPads, to process payments.
This eliminates the need for a physical card reader, or a POS terminal (which, traditionally, has been the way most card payments have been made).
But SoftPOS utilises the modern era of technology, allowing the mobile phone (or device) to become a game-changer in business transactions.
Using SoftPos allows the device to really become the hub of the business – quickly, efficiently and safely processing payments.
What is the Difference between SoftPOS and mPOS?
So, how is SoftPOS different from mPOS?
Firstly, mPOS stands for Mobile Point of Sale. You may be wondering how this differs from SoftPOS which, as mentioned, is known for encompassing the mobile phone, or device, into its technology.
But, they are two different systems – and operate in separate ways.
SoftPOS vs mPOS
- Portability: SoftPOS doesn’t require an external card reader, while mPOS does. This means SoftPOS allows for more flexibility than mPOS – merchants can be mobile and move around different locations with ease.
- Expensive contracts: With these external card readers, this hardware can be expensive, meaning merchants can often be locked into costly contracts for this equipment.
- Battery life: mPOS devices need charging, which can be easily forgotten during a busy day of selling goods. Although smartphones also need charging, this is easier to remember as it’s already a staple part of our daily routines.
- Errors and issues: mPOS can also be prone to hardware issues, such as malfunctions and de-bugging errors, while mobile phones are much less likely to malfunction.
- Security: Fraud is more of a concern with mPOS, as the application receives its data from the device and sends it to the acquirer. This poses the risk of someone intercepting the transaction and manipulating the purchase value. SoftPOS, on the other hand, doesn’t require any Bluetooth connection, and as per PCI regulations, there’s mobile software protection on the device itself to prevent fraud from occurring.
- Sustainability: mPOS relies on hardware for transactions and, when updates are required, new hardware must be purchased. This can be costly and unsustainable for the environment. SoftPOS, however, removes any POS pollution and reduces the overall costs.
Take contactless payments on your mobile
- Food trucks & mobile vendors
- Street market sellers
- Retail stores
- Start-ups (small B2B businesses)
How Does SoftPOS Work?
In short, SoftPOS is a point-of-sale system that utilises a smartphone or tablet to process payments.
This Tap to Pay solution allows NFC-enabled devices (near field communication) to take contactless payments. NFC is the technology responsible for allowing devices (like smartphones or even smartwatches) to exchange data with other devices.
How to use SoftPOS?
SoftPOS is designed for ease of use, meaning set-up is handled quickly. Once receiving your SoftPOS technology, you’ll be able to start receiving transactions by following the steps below:
Step 1: Download and install the SoftPOS app on a compatible smartphone or tablet.
Step 2: Create an account with the SoftPOS provider and start accepting payments.
Step 3: Enter the purchase amount.
Step 4: Let customers tap on the phone.
Step 5: Payment should be approved shortly.
It’s really that simple. It will also work seamlessly whether you choose SoftPOS for Android devices such as Samsung, or IOS SoftPOS.
What is an Example of SoftPOS?
Let’s say you own a clothing store.
Instead of using a standard POS terminal and ePOS system to process transactions (which could be prone to hardware malfunctions, network issues, or general unreliability), you use your mobile phone, instead.
With all the data required to accept NFC payments, your device can become the sole trader of your business – allowing seamless transactions from multiple device types.
So, instead of worrying about the costs of your POS terminal, the reliance on internet connectivity of mPOS, or the costs associated with the hardware, you can focus your energy on your customers, encouraging more sales.
Benefits of SoftPOS
So, what is the use of SoftPOS technology for your business? There are various reasons to switch from standard POS terminals, but the most common benefits include:
- No need for additional hardware: SoftPOS allows merchants to quickly and easily process payments without any specialised hardware. You can even use digital wallets like ApplePay, SamsungPay and AndroidPay to pay for services or goods using SoftPOS.
- Works with any bank: SoftPOS can be used with any bank and any acquirer, as well as being versatile enough to deal with multiple payment methods.
- Any phone can be used: As long as your phone is NFC enabled, you’ll be able to use this for your SoftPOS payments. You can even use your smartwatch or other devices, such as tablets.
- Streamlines transactions: With innovative technology designed to enhance customer experience, SoftPOS allows you to get back to what you do best – while all your transactions are quickly and easily taken care of.
- Want to use existing hardware? No problem: If you want to utilise the hardware you already have from an existing POS system, SoftPOS can be easily integrated – meaning processing payments will become easier than ever.
- Flexibility: Whether you’re a merchant or a customer, SoftPOS allows payments to be processed on-the-go, which creates a quick, easy experience for all.
- Pop-up vendors: SoftPOS is particularly useful for pop-up merchants. With pop-up shops, or food or product delivery companies, permanent hardware payment methods just aren’t an option – which is why SoftPOS can keep transactions moving from wherever you’re set up for the day.
- Increased security: As a merchant, dealing with cash can be expensive, and not always secure. But with SoftPOS, the risk of theft or break-ins to raid the cash register is much lower.
- Sustainability: In a rapidly increasing paperless world, payment solutions also needed to adapt to reflect this change. SoftPOS eliminates the need for paper receipts as well as physical plastic cards, reducing your customer’s, and your company’s, overall carbon footprint.
- Cost-effective: Last, but certainly not least, SoftPOS is actually much more cost-effective than traditional POS terminals. With no need for specialised hardware, no infrastructure required for set up, nor monthly rental to consider, it’s easy to see why it’s more affordable for your business.
This list isn’t exhaustive, either, highlighting the step-up from POS and mPOS, and why SoftPOS is deemed superior for your business needs.
Is SoftPOS Safe?
Software Point of Sale is designed with security in mind.
It ensures thorough device security measures are in place, with robust data encryption techniques, secure app development practices and compliance with industry standards.
As mentioned above, Soft Point of Sale also adds a layer of security by eliminating dealing with cash, which can be a less secure way of receiving payments.
Who is SoftPOS for?
Many vendors or merchants from all types of industries can benefit from SoftPOS. Here’s a list of the most common SoftPOS use cases:
- Retail stores: Shops and stores that rely on large product output would benefit from having a seamless transaction service, allowing you to quickly replenish stock and increase overall sales. SoftPOS could be especially useful for those with limited counter space.
- Food/drink vendors: Food trucks and mobile vendors that don’t have a permanent base would find the flexibility of SoftPOS especially useful, meaning they can sell goods from wherever they please.
- Pop-up shops: Although pop-up stores can be beneficial to drive brand awareness and increase footfall in a particular area, this is hindered without the right technology to process payments. SoftPOS would allow pop-up shops, and those in similar situations, such as farmers markets, the flexibility and reliability they need to sell their products with ease.
- Service-based businesses: Again, service-based industries require a quick turnaround, as well as maintaining health and hygiene standards in between appointments. SoftPOS allows quick, easy transactions so salons, spas and freelance professionals can get back to providing their high-quality service to their clients.
- Start-ups: Starting out your own business can be daunting – and even more daunting if you’re restricted to poor network connections and hardware errors tampering with your POS terminal, creating payment problems. Small businesses and startups, including B2B companies, would naturally rely more heavily on SoftPOS to help get their business off the ground quicker, and alleviate any initial teething problems.
In short, the types of businesses that benefit the most from SoftPOS are the ones that prioritise convenience and cost-effectiveness.
So, whether you’re looking for B2B SoftPOS, B2C or eCommerce, SoftPOS is versatile enough to fit in with many industry requirements.
How to Choose Your SoftPOS
Helping you choose your SoftPOS is where Trust Payments comes in.
There are some deciding factors to consider before making the switch, such as choosing a SoftPOS that aligns with your business needs and budget.
SoftPOS also doesn’t require a Chip&Pin, lending itself to a limited transaction value, which isn’t appropriate for every business.
It’s also important to pay attention to features which will likely add extra efficiency to your workflow:
- Device compatibility: SoftPOS is compatible with all devices, making transactions seamless for every user.
- PCI DDS certification: SoftPOS also has PCI DSS certification, which means your data and sensitive information will be secure.
- Security features: With secure application development, robust data encryption and thorough device security measures, your security is watertight.
- Ability to process multiple payment methods: From ApplePay to contactless cards, SoftPOS accepts multiple payment methods.
In short, Soft Point of Sale has many advantages to the modern-day business.
As well as offering a more flexible way to process transactions on-the-go, it’s beneficial to a range of different industries and doesn’t require any additional hardware. Seamlessly working with all devices, multiple payment methods and various banks, SoftPOS helps to make your phone (or device) the hub of your business.
Find out more about Trust Payment’s Tap to Pay product, and learn how it can benefit your company.
Small business?
Acquire SoftPOS as your payment solution and experience its whole host of benefits – speak to our team today to find out more!
