Cloud POS | 4 mins read

Cloud POS- How Do They Compare to Traditional Systems?

cloud pos how do they compare to traditional systems
Hanh Truong

By Hanh Truong

Cloud POS is a point-of-sale system that seamlessly processes customer transactions and stores sales data using the Internet. This tool, also known as an electronic point of sale, provides portability to business owners, enabling them to access real-time sales reports and make informed decisions.

With speed and accessibility, cloud POS applications supply retailers and restaurateurs with what they need to succeed in today's competitive market.

How Does a Cloud POS System Work?

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Unlike traditional systems where data is compiled locally in hard drives and closed internal networks, cloud-based POS can run on web browsers and devices that have access to the Internet, such as smartphones and tablets.

This greatly contrasts conventional POS systems, as businesses would have to use bulky hardware, which often requires manual software updates.

Cloud POS systems use Internet servers to perpetually update sales information, allowing organizations to have accurate, real-time data on their day-to-day operations. This accessibility gives retailers the capacity to automatically assess sales metrics and update inventory or menu items wherever there is Wi-Fi.

Some platforms also have offline features that enable customer transactions and credit card processing to continue without an Internet connection. This functionality minimizes disruptions to data collection and customer experience.

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Benefits of a Cloud-Based POS

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There are various advantages of implementing a cloud POS system as opposed to traditional POS software.

Legacy or traditional POS systems lack accessibility as it requires business owners to store and access data in an on-site computer. Similar to saving files on a desktop computer at home, information in a legacy POS exists in a silo and cannot be automatically retrieved on another device.

Cloud-based solutions allow for integrated data sharing using cloud syncing technology and provide many other benefits, such as-

Quick Installment

Cloud POS applications can be quickly installed since the system is ready to be used and can be downloaded using the Internet.

Setting up traditional POS systems take longer as it requires trained technicians to customize the software. This generally comes with a set-up fee and businesses cannot begin processing transactions until the hardware and software are installed.

Automatic Software Updates

Software updates are automatic with cloud POS solutions. This contrasts legacy POS, as updates for these systems commonly occur periodically and are done manually by technicians.

Updates for cloud POS systems can be installed remotely, as long as there is an Internet connection. This is beneficial for businesses with multiple locations because they can efficiently update all devices and ensure that adjustments to menus or processes are consistent across all of their establishments.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.


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Since cloud POS apps are compatible with smartphones and tablets, customer transactions can be done anywhere. By incorporating wireless credit card readers for chip cards and contactless payments, businesses can provide full service at any location, from street fairs to trade shows.

Unlike traditional POS systems that require owners to be on the business premise to manage their sales, users of cloud POS can access information on a web browser.

Secure Data

Traditional POS platforms typically store data on a computer hard drive. This means that if the computer breaks down, businesses could potentially lose their data.

In contrast, data will still exist in a cloud POS system, even if the hardware is damaged. Since the information is stored online and security updates are automatically applied, all sales data is secured and can be accessed by logging into another device.

Additional Features

Many web-based system providers have additional features and management software included in their platforms. These tools include data reporting on key performance indicators related to net sales and operating costs.

These insights are created using business intelligence, allowing managers to identify real-time trends, which they can use to make necessary adjustments and increase revenue.

Enhanced Customer Experience

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Electronic POS systems are easy to use, allowing employees to provide faster customer service. Advanced systems also give customers an opportunity to leave feedback about their experience after completing the transaction. This will give management insight into how they can improve their service and boost satisfaction.

The latest software systems also equip businesses with POS hardware, such as tableside ordering devices and self-order kiosks. With this, shoppers can quickly purchase their orders through online ordering and restaurant guests can pay their bills without having to wait for their checks. Businesses can also effectively cut labor costs and serve more customers swiftly.

Seamless Business Management

Cloud-based POS software simplifies business management by providing real-time data reporting and analytics. This means management-level staff members can spend less time in their back office and engage with customers and employees.

Web POS systems can also integrate with existing tools, such as inventory management and forecasting software, which will further help to streamline business administration.

Cloud POS solutions provide businesses with sophisticated features that traditional systems lack. Implementing these web-based platforms will help organizations to gradually scale their operations, enhance customer support, and improve data security.

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