Mobile Devices Becoming the New Point of Sale System

More businesses are moving to mobile point of sale (POS) systems, reports terra.

According to Dave Kaminsky, an emerging technology analyst of Mercator Advisory Group speculates that in 3-5 years, most of the larger point of sales systems will be replaced by iPad and tablet POS systems.

These new systems can integrate directly with tablets for a fraction of the price, and will replace older and clunky POS systems that can cost in excess of $20,000.

The competition is also expected to increase as a growing number of companies are entering the market, some unexpectedly.

It was reported that Square and Groupon are set to make waves with their new initiatives in the POS space. Square, a leader in mobile POS, has announced the Square Stand, a replacement for the countertop POS that utilizes an iPad. Groupon has launched the Breadcrumb POS application, a major shift from the company’s social deals service.

Both Square and Groupon charge a fee per transaction at 2.75% and 1.85% plus a 15 cent transaction fee respectively, though Groupon also charges a monthly fee of $99.