A cloud-based POS system performs all the functions of a traditional POS system, but stores and communicates all the necessary data through the internet.
The brick-and-mortar store would not be able to function without a working POS system. More companies are starting to stray from a traditional POS system to a cloud-based POS system. We will go through what a cloud POS is, how it works, and some of the benefits that merchants receive by switching over.
What is Cloud POS?
A point of sale or POS system is what makes it possible for customers to check out in a brick-and-mortar store. It is where sales, inventory, bookkeeping, and credit card processing all come together to make the checkout process happen. In a traditional POS system, the check out process would take place at a terminal, which would then send that information through some kind of network to a POS server that was in the back room. This would involve wiring and routers for communication and a large, powerful computer to receive and process information.
The “cloud” means to access, store, and retrieve information over the internet instead of on a hard drive or through a network. Therefore a cloud-based POS system performs all the functions of a traditional POS system, but stores and communicates all the necessary data through the internet. A cloud POS system takes out necessities of having routers and a powerful computer. Typically the network is entirely wireless. This eliminates expenses that were going into data servers or networking.
How Does Cloud POS Work?
Cloud POS systems process, retrieve, and store transaction data online. The ability to do so has allowed merchants to create POS systems out of devices such as tablets or smartphones. Usually, some of the only requirements to make these devices into a capable POS system is to install a cloud POS application. For example, once installing Shopify’s POS application onto an iPad gives you the capability to browse your catalog, pick products, and process customer sales by swiping credit cards and either printing or emailing receipts. While you do need a tablet to install the POS system, there are a couple of other pieces of equipment that are required in order to make a checkout run smoothly which can include a tablet stand, cash drawers, printers, or other needed equipment.
Pros of the Cloud POS System
Easy to use and specific for you. The complicated process of traditional POS systems has disappeared with cloud POS products. There is no on-site visits required for installation of physically POS systems or servers. Beyond the ease of installation, the actual functionality of cloud POS systems has been created depending on your specific industry. This means that finding a solution that works perfectly for your business is easy.
Constantly updated with the latest software. Because the cloud POS system is hosted on the internet through an application, the provider can continuously update the app. This gives you the best POS system at all times.
Internet based means it works anywhere with internet. If your company ever needs to sell at a different location, pop up, or event, the cloud-based POS system allows you to do business wherever there is the internet.
Security is cloud based and protected. Unlike a traditional POS system, there is no need to worry about damage or a breach happening to a physical server at your store. All your data and your customer’s data is stored in the cloud behind absolute security.