In the rapidly changing digital payments environment of the present times, companies are in continuous pursuit of cost-effective and efficient means of accepting payments easily. Two of the most trending payment solutions that have gained traction are mPOS (mobile point-of-sale) and SoftPOS (software point-of-sale). Both solutions provide companies with flexibility, mobility, and increased customer convenience, yet they vary in terms of functionality, price, and application. If you’re considering which solution is ideal for your company, this blog will assist you in understanding the main differences between mPOS and SoftPOS, as well as their benefits and uses.

What is mPOS?

mPOS (mobile point-of-sale) is an on-the-go payment processing solution that enables companies to take card payments via a mobile device (smartphone or tablet) combined with a card reader. mPOS solutions operate using a specialized app and are connected to the card reader via Bluetooth or USB.

Key Features of mPOS:

• Needs a physical card reader to process the transaction.
• Handles chip-and-PIN, contactless, and magnetic stripe payments.
• Operates through Bluetooth or wired connection to a smartphone or tablet.
• Offers real-time transaction monitoring and reporting.
• Tends to integrate with existing POS systems for sales and inventory management.

Benefits of mPOS:

• Portability: Suitable for small businesses, food trucks, retail shops, and field sales personnel.
• Cost-Effective: Less expensive than conventional POS systems.
• Security: Offers encrypted transactions and PCI compliance.
• Offline Capability: Some mPOS solutions can handle transactions even in the absence of an active internet connection.

Limitations of mPOS:

• It Needs another hardware device like a card reader.
• Certain solutions have greater transaction fees than standard POS solutions.
• There are connectivity problems in situations with poor Bluetooth or internet connections.

What is SoftPOS?

SoftPOS (Software POS) is a revolutionary payment system that turns any NFC-capable smartphone or tablet into a contactless payment terminal.

Main Features of SoftPOS:

• No extra hardware is needed, just a smartphone with NFC technology.
• Accepts contactless card payments and digital wallets (Google Pay, Apple Pay, etc.).
• Offers end-to-end encryption for safe transactions.
• Operates on any Android or iOS device with an NFC capability.
• Provides smooth integration with business applications for improved sales tracking and reporting.

Benefits of SoftPOS:

• No hardware expense: Saves cost by removing the requirement of card readers.
• Simple setup: Download the application and begin accepting payments immediately.
• Scalable and adaptable: Suitable for businesses of any size.
• Supports digital wallets: Compatible with Google Pay, Apple Pay, and contactless debit/credit cards.
• Improved security: PCI DSS compliant, providing encrypted and safe transactions.

Limitations of SoftPOS:

• Incompatible with chip-and-PIN or magnetic stripe payments.
• Needs an NFC-enabled smartphone or tablet.
• Requires an internet connection to process transactions.

mPOS vs. SoftPOS: Key Differences

• mPOS needs a hardware card reader for payment processing, whereas SoftPOS does away with hardware requirements since it enables the use of NFC-capable smartphones or tablets for contactless transactions. 
• mPOS can handle more than one form of payment such as chip-and-PIN, contactless, and magnetic stripe, while SoftPOS can handle only NFC-based contactless transactions. 
• mPOS setup requires a pairing of a separate card reader with an application, whereas SoftPOS setup merely involves downloading an application on an NFC-capable device. 
• With regard to pricing, mPOS has upfront hardware charges and processing fees for transactions, while SoftPOS provides a cost-effective solution with no hardware charge.
• Both provide secure transactions by being PCI compliant and encrypting transactions. mPOS is suited for retail shops, food vans, and small enterprises, while SoftPOS is suitable for freelancers, service providers, and large organizations.

Which Payment Solution is Best for Your Business?

Select mPOS if: 

• You require a flexible payment solution with support for chip-and-PIN, contactless, and magnetic stripe transactions.
• Your business is in-store or on-the-go (e.g., food trucks, mobile vendors, small retailers).
• You require offline functionality for payment processing independent of the internet.

Select SoftPOS if:

• You want a cost-effective, hardware-less solution.
• Your business mainly handles contactless payments through NFC.
• You require a scalable solution for large corporations, freelancers, or service businesses.

The Future of Digital Payments with Zahabi

As payment solutions go digital, companies need to evolve to remain competitive. Whether you opt for mPOS or SoftPOS, having a trusted payment processing solution integrated is essential to improve customer experience and simplify transactions.

At Zahabi, we offer innovative payment solutions that suit businesses of every size. Our experience in mPOS and SoftPOS technology provides secure, quick, and efficient payment processing customized to your requirements.

Conclusion

MPOS and SoftPOS both have certain benefits based on your business requirement. At Zahabi, we assist companies in making a seamless shift to contemporary digital payment systems. Whether you require mPOS or SoftPOS, we have the ideal solution for you. Get in touch with us today to discover the best payment processing solutions for your company!