Why big businesses are taking a fresh look at software-based payments
Initially adopted by smaller businesses looking to reduce costs and simplify card acceptance, SoftPOS (Software Point-of-Sale) is now gaining traction with larger organisations seeking greater agility, mobility and operational efficiency.
According to Juniper Research, it’s expected that the total number of merchants deploying SoftPoS solutions will surpass 34.5 million globally by 2027. It’s a massive market shift that will see adoption widen from small traders to larger retailers and enterprise businesses
What is SoftPOS?
SoftPOS (Software Point of Sale) enables businesses to accept contactless payments directly on an NFC-enabled Android smartphone or tablet. By downloading a certified application and registering with an acquirer, merchants can securely process payments from contactless cards and digital wallets such as Apple Pay and Google Pay, without requiring a separate payment terminal.
Transactions are processed securely over mobile or Wi-Fi networks, providing a simple and cost-effective way to extend payment acceptance with untethered checkout solutions wherever they’re needed. They can be used to complement existing estates, and through APIs communicate with established payment infrastructure.
What began as an entry level innovation can now be used as mainstream payment technology across a growing range of industries and business models.
Helping to modernise SMEs
For small mobile businesses, market traders, charities, delivery services and pop-ups, SoftPOS removes the need for dedicated payment hardware, reducing both upfront investment and ongoing operational costs.
Businesses can use software to start accepting card payments quickly using the smart devices they already own. It effectively fast-tracks them to contactless and mobile wallet acceptance and gives them the tools they need to create a modern checkout experience with minimal cost.
Why enterprises are taking notice
One of the barriers to early enterprise adoption was the perception that a software-only payment solution could not offer the same levels of security as traditional payment terminals. Today, that concern has largely disappeared. Modern SoftPOS solutions meet stringent PCI MPoC and EMVCo standards and deliver enterprise-grade security through advanced encryption, tokenisation and secure transaction processing.
Under huge pressure to reduce costs, drive greater agility, and bust queues while delivering more connected omni channel experiences, SoftPOS is now an attractive proposition for many larger retailers.
Using SoftPOS they can upgrade existing smart devices to provide additional payment points during seasonal peaks promotional events or busy trading periods. They can focus on assisted selling helping reduce queues and supporting a more personalised shopping experience. And they can more easily equipfield service teams, delivery personnel, hospitality staff and remote workers, with app-based payment acceptance without giving them extra gear to carry.
Being able to activate payment acceptance quickly and easily, can help them respond faster to new opportunities and changing customer demand.
It’s about use cases, not business size
SoftPOS technology should not be viewed as a solution for small merchants or large merchants. Instead, it should be viewed as a solution for specific business challenges.
Whether it’s extending checkout capacity, enabling mobile payments, supporting field teams or reducing deployment times, SoftPOS can deliver unique value wherever flexibility is required, and smart phone or tablet ownership already exists.
What to look for in an enterprise scale SoftPOS Solution
As adoption grows, merchants and their acquirers should consideration the following:
- Enterprise-grade security
Look for solutions that meet recognised industry standards, including PCI MPoC and EMVCo certifications, with robust encryption and tokenisation capabilities. - Offline functionality
Make sure it provides operational resilience with the ability to continue accepting payments during temporary connectivity interruptions. - Ease of integration
For enterprise use, SoftPOS should be supported through direct payment gateway API integrations rather than consumer payment apps - Estate management
Make sure it can connect with estate management platforms like CASHUB to remotely provision, update, and monitor payment apps across estates - Payment limits
SoftPOS is primarily designed for contactless and digital wallet transactions (like Apple Pay or Google Pay). Merchants should consider how PIN verification is handled when contactless card limits are reached, as SoftPOS relies on secure on-screen PIN entry rather than a physical chip reader. - Do a proper cost evaluation
Modern Android MPOS devices offer high levels of functionality, features and connectivity at an affordable price point. A payment terminal costs less than a mobile phone, so SoftPOS may only make sense if smart devices are already owned by the business.
Expanding the acceptance ecosystem
Experience shows that merchants and their acquirers are no longer choosing one single payment acceptance technology. Rather, they are selecting the right solution for each use case.
At Castles Technology, we see SoftPOS as an important part of a broader payment ecosystem. While our Android POS devices continue to deliver rich functionality and integrated payment experiences, SoftPOS can provide merchants with another way to quickly extend payment acceptance wherever and whenever needed.
It’s why our software-based SoftPOS solution comes with comprehensive functionality built in including transaction statistics, settlement records, a data analyser and e-receipts. All the capability that any size of business can benefit from.Find out how Castles SoftPOS can help your business accept payments anywhere https://www.castlestech.com/softpos-has-enterprise-appeal/
