The future of payments: how SoftPOS can empower a new generation of smartphone-savvy merchants

By Kian Jackson General Manager – Merchant Acquiring Novatti

What exactly is Softpos?

SoftPOS is a technology that enables merchants to turn any Near-Field Communication (NFC) Internet-connected smart device into a contactless physical and virtual card reader. In Australia, softPOS is currently available on Android devices, including smartphones and tablets. however, Apple has announced its plans to roll out softPOS via Tap on Pay on iPhone in Australiaanymore Initial launch in the US last year,

With SoftPOS, a merchant can download an application onto their device, effectively turning it into a secure payment terminal. Using NFC or QR codes, SoftPOS allows businesses to accept contactless payments from customers using both their physical cards or digital wallets.

History of POS Systems

Point of Sale (POS) systems have come a long way since the invention of the first cash register in 1879 and have since become a staple in the market. These cash registers replaced pen and paper by allowing merchants to record sales and calculate totals more quickly and efficiently.

Electronic cash registers replaced manual cash registers in the 1970s with the introduction of features such as barcode scanning, inventory management, and simplified reporting. This made it possible for merchants to track inventory levels and sales for the first time.

The ‘modern’ POS system emerged from the 1990s due to the rise of the personal computer and the Internet. Merchants began adopting digitized solutions that offered more advanced features such as inventory tracking, employee management, and integration with other business tools.

In the 2000s, touchscreen technology and credit card processing capabilities further enhanced the user experience and streamlined payments within a terminal.

From mPOS to softPOS, the game-changer in payments

Recently, a revolutionary new POS terminal has emerged to address the issues of high upfront equipment cost, complex hardware installation and lack of mobility that come with fixed terminals.

A mobile POS terminal (mPOS) is a portable POS terminal in the form of a smartphone, tablet or card reader such as a square. It allows merchants to accept payments and make sales anytime, anywhere while offering greater convenience and flexibility.

However, mPOS still had a limitation – the need for additional hardware such as an external card reader to accept payments. This is where SoftPOS comes in, providing greater accessibility, scalability and security by leveraging software applications and removing the constraints and costs associated with additional hardware.

Benefits of Softpos

effective cost: SoftPOS minimizes upfront costs for businesses because no hardware is required, making it an affordable option for SMBs that may have limited budgets or resources.

Mobility and Flexibility: Turning your smartphone into a payment terminal makes it ideal for merchants operating pop-up stores, food trucks, events and service-based businesses. It can also be used to reduce queues and provide a more personalized customer experience.

ease of implementation: Traders simply download an application on a smartphone or tablet, eliminating hardware installation or extensive training.

Integration and Scalability: SoftPOS can integrate with existing business systems, such as inventory management and customer relationship management (CRM) tools.

enhance security: SoftPOS leverages the security features of smartphones and tablets, such as biometric authentication (eg, fingerprint or facial recognition) and encryption, to ensure secure transactions. Sensitive payment data is not stored on the device, but is transmitted securely to reduce the risk of fraud and increase customer trust.

Multiple payment methods accepted: SoftPOS supports a wide range of payment methods including physical cards, contactless payments and digital wallets such as Apple Pay and Google Pay.

Better Customer Experience: SoftPOS streamlines the payment process, reduces checkout times and can be used to allow customers to self-checkout or self-serve.

Contribution to environmental sustainability: SoftPOS is a digital-first approach that eliminates the need for paper receipts and reduces the resource consumption associated with traditional POS systems.

SoftPOS has emerged as a game-changer in the world of payment processing, providing businesses with cost-effective, secure and flexible solutions for accepting payments. Its ability to leverage the power of mobile devices and provide a seamless customer experience has made it an increasingly popular choice for businesses of all sizes.

Interested in implementing SoftPOS for your business? Novatti Tap2Pay leverages the power of SoftPOS technology to turn your smart device into a payment terminal. Contact the Novatti team who can help you get started.

Disclosure: At the time of writing, Australian Fintech Pty Ltd is a shareholder of Novatti Group Ltd.