softPOS, challenges and opportunities: All you need to know

Today’s age of technology, information, and data collection has resulted in significant changes in the way a business takes place. And ePOS (Electronic Point of Sale) systems, sometimes referred to as softPOS systems, are a crucial component of this change. Small and large businesses alike can benefit immensely from the enhanced flexibility, increased access to sales data, and security that comes with a softPOS system.Through this article, we will understand what a softPOS system is, explore some of its challenges and opportunities, as well as lay bare what it brings to the table. So, let’s start with the basics.What is softPOS?softPOS systems are modernised cash registers that aid in the management and improvement of a wide range of business processes, including data collection, accounting, product and inventory management, as well as sales processing. A softPOS combines the basic functionality of a cash register with the increased capability of computer software, as well as the adaptability of a web-based system. It's a system that businesses can rely on for everything they need to manage their business, plan for the future, as well as keep track of business transactions.With such a robust foundation, businesses can also use softPOS to expand into different areas of commerce. For some businesses, this means connecting to a website or an app that allows online ordering of services or adding more branches/stores and integrating all the operations into a single system. Given the system’s ability to grow along with the business and its versatility, softPOS systems can prove to be especially rewarding for growing organizations.OpportunitiesMerchants currently have a wide range of PoS terminals to choose from, depending on their needs. With softPOS, merchants can convert their existing smartphones into a POS terminal simply through the installation of simple software, eliminating the need for additional hardware installation or hiring of professionals trained to manage said software. This lack of additional hardware simplifies distribution for acquirers while reducing POS providers' manufacturing and installation expenses. Merchants, in turn, benefit from a low-cost, easy-to-use POS system. The system is also simple to maintain, with upgrades generally being managed at the back-end, i.e., remotely, by POS providers, allowing for seamless integration of payments innovation and regulatory changes. For merchants, this is all done through a simple upgrade of their smartphone app.The use-cases enabledsoftPoS enables different use-cases, also bringing different benefits for each. For example:

• For retail businesses: For supermarkets, homeware stores, apparel stores, etc. softPoS can enable flexible checkout points on the sales floor and freedom from queues along with doorstep delivery
• For restaurants: For hotels, food courts, etc. softPoS can enable doorstep payments, tableside ordering, self-checkout options at tables, etc.
• For service-based businesses: softPos can enable doorstep payments, for theaters, beauty salons, at-home services (carpenters, repairs, etc.) and BFSI collections via agents etc.
• For small and medium businesses: For SMBs, freelancers, kiranas, etc. the low costs and quick adoption are the benefits.
• For businesses on-the-go: The portability of softPoS and lack of additional hardware as an additional point-of-failure are key benefits for on-the-go businesses like door-to-door tradespersons, food trucks, etc.

The bottom lineIn India, digital payments has been fuelled by new players entering the payments ecosystem, innovations in technology, initiatives taken to address customer convenience and forward-looking regulatory changes.The worldwide health crisis only accelerated the growth of digital payments because they were seen as safe and convenient payment options amid the social distancing times. This trend was aided by the rapid growth of e-commerce sales and online retail. In order to support the rise of digital payments,  softPOS acceptance infrastructure must be strengthened across the country.Owing to their minimal installation costs and convenience of deployment, softPOS is worth one’s investment. Eradicating the requirement to set up physical POS terminals makes them a good, cost-effective alternative. The RBI has also recently released regulatory guidelines to promote the softPOS ecosystem, which makes merchant acquisition easier through remote onboarding and encourages merchants and customers to adopt contactless payments. Overall, softPOS has the potential to disrupt the merchant acquiring business, allowing merchants to accept payments through a simple app download, in turn increasing the country's digital payment penetration.The RBI has also been taking other steps, such as easing merchant onboarding via digitizing and easing KYC, or enabling and encouraging contactless payments via enabling tap-and-go payments on all purchases or allowing device-based tokenisation. Each of these provide additional support to efforts to increase digital payments penetration in the country. The softPoS adds to these efforts, bringing significant potential to change the game for merchant acquisition, financial inclusion and payments acceptance.The author is co-founder & CEO, Cashfree Payments. Views ae personal.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.