What is a Point of Sale (POS) system? Key benefits and how to choose the best one
Sep 28, 2024
According to the latest reports issued by the Saudi Central Bank (SAMA), the number of POS transactions in the Kingdom during the period from August 11 to 17, 2024, totaled 204,274,000 operations, with a value of 13,568,097,000 riyals, compared to 13,093,782,000 riyals for the previous period (from August 4 to 10, 2024). This explains the significant reliance of commercial activities on the POS system and reflects the growing demand for these systems across various sectors, especially the retail and e-commerce sectors, in pursuit of enhancing competitive value, giving customers a unique shopping experience, and achieving more profits.
In this article, we will explore the meaning of POS systems, their importance for e-commerce stores, and highlight the selection criteria and the best systems available in the Kingdom.
What is a POS system?
Simply put, it is an integrated system used in retail operations to manage commercial transactions between merchants and consumers. This system includes a set of devices such as computers, scanners, and printers, in addition to software that records product information, processes cash or electronic payments, and issues invoices and receipts.
In addition to basic functions, the POS system can integrate with other systems such as inventory management and customer relationship management (CRM), which gives commercial activities the ability to track sales performance, analyze customer behavior, identify market trends, and plan inventory, thus enhancing their ability to make informed decisions and increase profits.
Types of POS Systems
Traditional POS Systems:
These refer to the traditional cash register machines found in stores linked to specialized software, known for stability and reliability, and are suitable for large businesses that require intensive and fast financial transactions, such as supermarkets and the like.
Cloud POS Systems:
This is a type of Point of Sale (POS) system that relies on the internet to store and manage data instead of using local servers. Any cloud POS software is run through a web browser or a dedicated application, and transaction and sales data are stored on cloud servers instead of physical storage devices on site, allowing merchants to access their data from anywhere and at any time via the internet.
Mobile POS Systems:
This refers to POS software installed on mobile devices such as smartphones and tablets, and is ideal for businesses that require flexibility in sales, such as mobile exhibitions and markets, where transactions can be made anywhere.
How does the POS system work?
POS systems differ in some details related to the working mechanism, but they generally agree on the basic operational functions, which are:
Entering the products the customer wants to purchase, either by scanning the barcode or entering it manually.
Then displaying the invoice, which includes product prices and any additional costs such as taxes or discounts, if there are offers.
Then determining the appropriate payment method by the customer, whether in cash or using a bank card.
Upon successful completion of the payment process, the system issues the invoice, which can be printed using the printer connected to the system or sent electronically via email.
After the transaction is complete, the system updates the available quantity of products in the inventory, whether the inventory management system is part of the POS system or through integration with an external inventory management system.
We point out that several criteria must be considered when choosing the appropriate POS system for your commercial activity.
7 criteria that should be noted when choosing the ideal POS system
First: Cost and Financial Flexibility:
This is one of the most important criteria that must be noted when searching and comparing different POS systems, as considering the cost is inevitable. You must balance the features offered and the price, avoid high-cost systems that contain features you do not need, and at the same time, ensure that the price is commensurate with the features required for your business.
It is good to look for a POS system that offers flexible payment options, such as monthly or annual payment plans, to suit your operating budget without financially burdening you.
Second: Ease of Use:
The chosen POS system should be easy to use without the need for extensive staff training, as a simple and fast system will help reduce the time employees spend learning how to use it, which means more focus on customer service.
It should be ensured that the user interface is clear and facilitates access to essential features such as payment processing and inventory management, as a complex interface will slow down operations and increase errors, affecting the customer experience.
Third: Compatibility with Different Devices:
It is important that the POS system is compatible with the devices you use, whether they are computers, tablets, or smartphones, as choosing a system that works on your available devices will save you additional costs for purchasing new equipment.
Additionally, the system should support future technological updates to ensure there are no compatibility issues that cause system failure, which maintains the continuity of system operation without interruptions.
Fourth: Providing Inventory Management Features:
The ideal POS system must provide accurate inventory management features to help monitor inventory instantly and identify best-selling products, which gives you an advantage in making purchasing decisions based on real data instead of guesswork.
The system should include alerts for out-of-stock items and future demand forecasts. These features save time and reduce the likelihood of product shortages, thus avoiding negative impacts on your sales movement.
Fifth: Integration with Other Systems:
You must choose a POS software that allows you to integrate with various systems such as accounting systems or customer relationship management systems. A seamless integration between the POS system and these systems will make data flow smoother and help reduce manual errors. The easier and smoother the integration process, the more time and effort you can save in data entry and monitoring business operations.
Sixth: Security and Protection:
Security is vital when dealing with customer data and financial transactions, so you must choose a system that provides the highest levels of security and protection against electronic threats such as cyber attacks or information theft.
The selected POS system should include features such as data encryption and identity verification to protect customer data and prevent unauthorized access.
Seventh: Technical Support and Customer Service:
Of course, you will need a support team that can help you if you encounter any problems with the system or if operations stop, so you should choose a POS system that provides excellent technical support available around the clock, as fast and effective customer service is a major factor in the continuity of the system without interruptions, which maintains the smoothness of your commercial operations and contributes to enhancing the customer experience.
These are the most important criteria that should be noted when choosing and comparing different POS systems, and according to these criteria, here is a list of some of the best POS systems in Saudi Arabia.
Some of the best POS system software in Saudi Arabia 2025
Point of Sale (POS) systems play an important role in facilitating the management of commercial operations in stores, restaurants, and cafes in Saudi Arabia. There are many programs available that offer diverse features to suit the needs of various commercial businesses, and here is a presentation of some of them:
Foodics is one of the most prominent POS systems in the Kingdom, specifically designed for managing restaurants and cafes. The system is cloud-based and features an easy and effective user interface to facilitate the management of operations within restaurants, from receiving orders and managing inventory, to analyzing financial data, which enables it to provide comprehensive insights to business owners about their business performance through detailed reports and advanced analysis tools, which helps in making data-driven strategic decisions.
Foodics is also characterized by its seamless integration with other applications and services, which enhances the flexibility of operations and allows business owners to customize the system according to their specific needs. It is worth noting that the system supports electronic payment, management of promotional offers, and loyalty programs, which contributes to improving the customer experience and increasing operational efficiency.
It is a cloud-based omnichannel POS system that aims to facilitate sales operations for retailers, whether they deal online or in physical stores, without the need for any specific devices, while providing data security and real-time reporting, simplifying product management and quickly adapting to customer demand, and centralized inventory management through a single control panel that allows real-time tracking of inventory across multiple sales channels, thereby avoiding overstocking or out-of-stock problems.
All these features make XStak an ideal solution for modern retailers seeking to improve the customer experience and increase the efficiency of their operations.
The POS system provided by SolutionDot is considered one of the best integrated solutions for managing retail operations in Saudi Arabia, as this POS software is characterized by its ability to handle commercial transactions in real-time, inventory management, product tracking, and issuing electronic invoices that enhance trust between customers and companies.
The program has been designed to comply with the Saudi currency and local market requirements, making it ideal for small, medium, and large companies. The system allows turning tablets and smartphones into mobile POS, which provides great flexibility in daily purchasing operations.
It also supports the creation of customer profiles, which facilitates tracking consumer purchase records and thus enables customizing the shopping experience and enhancing customer interaction. It also includes email marketing tools, which help companies easily send promotional messages and event updates, as well as providing customized and immediate reports to improve store operations, including customer, inventory, finance, and sales management, which enhances work efficiency and increases success opportunities.
The Retem POS system is one of the cheapest options available in Saudi Arabia, as it offers an integrated and effective solution for managing sales in restaurants and cafes. The system features an Arabic and easy-to-use interface, making it suitable for owners of small and medium enterprises who are looking for effective technological solutions at a reasonable cost.
The Retem POS software allows for seamless management of various operations, such as product registration, inventory control, and invoice issuance, and also supports a wide range of devices, including thermal printers and barcode readers, which facilitates the integration of the system with the tools already existing in the business.
One of Retem's most important features is its transparent pricing structure and diverse packages that suit all needs, from small to large projects. The system also provides detailed sales reports that help analyze performance and make informed decisions, in addition to ensuring data security by encrypting and storing it on secure servers, making it an attractive option for business owners seeking to save costs and improve operational efficiency.
The POS system provided by Marn is considered one of the best POS systems and software in Saudi Arabia, as it aims to improve the sales management experience for stores and companies, and it is also certified by the Zakat, Tax and Customs Authority.
The system is characterized by an easy-to-use interface, which makes it easier for merchants to manage sales and inventory efficiently. It also supports many local and international payment providers, accepts NFC payments, QR payments, Pinpad payments, and TaptoPhone payments, and supports electronic invoicing compatible with value-added tax (VAT). The system also provides accurate analytics and reports that help in making informed, data-driven decisions.
Thanks to its cloud technologies, business owners can monitor their operations from anywhere and at any time, which makes it easy for them to follow up on commercial performance continuously and effectively.
POS systems have many advantages, the most important of which we review below.
Key advantages of the POS system and its importance for e-commerce stores:
The advantages of the POS system are numerous, making it important for various commercial activities, including, for example:
Sales Recording:
POS systems allow for quick and accurate sales recording, which saves the time and effort required for manual data entry.
Inventory Management:
The POS system can track and update inventory automatically upon completion of each purchase, which contributes to preventing stock depletion and facilitating inventory management.
Payment Transactions:
POS systems support various payment methods such as cash payment, credit cards, or e-wallets, which facilitates the payment process and provides greater flexibility for customers.
Reports and Analytics:
POS software and systems provide detailed reports on sales, profits, and inventory, which helps analyze the sales performance of the commercial activity and make informed strategic decisions.
Customer Management:
The POS system allows for managing the customer database and tracking the purchase history of each customer, which provides a personalized shopping experience and thus enhances customer loyalty to the brand.
Enhancing Security:
POS systems provide protection and encryption for financial data and transactions, which protects sensitive data and maintains the confidentiality of information.
Final Word
In light of the rapid transformations witnessed by the retail sector in Saudi Arabia, POS systems are no longer just a means of completing transactions, but have become an integral part of the customer experience and the comprehensive digital transformation journey. Merchants today must realize the importance of keeping pace with the development of these systems by adopting the latest technologies that ensure them security, efficiency, and smoothness of commercial operations.
Therefore, investing in smart and integrated POS systems with the rest of the management systems is not just an option to improve performance, but a necessity to remain at the forefront of the market. In the near future, companies that fail to adapt to this transformation will be threatened with losing their share to more advanced and prepared competitors.
Ehad Mahmoud