A point-of-sale (POS) system is an invaluable business tool that has replaced the traditional cash register with constantly evolving, tech-driven solutions. POS systems do more than ring up sales. Most can track inventory across multiple sales channels and store locations, handle employee schedules and clock-ins, generate reports, and collect data for business intelligence and personalized service. Below, we look at the latest POS trends and how they impact the future of POS and small businesses everywhere.
1. Artificial Intelligence & Machine Learning
The use of artificial intelligence (AI) and machine learning systems in retail is not new; these technologies are already used for back-end functions like report generation and demand forecasting, supply chain streamlining, inventory and pricing optimization, and more.
However, these tools are also becoming more prominent in a customer-facing capacity within POS systems. AI can help you:
- Craft personalized experiences for specific customers, including tailor-made product offers and recommendations
- Design custom marketing campaigns for specific demographics
- Offer innovative experiences like virtual reality (VR) in retail
- Detect and incorporate buyer preferences and trends
- Speed up checkout times and minimize errors or miscommunication (especially when combined with self-service kiosks)
- Automate certain tasks for your staff and help reduce bottlenecks
Example: Some restaurants have begun using AI tools that can learn what food and beverages regular customers like, or that can make suggestions to customers who aren’t sure what to order. As far back as 2019, Starbucks was using AI in the form of the “Deep Brew” engine that gathered customer data and made personalized recommendations for products and marketing campaigns.
Learn more in our ultimate guide to AI in retail.
2. Headless POS Architecture
In the context of software systems, headless architecture refers to a system in which there is a deliberate decoupling of the front end and the back end. For example, a POS system could have its user interface (front end) separate from its back office functions, such as data and inventory management.
The advantage of headless POS architecture is that it allows you to customize and modify your front end to whatever makes the most sense for your business while keeping your back-end functions (reports, analytics, customer tracking, etc.) stable and familiar.
Headless architecture works particularly well for ecommerce selling or any multichannel sales because the architecture lets businesses customize channels and touchpoints according to what keeps customers most engaged—without having to change anything on the back end. This flexibility also makes headless architecture great for testing different marketing methods and tracking their performance. However, you do need to be tech-savvy to reap the maximum benefits from headless architecture.
Example: Nike began using a headless approach to beef up its personalization and mobile-focused online selling. The company started optimizing visual elements for mobile users, to improve ecommerce performance overall. This strategy was a great success, boosting Nike’s market share and letting it surge past competitors.
3. Sustainable POS Systems
Working with environmental sustainability and longevity in mind is good business sense. Customers are more likely to buy from a brand that cares about the environment, and being able to say that your business does so (and back it up) is good marketing as well.
Software systems (and POS systems in particular) are moving in this direction with features like paperless transactions and digital receipts. This is especially applicable to ecommerce transactions, which any modern POS system should be able to process.
Sustainable POS technology can look like:
- Paperless transactions and digital receipts: Less paper usage, including paper used for receipts, means less waste and less consumption of resources.
- Cloud POS systems: Many modern POS systems are cloud-based, meaning that you can access the tools and functionality from any location. This reduces the need for local servers and also lets you hire staff who work remotely, both of which lead to less resource consumption and less pollution.
- Digital inventory management: If you have a cloud POS system, you probably also have digital inventory management. Your POS system will track and update your inventory in real time, eliminating the need for paper-based tracking. This is better for the environment and also reduces the chance of inventory errors that could cost your business time and money.
Example: POS systems like Square, Toast, and Shopify are cloud systems that minimize paper usage and let you manage inventory online, across multiple sales channels. Read our Square POS review, Toast review, and Shopify POS review.
Check out the following guides for more information about POS systems, hardware, and inventory management:
4. POS Data Analytics
Most consumers are willing to give businesses information on their purchase history, preferences, and personal details if it means the checkout experience is easier and they get relevant offers. But POS data is valuable for more than just getting to know your customers and their communication preferences. POS data can also reveal information about your business’ staff, products, store layout, foot traffic, and returns rate, as well as other retail metrics that you can review and adjust to maximize your profits.
POS systems track which inventory is selling and which items are less popular with your customers. Likewise, POS data provides insight into seasonal trends and makes it possible to increase margins based on pricing data. This makes it easier for businesses to optimize retail data analytics and drive sales.
Many POS systems have add-ons or integrations that also provide data for making better business decisions:
- Payment processors: The best payment processing services include reports on your credit card sales, helping you track trends like declined transactions, returns, and more.
- Customer surveys: Many POS systems let you add a link to a receipt for customer feedback, sometimes with a reward of a free drink or discount.
- Time tracking and scheduling: This is especially useful for restaurants, but good for any shift-driven business. When your time-tracking software integrates with your POS system (or is included, like with Lightspeed POS), you can see labor vs profits or sales volume to generate the most efficient schedules.
- Payroll software: Your payroll software can give you insight into your labor costs with data like which employees make the most sales, generate the biggest tips, or perform job costing to help you determine the best use of resources. Square, for example, offers payroll services that seamlessly integrate with its POS software.
- Foot counters: Integrating foot counters like Dor into your POS can help you track how many customers you have or when your peak hours are, and give you a basis for understanding conversion rates. KORONA POS software includes foot traffic reports and analysis, helping you optimize staffing and business hours.
Discover how to drive sales using retail analytics and POS data analysis.
5. Personalized In-store Shopping Experiences
Retail Consulting Partners found that personalization was a top priority for only 54% of retailers in 2023, taking a back seat to optimizing store fulfillment for digital sales. Still, personalization ranked higher than most other business goals, such as marketing improvements and new fulfillment options, and remains something that customers both appreciate and expect.
The POS industry is addressing these challenges head-on, as it makes personalization easier and more accessible to small businesses at scale. In fact, Virtue Market Research reports that the global personalization software market was at a value of $1.16 billion in 2024, and is expected to grow to $5.14 billion by the end of 2030.
Having a POS that provides personalized shopping experiences is important because:
- Shoppers expect it: Consumers not only benefit from personalized experiences but have come to expect them too; they tend to become frustrated and unsatisfied without these experiences. They know the technology is out there, and they know their data is as well. Now shoppers are demanding they benefit from this information-sharing.
- Customers are willing to share data: To get the personalized recommendations they want, many customers are willing to share their data in exchange for a number of benefits. Of those surveyed, 33% would share personal information to get deals or discounts and 18% would share their personal data for access to exclusive products or perks. Perceived value is slightly lower for whether the product is trusted by experts (13%) or how innovative it is (10%).
- You can increase your prices: Better experiences mean you can charge higher prices, which ultimately increases profit margins. In fact, 59% of customers said that they would pay more if they were guaranteed a great customer service experience, according to the 2024 Achieving Customer Amazement study. Fifty-one percent said that service is more important than price and 70% were willing to pay more for increased convenience.
POS software captures valuable information with every transaction, so you can build customer profiles that help you learn more about your clientele. Over time, you can personalize automated campaigns through your POS, enabling your associates to access customer profiles at checkout or on a mobile POS (mPOS).
Check out the different kinds of shopper profiles and how to market to them.
6. Self-checkout
Self-service kiosks have made their way to restaurants and retailers of all sizes. As the labor shortage of 2021 continued into 2022, restaurants started self-service kiosks to compensate. And business demand for self-checkout tech and tools is likely to keep growing, with a projected industry value of $9.74 billion by 2029.
Self-checkout isn’t just for grocery stores anymore. Retailers of all kinds and sizes can implement the POS technology trend into their business. Some POS systems offer mobile self-checkout, often with the use of QR codes and a companion mobile app.
As a bonus, self-service kiosks may result in people ordering more. On average, restaurant customers who order via kiosks have check sizes that are 20% higher than cashier transactions, mainly due to the increased personalization.
7. Untethered POS Systems
In the traditional retail environment, transactions happen at one location: the checkout counter or cash wrap. But with modern POS systems, you’re no longer tethered to the counter. Associates armed with handheld devices can meander about the store, interact with customers, look up items, and complete sales on the spot.
You need not even be confined to your store location; mPOS systems let you take orders at trade shows, pop-ups, or curbside, while keeping sales and inventory data synced with your main store. Worldwide mPOS transaction value is projected to hit $6.11 trillion by 2028.
And it doesn’t stop there. Mobile POS systems and online sales allow customers to order for delivery, or order and pick up in-store—everything from restaurant meals to luxury items and even cars. Total click-and-collect retail sales in the US reached over $132 billion in 2024 as more and more buyers gravitated towards this method, and the trend is expected to continue beyond 2025 as customers grow accustomed to the convenience.
There are expected to be over 101 million mPOS users in the US by 2028. And, the average per-user mobile transaction value is expected to exceed $4,000 in 2025, signaling the continued—and increasing—prevalence of untethered shopping.
See the best mPOS solutions on the market.
8. Alternative Payment Methods
As of 2023, digital wallets accounted for around 37% of all payments and were the most popular method of payment in the US, according to Worldpay data. Credit card payments came next at 32% and cash on delivery was bottom of the barrel at just 1%.
While credit and debit cards remain popular, usage is expected to decrease gradually as consumers access ever-expanding payment options:
- Mobile/Contactless payments: Digital/mobile wallets are becoming increasingly popular. Digital wallet transactions are projected to grow by 15% between 2023 and 2027, per Statista. These payment options include Google Wallet, Apple Pay, PayPal, Venmo, CashApp, and other apps and services.
- Amazon Pay: While launched in 2007, Amazon Pay has grown in popularity with more than 5 million merchants and the Amazon Business B2B Shopping app.
- Buy now, pay later (BNPL): Credit cards compete with BNPL services like Klarna, Clearpay, and Laybuy, which lets consumers purchase and pay in installments, often with no interest. As reported by Euronews, Juniper Research predicts that by 2026, BNPL spending will reach $995 billion.
- Installment payments: Even without BNPL services, you can use a POS with installment payment options. This is particularly ideal for consumers who don’t have traditional credit options, so offering these payment plans can improve conversions, average order size, and retention rate.
- Saved payments: For returning customers, you can use your POS to securely store their payment information for a more seamless checkout experience—encouraging repeat purchases and increasing customer satisfaction.
- Bill splitting: Especially handy in the restaurant environment, bill splitting gives customers the option to pay for a single ticket with multiple payment methods.
- Gift cards: Gift cards are expected to grow by 17.7% from 2023 to 2032. They’re not limited to physical cards, either. Shopify POS, for example, has an omnichannel gift card experience—cards purchased online can be used for in-store purchases and vice versa.
- Loyalty and rewards programs: Customer loyalty programs encourage repeat purchases and increase customer lifetime value by offering incentives for customer retention. Learn more in our section below on integrated customer loyalty programs.
- Cryptocurrency: Major financial organizations like PayPal, Visa, and Mastercard have started accepting cryptocurrency, which can be a viable form of payment if you’re willing to accept it.
Related:
When you accommodate additional payment methods with a flexible, tech-forward POS, you can accommodate more customers—and encourage more sales in turn.
9. Upgraded In-store Technology Overall
The POS systems themselves aren’t the only areas getting tech upgrades. Retailers need to look at other infrastructure to ensure they can power and support the POS technology they plan to use.
Forty-six percent of retail respondents in a 2023 survey said that replacing or upgrading their POS software was a top concern. When it comes to mPOS, 43% of restaurants planned to make the implementation of this technology a priority for 2023, according to Hospitality Technology research. As businesses look to keep their POS systems up-to-date, it’s even more important to ensure all other tech is upgraded accordingly.
Although an offline mode is an important feature to look for when choosing a new POS, it’s still crucial to consider internet and bandwidth. Retailers that don’t have strong internet already may need to invest in setting up WiFi networks for their stores so employees can use cloud-based and/or mobile POS technologies.
Read more about POS systems:
Frequently Asked Questions (FAQs)
Click on the most common questions about POS trends and the future of POS below to learn more.
Modern POS systems are software solutions for businesses that offer various functions like sales processing, customer management, inventory tracking, and many other front and back-end tools. These systems are the modern version of cash registers of the past, which could perform fewer functions.
Prominent changes and technologies for POS systems include artificial intelligence, personalization, mobile selling, and alternative payment methods. The overall trend is moving towards greater customization and convenience for each customer.
Future POS systems will probably be highly personalized to maximize convenience and high-quality service for buyers; these are experiences that customers value and are often willing to pay extra for. As an entrepreneur, consider investing in market research to figure out what specific experiences your customers want, and then incorporate these into your POS system.
Bottom Line
Point-of-sale systems have come a long way since they were first introduced a few decades ago. Now, they’re more than just a way to take payments and make sales—modern POS trends have added features and capabilities that turn each system into a virtual command center for your entire business. With increased mobility, data analysis, and security, POS technologies are becoming an integral part of every retail business.
If your business could benefit from the increased flexibility and insight current POS technology provides, read our guide on the best POS systems for small businesses to find a solution to match your business needs.
