What Is A MPOS Device?
A mobile point-of-sale (MPOS) system transforms a tablet or smartphone into a checkout point, making it a portable cash register. It accomplishes this by combining software and hardware to streamline business transactions.
The MPOS system’s core component is the software, an MPOS app that runs on the mobile device. This app enables several functions, including calculating sales totals, processing various payment methods (including credit cards, debit cards, and digital wallets), tracking inventory levels, and managing customer data.
How Does An MPOS Device Work?
The software sits at the heart of the MPOS system. It is generally a downloadable application (app) that runs on a mobile device. This app unlocks a variety of functionalities, including:
- Calculating Transactions: The app can calculate the total bill amount by allowing users to enter item prices or scan product barcodes with the device’s camera.
- Processing Payments: An MPOS system integrates with a separate card reader (which can be wired or wireless). This enables accepting various payment methods, including credit cards, debit cards, and contactless payments like Apple Pay or Google Pay. The app securely transmits the payment information for authorisation.
- Customer Management: Some advanced MPOS apps offer customer management features. These features allow businesses to store customer data, track purchase history, and implement loyalty programmes.
While the software acts as the brain of the operation, the hardware makes the physical transactions possible:
- Mobile Device: The foundation of the system is a smartphone or tablet. This device serves as the host for the MPOS app.
- Card Reader: This external device, typically attached or wirelessly connected to the mobile device, enables swiping, tapping, or inserting credit cards, debit cards, and contactless payment methods.
- Receipt Printer: Although not mandatory for all MPOS systems, a portable receipt printer can be connected to provide physical receipts for customers.
What Are The Benefits & Drawbacks Of An MPOS Device?
While a mobile POS device offers several benefits, there are also drawbacks to consider:
Advantages Of MPOS Devices:
- Affordability: Compared to traditional POS systems that require dedicated hardware and software, MPOS systems are generally much more budget-friendly. This makes them an attractive option for startups and small businesses with limited capital.
- Mobility: The biggest advantage of MPOS devices is their portability. Unlike traditional POS systems fixed to a location, MPOS systems allow you to process transactions from anywhere. This flexibility is ideal for businesses that operate at farmers’ markets, pop-up shops, or even outside their brick-and-mortar stores.
- Convenience: MPOS systems benefit businesses and customers by streamlining the checkout process. Transactions can be completed quickly and efficiently using a familiar device like a phone or tablet, reducing customers’ wait times.
- Inventory Management: Many MPOS systems come with built-in inventory management features. These features allow businesses to track stock levels, receive low-stock alerts, and even manage product data, all from the MPOS app.
Drawbacks Of MPOS Devices:
- Security Concerns: Since MPOS systems rely on smartphones or tablets, they may be viewed as more vulnerable to security breaches than traditional POS systems. It’s crucial to ensure the chosen MPOS system has robust security measures to protect sensitive customer data.
- Limited Functionality: While MPOS systems offer a good range of features, they may not be as comprehensive as traditional POS systems. Businesses with complex inventory management needs or advanced sales reporting requirements might find MPOS functionalities limited.
- Reliance On Technology: MPOS systems depend on a stable internet connection. Any internet connectivity issues can disrupt transactions and potentially lead to lost sales. Additionally, battery limitations on mobile devices can cause disruptions if not carefully managed.
- Potentially Higher Processing Fees: Some MPOS providers may charge higher processing fees per transaction than traditional POS systems. Businesses need to compare processing fees between different MPOS providers before deciding.
