Shot of a barista taking a smartphone payment from a customer at a café


Why Use A Cardless POS?

Cardless (POS) transactions are becoming more popular as consumers continue to use them to pay for products and services.

Gas stations, grocery shops, and POS companies in general have all seen an uptick in sales after installing POS terminals around their exits.

Thanks to recent technological developments, cardless POS systems are now viable.

Here in Nigeria, using a debit card to make cash withdrawals and purchase items at point-of-sale comes with some challenges that bother safety. So, how can regulate this?

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POS Terminals And Their Uses

Point of Sale (POS) is a platform where a retail transaction is usually finalized.

The merchant can use the POS to determine the client’s balance due, display the amount, provide the consumer with an invoice (which may be a cash register printout), and presents the customer with payment alternatives at the time of purchase.

A receipt for a transaction may be sent by the retailer after they have received payment; these are typically printed copies, although they may also be delivered digitally.

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Customers’ purchases are recorded and processed by a POS terminal.

Contemporary POS machines, which can process credit cards, debit cards, and cash, have virtually supplanted the cash register.

A physical register or a virtual register can serve as a point of sale (POS) at a shop.

However, more and more sophisticated functions are being added to cardless POS devices since its innovation. This allows stores to keep tabs on stock levels and customer preferences, verify that prices are accurate, and compile marketing statistics.

Cardless POS Transactions

The technology of cardless transactions is now feasible to deliver as SaaS, meaning they can be viewed from any web browser or Smartphone device.

Cardless transactions are not limited by platform or operating system constraints, before the earlier advancements in POS’s communication protocols for controlling hardware.

Most cardless point-of-sale systems (used by small businesses today) do charge a monthly fee for use and provide continuing customer support for cardless POS transactions.

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Depending on the POS provider and the terms of the contract, a POS system have the potential to receive more frequent updates from the developer (due to observable safety concerns), resulting in a more robust set of features, more efficient use of server resources, and fewer errors and bugs than their on-premises counterparts.

A POS system must be online to use without a card. Because of this, having a backup internet connection is crucial.

The main power of a cardless point-of-sale system is not only that it is substantially cheaper than conventional legacy POS systems, but also that many developers are producing software applications for Cardless POS with regular security upgrades.

How Secure Are Cardless POS Transactions in Nigeria?

The hosting service provider and the POS vendor, who have access to the application and database, constitute a security risk to the business data stored in a Cardless POS system.

Given that the POS system is often the only place to gain access to a company’s most precious secrets and most valuable assets, such as the names of its suppliers, its best-selling products, and its methods for maintaining relationships with its customers, then its data must be protected at all costs.

This persistent problem with security and privacy is a major drawback to using cardless POS systems.

However, using a cardless POS system in Nigeria is quite insecure.

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Conclusion

The main distinction between conventional and cardless POS systems is that the latter keeps user data, such as sales and inventory, on a distant server rather than locally.

A point-of-sale (POS) system is susceptible to staff theft via the sales window, much like a traditional cash register.

If a crafty or dishonest employee understands how to abuse many of the POS systems and functions, no number of measures will make the system completely secure from internal exploitation.

However, the updates that are frequently done on a POS terminal will ensure safety throughout its use.

Without any doubt, cardless point-of-sale transactions are the way of the future.

This implies that the Nigerian Government has a long way to go about the safe use of Cardless Transactions.

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