POS Cashier Machine: How to Choose a POS Terminal? Types, Functions & Benefits Explained

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Shopping has become incredibly convenient - simply take out your credit card or smartphone and choose between contactless payment, QR code payment, or mobile app food ordering and payment, etc. With the rising popularity of mobile wallets, shops need to upgrade their POS Terminal to optimise customer experience and boost business efficiency. What are the latest POS systems available? Which POS Terminal’ features does your business need? If you are struggling with your decision, here's a guide to choosing POS Terminal.

introduction to POS cashier machines

What Types Of POS Terminals Are There?

In the cashless and digital payment era, POS terminals have evolved from the initial cash registers and credit card machines to become the core of business operations. Not only are POS terminals capable of accepting different forms of payment and initiating  collection, but they also offer integrated services, such as autopay, financial data reporting, automatic discounts in conjunction with promotional activities, membership points systems support, etc. There are 4 types of POS Terminal1:

1.    GPRS/PSTN POS: These first-generation POS terminals use landline to connect to wired devices. Nowadays, they are modified to use GPRS SIM card data to connect various devices, including the standard credit card machines with small screens and desktop computers. This type of POS terminal offers basic payment functions such as credit card or debit card payment by wiping, inserting or NFC contactless payment. GPRS/PSTN POS terminals are suitable for merchants who collect payments at a fixed location1

2.    mPOS: This refers to a mobile cashier machine connected to smartphones or tablet computers for payment with an application that supports GPRS, wireless, Wi-Fi, Bluetooth, NFC, and other connectivity options. This type of POS terminal is most suitable for merchants who do not have a fixed cashier. It allows for convenient payment anywhere, anytime - at in-store service counters, entrance, customer self-checkout counters, and even when service is being delivered1

3.    ePOS: This refers to an electronic cashier machine - a type of application that, after being installed on a smartphone, can accept various types of payments directly with the phone. Additionally, it can also record and verify payment details at the same time. This POS terminal type does not require additional equipment and is suitable for start-ups or micro-merchants with a limited budget1

4.    Android POS terminal: This type of POS looks almost identical to traditional credit card machines on the outside, but it has a touch-sensitive colour screen similar to an Android phone, with an easy-to-use interface and does not require to be connected to a separate phone to run the application. Additionally, Android POS terminal has an integrated barcode scanner and receipt printer and is commonly adapted by large chain businesses1

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How Should Merchants Choose POS Terminals? 

analysis of functions and benefits of POS terminals

Here are some of the functions and benefits of POS terminals, as well as some questions to consider: 

Do POS Terminals support different cashless and contactless payments? 
After the pandemic, the public prefers cashless and contactless payments, and this trend is expected to keep growing. Besides, many customers are used to self-checkout systems that don't require human interaction. If your target customer base tends to be younger, you prefer POS terminals that support various modern transaction methods to traditional, mono-functional credit card machines2

Do POS terminals support  flexible payment locations? 
An immersive shopping experience can turn the actions of customers entering the shop, selecting items and paying for them into a fascinating interactive experience. This customer-driven approach replaces the hard-selling and promotional tactics from salespeople. For example, a company in Denmark allows customers to scan items in-store, put them in their shopping cart and pay directly with their phone3. The mobility of POS terminals and systems is increasingly important in elevating consumer experience2. Even for small and medium-sized businesses, there has been a growing trend in recent years to adopt an open retail shop layout design, which is without a designated cashier point, to increase client interactions. Moreover, the mobility of POS systems cannot be overlooked when participating in trade fairs or pop-up events. 

Do POS terminals adopt cloud service for data backup? 
With the advent of cloud technology, POS systems that leverage cloud-based storage and backup can lower operational costs for merchants that, for example, have high needs for auto-payment reconciliation and financial data reporting, etc., particularly regarding integrated services with POS systems2.


Imagine this: when customers shop at your business, after carefully selecting their desired items, they find themselves faced with a long queue in front of the cashier or waiting for a long time with their credit cards at hand for payment, but without success. It is very likely for them just to leave halfway and abandon checkout. In a time that emphasises market trends like immersive shopping experience, contactless transitions and personalised service, choosing the right POS system and terminals is a cornerstone for maintaining competitiveness. 

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The above information is only for your reference. For detailed information, please refer to the sources and seek professional advice if necessary. 

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Article published on: 21 Oct, 2024


1Source: Forbes - What Is POS And How Does It Work? (https://www.dbs.com.hk/sme/disclaimer.page?url=https://www.forbes.com/advisor/in/banking/what-is-pos-and-how-does-it-work/) 
2Source: Forbes - Best POS Systems For Small Business 2023 (https://www.dbs.com.hk/sme/disclaimer.page?url=https://www.forbes.com/advisor/business/software/best-pos-system-for-small-business/) 
3Source: Forbes - The Future Of Retail Is Contactless And Immersive (https://www.dbs.com.hk/sme/disclaimer.page?url=https://www.forbes.com/sites/forbestechcouncil/2022/04/06/the-future-of-retail-is-contactless-and-immersive/?sh=1e3193eb6187) 


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