Technology Innovations Consultant, Kwami Ahiabenu says it’s time for the country to embrace Soft POS (Point of Sale) to enable small and micro businesses to participate in the digital payment system agenda.
Point of Sale (POS) is a digital payment device that allows consumers to pay for goods and services. The specially made hardware device operates with software that enables businesses and merchants to calculate customers’ bills, process payments, and issue receipts. It also helps manage inventory and gather customer data.
The most common POS is the traditional hardware-based devices set up in restaurants, stores, and retail shops among others. This mainly consists of a card reader, cash register, receipt printer, and sometimes a computer or touchscreen system.
Given the limitations of this traditional POS such as high purchase and maintenance cost, complexity, and lack of mobility among others, Kwami Ahiabenu says many small and micro businesses and businesses on the move such as plumbers, electricians, cleaners, etc cannot utilize the service.
“Millions of micro, small and medium-sized businesses globally cannot accept electronic payments,” he stated.
He is therefore advocating for the new POS system known as the Soft POS. The Soft POS, the technology innovations consultant says it’s a “mobile or software-based” solution that allows businesses to process payments using a smartphone or tablet without the need for a POS Card Reader or the traditional POS machine.
It uses a technology known as Near Field Communication (NFC) that allows devices like smartphones, and credit cards, to communicate with each other when brought in close proximity.
This technology, Kwami Ahiabenu says can help to expand the digital payment system to include small and micro businesses due to the numerous advantages.
“The key advantage of Soft POS systems is the ability to enable small businesses or mobile vendors to accept payments since they are cost-effective and easy to set up. Another important characteristic of soft POS is the ability for merchants to use existing hardware to process payments without the need to invest in the POS card reader which means greater flexibility and convenience for not only the merchants but the customers as well. Also, since soft POS does not require additional hardware, it is easy to set up and may not come with monthly POS card rental costs,” he added.
With the Soft POS, Kwami Ahiabenu believes the entry barriers to digital financial inclusion have been minimized since it is flexible, convenient, adaptable, and provides a better customer experience.
