Point-of-Sale Software Development: 2024 Guide for POS System Vendors

Dive into the technical world of the Point of Sale (POS) development process. Discover key features of POS, top challenges, trends, and real case studies. Explore the guide about custom POS development based on our over a decade of experience in building, scaling, and modernizing POS systems for hospitality and retail.

Point of sale system definition

A Point-of-Sale (POS) system is a combination of hardware and software that facilitates sales transactions and manages business operations in retail, hospitality, and other industries. It includes devices like thermal printers, POS terminals, desktop and mobile POS systems, enabling businesses to process payments, track inventory, and manage orders.

POS system development can be tailored to meet specific needs such as supporting old desktop hardware which may be still used by end users, especially in hospitality. Point-of-sale software’s main functionality is ensuring a smooth connection between hardware and software components.

Key features to include in modern POS software development

POS systems are versatile solutions that consist of dozens of features, additional applications, and POS hardware, forming the technological backbone for managing client orders in restaurants, hotels, and retail settings.

Examples of must-have features in a POS System

• Inventory Management: Track stock levels, reduce waste, and reorder automatically.
• Integrations: Connect with POS hardware (printers, card readers) and third-party services.
• Z-Report and X-Report: Essential for daily financial summaries and cash register audits.
• Check-in/Check-out: Manage employee time tracking efficiently.
• Payment Processing: Accept various payment types.
• Order Management: Handle bundles, variants, and customizations.
• Table Management: Organize seating with a visual floor plan.
• Digital Ordering: Enable online orders.
• Payment Split: Allow customers to split payments.
• Notes for Kitchen: Special instructions for orders.
• Reporting & Analytics: Real-time data for business insights.

Extra POS solution features for POS application differentiation

• Dark Kitchen: Support for off-site kitchens.
• Splitting the Bill: Divide the bill between guests.
• Kitchen Display System: Digital kitchen orders.
• Kiosk Integration: Self-service options.
• Offline Mode: Operate without internet and sync the POS system’s data as soon as the internet connection is restored.
• Cloud-Based POS: Access from anywhere.
• Delivery Management: Manage deliveries efficiently.
• Order Sync with Marketplaces: Orders from delivery platforms are available on a single POS device.
• Caller ID: Recognize repeat customers.

Developing a POS: cloud POS or on-premise POS

Cloud POS and on-premise POS systems differ in their infrastructure and setup. A cloud POS operates through the internet, offering flexibility, remote access, and automatic updates. It’s easier to scale but requires a reliable internet connection which can be an issue in restaurant or hotel environments.

On the other hand, traditional POS involves hosting software and hardware locally, which gives businesses more control but requires regular maintenance and higher costs.

When you build a POS system, consider business needs: cloud POS excels in flexibility and usually lower costs, while on-premise POS offers better control and offline POS capabilities.

Types of integrations with point of sale software

A key aspect of a Point of Sale (POS) system is its ability to reliably integrate with various devices and multiple third-party providers. Let’s dive into the types of POS integrations:

POS solution and hardware integrations

Check out the examples of retail devices that are part of a POS system, ranging from POS desktops, terminals, and kiosks to printers. Printers, in particular, can often present the most technical challenges.

Modern POS systems should integrate with printers wirelessly and reliably. This means that if one printer fails to print a receipt, the POS system should automatically switch to a backup printer. Be aware of common technical challenges when integrating POS systems with retail devices, especially printers.

POS and payment provider integrations

From choosing the right providers to handling the payment process, and managing daily communication with payment partners, POS providers face many challenges.

If you are at the stage of choosing a payment provider, consider answering these key questions which will help you build a well-thought-out payment solution offering a high number of payment methods.

The most popular payment global providers are Stripe, Square, and Adyen.

POS and food delivery applications integration

The most popular third-party food delivery providers include Uber Eats, Wolt, Just Eat (or local representatives like Lieferando) or Deliveroo.

Restaurant owners are aware of the pros and cons of food delivery integrations. Technology can help minimize the drawbacks more than you might think:

Pros:

• a vital client acquisition channel;
• support for delivery if the restaurant lacks in-house drivers.

Cons:

• high fees associated with client acquisition and delivery services;

Tech solution: A custom point of sale that offers a white-label solution enables restaurants to build their own digital ordering website, reducing the high costs associated with third-party delivery platforms.

Additionally, having a POS with an integrated delivery drivers app allows restaurant owners to manage their food delivery in-house if they choose to, offering greater control and cost savings over outsourced delivery services.

• too many devices for staff to manage;

Tech solution: custom POS and food delivery providers integration transferring orders from external providers into one POS device.

• restaurant menu discrepancies across platforms.

Tech solution: a proper integration with food delivery apps can sync changes from the main POS to all platforms, reducing errors and saving time.

Integration with printers (and other POS hardware)

Issues with printers are one of the most frustrating tech problems for POS end users — busy waitstaff or hotel staff can’t afford delays caused by printers that fail to print receipts or invoices. Therefore, POS development teams often face many challenges in ensuring smooth and reliable printer integration.

Explore the various challenges our POS development team encountered while integrating printers with a POS system to provide seamless operations.

Emerging trends in POS application development: what to expect in 2025 and beyond

Explore POS solution development trends.

QR code ordering supports busy staff by allowing customers to place orders and pay directly, which reduces wait times.

The continuous rise of QR code ordering as a response to restaurant staff shortages

Although QR codes shouldn’t replace staff initially — clients should still be able to discuss the order with waitstaff, using QR codes for payment can alleviate pressure on staff during peak hours, improving overall efficiency and customer experience.

Transiting from paper kitchen receipts to Kitchen Display Systems (KDS)

While many establishments still rely on old-fashioned paper methods, KDS offers a more efficient, modern solution. It streamlines order management, reducing mistakes and speeding up service. Orders can be tracked and modified in real-time, improving communication between the kitchen and front-of-house staff. This shift not only cuts down on paper waste but also enhances overall workflow and accuracy in busy kitchens, optimizing food delivery time.

Check out an actual case study of Kitchen Display System and how it changed restaurant operations in the UK and Israel.

Hardware decluttering of restaurant, retail, and hotel counters

The fact that modern point-of-sale software is connected to many devices is both a benefit and a challenge in some cases. For example, taking care of multiple devices provided by different food delivery parties brings more responsibility to already busy waitstaff.

Building a custom point of sale allows all orders, whether from in-house dining, phone orders, delivery apps, or a white-label application, to be transferred into a single POS system. This means waitstaff can view and manage all orders on one device, aligning with the growing trend in POS implementation aimed at eliminating the unnecessary POS devices often provided by third-party systems such as Just Eat, Uber Eats or Deliveroo.

Using AI for analytics and inventory management

With AI, restaurants can track customer preferences, predict demand, and optimize stock levels to reduce waste. AI-powered analytics allow businesses to make data-driven decisions about menu offerings, pricing, loyalty programs, and staffing, improving overall efficiency and customer experience. In inventory management, AI helps monitor stock in real-time, quickly informing about the need for ingredients reorder.

How to build a POS system that complies with local and international regulations

As a POS vendor, your POS functions have to be adjusted to local regulations and tax rules. Here are a couple of compliance issues your software engineering team has to be aware of.

Compliance with GDPR in custom POS development

When developing a POS system, it’s critical to ensure GDPR compliance, particularly in how customer data is collected, stored, and processed. This includes securing consent for data collection, ensuring data encryption, and providing customers with the ability to request data deletion.

Compliance with PCI DSS for payment processing

To protect sensitive payment information, your POS system must comply with the PCI Data Security Standard (PCI DSS). This involves implementing data obfuscation techniques, two-fold protection of cardholder data, encryption of transmitted data, and the creation and maintenance of access logs.

Check how to get access to POS data to optimize your payment solutions at the same adhering to security regulations. Our POS application development team faced that challenge while building the bill split feature.

Adherence to local tax law

Your POS system must integrate with local tax rules, including calculating the correct sales tax and generating tax-compliant receipts. This may involve adapting the software to meet region-specific tax regulations, such as VAT or GST, and keeping up with changes in local tax laws to ensure ongoing compliance.

One example of adapting to tax rule changes is when our team implemented an amendment to the VAT law in Israel, which directly impacted invoice generation. We adjusted the restaurant invoice generation software to comply with these updates by modifying the information included in the invoices. Check out the case study to learn more about it!

The Role of UX/UI in Building Intuitive custom POS Software

From understanding the specific needs of POS system users to integrating UI/UX solutions that address their pain points, product design teams must follow this path when working on point-of-sale systems.

One critical feature requiring extra attention is payment processing. To ensure a smooth experience, it’s essential to implement must-have UX/UI practices, such as:

• informative animations;
• iconography with labels;
• button hierarchy.

Read more about designing payment in POS and check the designs for inspiration!

Do you want to build your own POS system?

As a POS software development company we have been creating cutting-edge POS solutions for over a decade. Contact our POS developers team to discuss cost-effective POS.

By Piotr Mionskowski and Izabela Pawlik from Bright Inventions, a POS software development company that has built, scaled, and modernized POS systems since 2012.

Originally published at https://brightinventions.pl on October 16, 2024.