From Preventing Theft to Optimizing Profit: The History of POS Systems

From the clang of the first mechanical cash registers in the late 1800s to today’s AI-powered, automated systems, tracking payments has come a long way. The original cash register, James Ritty’s “Incorruptible Cashier,” was invented to prevent employee theft. By the 1970s, electronic cash registers added printed receipts and barcodes, which vastly sped up checkout lines. The ’80s and ’90s brought full computerization, allowing business owners to manage inventory, track customers, and study strategies like never before. 

Then came the Internet, and the game was changed forever. Cloud-based systems opened up state-of-the-art analytics for anyone, anywhere. Mobile systems brought POS technology to each table, and automated systems make owning a business easier than ever before.

The Start of Digital POS Systems

In 1973, IBM introduced the first electronic point-of-sale (ePOS) system. Joining the digital era was not just about hardware. This jump in technology brought about real-time sales tracking, programmable systems, and the very beginnings of data-driven retail. IBM’s electronic cash register was just the beginning of the retail world catching up to the efficiencies of the newly digital world. 

Gene Mosher developed the first touchscreen POS in 1986, catapulting us into the future of POS. It not only took away the more clunky pieces of previous systems, but also brought fast and intuitive processes. These early systems were interactive, visual, and product-forward color screens, immediate routing, and payment processing all in one place.

The 1990s obsoleted hardware-heavy, finicky systems, focusing instead on software and flexibility. Customization was finally available. But, as technology improved for the good, it also improved for the black hats. Increasing rates of credit card fraud meant a stronger need for security measures within systems. Additions such as card readers, PIN pads, and signature capture devices added more pieces to the POS puzzle. 

With the advent of Microsoft Windows, the possibilities seemed endless. Numerous customization options, faster systems, and tailored business models allowed for the strategic use of POS systems. They were no longer a simple means of payment, but a full machine for business.

Adaptation was, and still is, vital for a successful POS system.

Cloud-based systems sped up processes, installations, and maintenance. This innovation untethered POS from counters. Smartphones and tablets made it easier than ever before for retailers to manage the customer experience. E-commerce, in-store purchasing, and mobile sales are all connected under the same system. Real-time insights into inventory, purchases, and other data became invaluable for retailers everywhere.

Key Considerations for an Efficient and Effective POS System

Upgrading your POS system can feel like an insurmountable task. Your business depends on your POS on a daily basis, and the thought of interrupting it for even a day can sound like more trouble than it’s worth. However, continuing to use an out-of-date or obsolete POS system can not only put your profitability at risk, but also the security of your business’s information.

Here are some key considerations as you upgrade your POS:

1. Assess your current system: What are the pain points, benefits, and staff workflows?
2. Understand your needs: What will make your process more efficient and easier?
3. Choose the right hardware: How compatible, scalable, and easy-to-use is the hardware?
4. Implement with comprehensive staff training: When is the best time to roll out new technology and processes without disrupting profitability?
5. Assess and adjust: If something isn’t working, do you have a plan to readjust and re-train?

At Superior Business Systems, we’ve been helping businesses harness that evolution since 2011. Founded by Craig, a veteran with 20+ years of IT experience, we specialize in developing new POS systems and customizing existing ones to fit each client’s unique needs. We only work with trusted and reputable platforms and pride ourselves on delivering five-star customer experiences through our 24/7 tech support and comprehensive training programs.

Our mission is simple: We make your operations smoother, smarter, and more efficient. From the day of installation onward, we are by your side. POS systems have changed the way the world does business. At Superior Business Systems, we optimize your business strategy by ensuring repeat customers and skyrocketing profits. 

Ready for your brand to make history? Contact Superior Business Systems today!