What is softPOS and mPOS?
In the fast-evolving world of payment solutions, both mPOS (Mobile Point of Sale) and SoftPOS (Software Point of Sale) are gaining popularity. These systems offer mobility and flexibility for businesses, but they differ in key ways. Here’s an overview of each and how SoftPOS stands out in modern payment solutions.
Main Difference: Hardware Requirements
The most significant difference between mPOS and SoftPOS lies in their hardware requirements. mPOS solutions rely on a separate card reader device that connects to a smartphone or tablet, usually via Bluetooth. This means businesses need to invest in additional hardware for every transaction.
On the other hand, SoftPOS turns your smartphone or tablet into a payment terminal using only a software application. No extra hardware is needed, making SoftPOS a highly convenient and cost-effective option for merchants.
Advantages of SoftPOS Over mPOS
Lower Cost
One of SoftPOS's main advantages is the cost reduction. Since there is no need for separate payment devices, businesses can save on hardware expenses. This can be especially beneficial for small businesses or those in emerging markets, where reducing overhead is crucial.
Increased Mobility
With SoftPOS, businesses can accept payments using just their smartphone, which allows for greater flexibility in payment locations. Whether in-store, on the go, or at a pop-up event, SoftPOS enables payments anytime, anywhere. This level of mobility is a key advantage over mPOS, which requires a dedicated card reader.
Faster Deployment
SoftPOS solutions can be quickly deployed with minimal setup. Merchants simply download an app, and they’re ready to start accepting payments almost immediately. In contrast, mPOS systems may require more time for installation and setup, as they involve connecting an external device.
Reduced Hardware Issues
Traditional mPOS devices often face complications such as device certification, key loading, and shipping. These issues can lead to delays or costly repairs. SoftPOS, however, bypasses these concerns by using a smartphone, which is already certified for use as a payment terminal, reducing potential downtime and issues.
Familiarity and Convenience
Since both merchants and consumers are already familiar with using smartphones, SoftPOS provides a seamless and intuitive experience. This familiarity speeds up the payment process and enhances the customer experience. Additionally, smartphones generally have better portability and battery life than separate mPOS devices, making them a more practical choice for many businesses.
Real-Time Enablement
SoftPOS solutions can enable merchants to accept payments in real time, which is ideal for businesses that require immediate transaction capabilities. The app can be installed and activated quickly, allowing merchants to accept payments without the wait often associated with setting up mPOS systems.
Versatility
SoftPOS is highly versatile. It can be used for various purposes, such as queue-busting in busy retail environments, for temporary pop-up stalls at events, or as a backup payment acceptance method during emergencies. This level of versatility is often more challenging to achieve with traditional mPOS devices, which are better suited to permanent installations.
When mPOS Still Has Its Place
While SoftPOS offers several advantages, mPOS still has its place in certain markets. For instance, mPOS is often preferred in environments where offline PIN entry is required or in large enterprises with complex payment needs. The choice between mPOS and SoftPOS depends largely on the specific requirements of the merchant.
Hybrid Approach
Flexibility is paramount in today’s dynamic business world. That’s why adopting a hybrid approach can be a game changer. With Nexxtap, merchants aren’t locked into one solution. They can benefit from the simplicity and cost-effectiveness of SoftPOS while also having the option to run on mPOS devices. This versatility means you can choose the system that best suits your business needs at any given moment, whether you require the convenience of a software solution or the specialised features of a traditional mPOS setup.
Nexxtap: A SoftPOS Provider
Nexxtap is a leading SoftPOS provider, offering businesses a flexible, cost-effective, and secure way to accept payments. With Nexxtap, businesses can turn their smartphones into powerful payment terminals, eliminating the need for additional hardware. Nexxtap’s SoftPOS solution is designed to be simple to use, reliable, and perfect for businesses of all sizes, from retail to hospitality, tradies, and beyond.
Choosing SoftPOS over mPOS allows businesses to streamline their payment processes, improve mobility, and save on costs—ultimately enhancing the customer experience and boosting operational efficiency.