POS Technology Trends: Innovations Reshaping Point-of-Sale Experience

Our journey in POS system development began over a decade ago when, back in 2014, MobiDev undertook a small project to modernize the Point-of-Sale system for our client, SmartTab. Through our continued partnership over the years, it has evolved into a premier POS product with enhanced capabilities, plunging us deeper into the world of the POS industry and inspiring us to seek out new ideas and monitor emerging trends. 

This guide offers you a window into the POS industry in 2024, while also providing expert recommendations on how you can leverage specific trends to drive real added value for your business. 

Top 5 Global POS Technology Trends

Let’s examine the global POS technology trends in the section below, and then move to the more specific ones related to the restaurant and retail industries. 

1. Adopting cloud technologies

The global cloud POS market size was valued at USD 3,987 million in 2022 and it is anticipated to surpass $30,205 million by 2031, growing at a CAGR of 24.7% during the forecast period (2022–2030).

Cloud POS systems enable employees and managers to track and manage their company’s sales data in real time. Unlike traditional on-premises POS systems, which tie users to specific locations or local networks, cloud-based solutions offer flexibility and access from anywhere. 

Here are some other advantages of cloud-based POS systems:

1. Plug and play approach. With cloud-based POS systems, no custom hardware is required (apart from credit card readers). You can just install the app or open the browser and you are good to go.
2. Cost-effectiveness. With pay-as-you-go models, businesses save on upfront costs and avoid investing in safeguarded mechanisms and future-proofing, typical of traditional on-premises POS systems. 
3. Easiness to use. Cloud-based POS systems can be used anywhere as long as there is an Internet connection. You can take an iPad to the festival, for example, and start sales immediately after the Internet connection is established

How to leverage this trend? 

A cloud-based approach can be a good decision, but the final choice depends on non-functional requirements and your particular business model. 

If the cloud aligns with your business model and you are going to create a new product, one of the first steps will be choosing the suitable cloud platform  (for example, AWS, Azure,  or Google Cloud). Building a comprehensive and feature-rich cloud-based POS system requires a combination of cloud infrastructure, high-quality software development, integration capabilities, security measures, and ongoing maintenance and support. 

While designing a cloud-based POS system or transitioning an existing one to the cloud, it’s essential to carefully plan and design the system to meet your specific business requirements and ensure a seamless and secure POS experience for both employees and customers.

Here’s an example from MobiDev’s experience. We helped a US-based POS provider, Comcash, transform their on-premise system into a cloud-based one, thereby creating a more robust and innovative POS product. MobiDev has been working with Comcash since 2013, and over these years, the POS system has undergone full modernization, enhancing its functionality with data science capabilities.

2. POS data analytics with AI and ML

As AI and ML start to play a bigger role in the retail and hospitality sector, offering solutions for demand forecasting and customer service, its integration with point-of-sale (POS) systems is becoming increasingly popular. AI-driven demand forecasting allows businesses to get a competitive advantage in predicting and managing demand fluctuations and responding to market requirements on time. Machine learning modules integrated with POS solutions and data storage can accumulate all the available data and provide businesses with precise reporting automatically.

Moreover, by incorporating AI into their POS systems, you can enhance the customer experience, leading to improved profitability. AI enables real-time reporting and data analysis, providing valuable insights into customer behavior, while also automating and optimizing critical business processes.

AI-powered POS systems offer several benefits, including:

• personalized marketing campaigns
• efficient data gathering, even at high volumes
• identification of potential new markets or target audiences
• analysis of trends and preferences
• automation of processes such as inventory management and cybersecurity

Our client, SmartTab, also decided to integrate AI features into their POS solution. This allows venue owners to receive AI-driven demand forecasting insights on their venue management dashboard and use them for future planning. The MobiDev team is also working on a feature for analyzing sales details and staff performance to track if there is any shady activity or if they are just slacking during shifts. 

How to leverage this trend? 

While implementing AI and ML into POS systems might have  many benefits, some aspects require consideration: 

• Leveraging AI and ML can be challenging, as this requires high-level expertise to choose the right model, prepare the data, and train the model to get sufficient results. That’s why it’s a good idea to work with AI consultants who can design AI solutions that unlock true value for your business, ensuring you reap the fullest rewards from your investments.
• Collecting and studying customer information requires organizations to protect customer privacy. Depending on the localization, businesses must follow information privacy regulations like GDPR and CCPA.

3. Advanced POS hardware

The POS industry is undergoing significant developments in business-friendly hardware, including tablets, smartphones, barcode scanners, and cash drawers. Among the promising advancements in this regard are KDS (kitchen display system), digital menus, and self-service solutions. Instead of kitchen printers printing labels on products, kitchen display systems reflect all the necessary information on the screen with the ability to give signals to waiters when a dish is ready so they can serve their clients. KDS is used to optimize kitchen workflows, food quality, and speed of service. Digital menus and self-service solutions allow visitors to submit and manage orders on their own, increasing the level of customer satisfaction. 

Businesses are shifting from traditional cash registers to more mobile flexible and advanced POS systems. According to a 2022 survey by Retail Consulting Partners, POS hardware upgrades were the second-highest priority for 44% of respondents, with POS software upgrades being the top priority for 60%. In 2024, this trend is still strong.

Alongside the adoption of self-service kiosks and general POS system upgrades, several other hardware trends are emerging:

1. Decline in swipe transactions. With the adoption of chip readers and the increasing popularity of touchless payments, swipe transactions are diminishing. Major credit card companies like Mastercard have announced that all cards are expected to be stripe-free by 2033.
2. Bluetooth technology. Modern POS systems are integrating Bluetooth technology, enabling businesses to connect mobile card readers and other peripherals, offering additional mobility and usability, so visitors can make a payment without leaving their seats. 
3. Rise in self-checkout stations. With labor shortages and rising minimum wages, stores are increasingly adopting self-checkout stations, which provide faster checkouts, help with cost savings, and bring a new level of convenience for customers.
4. Electronic shelf labels that automatically display product prices and update them from a central server bring a bunch of benefits, including enhanced accuracy and speed, efficient resource management, dynamic pricing capabilities, environmental friendliness, and overall improved customer experience.
5. Pickup lockers. With the mainstreaming of Buy Online, Pickup In-Store (BOPIS) services, secure pickup lockers enhance customer satisfaction by providing a convenient way for customers to collect their items while reducing labor costs for retailers.

How to leverage this trend? 

You need to evaluate your business needs and potential risks to decide what kind of hardware upgrade is necessary for operational improvements or business growth. For example, upgrading POS hardware with Bluetooth technology poses challenges such as increased network demand, security concerns, potential theft, and the need for additional employee training. 

Also, it’s necessary to understand the demands and behavioral patterns of your clients very well — what functionality they need on a regular basis and whether it is convenient to use your POS system in specific environments like crowded restaurants or stores. 

4. More payment methods

Despite advances in payment technologies, recent data reveals that in 2023, digital wallets and credit cards were the most popular online payment methods globally. You can seamlessly integrate payment methods into your POS system, providing customers with a convenient and secure checkout experience while maintaining compliance with industry standards and enabling efficient payment processing and reporting.

With the fast growth of e-commerce and the impact of the COVID-19 pandemic, the shift toward digital payments has accelerated, emphasizing the importance for businesses to adapt. Today, consumers have a variety of payment options available, including credit cards, debit cards, mobile payments, and contactless payments, but this list can be continued. 

You also might be considering integrating popular payment services to offer more options for your customers. You need to research and evaluate popular payment processors and gateways that align with your business requirements, such as Stripe, PayPal, Authorize.Net, or Square. Also, pay attention to factors like transaction fees, supported payment methods, security, and ease of integration.

Among other things to consider are digital currencies and NFC wristbands. 

1. Digital currencies. Digital currencies like Bitcoin and Ethereum, once slow to adopted due to security and volatility concerns, are gaining stability and acceptance with advancements in blockchain technology. To stay ahead, businesses should consider accepting digital currencies and investing in the necessary infrastructure and staff training.
2. NFC Wristbands. While facing challenges such as interoperability and standardization, NFC wristbands for contactless payments show promise. Trends include increased adoption, integration with wearable devices, enhanced security through biometric authentication, and expanded use cases beyond payments, such as event management.

How to leverage this trend? 

Adding more payment options is a good idea for improving user experience and increasing sales. However, businesses need to clearly identify the target audience to understand which payment solutions will be the most beneficial. 

Additionally, with the rise of digital payments,  reporting is more crucial than ever. Effective reporting becomes more and more challenging since establishments have started to have many payment sources with money hitting different accounts. It can be a real nightmare for the accounting team as dealing with taxes is difficult if no proper reporting exists.

5. Biometric authentication

Another emerging trend is connected with incorporating biometric authentication like fingerprints, and facial ID into POS systems to make all the processes streamlined and safe. For example, integrating retina recognition offers multifaceted advantages. This approach enhances security by leveraging a biometric identifier that is extremely difficult to replicate. As a result, the organization can significantly reduce the risk of financial impropriety in the workplace and ensure that only authorized personnel can access permitted areas of the system.

How to leverage this trend? 

If you decide to add biometric authentication to your POS solutions, first of all, you need to create a roadmap to help evaluate biometric systems and pick the authentication type best suited to your customer base. 

Once again, data security is a key here, as you need to be sure that all processes are secured and monitored for potentially dangerous activity. 

TOP 3 Restaurant and Fast-Food Chains POS Software Trends

Effective utilization of point-of-sale (POS) systems can have a transformative effect on businesses in the restaurant industry. It is crucial to understand the potential of the latest trends to maximize the benefits of restaurant POS software. So, let’s dive deeper into this topic. 

1. Integrations with online ordering and delivery solutions

When a business integrates its POS system with online ordering and delivery software, it gets opportunities for cross-channel sales, the potential for rapid expansion, and offers customers numerous reasons for loyalty. 

Advantages of integrating with ordering and delivery solutions include: 

1. Increased efficiency. The integration helps to avoid unnecessary spending and increase efficiency, as you don’t need to build your delivery service with couriers, vehicles, logistics, and a system calculating. It’s the most efficient path to deliver multiple orders fast and with increased customer satisfaction.
2. Improved order accuracy. Real-time data flow ensures order details are always up-to-date.
3. Enhanced customer experience. Customers receive accurate order confirmations and status updates.
4. Streamlined operations. Manage all orders from a single platform, simplifying order fulfillment.

Before implementing this trend, it’s necessary to do preliminary research and assess popular online ordering platforms like Uber Eats, GrubHub, DoorDash, etc. It can be a good idea to use middle-man services like Deliverect that aggregate 180+ delivery services across the globe in multiple countries.

You need to evaluate factors such as integration capabilities, commission fees, customer base, and the specific features that align with your business needs. It’s also important to ensure that your POS system’s menu items, pricing, and inventory levels are accurately shown in the online ordering platform.

2. Table reservation features for restaurants

Restaurants and bars might face the challenge of using separate table reservation systems and integrating them with their POS. Incorporating a ticket management feature within a POS system can help with these issues and provide a POS product with a significant competitive advantage on the market. 

By incorporating this functionality into the POS system, you can seamlessly manage all operations from a unified platform, accumulating sales data comprehensively. These insights can help businesses make data-driven decisions, optimize their operations, and identify opportunities for improvement. This integration not only streamlines reporting but also enhances accounting efficiency. 

3. Self-service solutions

Self-service solutions have become a game-changer in quick-service restaurants, enhancing customer experience and reducing wait times. In 2024, customer-facing terminals are going to reshape the way customers interact with eateries, offering a blend of convenience, speed, and personalization. Customer-serving terminals allow users to see their orders on a separate screen while ordering and checkout on their own.

The advantages of self-service kiosks include: 

1. Increased efficiency and speed. Self-service kiosks streamline the ordering process, making it easier and improving overall efficiency. Customers appreciate the speed and ease of placing their orders, leading to a better user experience.
2. Customized orders. Kiosks allow customers to customize their orders without the pressure of a queue. 
3. Reduced costs. For restaurant owners, kiosks offer an effective way to manage labor costs. They handle routine tasks, freeing up staff to focus on customer service and kitchen efficiency.
4. Increased sales. Kiosks are programmed to suggest add-ons and upgrades, often leading to increased average order values. They do this more consistently than human servers, boosting overall sales. 

Self-service functionality can be implemented not only in the form of freestanding or wall-mounted high-tech self-service kiosks which are expensive and difficult to install.  A tablet-based solution already integrated into your POS system is a good choice as well, especially if we are talking about independent restaurants. Tablet-based solutions are more cost-efficient and easy to add to your existing system.  Moreover, you can encourage customers to order on their own from their phone, having orders displayed at your POS station for staff.

TOP 3 Retail POS Software Trends

In the retail industry, modern POS software is aimed at meeting the growing needs of customers and the rapid development of new technologies. Overall, the top retail POS software trends reflect the growing emphasis on convenience, personalization, and efficiency in retail. Here’s what to look out for in this sector.

1. Supporting omnichannel strategies

Omnichannel experiences involve integrating in-person, mobile, e-commerce, and social sales, providing a comprehensive view of the customer relationship across all channels at any time. While not a new trend, POS technologies continue to help retailers to create a seamless customer experience across all touchpoints.

Different types of POS systems enable retailers to:

1. Facilitate non-linear paths to purchase. For example, a customer may first discover a product on Instagram, try it in a brick-and-mortar store, and then make a purchase through your website. The buying journey is increasingly complex, even for traditional offline businesses.
2. Extend brick-and-mortar stores through e-commerce. By 2027, e-commerce is expected to account for nearly a quarter of total retail sales worldwide. Establishing an online presence is crucial for retailers as an essential element for survival in a highly competitive market. 
3. Implement click-and-collect strategies. Customers can shop online and complete their transactions in-store, utilizing options like buy online, pick up in-store (BOPIS), or curbside pickup. 

POS technology enables small businesses to adapt to these complex buying behaviors, allowing them to compete with larger companies despite smaller budgets. For instance, some POS platforms enable shoppers to start a purchase online and complete it in-store, and vice versa.

2. Inventory management

While manual inventory management can be complex and prone to errors, inventory management software solutions can significantly streamline the process. Small businesses, in particular, can benefit from the inventory management functionality integrated into some POS systems.

With this software, inventory levels are automatically adjusted every time a sale is made, providing several advantages:

1. Automated inventory tracking. This reduces the time employees need to spend on stock checks and eliminates the need for error-prone manual inventory counts.
2. Report generation. Valuable POS sales reports provide information on bestsellers, slow-moving products, most profitable items, and low-stock items.
3. Better visibility. Employees can easily check if an item is in stock, allowing for efficient monitoring of inventory levels and preventing stockouts.
4. Remote management. For businesses with multiple locations or channels (e-commerce and brick-and-mortar), the system enables you to view inventory levels for each location and channel without physically being there.
5. Dynamic inventory management. With better information, businesses can implement inventory management techniques such as just-in-time, perpetual inventory, and reorder points to minimize costs and maximize sales.

3. Returns & exchange management

Returns and exchanges are inevitable in the retail sector, but they can also lead to clients’ frustration and lost revenue. A well-developed POS system can ease returns and exchange management and optimize customer service overall. 

• Using barcodes and scanners with POS systems helps to reduce human errors, speed up transactions, verify the authenticity and eligibility of items, and generate receipts with barcodes for future returns or exchanges.
• POS systems allow businesses to offer multiple options for customers.  It’s possible to use a POS system to track and manage your options and incentives, such as by issuing and redeeming store credits, gift cards, and coupons.
• POS systems can help to collect and analyze return data. Through effective data management, retailers can understand their customers better, optimize inventory and pricing, and reduce their return and exchange rates. 

Strike the Balance Between Point-of-Sale Innovations and Business Goals

Point-of-sale systems have evolved significantly since their launching several decades ago. Today, they offer more than just payment processing and sales capabilities — modern POS systems have added features and functionalities that transform each system into a virtual command center for your entire business. With enhanced mobility, advanced data analysis, and improved security, POS technologies are becoming indispensable for retail or hospitality businesses.

While some POS technology trends look super promising, their business value depends on a specific case — for some businesses, AI demand forecasting will be a game-changer, while others significantly benefit from migration to the cloud.  

At MobiDev, we offer services tailored to your business requirements and long-term goals. With 10+ years of POS expertise, our consultants can thoroughly analyze your needs, define what will be the best option for you, and implement the solution in the most efficient way possible. 

Whether you need to create a POS system from scratch or add advanced features like inventory management or data analytics, we’ve got you covered. Don’t hesitate to contact us through your preferred communication channel for further information.