What are the challenges faced by retailers in the point-of-sale (POS) terminals?

Author : kumar shrey | Published On : 17 Jan 2024

Point-of-sale terminals permit retailers to maintain better track of sales, orders, and transactions, which decreases the stress caused by undertaking organizational tasks utilizing legacy systems and manual paper and pen solutions.

 

The promising development possibilities of the market are supported by the rapid change of retail businesses and customers toward online sales transactions. Retailers are rapidly changing to modern point-of-sales systems as customers require more efficient and quick payment options, particularly when shopping in bulk. Developed systems allow retailers to manage several client payments in less time. In addition to this, according to the research report of Astute Analytica, the global retail point-of-sale (POS) terminals market is growing at a compound annual growth rate (CAGR) of 8.6% during the forecast period from 2022 to 2030.

The challenges faced by retailers in POS terminals are: –

Cybersecurity Risks

Socially engineered cyberattacks are a major threat to small- and medium-sized enterprises (SMEs) and startups. Unprepared employees can be tricked into giving up essential information by fast-talking con artists or email fraudsters. If they give up bank information or credit card numbers, it could not only cause damage to the customers but also forever damage the reputation of the business. As far as POS systems go, it is important to utilize best practices that protect the data security of the customer. Both offline and online card reader systems should comply with the Payment Card Industry Data Security Standard (PCI-DSS) and be sourced from respected POS vendors and financial institutions.

Different Payment Preferences

Digital payments have become increasingly diverse across the world. Notably, a rising number of people are now depending upon QR code payment technology to promote secure contactless transfers from their bank accounts and wallets. POS systems that have not changed to the current digital payment landscape encounter frequent slowdowns and roadblocks, usually leading to lost sales and poor customer experiences.

 POS Hardware That is not Mobile

Prior generation POS systems were normally static and could only function at a set location. While this is not always a concern, business has become more active in the past several years. In the age of social media and smartphones, people may want to be capable of quickly setting up trade shows or pop-up events to capitalize on transforming consumer trends and engage with a wider audience.

User Interface and Hardware Challenges

POS terminals or systems are a lucrative business, and people find all sorts of answers on the market. While there are a lot of right choices, many solutions feature overly complicated user interfaces that lack training aid. The hardware bundled with these systems can be hit-or-miss as well, with special maintenance conditions or compatibility problems that could put the sales operations at stake.

Unsatisfactory Customer Experiences

Retailers should also be specifically mindful of the totality of the experience they present to their customers. Doing nothing to improve slow queues or leaving them confused with all kinds of distractions may lead to negative experiences that will turn people off forever. If they add unknowledgeable or rude staff to the mix, they may soon discover most of the customers taking their business elsewhere.