In 2022, 49.48% of the micro, small and medium enterprises (MSMEs) in the Philippines are in the wholesale and retail trade, while another 14.31% are in the accommodation and food service activities. Most of these businesses – as well as other industries in the Philippines with online shops and brick-and-mortar stores – use point-of-sale systems to process payments, streamline operations, reduce errors, and improve customer experience.
But what is a point-of-sale, and how can it be used to grow your business? This guide aims to demystify POS machines by explaining how they work, how to acquire them, and what to consider before getting one in order to integrate it successfully into your day-to-day operations.
What is a POS machine and POS system?
A Point-of-Sale (POS) is a physical or digital location where customers complete their purchases. It is the system that businesses use to process transactions, accept payments, and manage sales records efficiently.
A POS machine, also known as a POS terminal, is the hardware component that facilitates customer payments and transactions. It is where customers complete their purchase, encompassing activities from scanning items to accepting payments.
A POS system, meanwhile, is the completesoftware and hardware solution that manages the entire sales transaction process. The hardware may include a POS machine, a barcode scanner, a receipt printer, and a cash drawer. The POS software, in turn, records transactions, manages inventory, and generates sales reports. More robust POS systems also integrate customer relationship management (CRM) tools and marketing tools to better collect marketing and sales information.
Is a POS System Right for Your Business?
POS machines can enable businesses to accept card and digital wallet payments.
POS systems solve a lot of problems for SMEs, but not all businesses need one. For instance, microenterprises, professional services, and businesses with recurring billings or automated payments will not have any use for a POS machine as they do not deal with real-time and large-volume transactions.
However, if your business experiences any of the following challenges, investing in a POS machine might be the right move:
Businesses with Multiple SKUs: If you sell a variety of products, a POS system helps manage and track multiple SKUs efficiently, reducing inventory errors.
Businesses with High Transaction Volume: If you handle numerous daily transactions, a POS machine speeds up the checkout process and reduces errors.
Retail Stores and Supermarkets: These businesses benefit from a barcode scanner and automated inventory tracking.
Restaurants and Cafés: A POS system helps manage orders, split bills, and integrate with kitchen display systems for faster service.
Service-Based Businesses: Salons, spas, and repair shops can use POS terminals to accept card payments and schedule customer appointments.
Businesses Accepting Digital Payments: A POS system enables QR PH payments from e-wallets and banking apps by integrating Maya Terminal and/or other digital payment gateways.
Businesses Looking for Sales Insights: A POS machine provides data analytics and reporting, helping business owners track sales trends and optimize inventory.
If your business falls into any of these categories, investing in a point-of-sale system can streamline your operations, improve customer experience, and increase efficiency.
How much does a POS system cost?
The cost of a POS system varies widely depending on the provider, features, hardware requirements, and payment model that you choose. Bear in mind that some POS providers also require a separate fee for BIR registration and hardware.
In general, cloud-based POS systems can be the cheapest upfront as you only need a tablet and a free account to get started. However, you must subscribe monthly for more robust features, which may cost more in the long run.
Here’s a breakdown of the most common POS system pricing structures in the Philippines:
1. Free POS Systems
💰 Cost: ₱0 (Free)
Some POS providers offer a free version with basic functionalities.
Typically includes transaction processing, sales tracking, and basic inventory management.
Best For: Small businesses, startups, food carts, and micro-businesses.
✅ Examples of free POS systems:
Peddlr: free mobile POS with inventory management, expense tracker, store link, accounting reports; optional premium services also available
Loyverse POS: free mobile app with basic features to manage multiple stores, sales analytics, inventory management, and loyalty program; subscription available for additional features
Tagrain: free for 1 Store and 1 POS only; subscription available for additional features
2. Subscription-Based POS Systems
💰 Cost: ₱1,500 – ₱7,500+ per month
Most modern POS systems operate on a monthly subscription model.
Includes features such as inventory management, CRM tools, employee tracking, and cloud storage.
Some providers offer tiered pricing based on features and the number of registers/users.
Best For: Small and medium-sized businesses; operations with large inventories and multiple product types; retail chain stores; F&B businesses
✅ Examples of subscription-based POS systems:
Qashier: Starts at ₱1,299/month for Essential plan
Cukcuk.ph: Starts at ₱1,395/month depending on features
UtakPOS: Starts at ₱1,500/month depending on features
StoreHub: Starts at ₱1,874/month depending on features; billed annually
3. One-Time Payment POS Systems
💰 Cost: ₱15,000 – ₱50,000+ (one-time fee)
Some POS systems offer a one-time purchase model, where businesses buy the software outright instead of paying a monthly subscription.
Often requires separate hardware purchases (e.g., barcode scanner, receipt printer).
Best For: Established businesses that prefer long-term ownership.
✅ Examples of POS systems that offer one-time purchase:
KwikPOS: Starts at ₱75,000 with software and hardware included
Mayaritech: Starts at ₱18,000 for a Portable Series Complete POS Solution
4. Custom POS Systems
💰 Cost: ₱100,000 – ₱500,000+ (Custom Pricing)
Large retailers and enterprise-level businesses often get customized POS solutions to fit their operation
Often includes advanced features such as AI-powered sales analytics, multi-store inventory management, and deep accounting integration
Best For: Large businesses, supermarkets, and medium to large enterprises.
✅ Examples of developers offering customized POS systems:
ANSI.ph: Primarily offers SAP Business One and WINVQP POS
Mosaic Solutions: POS system provider focused on food and retail businesses
Sticker Printer (if separate from thermal printer): ₱10,000
Sample of a POS system with POS terminal, barcode scanner, receipt printer, and cash drawer
Other Cost Considerations for POS Systems
Hardware. Some systems require a separate purchase of POS hardware such as terminals, receipt printers, and barcode scanners. Costs vary depending on the brand, model, and features – higher-quality devices cost more but may offer better performance and longevity, while lower-quality devices may be cheaper upfront but require more maintenance.
BIR Registration Fees. Businesses issuing invoices via POS must register their system with the BIR eAccReg System. Some POS companies offer BIR registration services for free. Others charge an additional fee starting from ₱1,000 to ₱4,000.
Payment Gateway Fees. If your business wants to accept digital payments, transaction fees range from 1.5% – 3% per sale (e.g., Maya, GCash, Visa/Mastercard).
Support & Maintenance Fees. Some providers charge for tech support, updates, or extended warranties.
How to choose the right POS system
The right combination of POS hardware and software can ensure smooth transactions, better inventory management, and an improved customer experience for your business. When choosing a POS system, here are the things to consider and steps to follow to ensure you’re making the right choice:
Step 1. Evaluate your business and its needs
Your answers to the following questions can help you determine the most important features that you need to look for when choosing a POS system.
Are you looking for a checkout system for online transactions, in-person transactions, or both?
Are you having a hard time tracking inventory?
Do you need a faster way to receive and count inventory?
How do you currently check out customers? Do you find this process slow?
Do you need to be able to process card and e-wallet payments?
Do you have, or plan to install, multiple checkout counters at your business locations?
Do you need a better understanding of your customers’ buying habits?
Do you need CRM features that can help you remarket to past customers?
Do you need remote access or an offline-only solution?
Are there any other transactions and processes that you need to make faster?
✔ Fixed POS Systems → Best for high-volume businesses with dedicated checkout counters. ✔ Mobile POS Systems → Ideal for small shops, pop-ups, or businesses needing on-the-go transactions. ✔ Cloud-Based POS → Syncs data in real-time and allows access from any device.
Step 2. List your business processes, workflows, and transactions
After having a better understanding of the features you need from your POS system, it’s time to determine the exact POS hardware for you. Most businesses require a POS terminal as the central device that processes transactions – this can be as simple as a tablet, or as complicated as an all-in-one POS computer. In addition, every industry requires different hardware. Your final list will ultimately depend on your store setup and checkout process.
Retail Stores & Supermarkets → Need barcode scanners, receipt printers, cash drawers and customer display screens for fast transactions. Card readers may be added in order to process debit, credit, and digital wallet transactions.
Restaurants & Cafés → Require kitchen display systems (KDS), touchscreen terminals, cash drawers, and mobile POS for tableside ordering. Card readers may be added in order to process debit, credit, and digital wallet transactions.
Service-Based Businesses → May only need a tablet POS or mobile card reader for processing payments. Card readers may be added in order to process debit, credit, and digital wallet transactions.
A POS system with barcode scanner can help SMEs dealing with large inventory and multiple SKUs.
Step 3. Set a Budget
Having a budget upfront will narrow down your options quickly, as you’ll be able to focus on POS systems within your price range.
When finalizing your budget, consider upfront costs versus potential long-term costs. If your business has high foot traffic, for instance, investing in a commercial-grade device may be more cost-efficient, as your equipment will be more durable and adaptable. POS hardware that comes with a warranty and on-call technical support may also be more expensive, but cause less headaches in the long run.
Step 4. Compare and research features and pricing
Now more than ever, it’s easy to find POS systems that come with everything you need – and the pros and cons of each. Here are a few ways to narrow down your options:
Check out online forums and online groups catering to your industry. Numerous Facebook groups exist online for local restaurateurs, food service providers, small business owners, and e-commerce sellers. You can post specific questions about the POS systems you’re eyeing in an online group for your specific industry, or on subreddits like r/BusinessPH.
Read and watch online reviews. Tiktok, Youtube, and Reddit can provide more insights on specific POS features, or how other business owners use their POS systems.
Connect with fellow business owners in your industry. Entrepreneurs with a similar business, or people from your local business chamber, can provide you more detailed information.
Reach out to POS providers. Most POS providers, especially those with custom-built services, are happy to give free demos and trainings.
Step 5. Consult with your final options
Once you have a list of final providers to go with, ensure that they can help you with the following – in addition to the initial features and pricing you’re looking for:
BIR accreditation. If issuing invoices via POS, your provider must be able to help you register your system with the BIR eAccReg System.
Training and support. Your employees must be able to operate your POS without constant supervision. In case of issues, the provider must also be able to provide prompt servicing.
Compatibility with payment gateways. If you plan to support debit, credit, and/or digital payments, this must be specified explicitly in your POS list of features.
Security and Data Protection. Your POS should secure transaction data and block unauthorized access.
Scalability. Your system should be able to grow with your business needs and future development plans.
Common Misconceptions About POS Systems
There are several myths surrounding POS systems that may prevent businesses from adopting them. Here are some common misconceptions and the truth behind them:
POS Systems Are Expensive. Some providers offer free POS systems with affordable payment terms, including subscription-based, leased, or one-time payment models. Businesses should explore cost-effective options that fit their budget.
You Can Use Any POS System. Businesses in the Philippines must comply with the Bureau of Internal Revenue (BIR) eAccReg accreditation list and register their POS machine with BIR if they issue invoices through it.
POS Systems Are Complicated and Take a Long Time to Implement. Most modern POS systems are designed to be user-friendly and can be as simple or advanced as needed. Most providers offer easy setup, training, and integration with existing operations.
Correcting these misconceptions ensures that businesses make informed decisions about investing in a POS system without unnecessary concerns.
Your POS provider can also train your staff and help them troubleshoot common point of sale issues
Final Thoughts: Why Filipino SMEs Need a POS Machine
A POS machine is more than just a tool for processing payments; it’s a business solution that helps Filipino SMEs manage transactions, inventory, and customer relationships efficiently. By investing in the right point-of-sale system, business owners can enhance operations, reduce manual work, and offer customers a seamless checkout experience.
When selecting a POS machine, ensure it meets your business needs, integrates with payment gateways like Maya Terminal, and offers essential features such as barcode scanning, inventory tracking, and customer management.
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