Point of Sale (POS)
A POS or Point of sale is a device that helps merchants process payments and record transactions in physical stores. You may have seen a POS device before - in your local store when you paid with your card at the cashier.
this device usually comes with other components - such as a barcode scanner, receipt printer, and a card reader.
In online stores, it's a checkout point to enter your personal and payment details or to select another online payment service.
Technology Behind POS
A key technology behind physical POS is Near Field Communication or NFC, which allows contactless payments to be performed. NFC is a wireless communication technology and it can connect two devices - such as your credit card and the POS terminal to exchange information. To do that you simply need to bring your card close enough to the device - usually, just a couple of inches are enough. The reader will receive your card details and will process your transaction.
The whole process takes just a couple of seconds. First, the client taps their credit card near the POS terminal. The NFC technology generates a small electromagnetic field, which powers up the chip in the card, enabling it to send the payment details to the terminal. The transfer of data is safe, as it always uses encryption.
The process is similar to mobile payments. When you hold your smartphone near the reader, the card details are transmitted. You usually need a digital wallet app - like Apple Pay or Google Pay, as well as a form of authentication - such as a fingerprint, facial recognition, or a passcode.
Benefits
Speed is one of the main advantages of contactless payments. It takes only a couple of seconds to transfer the data and it saves the need to carry cash at all. Not using cash is also convenient and safe - especially when making large purchases, and you need to carry a lot of money.
Paying with Your Phone on POS
One of the newer features of POS devices is the ability to accept mobile payments. This means customers can pay using their smartphones through systems like Apple Pay, Google Pay, or Samsung Pay. These payments use Near Field Communication (NFC) technology, which allows quick and secure transactions by tapping the phone on a contactless-enabled terminal.
You need an e-wallet mobile app first. For Android devices, you may want to use Google Pay, or Apple Pay for Apple devices. Samsung Pay is also a good option for Samsung devices.
Adding your credit or debit card to your e-wallet is the second step you need to make if you want to pay with your phone. Note that some banks or issuers can limit how their cards can be added to e-wallets. For example, some companies will only allow you to add their card from their mobile app.
Types of POS Devices
Traditional POS terminals - you may have seen them in large stores and restaurants. They have all the traditional elements, such as a barcode scanner or a receipt printer.
Mobile POS - these devices are small and portable and usually connect with another device - a smartphone, for example, to establish an internet connection. They can be found with taxi drivers or couriers