The evolution of the POS system - from cash register to cloud-based

Initially, the term “point of sale” (POS) was used to describe the basic electronic cash registers of the 1970’s. Much has changed since then. Today’s POS solutions are integrated, cloud-based all-in-one platforms, serving as complete business hubs. This blog post will go through the full history and evolution of POS systems, and introduce Extenda Retail’s cloud-native Hii Retail POS.

Evolution of the POS - decade by decade

POS systems have been around for a long time, and a lot has happened. Each new generation of systems kept building on the advancements of the previous, eventually reaching the heights of today’s omnichannel systems. The origins of the POS can be traced all the way back to the 1800’s (the first basic cash register), but we will start in the 1970’s.

1970’s: electronic cash registers (ECRs)

In the early 1970’s, the first electronic cash register was introduced, marking a huge development from previous mechanical models. These systems featured digital displays and basic programmable functions, allowing for much more speed and accuracy than their mechanical counterparts.

ECRs also offered limited integration and storage capabilities; a sign of what was to come in the future. The terms point of sale and POS started being used around the introduction of the ECR to describe the new generation of sophisticated checkout solutions.

1980’s: computerized POS systems

The 1980’s introduced computerized technology into POS systems, e.g. microprocessors. As a result, solutions grew more sophisticated and efficient. Computerized systems were costly, terminals bulky and registers stand-alone, requiring manual consolidation, but it was still a big step forward. 

This was the decade when credit cards became commonplace. POS technology had to accommodate modern payment methods, accelerating the technological development. Computerized POS systems also introduced the first device integrations.

1990’s: expanded POS functionality

As the digital evolution rapidly progressed throughout the 1990’s, POS systems adopted advanced features, such as credit card reading, barcode scanners and touchscreen interfaces. The term ePOS (electronic point of sale system) was coined, and the systems started running on Windows and other leading operating systems. 

It was a big step forward in terms of efficiency and customer experience, and a clear sign of what was to come in the 2000’s. 

2000’s: the emergence of cloud-based POS systems

The POS systems of the new millennium introduced cloud-based technology, allowing retailers and customers to benefit from the efficiency and safety of cloud computing. On-premise solutions started facing fierce competition from cloud-based systems that allowed businesses to consolidate their information and access it from anywhere.

Cloud-based POS systems made any device a potential point of sale processor, opening up many new possibilities. Simultaneously, the introduction of SaaS (Software as a System) cloud technology led to improved POS security, as businesses no longer had to manually update software and licenses. 

2010’s: rise of the integrated all-in-one POS system

The next step in POS evolution was the introduction of the all-in-one POS system. “All-in-one” refers to a solution that integrates various functionalities into a single platform or device. This generation of systems greatly improved efficiency and convenience, lessening the need for integrations. All-in-one POSs allowed many companies to greatly simplify their setup, taking the business to the next level. 

Cloud-native systems emerged on the market, providing even more possibilities, e.g. in terms of flexibility, scalability and integrations. By the middle of the 2010’s, fully cloud-native solutions were available on the market, designed from the ground up to operate in a cloud environment.

It was also a time of increased POS adoption, when more and more retail businesses realized the great importance of a quality setup. As technology grew more sophisticated, so did the leap between modern and dated POS solutions. It was time to invest, or risk falling behind the competition. 

2020’s: seamless omnichannel and AI technology

Today’s customers have higher expectations than ever. Retail companies must deliver seamless experiences across touchpoints and devices, fully connecting in-store, self-checkout and online shopping.

POS systems of the 2020’s are focused on omnichannel experiences, along with getting the most out of emerging AI and machine-learning technology. It is the era of smart, integrated systems that are complex in terms of functionality, but offer a simplified UX.

Conclusion - the future of POS systems

The evolution of POS systems is not slowing down, as emerging technologies will lead to even more advanced, efficient, and integrated solutions:

• Cloud-native systems will continue to improve, offering more accessibility and efficiency 
• AI and machine-learning technology will develop further to provide a better and more personalized customer experience
• Mobile POS solutions will open up new opportunities to diversify sales and transactions
• Customization and integration possibilities will grow, making the systems even more powerful

The future is bright, and retailers need to keep up with the latest innovations to stay ahead of the competition. It is good to be aware of the evolution of POS systems, and the innovations that lie ahead. This knowledge will help you make choices and investments benefitting your business in the long run.

Introducing Hii Retail

Hii Retail is a comprehensive POS system built on the Google Cloud platform. It is an all-in-one cloud-native solution, offering cutting-edge functionality and integrations. Since the system is a fully scalable one-stop shop, it is the last one you will ever have to implement. We continually use our retail expertise to improve the system, and it updates without interruptions or costly IT projects.

Extenda Retail has been a part of this POS evolution as an industry leader for over 40 years. We aim to remain a cutting-edge POS provider in the future, and we invite you to join us on the journey.