Advantages of a SoftPOS solution

SoftPOS solution abbreviation stands for software point of sale systems, which we described earlier. This time we’ve decided to outline the key steps and components of SoftPOS solution implementation. So, the current article will be of interest for PayFacs, shopping cart owners, and software platforms. Many of these entities want to implement SoftPOS technologies for their respective merchants.

SoftPOS solutions do not call for usage of payment terminals, card readers, or dongles. So, related point of sale system costs comparatively low, as they do not include terminal fulfillment and maintenance. So, high mobility and considerable savings make SoftPOS solutions an attractive option for multiple categories of merchants. Large platforms that want to service these merchants, naturally, need to have clear SoftPOS solution implementation strategies.

Two flavors of SoftPOS solution

You can develop innovative point of sale systems either building them from scratch or licensing them from third parties. In this context, implementation of a SoftPOS solution is similar to building your own payment gateway. So, which flavor should you choose: a custom solution built from scratch or a white label offering?

Well, a solution you build in-house using your own development team provides almost unlimited control. It involves greater responsibility, development efforts, and upfront costs. At the same time, it does not involve any additional transaction and software fees.

A white label solution requires less effort and lower upfront costs. It will be up and running in shorter time. Your liability level is relatively low. However, the solution provides less control and you have to pay subscription fees and transaction fees further down the road.

The choice is yours, however in either of the two cases you have to understand the whole implementation process clearly. Otherwise, you might face unexpected architectural or business issues in future.

So, what are the key strategic steps making the implementation of a SoftPOS solution possible?

Key components of SoftPOS solution implementation strategy

  1. Find an acquiring bank. A SoftPOS solution is a payment terminal solution, although it does not involve physical terminals. So, in order to implement it, you need to find an acquirer to underwrite merchants, particularly those working through SoftPOS.
  2. Build encryption key injection mechanism. All devices, through which customers input PINs, should be injected with encryption keys. Some solution will require you to use HSMs. You should know your key injecting partner.  And make sure that it supports your target encryption methods and is able to inject keys provided by your acquirer.
  3. Implement an EMV kernel. Again, as you are dealing with an EMV terminal solution, you need to know, which EMV kernel to use. It might be a kernel you develop yourself (especially, if you choose to build the whole SoftPOS solution from scratch). In this case it will require level 2 certification. It may also be a licensable solution. In the latter case you need to know the license cost and regular fees.
  4. Deploy your SoftPOS solution. Deployment should be a relatively straightforward process, because SoftPOS solutions are mostly Android apps. In January 2022 Apple also started working on its own SoftPOS solution.
  5. Partner with a payment gateway. Your chosen gateway should be PCI certified and integrated with the target acquiring bank (see point 1). More information on payment gateway solutions is available in a topical free white paper.
  6. Certify your solution. Besides PCI audit, you need to go through certification process. You need to know your certification partner and certification process costs in order to plan your budget accordingly.

Concluding remarks

Before you start thinking about SoftPOS solution implementation for your sub-merchants, you need a clear step-by-step strategy.

If you need more data on SoftPOS implementation process, consult our experts! In fact, United Thinkers have developed a licensable SoftPOS solution. Besides SoftPOS option, their omnichannel payment technology UniPay Gateway supports various other payment terminal solutions.