POS software development: How to Build a Scalable and Secure POS Solution

POS software development and modernization are among the main directions of the Artkai team. Dozens of companies turn to us with various challenges regarding POS systems. We deliver solutions that are fully adapted to business goals and requirements of companies, and also satisfy evolving customers' needs. 

One of our recent cases of successful POS development is the solution we built for DNA Payments. It was a unique solution helping to manage POS systems and transactions effectively. We’ll talk about it in detail in this guide that is designed to help you develop a POS product that will be a perfect fit for your business. We will also tell you about all the features you should pay attention to when developing POS software and point out what trends and functionalities can make your POS system successful.

POS System Development: A Step-by-Step Approach

POS software development is a complex process that requires a deep understanding of technical aspects, long-term development strategy, and business needs. We have prepared a complete guide on how developing a custom POS system will meet the requirements and successfully bring profit and scale. 

Therefore, if your company's primary vector is custom POS software development, it is worth considering all the specificities of this process, including building a fully-fledged roadmap that will provide a systematic vision to outline the main goals and objectives of the project and include the main technical requirements for the POS software development company that will directly handle the project. 

Another critical factor is determining the type of POS system you might want to build for your business. Of course, this can be a mobile or cloud solution or a stationary system for a physical enterprise. But whatever type of POS you are building, you need to know where to start and how to arrange everything. 

So, further in our guide, we will shed light on the POS software development process.

Discovery

The discovery stage is critical for gathering all the necessary information, building business goals, structuring their effectiveness, and meeting the target audience's needs. That is why a reliable POS system must be based on building fundamental components. The effectiveness of the POS system is determined by collecting requirements based on customer expectations, current needs, and business strategy. Let's look closer at the importance of competitor analysis, which aims to identify the strengths and weaknesses of existing solutions on the market among POS systems. Also, in the competitor analysis process, you can understand industry standards and avoid duplication of existing functions, thereby developing a more competitive POS system.

For software development, at this stage, the following are worked out:

The result of the discovery is precise requirements with a set of deliverable documentation:

Design 

Completing the discovery step means the design team can now work on the visual elements of the POS system and their adaptability across devices. You need to understand that the design should be intuitive for employees and not require long-term training in terminal POS and the retail industry process in general. 

Depending on the hardware and software components, user interfaces will also differ, whether it is mPOS, Cloud POS, or Terminal POS. The design team also works out user scenarios and roles, which is especially important for large enterprises. User roles in the context of POS solutions can be as diverse as those of an administrator, sales manager, etc. 

In a well-designed POS system, interfaces should be user-friendly for each user role, especially when it comes to sales, HR management tasks, and customer interaction. This can avoid most of the errors associated with daily operations. 

Therefore, only after that, you can proceed to the approval of the general appearance of the POS solution, which will include the following: 

The design should be adaptable to different devices and intuitive to minimize errors when performing standard operations in POS systems. The documentation is prepared for developers, describing the above points and the logic of the element interaction.

Architecting 

For this step to be successful and qualitative for both parties, several questions should be determined: 

At this stage, it is worth simultaneously focusing on customer and critical data security. To do this, you should follow some crucial standards: 

It is worth noting that the choice of hosting type is also essential, such as a local server or a cloud environment for a POS solution. 

Also, for the results of POS software development to bring commercial success, it is vital to determine the architectural approach to POS software development, which will determine the speed and flexibility of the work in the future. 

For example, a monolithic architecture with simple logic may be more relevant for small POS systems. However, the disadvantage of this approach may be the complexity of working with updates. Microservice architecture focuses on separating individual services, such as payments, inventory management, loyalty programs, and more, which will improve scalability. 

Business logic for POS system development is also crucial at this stage for: 

Development

Whether your technical team is working on a multi-faceted POS system or just an MVP, the development phase covers essential details we will analyze. Also, note that if you are planning a cloud solution for your POS system, you need to provide support for offline mode with at least basic functionality such as saving transactions, local data backup, and support for offline operation. 

It is worth determining in advance the functionality of the POS software that will be implemented at each stage. This is necessary regardless of the chosen approach because the balance between business needs and further expansion directly depends on the system's stable operation. 

At the same time, the effectiveness of your POS software will be determined by several factors, such as compatibility with bank terminals, check printers and cash registers, CRM and ERP systems, and QR and barcode scanners. 

However, we also consider that the POS system must operate stably in a single technological environment where all devices and services interact correctly. This is because the ease of use, company profits, and development processes will depend on how well the POS systems are integrated with platforms. 

Specific scenarios regulate the practical side of using a POS system: 

When the main reasons and challenges are clear with the applications and approaches, you need to understand the main components: 

Front-End: 

Back-End: 

*Note that this is only a recommended stack and may differ from your custom POS. 

Also, the POS software development stage is accompanied by processes for setting up integrations and complying with security standards.

QA testing and audit 

The quality testing and audit stage involves testing not only the functionality and correctness of its operation but also fraud protection. 

Therefore, when developing a POS system, it is accompanied by: 

Special attention should be paid to load testing, which will help understand how the system will behave under peak traffic conditions or a large number of transactions. The system should also be tested for resistance to unexpected failures—for example, loss of Internet connection or problems with the server—and to check the ability to restore data quickly.

In addition to technical aspects, end users' feedback before the final testing stage will allow us to identify small but critical nuances of the interface or logic that may further affect usability.

Deployment 

At the implementation stage, it is worth taking time to train staff to interact with the new POS software so that it is effective. 

Also, at this stage, a pilot launch at individual points of sale can be used to identify potential technical problems, obtain feedback, and ensure that integrations with other systems are correct. 

So, this is basically what happens at this stage: 

Support & maintenance

This is an important stage and part of the entire POS software development process, which should outline for the customer the guarantees of system stability and its monitoring.

Also, the standard support package from the service provider team may include: 

Also, depending on the features of your POS solution and requests for specific interactions, the supplier company may charge an additional fee per the contract terms. 

Our guides and articles provide more information about the features of payment applications, giving you an accurate picture of the product you want to build for high performance. Moreover, in the context of POS application development, it is worth considering not only beautiful interfaces but also functionality first and foremost, and its internal components, such as integrations, cloud technologies, and AI, which will ultimately allow you to create a genuinely multifunctional competitive solution. Technologies are evolving at the speed of light in the modern fintech market, so it can be challenging to stay on top. 

But in recent years, there have been specific trends that you should pay attention to and use in your POS system arsenal. After all, being in trend means not only copying competitors but providing quality services that will be in demand in the market. Therefore, our next section will be devoted to the top technical trends that can be applied to your POS software.

Key Innovations in POS systems

Only a detailed analysis of industry trends can show how POS solutions will evolve in the coming years. However, it is vital to keep up with the trends to optimize your workflows in your POS software, which is subject to market demands in one way or another. 

Let's take a closer look at the key trends for POS solutions that will add even more benefits to your business: 

Smart Discounts with POS Data 

Most POS systems have the advantage of collecting data on customer purchases. This allows businesses to create personalized marketing campaigns.Thus, these businesses can provide discount coupons and loyalty programs, significantly increasing and stimulating repeat purchases. 

Automated POS Reports 

Integrating POS software with many analytical tools allows businesses to receive comprehensive sales reports. This significant trend will enable businesses to identify the best-selling products and optimize inventory management processes and sales strategies. 

For example, in addition to standard sales volume and revenue indicators, a modern software solution can generate full-fledged reports with analysis and dynamics, comparing sales in different locations and forecasting potential demand. 

POS Data Analytics with AI and ML 

AI and ML trends have long been at the top of the list, but few people know that using AI for POS systems can predict demand for goods, optimize inventory levels, and reduce unnecessary costs. In addition, ML can analyze sales trends and Sekhon patterns, making this process quick and thorough for business owners. 

Biometric authentication 

Complying with the security clause is extremely important for POS software, and the trend toward it further emphasizes its importance for the modern market. 

Reliable ways to log in to the system, such as fingerprints, face recognition, or iris scanning, will provide your business with increased control over sensitive data, especially when accessing cash registers or confidential information. 

Automated Inventory Tracking 

Automation of inventory management processes has become a trend for large enterprises, as automated tools using AI in your POS system are a gold mine that will save you from losses and unnecessary expenses. 

The process of modernization and development does not end with constant adaptation to trends; first, it should be accompanied by an understanding of what is feasible for a particular business and what will benefit customers and staff. 

Next, based on a real case study by Artkai specialists, we will examine the peculiarities of using POS in the payment ecosystem.

Our experience 

We cooperated with DNA Payments Group. This client contacted our company to transform their portal. Their company provides various POS solutions, including portable, stationary, and mobile terminals.

The client’s cooperation with us was mainly focused on improving the user experience through the redesign of the portal and the development of a mobile version of the platform. The project also facilitated the integration of POS products with well-designed onboarding, increasing key workflows' efficiency. 

Here is what our team performed and added: 

DNA Payments resulted in a significant increase in the efficiency of attracting new customers, thanks to clear interfaces and integrated solutions, which is confirmed by high internal indicators:

Wrapping up

We hope that our guide to POS software development gave you the full picture of this process for you, especially when your company needs to solve and help with many issues, such as creating and implementing reliable security tools, integrating payment gateways, and building a complete roadmap to realize the full range of services you want to provide for your point of sale system. 

Artkai professionals know how POS software can facilitate and simplify your daily business tasks, supported by standards and legislation, and transform approaches into effective results. We are at your disposal when it comes to improving or developing a POS system.