Everything You Should Know About Cloud-Based POS Systems

Cloud-based POS (point of sale) has grown since its inception. Many industries continue to adopt cloud technology, realizing its benefits and simplicity. Cloud POS systems are relatively new compared to traditional POS, where data was primarily stored locally.

In the past, merchants like retailers, restaurants or bar owners had dedicated immovable terminals for processing transactions and capturing customer data. These POS systems communicated with servers that were located on-premise, such as product sales, inventory, critical accounting info, etc.

Businesses would have to hire in-house IT professionals or outsource in order to manage, maintain, and secure their systems. This was the most viable option at the time but cloud POS solutions are changing the game.

Today cloud computing technology is more robust, sophisticated, and able to handle huge amounts of data simultaneously. They simplify day-to-day operations and help executives make better decisions.

What is a cloud-based POS?

Cloud POS is a web-based system used to process business transactions. They can be accessed from any internet-enabled device, assuming the right proprietary software is installed.

These POS systems live on data centers or computer servers that aren’t located on-premise. You don’t need to worry about maintenance, management, and security because all that responsibility falls to the POS provider.

Difference between cloud-based and traditional POS

No matter what stage you are at with your business, having the right POS system is crucial. That’s why it pays to know the true differences between both options. We’ll start with the old school.

On-premise POS

Sometimes referred to as legacy or traditional POS. This type of system resides on-premise and usually transfers data via a secure and closed communications network (or intranet). Think of it like storing information in your home or personal computer.

Cloud-based POS

As previously noted, they can be accessed from any Internet-enabled device. They’re web-based, extendable, and flexible by design. Some refer to them as mobile POS or mPOS. Think of it like storing data in real-time on a cloud storage service such as Dropbox.

Cloud POS system features and benefits

Cloud-based solutions have advantages over on-premise POS systems in several ways. Let’s take a look at each area.

1. Investment

Traditional POS solutions typically involve higher upfront cost and require additional maintenance or tech support fees. Service providers in this realm have to deploy IT experts to your establishment whenever there’s a problem. This is because their core software runs on-site. While fees are generally sensible, huge technical debacles can be extremely expensive to resolve.

A cloud-powered POS system doesn’t have these issues. They’re often cheaper since installation and setup on your machines doesn’t require the vendor’s assistance. Virtually anyone can set up a cloud system in minutes, eliminating any upfront cost. You only need a device (mobile or otherwise), install the software, and “voilà”, you’ve got yourself a POS system.

Cloud-based POS vendors use the SaaS (software as a service) model, which means you’ll pay an affordable yearly or monthly fee. In addition, most mPOS providers, like Arryved, will customize your plan, so it fits unique business requirements. For example, a large chain retailer with thousands of employees will need a different solution from a burrito restaurant that has two locations.

Other vendors, like Square, provide free cloud POS software and offer optional upgrades and add-ons for a fee. Free cloud POS providers understand that businesses start small before they become powerhouses. So enabling companies to transact at the early stages of business creates a steady and loyal flow of paying clients long-term.

2. Online and offline accessibility

Unlike traditional systems that can only be accessed via a given on-premise computer, cloud-based POS can be accessed from anywhere as long as there’s an Internet connection. This eliminates the need to be at your place of business whenever something is needed. You can track labor, and expense, and even pull reports.

3. Customize with integrations

While traditional POS systems can be expanded or customized, they generally require additional hardware or input devices. Cloud POS solutions, however, have a wider range of available integrations with fewer requirements for implementation.

Everything with regards to customizing the POS solution to suit operational and marketing needs is much easier. For example, cloud-based POS system(s) for restaurants can connect with third-party programs (e.g. tax, loyalty, and gift card software). Revel POS offers this capability and more right out the gate.

4. Reduce risk and increase reliability

There’s a much higher risk for data loss when using a traditional POS system. This is because your data is stored on-premise. All it takes is one person in IT forgetting to push the ‘ON’ switch for data backup and you may have a problem. So there’s the greater risk of losing data in a power outage or similar situation. Not to mention the high-risk for virus or malicious software infections affecting business outcomes.

Cloud POS solutions don’t have these issues. They are less susceptible to infections or malicious attacks since the core POS software is located externally. Vendors are responsible for setting up redundancy measures and are probably better equipped to do so. Even if your computer systems crashed company data remains safe.

With cloud solutions, back up your files on a daily, hourly, or even per minute basis. However, you should have other backup measures besides what your vendor provides to be thorough.

5. Tech support and maintenance

Cloud-based POS software vendors often offer 24/7 technical support. It’s practically a standard in the industry. Get real-time updates as they’re released. Download and install everything automatically. That means IT doesn’t have to visit your locations every time maintenance is required.

In fact, maintenance for cloud retail POS is remote, except for rare hardware issues. But even then, you can easily obtain another device or hardware from your vendor.

6. Dependencies

Cloud POS depends on the Internet for max utility but can also operate without it. So it’ll continue to store data even if your network were to ‘flatline’.

For example, Lightspeed allows your business to keep taking payments for orders without an Internet connection. Those transactions are stored locally and transferred once the Internet is back up. When choosing a POS system, it’s essential to use a vendor that offers offline functionality.

7. Hardware

Say ‘sayonara’ to giant or bulky equipment for good. There are virtually no limitations to the kind of computing device you can use with cloud retail POS. Feel free to use a laptop, tablet, smartphone, desktop or anything that is compatible with your POS solution.

Ideally, you want to have both mobile and desktop devices equipped with your POS software. This will better prepare you for emergencies. Portable mobile devices can function for hours without having to plug them in. So even if you decided to use a desktop computer, at the very least, have a couple of charged and POS-ready mobile devices as a backup.

Why companies choose cloud-based POS

• Data entry is more accurate since cloud POS systems don’t heavily rely on human input. This greatly reduces the possibility of making mistakes.
• Get remote access to important business decision-making info and the ability to process, including manage transactions from virtually anywhere.
• Better accessibility, easier tracking of inventory, and management of margins to increase profits.
• Automated system upgrades keep your technology current. That means you can focus on providing excellent service to customers.
• Data is consistent across your entire organization because change only has to be implemented at the administrative level. For example, cloud-based POS systems for restaurants usually allow you to add new menu items that instantly show up on all locations.
• Open new stores faster with reduced up-front cost since you don’t need expensive data centers.
• Optionally use your existing hardware if you don’t feel like tossing them out. Cloud-based solutions are normally compatible with old and modern devices.
• Remain in operation even if your network crashes. Cloud POS stores data locally prior to syncing or transmitting information to the cloud.

Get in the game now

Business technology is changing at a rapid pace and so are consumer expectations. Ensuring that your systems are current and able to handle the demands of customers is paramount.

Cloud-based POS systems drastically reduce cost, while simultaneously making sure your organization has the latest tech. From automatically updating your system to installing the latest virus identification and firewall software, you can’t go wrong with cloud POS.