How to Choose Between Legacy POS and Mobile POS
July 17 • 10 minutes
According to Statista, the number of mobile POS users in the US is expected to increase to 94.7 million by 2027. While the figures indicate a growing adoption rate for mobile POS, it doesn’t mean legacy POS systems are fading out.
Two primary types of POS systems exist, and it can be tricky to decide which is best. Popular opinion may suggest going for a cloud-based POS system, but it’s worth considering the other options before making your choice.
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Importance of choosing the right POS system
If you have the right POS system, it will have a significant impact on your business, particularly with financial management and customer satisfaction. Here are some reasons to get a POS system:
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The right POS systems will help you streamline business operations, enabling faster transaction processing and more efficient payment processing.
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The right POS systems will also help you create positive customer check out experiences.
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Data collation and management are also easier with POS systems. They provide an efficient means for collecting and storing business data.
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Lastly, POS systems are adaptable to various business needs and settings. They’ll also remain effective even as your business expands.
What is a mobile POS system?
A mobile POS is a cloud-based system that allows you to process transactions and manage day-to-day checkout operations via smartphones or tablets. Stores can efficiently perform payment acceptance, sales data tracking, and report generation.
POS systems are capable of performing the following:
- Cash register functions
- Sales reporting
- Inventory management
- Customer management
- Employee management
Advantages of a cloud-based or mobile POS
Mobile point-of-sale systems incorporate features and capabilities that make them advantageous for several business functions.
Cost-efficient system
You’ll spend a relatively lesser amount of money to set up a mobile POS system. Generally, you’ll only incur subscription fees monthly or yearly. You won’t need any on-premise installation; save the software on your device to start using the system.
Accessible and portable
Whether you are using a remote desktop like RealVNC to access your traditional POS system from a different location or a mobile POS that lets you get all the data from anywhere with a mobile device, being able to access all your data all the time is essential.
Also, a key merit of mobile POS (mPOS) systems is their flexibility, which enables users to access business data from anywhere with an internet connection. Unlike traditional POS systems, where the business data is only available on local hardware, all the information in mPOS systems goes to cloud storage.
This accessibility is especially valuable if you have business outlets across several locations or you operate a mobile setup, so food truck operators and retail outlets particularly benefit from this perk.
Offers scalability and flexibility
Cloud-based POS systems are also highly scalable. It doesn’t matter the extent of your business’s expansion; the solution will continue serving you efficiently. It’ll let you grow your operations without the hassle of installing additional hardware.
Plus, mPOS systems are flexible and customizable to fit specific business requirements. Plus, they can easily incorporate auto-dialer software for your sales and call requirements.
Keeps up with tech updates
Cloud service providers regularly perform across-the-board updates for their systems. You won’t need to download and install new updates periodically to keep your POS systems functioning optimally. All new upgrades get installed into the system automatically, ensuring you always have the latest features without adding them manually.
Disadvantages of cloud-based POS
Expectedly, mobile POS systems also have a few undesirables you should consider before choosing them.
They rely on internet connectivity
One of the main drawbacks of an mPOS system is you need the internet to use it. This requirement renders them useless in locations without connectivity. Also, a loss of internet connectivity will disrupt operations and may lead to a loss of sales.
Security and privacy concerns
Since mPOS grants the ability to access business data from anywhere, anybody with the login credentials can access your account remotely. In addition, cloud systems are constant subjects of cyberattacks, which are sometimes successful. On the other hand, legacy POS systems are relatively safe from such risks.
What is a Legacy POS system?
Legacy POS systems are traditional, on-premise solutions for managing checkout, customer payments, and inventory. Legacy POS systems function with a fixed terminal connected to various peripheral devices like cash registers, barcode scanners, and receipt printers.
Advantages of Legacy POS
Legacy POS systems come with the following advantages.
Reliable and stable
Legacy POS systems have the added advantage of higher reliability. The system and data are available on an on-premise setup, and they function offline. As such, business operations will move along just fine with or without an internet connection. Plus, they’re not susceptible to remote cyberattacks.
Provides full control of data.
A legacy POS system puts all your data in your custody, and you have complete control over it. As such, you have fewer concerns over security risks and privacy breaches.
In addition, you won’t be paying periodic subscription fees to continue using the system. After the initial setup cost, you generally will stop spending on the system except for the occasional maintenance costs.
Disadvantages of Legacy POS
Legacy POS systems also have significant demerits that can hinder your business operations. Below are a few of the disadvantages.
High initial costs
You’ll typically incur a substantial upfront investment when setting up a legacy POS system. The price will include fees for hardware procurement, installation, and software license acquisitions.
Limits mobility and flexibility
The structure of Legacy POS systems restricts them to specific locations. This results in flexibility and mobility constraints. As such, businesses with dynamic or evolving operation needs won’t be able to get the best out of such POS systems.
Weighing the pros and cons for your business
You must weigh the pros and cons before making a decision. This decision should depend on your business requirements. For instance, the best bar POS systems offer varied functionality compared to restaurant POS systems.
Below are crucial pointers to consider.
Identifying the type of business
Different industries have unique point-of-sale processes and requirements. For example, while software as a service-oriented business like predictive dialing systems provider may not require an enterprise POS system, a major retail outlet will do well with one.
As such, you should first consider the nature of your business and determine the most optimal system for your operations when selecting.
Determining the need for scalability
You should also consider your business’s prospect for scalability when selecting a POS system. If your company plans to expand or has seasonal fluctuations, a scalable mPOS system might be the better choice to accommodate changing demands.
With AI disrupting most industries today, scalability is a huge talking point. Take a contact center service as an example. Legacy POS systems are limited and can’t support AI in contact centers. Conversely, mobile POS systems pair with agile cloud-based systems that easily integrate with AI-powered solutions in the contact center.
Budget and resource constraints
A significant part of your consideration will involve your budget and the financial implications of each POS option you’re examining. You must evaluate your budget constraints and assess the total cost of ownership for both options.
But don’t focus only on the initial setup cost; consider the ongoing maintenance and support expenses before selecting.
Customer ease and satisfaction
Customer satisfaction is crucial to business continuity, and you must optimize all your business systems to impact customer experience positively. It starts with your domain name and trickles down to the POS system on the checkout page.
Be mindful of the domain name when setting up your business website. Use a domain checker to identify the best name for your business. With customer-facing tools like POS systems, consider what device the customers will use to access the system and the level of flexibility they need.
The right choice between legacy POS vs mobile POS here is one that offers the best customer experience.
Employee efficiency and training
It’s pointless to set up a system that your employees won’t be able to use or learn to use efficiently. As such, you must consider the ease of use and training requirements for your staff when picking a system.
Your best option would be a user-friendly system that’s intuitive and straightforward to operate.
Security measures and compliance
POS systems collect a significant volume of business data that are sensitive and require protection. As such, you must carefully examine the security measures available in the POS systems you’re considering.
Ensure the systems manufacturers comply with industry regulations and data protection laws. In addition, make sure there are no vulnerabilities in the frameworks.
For example, law firms must choose legacy POS systems due to strict regulatory requirements and the tons of sensitive data they manage.
System compatibility and integration
Lastly, consider how the system will integrate with your overall technology stack. The ideal POS system works seamlessly with the other software and tools your business uses, such as inventory management and CRM software.
Consider a contact center that leverages dialer software for its operation. But what is dialer software? It’s a tool for automating outbound calls and optimizing call lists. If you’re looking to choose between legacy POS vs mobile POS for a contact center, consider which is compatible with advanced dialer software and choose accordingly.
Picking between a mobile POS and a legacy POS
Ultimately, the legacy POS vs mobile POS decision depends on your business’s specific needs and priorities. As such, you must carefully assess your requirements and consider the cost, mobility, scalability, and security factors.
Regardless of the option you choose, investing in a reliable POS system will contribute to improving your business operations and customer satisfaction.
