SoftPOS: The Future of Payment Systems

Among the hot topics in digital payments, Software-only POS or SoftPOS takes a high position. For many merchants and acquirers, SoftPOS represents a trend propelled by the pandemic and the switch to digital, contactless technology that more and more businesses must make to survive on the market.

What does SoftPOS represent?

As stated before, SoftPOS allows an individual to accept contactless payments (via card or NFC technology) through a software-only app solution, through a smartphone, without needing additional hardware. SoftPOS mustn’t be confused with mPOS or Android POS. Mobile POS (mPOS) are light, wireless payment terminals, while Android POS are devices similar to smartphones running solely business-related apps (for payments, order management, etc.).

Any regular consumer smartphone can handle a SoftPOS app alongside others. These solutions can accommodate all sorts of businesses, from the banking industry to the delivery or transportation sectors, which can embed such a solution for their corporate customers.

SoftPOS vs traditional POS and mPOS systems

Any POS system allows you to accept debit or credit card payments while tracking and monitoring sales, settlements, or chargebacks. A traditional POS terminal comes with hardware and software components, alongside multiple pieces of software for managing inventory, tracking and monitoring sales transactions, or customer-related activities (email marketing, customer engagement, loyalty programmes).

With a SoftPOS system, you won’t need hardware other than your phone. Rather than pairing a POS terminal to a desktop computer, you can install a SoftPOS app on any device, either a phone or a tablet. Also, a SoftPOS app will act like any traditional POS system, accepting all payment methods supported by standard POS terminals (credit/debit cards, contactless cards, wallets, and so on).

Compared to mPOS (mobile POS), SoftPOS can be seen as the next evolutionary step. According to Research and Markets, the mPoS terminals market is set to grow by USD 6.01 billion during 2021-2025. The mPOS also uses a device (phone or tablet), but it must be paired with an external card reader that acts as an electronic POS terminal. On the other hand, SoftPOS doesn’t need an external card reader to work as a POS terminal.

Of course, cutting down on hardware decreases costs, mainly due to saving up on maintenance and repairs.

Use cases

Dapio's SoftPOS solution can be used in multiple industry sectors across the UK and Europe, featuring multiple payment options alongside contactless Tap-to-Phone technology.

• SMEs: featuring the Tap-to-Phone feature, the SoftPOS solution will require no additional hardware, thus improving customer experience by speeding up the payment process.
• Gig economy: on-the-go workers require flexible solutions. With a SoftPOS solution, you won’t have to carry an external terminal, just your Android phone.
• Service industry: any employee can become a POS terminal with a SoftPOS solution. Merchants can accept payments and serve customers faster.
• Transport & Delivery: workers in this industry can accept payments faster, either as taxi drivers or food delivery persons.

The bottom line

SoftPOS is a young technology that is bound to flourish. It cuts down the time it takes for a payment to happen, cuts down costs, removes the need for hardware, and can be applied to various industries.