How POS Systems Technology Has Evolved For Business

POS (Point of Sale) systems haven’t always been the all-encompassing retail sales solutions that they are today. Once, all retailers had to rely on was a simple cash register to account for customer transactions and track sales. The initial idea was to prevent employee theft and give retailers a way to manage their money better.

Now, the POS systems have developed to the point where they allow retailers to unify both their inventory management and sales systems to offer more value to customers and streamline internal processes.

The Humble Cash Register

 

James Ritty stumbled upon the idea for the cash register on a steamboat trip to Europe in 1878. A saloonkeeper, Ritty had grown irritated with his employees, who would consistently take money handed over by customers, leaving little left over to pay for inventory.

The solution came to him on that fateful trip, whereby a device that counted the number of times the ship’s propeller went around caught his eye. This triggered a realisation which would spark a desire to invent something similar to counting money – and more specifically, transactions at his saloon.

Upon his arrival back in Ohio, Ritty got to work on the world’s first cash register with his brother John, a mechanic. He then opened a factory to make these cash registers as a side hustle away from running the saloon but soon sold up his shares in the factory – unable to keep up with all his responsibilities.

To cut a long story short, the factory was turned into The National Cash Register Company by a handful of wealthy investors, and with that, we can say the very first POS system was born.

The First Electronic POS System

 

It wasn’t until the late 1900s, around a hundred years later, that POS systems developed beyond the cash register.

The introduction of the first ECR (Electronic Cash Register) into the marketplace represented an exciting moment for retailers around the world. Now, instead of relying on mechanical cash registers, shopkeepers could use a more advanced system that likely had a digital display, basic inventory management features, and sales reporting.

Before long, these ECRs would become synonymous with credit card processing, meaning customers could pay without cash for the first time, making the entire sales experience much more streamlined.

This was just the start, of course, but it would lay the groundwork for a largely cashless economy in the future, whereby it would be more common to pay with cards (and other technology) than cash.

The Rise of Computer-Based POS Systems

 

Electronic cash registers soon gave way to computer-based POS systems in the late 20th century. As technology evolved over time at accelerated rates, the jumps from one way of doing things to another became much more frequent.

The hundred years between cash registers and ECRs became more like ten years as we see the introduction of a modern computer-based POS solution.

What Was Different About Computer-Based POS?

 

For a start, they allowed retailers to track their inventory with every purchase and start to manage their customer data. With access to more advanced sales analytics, it became easier to personalise the shopping experience for customers and roll out loyalty programs for valued customers.

Computer-based POS systems also allowed for software integration, so retailers now had the option of merging their customer and sales data with solutions for:

• Accounting

• Inventory management

• CRM (customer relationship management)

And much more.

Modern Cloud-Based POS

 

The most recent jump for POS systems came in the 2000s when cloud technology was introduced into the mix.

With cloud-based POS systems, retailers can now offer real-time data access, scale seamlessly, and manage their inventory and data remotely. The presence of cloud computing allows businesses to handle all their online and offline sales in one place and keep abreast of all their business sales data in real-time.

For retailers, cloud technology allows them to roll out omnichannel retail strategies by combining the online eCommerce elements of stores and apps with in-person experiences.

For customers, it means the most seamless experience yet, as they can shop how they want, where they want, and see the types of products they want to see with personalised promotions.

As POS solutions continue to evolve, it’s hard to predict what is next on the cards for the modern-day checkout.

As we lean towards the cloud and continue to shop on an online high street, the future promises new levels of POS integration with ecommerce stores, data storage like never before, and unbreakable security for fuss-free purchases.