Skip links
Different point of sale system

Different Types of POS Systems- What Types of POS Systems Are There? 

Whether you are a retail store, restaurant, or another type of business, having the right point-of-sale (POS) system is critical to streamlining operations and providing customers with a smooth checkout experience.

But since there are so many different POS systems available, it can be overwhelming to decide which one is the best for your business.

Each system has its features and capabilities, so it’s important to understand the differences between them before making a decision.

In this article, we will be sharing everything you need to know about POS systems from what they are, and how they work to their different types. So if you are planning to invest in a POS system for your business, read on to learn more.

Table Of Content

What is a POS System
How Does a POS System Work?
What can be done with a POS system?
Different Types of POS Systems

What is a POS System?

A POS system is a combination of hardware and software used for sales transactions in retail stores, restaurants, and other businesses.

It includes the physical checkout components like

  • Cash registers
  • Debit/credit card machines
  • Scanners
  • Printers
  • Software programs, etc…

The main purpose of a POS system is to process customer payments quickly and accurately. It helps businesses manage inventory, pricing and discounts, customer loyalty programs, and more.

It can also generate reports that help businesses analyze sales trends, identify problems, and optimize operations.

POS systems come in various shapes and sizes depending on the needs of the business. Smaller businesses may opt for a basic system with just a cash register, scanner, and credit card processing.

Larger businesses may need a more complex system with more features and capabilities.

In simple words, a POS system is a comprehensive and integrated suite of hardware and software that simplifies the management, checkout, processing, and tracking of sales transactions.

It helps businesses run more efficiently by streamlining operations and improving customer service. It can even provide data analytics to help businesses plan for the future.

Streamline your business with OctoposA Complete POS System with Big Boys Tools without the Big Price

It is a lot more than a point of sale. Octopos is easy and intuitive for you and your staff to use. Yet you get all these sophisticated tools to manage inventory, track and engage customers, get meaningful insights into your business, and much more.

How Does a POS System Work?

At its core, a POS system is essentially an automated checkout process that handles everything from customer purchases to inventory management.

When customers purchase at the store, they interact with the POS system by swiping their debit/credit card or entering payment information into the terminal. The system then processes the transaction and sends all of the relevant information to the server.

The server then stores all of the purchase dates and updates the inventory records accordingly. This allows businesses to easily keep track of their stock, sales trends, and more.

Additionally, POS systems can also generate reports that help business owners analyze customer buying habits, identify problems, and optimize operations.

For example, a restaurant can use a POS system to track which dishes are the most popular, or which items need to be discounted to increase sales.

Choosing a POS system for a restaurant can be a daunting task, as there are many different types and features to consider.

What can be done with a POS system?

A POS system can do many things as it comes with a variety of features and capabilities. Here are a few of the main tasks that can be done with a POS system:

1. Inventory management

One of the basic functions of any POS system is inventory management. This allows businesses to keep track of their stock, including keeping an eye on which products need to be reordered and what items are selling well.

2. Sales management 

A POS system can also be used to manage sales. It stores customer information, processes payments quickly and accurately, and keeps track of sales trends. This way, businesses can easily identify problems and optimize operations for maximum efficiency.

3. Order management

Order management means tracking customer orders from start to finish. A POS system can be used to keep track of all the different steps in an order processing system, including inventory availability, payment processing, and delivery.

4. Employee management

If your business involves working with a team of employees, then a POS system can also be used for employee management. This includes tracking hours worked and sales commissions earned, as well as setting up employee schedules.

You can also track their performance and create reports to help analyze how your business is running.

5. Customer loyalty programs

Customers are the lifeblood of any business so you don’t want to lose out on any potential customers. With a POS system, you can set up customer loyalty programs, discounts, and rewards by looking at their purchase history.

This encourages customers to come back and shop at your store more often, which can help increase sales.

6. Reporting & analytics

And lastly the most important part – reporting and analytics are essential for any business to make informed decisions. With a POS system, you can track customer behaviors, sales trends, and more to gain valuable insights into your operations.

Different Types of POS Systems – Their Pros & Cons

So now that we know one or two things about POS systems, let’s take a look at the different types available and their pros and cons.

1. Mobile/Tablet POS systems

mobile pos

As you can guess by the name, these are POS systems that run on mobile devices and tablets. These POS systems are mainly cloud-based and are often less expensive than traditional systems.

It requires users to install certain apps to make it work, and its main advantage is that you can take them anywhere. You will be able to do all the typical POS system functions on the go including inventory management, sales tracking, and customer loyalty programs.

The demand for mobile POS systems has been increasing as more businesses look for ways to make their operations easier and more efficient.


  • Helps to access data from anywhere anytime with cloud-based mobility
  • Very easy to integrate with traditional and new POS systems
  • Can be customized to suit various business needs
  • Cheaper than traditional and other POS systems


  • May lack features and functionalities compared to other types of POS systems
  • The connection can be unreliable at times due to poor internet connection or hardware issues
  • Requires additional tools or apps for certain features

What type of business should use a Mobile POS system?

Mobile POS systems are perfect for businesses that need to be able to access their data quickly and easily.

This includes small businesses such as cafés, food trucks, and retail stores that don’t have the budget or resources to invest in a more comprehensive POS system.

Mobile POS systems can also be useful for restaurants and hotels that need to be able to process orders quickly and accurately.

2. Terminal POS systems

Terminal POS systems are what you typically see in restaurants and retail stores.

Even though they use both hardware and software, most POS systems still require an internet connection. Some might even use cloud-based software. These POS systems are often sold with barcode scanners, cash drawers, and other things included.

These services are incredibly practical with their 24/7/365 support and cloud backup, providing great assistance in the event of outages or emergencies.

Verifone Omni 3750 and Verifone P200 are two popular terminal POS systems that are very reliable and user-friendly. These are very easy to use, making them a great choice for first-time users.


  • Made for maximum performance, reliability, and user-friendliness
  • Cloud backup and 24/7 support are two of the most important features of Terminal POS systems
  • Terminal POS systems are incredibly easy to use, making them an excellent choice for first-time users
  • Increased security protocols and implemented innovative encryption technology to secure customer data


  • Pricing for terminal POS systems can be expensive, especially for larger establishments
  • The hardware may require more maintenance than other types of POS systems

What type of business should use a Terminal POS system?

Terminal POS systems are great for bigger businesses such as restaurants and retail stores that have the budget to invest in them.

With their reliable performance, user-friendly interface, and increased security features, they are a great choice for businesses that need to process payments quickly and securely.

3. Self-service kiosk POS systems

Self-service kiosk POS systems

Self-service kiosks are quickly becoming the go-to checkout process for restaurants, cafes, and movie theaters alike. Unlike traditional point-of-sale systems, these interactive kiosks require customers to be involved in their own service experience.

Customers now can check out their purchases, get items customized, and even order food in some cases, all on their own.

This means that retailers can reduce the amount of time people have to wait in line at the checkout counter, and make the overall shopping experience more enjoyable for customers.

What’s more – by allowing customers to check out on their own, your staff will have extra time available, which they can utilize by providing more personalized service.


  • Allows customers to complete transactions in a self-service manner
  • Easy to use and requires minimal staff training
  • Reduces the amount of time customers have to wait in line at the checkout counter
  • Allows your staff to provide more personalized service by freeing up their time


  • Requires an internet connection or additional hardware for certain features
  • Limited features and functionality compared to more traditional POS systems

What type of business should use a Self-Service Kiosk POS System?

Self-service kiosk POS systems are a great choice for businesses such as restaurants, cafes, and movie theaters that want to streamline their checkout process.

Thanks to their self-service nature, they allow customers to check out on their own with minimal waiting time. Their intuitive interface also allows customers to customize orders and receive personalized service.

For these reasons, self-service kiosk POS systems are becoming increasingly popular amongst businesses that want to provide a more modern experience for their customers.

4. Cloud-based POS systems

These days, more and more businesses are turning to cloud-based POS systems due to their convenience and affordability.

A cloud-based system can be accessed from anywhere with an internet connection, making it much easier to manage inventory, process payments, and track customer information all in one place.

The best part is that cloud-based systems are usually subscription-based, meaning businesses can pay a low monthly fee and get all the features they need. Popular cloud-based POS systems include Shopify, Square, and Lightspeed.

You will get all the basic features such as sales tracking, customer management, and inventory management but you won’t have to worry about installation and maintenance.


  • Affordable and can be used on multiple devices
  • Offers real-time, cloud-based data backup for easy retrieval
  • Can be accessed from anywhere with an internet connection


  • Can be confusing for new users and require training
  • Can be subject to outages and slowdowns due to internet connection issues

What type of business should use a Cloud-Based POS System?

Cloud-based POS systems are perfect for small businesses that don’t have the resources to purchase, install, and maintain traditional POS systems.

Thanks to their subscription-based nature, these systems offer all the features you need in a cost-effective package. Businesses such as retailers, cafes, and bars will benefit from these types of systems as they are usually user-friendly and can provide useful insights in real-time.

Overall, cloud-based POS systems offer a great way for businesses to manage their sales, customers, and inventory without the added hassle of dealing with additional hardware or software.

5. All-in-one POS systems

This POS system is often referred to as a one-stop shop. By using this type of technology, you can rest assured that your data will always remain in sync and that any potential incompatibilities between different elements within the system are eliminated.

This means that all your payment processing, inventory management, and customer relationship data can be accessed from a single source. You won’t have to worry about multiple programs or running various reports, as all the information is in one place.

This reduces the amount of time it takes to organize and analyze data, thus improving efficiency. These systems are also very secure as payment card information is securely processed in the cloud.

Investing in a comprehensive POS system is an efficient way to save money while ensuring smooth operation and effortless customer support.


  • Can be accessed from multiple devices
  • Customizable and user-friendly
  • Secure payment processing
  • Comprehensive reporting capabilities and real-time analytics


  • Expensive upfront cost
  • Can be complicated to set up and use

What type of business should use an All-in-one POS System?

All-in-one POS systems are perfect for larger businesses that need a comprehensive solution.

Retailers with multiple branches, restaurants and bars, large department stores, pharmacies, and online stores all benefit from the centralized database and easy access to data across various locations.

These systems also offer features such as loyalty programs, customer relationship management, and integrated payment processing. This makes them suitable for businesses that need to track customer data and analyze their sales trends in real-time.

Overall, all-in-one POS systems are an ideal solution for larger businesses that need a comprehensive system with advanced features. They will help streamline their operations and increase efficiency, ultimately leading to improved profits.

6. Open-source POS systems

This POS system lets you customize the software specifically for your company or business, creating a truly personalized user experience.

Initially, an open-source POS may seem cost-effective; however, it’s important to bear in mind that regular maintenance and updates will be required over time to keep the program running smoothly.

This is why open-source POS systems are good for large businesses or small businesses that know a lot about technology and want to be able to change the system to fit their needs.


  • Extremely cost-effective, sometimes free to use
  • Easy to customize so it can be tailored to fit your business
  • Highly secure and reliable


  • Requires technical knowledge to build and maintain the system
  • No customer support
  • Free options might not support payment processing options

What type of business should use an Open-source POS System?

Open-source POS systems are ideal for small businesses that understand the technology and can maintain and update their system.

The ability to customize the program according to your needs makes it perfect for companies offering specialized services, such as restaurants with highly specific menu items or retail stores that stock difficult-to-source items.

These systems can also be beneficial for online stores, as they offer more control over the store’s design and make it easier to customize checkout processes.

Overall, open-source POS systems are cost-effective and perfect for businesses with the technical know-how to maintain the system. They provide a great level of control over the system and can be tailored to meet your business’s specific needs.

7. Multichannel POS systems

For businesses offering products in multiple online or physical locations, multichannel POS systems are essential to maximizing success.

This system unites your sales from each digital platform- be it an eCommerce store, social media channels, or brick-and-mortar shop – into one streamlined process for effortless tracking and analysis.

As a multiple business owner, you’ll be able to run a more efficient and profitable business by streamlining all processes from one single source. This will not only save you time and money but also ensure that your sales data is synced between each retail platform.


  • Access multiple data and sales channels from one place
  • Easily track and analyze inventory and customer data
  • Integrates with various payment processing systems


  • Expensive upfront cost
  • Can be complicated to set up and use for non-technical users

What types of businesses should use a Multichannel POS System?

Multichannel POS systems are ideal for businesses that are selling products in multiple retail environments. If you’re an online store, physical retail shop, or both; then having the ability to track and analyze sales data across all platforms will be invaluable to your business.

For example, a small business that sells clothing online and in-store would benefit from having a multichannel POS system. This would enable them to track inventory, sales data, customer information, and more, all in one place.

In conclusion, a multichannel POS system is an ideal solution for businesses selling products across multiple digital or physical platforms. It is an essential tool for businesses looking to maximize their success and increase profits.


Choosing the right POS system for your small business is essential to ensure smooth operations, secure data storage, and efficient tracking and analysis of customer data. It’s important to consider all factors before opting for a certain type of system- such as cost, features, setup process, and maintenance required- to make an informed decision. So make sure to do your research and select the POS system that best suits your business’s needs. Good luck!

This website uses cookies to improve your web experience.