What is POS

What is POS? (Point Of Sale)

Learn about POS with Arjun Rampal
EMI: Liya Hai To Chukana Padega- 2008

Movie Case Study

The scene shows Ryan Braganza (played by Arjun Rampal) paying money through a POS terminal. In this blog, Learning Perspectives will explore the meaning of POS or point of sale.

What is POS?

POS terminals can also be referred to as a point of purchase for customers. These terminals facilitate payments for the customer easily. Similar to the scene that you saw, Ryan easily paid for the jewelry he purchased through his card.

A POS system is the software and hardware that a shop, restaurant, or other business like institutes, hospitals, or education centers needs to run their business. From ordering and managing inventory to processing transactions to managing customers and staff, the point of sale is the central hub that keeps a business running.

POS system helps shopkeepers to maintain their businesses as card payments are preferred. These card machines read the magnetic strips on the card to help conduct the payment transactions. A POS system helps to track inventory, customers, and sales over a period of time.

How do transactions happen through POS?

There are various ways through which transactions are conducted with POS. Debit & credit cards are the most common ways through which payment is facilitated. A customer walks into a store, purchases a product, and decides to pay through a debit card. He swipes or taps the card on the machine. The software available in the hardware reads the magnetic strip on the card. This informs of the sufficient balance availability. Money is transferred to the merchant and the transaction is completed in minutes. The shopkeeper prints two receipts, one for the customer, and the other for himself. One is signed by the customer that helps the shopkeeper later to tally the amount he received in his business. Receipts serve as proof of payment made.

What is POS

Example of POS

E-commerce companies can leverage point-of-sale systems to make money through online transactions. E-commerce companies such as Amazon, Myntra, Flipkart and others have used this facility for a long time now. Examples of POS systems include Shopify POS, square POS, lightspeed POS, etc.

Understand POS with a Video

Understand POS with this video


POS system also helps in customer retention through communication. An e-commerce site or a shopkeeper has the option to reach out to customers for after-sale service. Customers can also opt-in for marketing communications through the platform. This enables companies to build & retain clients on a long-term basis.

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