What is a cloud-based POS and what are its benefits?

Most businesses have come to rely on a suite of hardware and software known as a point of sale system (POS). Much more than a simple cash register, a POS is the hub that not only helps to process a customer’s payment and finalize a sale, but also streamlines numerous business operations throughout the retail store. In recent years, the adoption of cloud technology has further revolutionized the POS universe, making it important for you as a savvy entrepreneur to understand on-premises vs cloud-based systems.

What is a traditional POS?

A conventional POS system is connected to a central computer, usually some sort of server that is found on the premises. Every aspect of the business operations, i.e. credit card processing, cash registers and terminals, receipt printers, and barcode scanners are linked to the hub computer either wirelessly or via cables.

What is a cloud-based POS?

By contrast, a cloud-based POS system networks with what is known as “the cloud.” This is a system of servers that is maintained by a third-party provider in an off-site location. The system uses the internet to gather and store information and affords numerous advantages over its locally-based predecessor.

Benefits of using a cloud-based POS system.

On the surface, these two systems may seem quite similar. After all, they both use a central computer as their base of operations. However, having your data stored off-site in the cloud brings with it several strong advantages for companies of all sizes. These include the following.

• Your company is relieved of many responsibilities. When a server is located on your premises, your business is solely responsible for maintaining the POS’s repairs, maintenance, updates, and security. This can take up a great deal of resources, both financial and in terms of work hours. Should there be a serious power outage or security breach, you will need to lean on your own IT staff to solve the problem and get you up and running as quickly as possible. On the other hand, when you use a cloud-based system, your third-party provider shoulders the entirety of this burden.
• Many serious risks can be reduced. These include business interruption, supply chain issues, failures of systems or technology, reputational or brand damage, and incidents of cybercrime, fraud, theft, and employee dishonesty.
• Increased flexibility. Thanks to its connectivity with the internet, your cloud-based system seamlessly synchronizes information across multiple stores and devices. The nature of this system also enables you to take your business on the road without losing access to data in real time. This suppleness helps to give you freedom to expand your offerings to a new set of customers without compromising on data security.
• Enhanced information management. When your POS is safely headquartered off your premises and operates via the cloud, it is easy to streamline sales, inventory, and customer data from multiple locations without the need for extra work on your part. As a result, you can build more personalized, targeted relationships with your valued customers that enhance their shopping experience and promote longevity and loyalty.
• Higher security. The multiple, ongoing backups and encryption found in the cloud help to keep your data safe from even the latest forms of security-related crimes. Best of all, you can rely on your third-party cloud-based POS provider to implement and update mechanisms for keeping your systems safe that you might not be able to afford on your own.
• Promotes an omnichannel experience for your customers. Having your data safely stored in the cloud helps to integrate buyers’ in-store and online shopping journeys. Frequently, customers browse your product offerings on their mobile phones or tablets first and then opt to come into your brick-and-mortar store to see and touch the merchandise for themselves. The cloud helps you to generate and maintain a consistent brand experience across all platforms.

You probably are well aware of the payment processing and operational advantages that a standard point of sale system already brings to your company. When you upgrade to a cloud-based option, you will continue to enjoy all of these advantages as well as increased flexibility, information management, data security, and omnichannel synchronization. The cloud saves you time while optimizing numerous aspects of your systems and security profile. Isn’t it time you took your store to the next level by upgrading to a cloud-based POS system today?