8 POS Software Trends for 2024: New Predictions & What Lies Beyond

In light of the COVID-19 pandemic, online shopping is quickly becoming the new norm. To keep up with the current demands of highly techy consumers, most retailers had to migrate their businesses to the cloud, and the use of POS software has become more necessary than ever. Today, a cloud-hosted POS solution is no longer optional but, is, in fact, a must-have for small and large businesses.

From the old cash register and traditional ways of selling, POS systems have provided retailers with a more efficient way to track inventory and manage sales. As ecommerce continues to expand, POS solutions play a critical role in increasing convenience for online customers and providing a customer-centric experience.

To keep up with the latest developments surrounding POS systems, we compiled the most relevant POS software trends that you should look out for. By understanding current reports and key insights on POS software adoption, you can maximize the potential of your existing POS solution, or better yet, have better ideas on newer POS financing trends that can bring value to your retail business.

Out of all business sectors, the retail industry experienced the worst and most damaging impacts of the COVID-19 crisis. At the onset of the pandemic, most retail businesses had to close, while some witnessed profit losses for their businesses. Retailers who chose to battle the challenges brought by COVID-19 had to face a daunting multitude of short-term challenges, which revolved around consumer demand, the labor force, supply chain, and health and safety, among others.

As the virus outbreak threatened the health and safety of each individual, consumers had to shift their spending focus towards necessities, such as food, medicine, and other household supplies. According to a recent report by the US Census Bureau, retail stores selling food and beverages had the highest monthly retail sales development during the pandemic.

From February to March of 2020, the increase in retail sales of food and beverages increased by 26%. According to the latest trends POS COVID reports, apparel and footwear stores, restaurants, and out-of-home entertainment saw a substantial decrease in consumer spending as a result of the pandemic.

COVID-19 also accelerated the shift towards a more digital world, triggering long-lasting changes in the online shopping behaviors of many consumers. Consequently, retailers followed suit by moving their business to the cloud and providing a range of services through various digital platforms.

Cashless transactions are also becoming more common in the retail industry. As a result, POS systems with a range of cashless payment methods now play a more important and critical role in the day-to-day operations of retail businesses.

To best understand how POS systems are helping retailers battle the challenges caused by the rapidly changing retail landscape, we compiled the latest and most important POS software trends that you should be aware of.

1. Cashless Transactions Via Mobile POS Systems

For customers who used to shop at traditional brick-and-mortar businesses, the COVID-19 pandemic resulted in increased health and hygiene concerns. Today, many shoppers are becoming more cautious about touching anything behind a checkout counter. To refrain from using cash and minimize physical contact, cashless transactions became more common for many retail businesses.

As contactless payments become a more hygienic way to pay for goods and services, the trend toward cashless-based transactions appears to outlive the virus and continue as the new norm in the future. According to a recent trends POS pandemic report by Mastercard, 74% of customers reveal that they will continue using contactless payments even after the pandemic (Mastercard, 2020).

Aside from providing a cleaner way to purchase items, more shoppers are finding the speed of tap and pay as a more convenient way of completing transactions at retail stores. This spurred the increased adoption of mobile point of sale systems among retailers, which enabled them to accommodate more customers who use touchless payments and mobile wallets.

Nowadays, mobile point of sale systems have also gone beyond processing customer payments. In fact, plenty of mobile POS now offer product catalogs, inventory management, and advanced sales reports, among others. Through mobile POS systems, retailers now have the ability to order and manage inventory, schedule and track deliveries, and conduct sales transactions in just one mobile solution.

2. Adoption of Cloud-Hosted POS Systems

Cloud-hosted POS solutions, often integrated with POS hardware, automatically back up and sync data in the cloud via a remote server. This makes it easier to protect and update information about your retail business, providing you with a centralized storage for all your inventory and sales data.

On top of that, cloud-based POS software increases data visibility for your retail business, allowing you to take your business anywhere with you. With a cloud-hosted POS solution, the entirety of your business data is easily accessible via the Internet. This means you and your staff can view daily totals, productivity reports, and inventory counts from your own personal devices.

As part of the latest POS trends 2022, the adoption of cloud-hosted POS solutions is expected to gain traction over the coming years. Currently, a large number business owners are already reaping the benefits of cloud-hosted POS solutions. According to a recent report by Retail Consulting Partner, 52% of corporate organizations are already using cloud-based POS, while 40% more are planning to adopt cloud-based POS systems (Retail Consulting Partner, 2020).

Replacing the traditional retail POS with a cloud-based system has allowed plenty of businesses to accommodate new stores, product lines, and sales channels without any limitations. Since cloud-based systems are not tied to a specific hardware in just one location, a cloud-based retail POS solution provides greater mobility for businesses. Accordingly, it maximizes profitability and becomes an invaluable resource for many retail business owners.

Best POS Software

1. Toast POS is a solution that can serve as your one-stop application for managing your restaurant. It lets you customize your menu and even create time-specific menus.
2. Vend is a highly customizable POS that can work with other business systems and hardware. With this, you can create a connected and streamlined process from the front-end to the backend.
3. Square is a mobile POS system that works with either Android or iOS. It comes with a Square magstripe reader, which truly lets you take your business anywhere.
4. TouchBistro is a well-known POS application for iPad. With this, you can organize your menu, track inventories and orders, and process payments.
5. Oracle Food and Beverage is a reliable POS platform designed for different kinds of food establishments. It provides a rich experience with its advanced management tools.

3. Multichannel Commerce

To maximize sales performance, many retail owners have moved their businesses to the cloud through various online selling platforms. For many businesses today, setting up an ecommerce store is necessary to reach a wider market and potentially increase their sales. As more customers turn to ecommerce platforms to find and purchase products more conveniently, retail owners who own physical stores are also migrating to online platforms to sell their products.

Following this ecommerce trend, POS software providers are updating their systems to allow retail business owners to set up their own ecommerce store with their existing product inventory. In this way, retail businesses can sell their products in-store, online, and on-the-go using a unified and streamlined POS system.

A multi-channel POS solution often comes with a range of inventory, customer, and order management tools. It integrates seamlessly with other online sales channels, such as Amazon, eBay, Etsy, and even social media. Aside from that, some of these POS solutions allow users to create their own ecommerce website using a drag-and-drop store builder, SEO tools, mobile-responsive themes, and a built-in payment processing feature.

Correspondingly, retailers are now implementing a multichannel selling strategy to reach as many potential customers as possible. According to eMarketer’s latest report, multichannel online retailers generated over $350 billion in ecommerce sales in the United States last 2020 (eMarketer, 2020). As online stores and social media become powerful ecommerce platforms, online retail businesses can expect further increase in ecommerce sales in the coming years.

4. Customer Loyalty Programs

Time and time again, customer loyalty programs have proven effective in encouraging repeat customers and building a loyal customer base. With a well-designed and well-executed loyalty program for your customers, you can easily retain the current customers you have for a long time and even turn new ones into repeat buyers from your brand. In turn, this can drive profits in the long-term and increase brand awareness for your business.

According to a report by Retail Consulting Partner, 35% of retail businesses have already started offering personalized incentives based on customer loyalty. Meanwhile, 23% of retailers express their desire to offer personalized rewards within 12 months, and the other 23% wants to follow suit within one to three years. (Retail Consulting Partner, 2020)

Among other POS trends 2020, offering customer loyalty programs are made easier through updated and advanced POS software existing today. Plenty of POS solutions now have built-in loyalty programs, while others integrate with external loyalty apps. A POS solution equipped with loyalty features goes a long way when it comes to attracting new customers and improving customer relationships

5. Personalized Shopping Experience

Personalizing shopping experiences for your customers plays a crucial role in attracting customers and retaining them in the long run. As a matter of fact, 80% of consumers reveal that they are more likely to purchase from brands that offer a personalized shopping experience (Epsilon, 2021). For these customers, brands that make them feel valued and recognize them as individuals are more trustworthy than others. Thus, making your retail business customer-centric can increase retention and drive more sales to your business.

Most POS solutions today are incorporating certain technologies to make this possible for retail businesses. For instance, RFID and geofencing enable you to create personal and interactive messages and promotions and deliver them to the right customer. Some POS systems are also capable of gathering the social activities and online browsing histories of your customers, allowing you to learn more about them and make relevant offers to each shopper.

6. AI Integration in POS Solutions

Like in most business sectors, AI is set to revolutionize the POS market and equip businesses with cutting-edge point-of-sale tools to improve the efficiency of their retail operations. The integration of AI in POS systems best helps in employee management capabilities and advanced payment processing. Through AI-powered POS systems, retail businesses can provide better and more personalized customer experiences.

Additionally, AI asserts its influence on the way businesses handle payment transactions. An AI-enabled POS system can instantaneously handle all types of payment processing, ranging from social app, mobile app, and online payments, as well as conventional in-store payments. Hence, businesses that are quick to adopt AI-powered POS solutions are now witnessing considerable growth and more efficiency in their operations.

As AI gains more prominence in the POS market, a report by ConnectPOS revealed that over 15% of businesses have already adopted AI-enabled POS systems in the United States. Meanwhile, nearly 40% have plans to integrate them in the coming years (Connect POS, 2021). Recent AI statistics also suggest that AI-based solutions are transforming the retailing landscape by providing business owners with smarter and more efficient POS tools.

7. Use of POS Data Analytics

Customer data sits at the heart of any modern business wanting to improve their services and deliver the right products to their target audience. By getting to know your customers better and understanding their shopping behavior and preferences, you can easily upsell products that match their profile.

The use of POS data analytics to make better informed and data-driven decisions is not entirely a new trend for many retailers. However, current POS statistics suggest that it remains relevant among many retailers today. In a recent Salesforce report, 50% of small businesses say that reporting and analytics tools from their POS are crucial in their day-to-day operations.

Rich consumer data and in-store analytics enable retail businesses to provide a more customized shopping experience for each of their customers. In leveraging POS data analytics, retailers can follow sales trends, predict demand for certain products, and come up with a set of target shoppers that are more likely to buy new offerings.

8. Simple POS Hardware

Today, many retail business owners are replacing their old, bulky, and high-maintenance system monitors with iPads and tablets that simplify POS operations for their business. Thanks to rapid development in technological tools, it is now possible for businesses to have an advanced POS system that offers simple usability and good flexibility. As the latest POS display trends demand easy-to-navigate dashboards for point-of-sale operations, more POS systems are providing businesses with a simple user interface and a range of features to support future growth.

As a result, cloud-hosted POS solutions are dominating the market and heralding a major development in the way retail transactions are done. In a recent report by Reforming Retail, cloud-hosted POS systems have gone over the 20% critical level in market penetration. With the range of benefits and functions that POS systems bring to the table, more corporations, in-store businesses, and retailers plan to adopt cloud-hosted POS solutions in the coming years.

How can POS systems enhance employee training?

Effective employee training is critical for the successful operation of POS systems, especially as POS technology continues to evolve. Proper training can reduce errors, improve customer service, and ensure efficient use of system capabilities. Here’s how POS systems can facilitate and enhance employee training:

• Interactive Training Modules
  Modern POS systems often come with interactive, built-in training modules that allow employees to learn on the job. These modules guide users through system operations in real-time, making it easier for employees to grasp POS functions while performing tasks.
• Simulated Environments for Practice
  Many POS systems offer a simulated environment where employees can practice transactions, inventory management, and troubleshooting without affecting actual business data. This allows staff to gain confidence and familiarity with the system before handling live transactions.
• Real-Time Guidance and Support
  POS software with AI-driven support can provide real-time guidance. For instance, if an employee is unsure about a specific operation, the system can display prompts or FAQs to help complete the task correctly and quickly.
• Performance Tracking and Feedback
  Advanced POS systems can track employee performance, such as transaction times and error rates. This data allows managers to provide targeted feedback and further training, helping employees improve and master the system.
• Role-Based Access for Focused Learning
  POS systems with customizable, role-based access ensure that employees only see the functions relevant to their role. This focused approach simplifies the learning process, as employees are not overwhelmed by unnecessary system features.

Adoption of Cutting-Edge Technology in POS Systems

The implications of current reports and the POS software trends above are clear: the market is headed toward more digital and advanced system innovations. With the integration of cutting-edge technology, POS systems are providing retail businesses with an extensive set of capabilities, from offering a range of digital payment methods to more efficient inventory management. Thanks to AI and data analytics, POS systems have become an indispensable tool for many retailers.

If your business is not following any of the latest POS trends mentioned above, you are running the risk of getting left behind by your competitors. By investing in modern POS systems and maximizing their rich feature sets, your retail business can certainly go a long way—from attracting new customers to retaining a loyal customer base that can drive sales to your business and support your growth in the long run.

For more product options, we have prepared this guide to the best POS platforms that you can check out later.

Key Insights

• Cashless Transactions Via Mobile POS Systems:
  • Contactless payments are becoming more popular in the retail sector.
  • POS software providers are expanding features to support mobile payments and digital wallets.
  • Cashless transactions are expected to remain a trend post-pandemic.
• Adoption of Cloud-Hosted POS Systems:
  • Increased adoption of cloud-hosted POS solutions among businesses.
  • Benefits include mobility and enhanced data visibility.
  • Cloud-based systems support the expansion of new stores, product lines, and sales channels.
• Multichannel Commerce:
  • POS solutions integrate with third-party online shopping apps for multichannel selling.
  • A multichannel strategy helps businesses reach a wider target audience.
• Customer Loyalty Programs:
  • Loyalty programs attract new shoppers and retain existing customers.
  • Many businesses are offering personalized rewards based on customer loyalty.
• Personalized Shopping Experience:
  • Consumers prefer brands offering personalized shopping experiences.
  • Businesses providing customized services are more likely to be trusted by customers.
• AI Integration in POS Solutions:
  • AI is transforming payment processes and retail operations.
  • AI-enabled POS systems offer advanced features for efficiency and personalization.
• Use of POS Data Analytics:
  • Combining POS data analytics with customer data helps identify shopping trends and behaviors.
  • Analytics tools and POS reporting are crucial for daily operations of many retailers.
• Simple POS Hardware:
  • Retailers are adopting modern, cloud-hosted POS systems with simple user interfaces.
  • Cloud-hosted solutions are gaining traction due to their flexibility and ease of use.

FAQ

1. What are the benefits of using mobile POS systems? Mobile POS systems provide a cleaner, more hygienic way to process transactions through contactless payments. They also offer features beyond payment processing, such as inventory management, product catalogs, and advanced sales reports.
2. Why should businesses adopt cloud-hosted POS systems? Cloud-hosted POS systems offer enhanced data visibility, mobility, and ease of expansion. They allow businesses to access inventory and sales data from any device, making it easier to manage multiple stores and sales channels.
3. How does multichannel commerce benefit retail businesses? Multichannel commerce enables businesses to reach a wider audience by selling products through various online and offline platforms. It integrates with third-party apps and provides tools for inventory, customer, and order management.
4. What are the advantages of customer loyalty programs? Customer loyalty programs encourage repeat purchases and help build a loyal customer base. Personalized rewards and incentives can increase brand awareness and drive long-term profits.
5. How does AI integration improve POS systems? AI integration enhances payment processing and retail operations. AI-powered POS systems offer personalized customer experiences and advanced employee management capabilities, leading to more efficient business operations.
6. Why is POS data analytics important for retailers? POS data analytics provide valuable insights into customer behavior and shopping trends. These insights help retailers make data-driven decisions, predict demand, and improve their services to meet customer needs.
7. What is the trend towards simpler POS hardware? Retailers are moving away from bulky, high-maintenance systems to modern, cloud-hosted solutions. These systems offer easy navigation, flexibility, and support for future business growth, making them more efficient and user-friendly.

References:

1. Connect POS. (2021). Cloud POS Adoption Skyrockets in Retail Equipped With AI-Based Capabilities. Connect POS.
2. eMarketer. (2021, September 15). Multichannel e-commerce sales in the U.S. 2020–2023. eMarketer.
3. Epsilon. (2021, March 15). 24 Data-Backed Reasons to Personalize Your Marketing. Epsilon.
4. Mastercard. (2020, April 30). Covid-19 spurs contactless payments takeup – Mastercard.
5. Retail Consulting Partner. (2020). 2020 POS Survey. RCP for Retail.
6. US Census Bureau. (2022, January 18). U.S. monthly retail sales development during COVID-19 outbreak 2020–2021, by sector. US Census Bureau.

By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.