Point of sale (POS) systems have been around for a relatively long time. In fact, the foundation of the modern POS — the mechanical cash register — was invented all the way back in 1879.
Over the years, these systems evolved, transitioning from simple mechanical systems to electronic systems in the 1970s and then to computer-based systems in the 1990s.
Each of these advancements brought increased efficiency, expanded functionality, and deeper integration of the POS into the daily operations of businesses.
Today, the POS is a multi-functional tool that in addition to helping businesses track sales and process payments also supports a wide range of other functions such as inventory management, customer relationship management (CRM), business analytics, and many more.
The latest chapter in the evolution of the POS is a shift to cloud-based systems.
Here is everything you need to know about cloud-based POS systems including how they work, their benefits over traditional on-premises systems and key considerations when looking for an appropriate provider.
What is a cloud-based POS system?
A cloud-based POS system is a modern solution that performs all the core functions of a traditional POS system using internet-based software. Unlike the latter, which rely on on-site servers and physical hardware, cloud-based systems operate on remote servers hosted by third-party providers.
The advantages of cloud-based POS systems are substantial, as we’ll see in the next section. As a result, their adoption among businesses is on the rise. For example, in 2024, the value of the global cloud POS market was $4.97 billion in 2023. This figure is expected to rise to $36.25 billion by 2033, which represents an impressive compound annual growth rate (CAGR) of 24.7%.
Top benefits of cloud-based POS systems
Let’s take a look at the key advantages and benefits of cloud-based POS systems.
1. Accessibility and mobility
Cloud-based systems allow businesses to access their POS functionalities from anywhere with an internet connection.
You could be in your office, at home on your couch, or even on the road traveling. As long as you have a web-enabled device and the necessary user permissions, you can access your sales, inventory, and customer data. This allows you to stay connected to your business operations at all times.
Meanwhile, for employees on the sales floor, cloud POS systems provide the freedom to assist customers without being tethered to a cash register or computer station. Sales staff can look up product availability, process transactions, and check out customers right from a mobile device, whether it’s a tablet or smartphone. This approach not only saves time but also enhances the customer experience, as customers no longer have to walk to a register or stand in line.
2. Lower upfront investment
Traditional POS systems often require significant upfront investment in hardware and on-site servers. This can be a major financial burden, especially for small and medium-sized businesses (SMBs).
Cloud-based systems, on the other hand, don’t require any onsite servers which significantly reduces the upfront investment. They can operate on existing devices like smartphones and tablets. Even if new devices are required, they are generally more affordable to purchase compared to traditional hardware.
Additionally, many cloud POS systems offer a tiered subscription model, where you pay based on the features you need and the size of your business. This flexibility allows businesses to choose a plan that fits their current budget, with the option to upgrade as they grow.
3. Easier and more cost-effective scalability
Cloud-based systems also offer easier and more cost-effective to scale.
On-premise POS systems often require significant hardware investments, complex installations, and costly upgrades whenever a business expands.
Cloud-based systems allow businesses to scale operations more seamlessly and affordably. Adding new locations, users, or features can be done seamlessly, often just with a few clicks without the need for additional on-premise equipment or IT resources.
4. Robust security
Cloud POS systems often provide higher levels of security than traditional, on-premise solutions.
Indeed, the top cloud-based POS system providers typically invest heavily in state-of-the-art security measures, including firewalls, intrusion detection systems, multi-factor authentication, and backup systems, to safeguard sensitive business and customer data.
5. Automatic updates
Another key benefit of cloud-based systems is automatic software updates.
Traditional POS systems often require manual updates, which can be time-consuming. With cloud-based systems, this process is automatic. Whenever a new version of the software is available your system is updated automatically. These automatic updates eliminate the need to hire a technician to update the system manually while also ensuring you’re always operating on the most current version of the software.
What’s more, with cloud POS systems, you don’t have to worry about system maintenance; the provider typically takes care of that.
6. Faster implementation
Unlike on-premise systems that often require complex hardware installation and network configurations, cloud POS systems are typically plug-and-play.
Businesses only need an internet connection and compatible devices such as tablets, smartphones, or computers to get started. This simplicity reduces setup time significantly, enabling businesses to implement the system and begin operations within hours, rather than days or weeks as might be the case with an on-premise system.
Key considerations for choosing a cloud-based POS system
When shopping around for cloud-based system providers, here are some key considerations to help you make the best possible decision.
How easily does it integrate with existing business tools
One of the first things to assess when selecting a cloud POS system is how well or easily it integrates with your existing software and tools such as accounting, inventory management, CRM, and even marketing platforms. Look for a cloud-based POS system that offers out-of-the box compatibility with various tools and systems, or APIs for custom integration.
Connecting your POS systems with other business tools and systems has numerous benefits. First, it eliminates the need for manual data entry or reconciliations across systems. For instance, sales recorded in the POS system can automatically update accounting ledgers. This saves time and also minimizes human errors.
In addition, integration creates a centralized hub for business data. Business owners, managers and supervisors can view sales, inventory, and customer insights in one place. This provides a more holistic understanding of the business and its operations and facilitates better decision-making.
Integrations can also help you personalize the customer experience. For example, a CRM-integrated POS system equips your sales staff with valuable customer information, such as purchase history and preferences. Armed with this information, staff can make tailored product recommendations, offer targeted promotions, or acknowledge loyal customers, creating a more engaging and satisfying shopping experience.
User-friendliness
When comparing cloud-based POS systems, look for systems with a clean, organized and easy to navigate layout. A user-friendly system ensures that your employees can quickly adapt to it with minimal training. It can also increase productivity and minimize the chances of errors during daily operations. This is particularly important in high-pressure environments like retail or food service, where speed and accuracy are critical.
Vendor support
Technical issues with your POS system can disrupt business operations and result in lost sales and frustrated customers. Access to responsive vendor support ensures you can quickly resolve technical problems whenever they arise, thus preventing prolonged disruptions.
The best POS system providers offer round-the-clock assistance (which is especially important if your business operates outside standard hours) and multiple ways to get in touch such as live chat, email, and phone support. Use online customer reviews and ratings to gauge each provider’s reputation for responsiveness and overall support quality.
In addition to direct support, cloud-POS system companies should provide adequate self-service resources such as knowledge bases, user manuals, and training videos that allow you and your staff to troubleshoot common issues or explore advanced features independently.
Wrapping up: Why Cin7 is the best choice for cloud POS solutions
Implementing a cloud POS system can positively transform your business operations and give you a competitive edge. As we’ve seen, these systems come with numerous benefits and advantages including increased accessibility and mobility, easier and more cost-effective scalability, enhanced security, and many more.
If you're looking for a top-tier cloud-based POS solution that offers all of this and more, look no further than Cin7. With powerful features like real-time synchronization of sales and inventory data and omnichannel support, Cin7 POS helps you optimize your operations, deliver superior customer experiences, and stay ahead of the competition.
Cin7 POS is an add-on to our inventory management software (IMS) but our IMS solution is also compatible with a wide variety of POS hardware and software. For example, if you already use a leading POS platform like Square, you don’t need to make a switch or overhaul your existing setup to take advantage of Cin7’s powerful features. Cin7 integrates seamlessly with your current system to give you the best of both worlds.
But don't just take our word for it. Experience the power of Cin7 for yourself by starting a free trial today.
