softpos

SoftPOS utilises the Near Field Communication (NFC) technology feature on modern smartphones to communicate with nearby payment devices, exchanging encrypted data through short-range radio waves to complete secure transactions via a dedicated payment application.

The process begins when merchants download the SoftPOS application and complete a secure registration process. After verification, the merchant's smartphone transforms into a payment terminal.

To process a payment, the merchant opens the SoftPOS app and enters the transaction amount. The customer then taps their contactless card, smartphone, or wearable device against the merchant's phone. The NFC technology immediately exchanges encrypted payment data between the devices through short-range radio waves to process the transaction.

During the transaction, SoftPOS employs multiple security measures. End-to-end encryption protects all payment data, while real-time fraud detection and secure tokenisation ensure transaction safety.

Once the payment is approved, funds are automatically cleared and settled into the merchant's account. Digital receipts are generated instantly and can be shared with customers via email or SMS.

POS Payment stands for Point-of-Sale Payment. It is a payment made by a customer for a product or service where the sale occurs where the transaction takes place. The POS payment utilises technology to complete a transaction electronically. A POS Payment can be completed physically in person or online with the use of cash, debite cards, credit cards or other payment types.

MPOS stands for Mobile Point of Sale, a portable payment system that enables merchants to process transactions using smartphones or tablets connected to card readers. Unlike SoftPOS, mPOS enables merchants to accept payments with both chip & PIN and magnetic stripe cards through card readers. With mPOS you require both a mobile device and additional card reader hardware whereas with SoftPOS only a dedicated mobile application and a smartphone with NFC capability is required.

POS solutions or Point-of-sale solutions refers to a system that enables a merchant to process and accept payments with the ability to record transactions and create invoices. Modern day POS solutions now include the ability to monitor inventory levels, buying trends and collect marketing data.

The difference between POS and SoftPOS is that SoftPOS is able to accept payments without the need for additional hardware or systems. SoftPOS only accept contactless payments using near-field communication (NFC) whereas traditional POS can accept contactless payments, as well as chip & pin.

Below are the differences between POS and SoftPOS:

• SoftPOS uses smartphone or tablet devices to accept contactless payments whereas traditional POS requires a POS terminal
• SoftPOS only accepts contactless payments whereas traditional POS can accept contactless and chip & pin
• SoftPOS has cost advantages as traditional POS systems have initial hardware cost investment as well as maintenance costs
• SoftPOS can provide a real-time data for better analytical capabilities
• SoftPOS on a smartphone improves mobility allowing merchants to accept payments away from the till i.e. at the customers table or at a pop up shop.