Table of contents
Choosing a retail point-of-sale (POS) system is one of the most important decisions you can make this year. A 2025 KPMG report highlighted challenges such as the cost of living, fast-changing trends and customers expecting seamless shopping experiences, leaving Aussie retailers to navigate an unpredictable landscape. You need tools that help you adapt quickly and thrive – and that includes your POS.
Whether you sell groceries or own a clothing store, a modern POS system helps you streamline operations, elevate the customer experience across touchpoints and access real-time insights. But in a sea of options, how do you choose the best retail POS system for your needs? This guide will help you understand the most important factors to consider and features to look for.
What is a retail POS system?
A retail POS system is the combination of hardware and software that allows you to accept payments and manage your business across multiple locations and sales channels. For modern retailers who rely on tech to stay competitive, a POS system does more than ring up sales. It powers daily operations and helps you:
- Track and manage inventory in real time
- Seamlessly sync data across channels and locations
- Generate sales and performance reports with actionable insights
- Market to customers and foster loyalty
- Manage staff and optimise labour costs
The right retail POS saves you time and money by preventing issues like inventory blind spots and inefficient processes.
Here are three of the most common types of POS systems used in Australia:
- Cloud-based POS system: A cloud-based POS stores data online rather than on a single device. In practice, this means that you can access all your tools and information from anywhere, in real-time. This type of POS is best if you manage your business remotely and across multiple locations.
- Mobile POS system: A mobile POS runs on a tablet or smartphone. It’s great for processing payments on the go – think pop-up shop or market stand. It also works well if you want to speed up checkout by letting staff take payments anywhere on the shop floor.
- Traditional POS system: Traditional POS systems, like the ones found in legacy grocery stores, usually involve in-store servers and terminals. They offer you more control over your data, but they are slightly less flexible and may require manual maintenance.
Why is it important to choose the right POS for your retail business?
The right POS can help you achieve your goals, whether you want to open a shopfront this year or significantly scale your eCommerce business within the next decade. On the other hand, the wrong system can create more admin work, cause friction and cost more than it helps. It might seem like a simple enough decision, but your POS system impacts several crucial aspects of your business:
- Streamlined sales process: The best POS for your retail business eliminates the need for manual work. You can serve customers faster and better, which translates into more sales and revenue.
- Inventory and customer management: Who’s buying what – and when? A good retail POS answers those questions. It tracks stock levels so you can order items on time and prevent overstocking. It keeps tabs on metrics like the cost of goods sold (COGS) and profit margins. And it gives you the ability to foster strong relationships with customers.
- Tax compliance: Your POS system should help you comply with the ATO requirements, from automatically calculating and applying GST to keeping records organised for BAS reporting and tax filing.
- Customer experience: The right retail POS lets you offer faster checkout and flexible payment options like debit and credit cards, mobile wallets, gift cards, and buy now, pay later (BNPL). It also enables the creation of personalised shopping experiences.
- Omnichannel integration: These days, a customer might see an ad on Instagram, visit your website a few days later to purchase the product they saw, and end up exchanging it for another size in-store. You should easily be able to sync online and in-person sales with your retail POS.
- Business intelligence: Having access to a dashboard is one thing. But using real-time data to make decisions that grow your business is another. A strong retail POS solution helps you spot trends and act on them.
- Scalability: Retail businesses come in all shapes and sizes, which means the path to expansion looks different for everyone. But your POS should match your ambitions without requiring you to switch systems or juggle multiple tools.
- Secure payment processing: A solid retail POS protects customer data, reduces the risk of fraud and keeps you compliant with PCI DSS standards.
- Employee management: POS software streamlines tasks like scheduling, time-tracking and managing team permissions so you can spend less time on admin and more time supporting and mentoring your staff.
Factors to consider when choosing a retail POS system
Not all retail POS platforms are created equal. Here are four key factors to consider when choosing one:
1. Define your retail business needs
Business type
A furniture and home goods store has different requirements than a liquor store. One deals with high-ticket items and elaborate delivery logistics, while the other is concerned with high-volume sales and factors like age verification. Your operational model affects your reporting needs, too.
Business size
Do you sell a handful of specialised products or rotate through a wide variety of brands and items? You’ll have different SKU management priorities depending on the answer. Also, how big is your team? Will you be leaning on your POS for team management or requiring multiple permissions? A flexible retail POS adapts to your business.
Sales volume
How many transactions do you process on a given day, week, month or quarter? Your sales volume determines your retail POS needs. If you sell hundreds of items a day, you’ll need robust real-time inventory tracking to keep up.
Sales channels
Do you operate multiple locations? Do you have an online store? Do most of your online orders come from your email list or your social media ads? List all the touchpoints where customers interact with your business and make purchases. Your retail POS system has to streamline them.
Inventory management
Your POS should align with the way you manage and replenish stock. Do you reorder dynamically based on demand or prefer a fixed schedule? If you deal with limited-edition launches, you’ll want fast product uploads and easy categorisation. If you sell perishable goods, expiry tracking is a good idea.
Payment types
Customers appreciate being able to pay in different ways. A retail POS should make it easy to accept a wide variety of payment types like card, contactless, mobile wallets and gift cards. If you cater to a younger demographic, consider offering BNPL – Gen Z and millennials (18–44) are more likely to use BNPL services, according to Finder.
Hardware requirements
The size and setup of your business help determine your hardware. Larger stores or high-volume locations benefit from a full countertop register, while smaller shops or mobile businesses might only require a simple tablet – or even a smartphone. Also, think about other accessories you may need, like barcode scanners and receipt printers.
Integration needs
Your POS should talk to your other tools, such as your accounting software or email marketing platform. It streamlines workflows and leads to more accurate, comprehensive reporting.
Long-term growth
If expanding to multiple locations is on your radar, a great retail POS can turn ambition into action. Brittney Saunders, founder of clothing brand FAYT, relied on Square when starting out, equipping her with tools to confidently take the next step. “When I was opening my first retail store, I was going in with no idea what I was doing with all of it,” she said. “But Square’s reporting has made it easy for us to open more and more locations because it gives you such great insights into what are your best sellers, what are your slowest sellers, what you need the most stock of and what you need the least.”
2. Assess retail POS system costs and fees
Ready to map out your budget for a retail POS? Compare providers and break down costs across these categories:
Hardware and software costs
Some retail POS providers separate hardware and software costs. Others bundle the two. There are often recurring monthly fees associated with chargebacks, credit card compliance or advanced features. With Square, you can get started with free POS software and minimal hardware. There are no setup or monthly fees – you only pay when you take a payment.
Payment processing fees
Understanding payment processing fees is crucial to avoid surprises. Some providers may charge different rates depending on credit card type or layer on additional service charges. Square pricing is straightforward: 1.6% per tap or insert, and 2.2% for online purchases and manually entered card payments.
Support and maintenance
Some retail POS providers charge you for premium support or training. With Square, support is included – you can contact the support team by email, chat or phone whenever you need assistance.
Learn more about the total cost of a POS system in Australia.
3. Prioritise Australian compliance
Owning a retail business in Australia comes with a unique set of considerations – and they should inform your retail POS system selection.
GST support
Collecting and paying GST can be intimidating, but the right retail POS takes the guesswork out of the process. Look for one that automatically calculates GST and syncs with your accounting software.
ATO-friendly reporting
The last thing you want is to backtrack and correct errors when tax season rolls around. A good retail POS automatically generates sales reports, supports bookkeeping efforts and keeps you organised if you’re ever audited.
4. Check reviews and testimonials
Take the time to read reviews and testimonials from retailers who run similar businesses to yours. Look for comments on ease of use, customer support and how the system handles day-to-day tasks. Their feedback can give you a feel for how a POS system performs in real-world settings. Read what Aussie business owners who use Square have to say.
Features to look for when choosing a retail POS system
So, what is the best POS software for retail businesses? The right system brings together the essential tools and features you’ll need to run your shop efficiently. This checklist of key features can guide you on what to look for in the best POS system for retailers:
- Flexible payment processing: Look for a POS that easily accepts all payment types, from tap-to-pay to online checkout and recurring invoices, which come in handy when you sell subscription bundles.
- Inventory management: Advanced inventory management is crucial in a retail environment. Search for features like real-time stock updates, low-stock alerts and the ability to easily edit items.
- Sales reporting and analytics: Visualising real-time sales and performance data lets you act fast when something is selling out or tweak your marketing strategy based on trends.
- Multi-location support: If you run a multi-location retail business or plan to grow in that way, you need a POS that streamlines operations across locations. Square for Retail makes this simple.
- Omnichannel integration: As a retailer, omnichannel capabilities are no longer a luxury. Your POS needs to sync online and in-store efforts while creating a seamless experience across channels.
- Mobile payment options: Mobile payment options give you flexibility. A portable, tap-to-pay solution like Square Reader allows you and your team to accept payments fast and on the go.
- Customer management tools: Some POS tools can deepen relationships and drive repeat sales. For example, Square Loyalty lets you create and customise your own rewards program.
- Employee management: Look into features that reduce the load of managing a team, from streamlined scheduling to payroll prep. Square Shifts helps optimise your team’s time.
- Cloud-based system: A cloud-based solution means you can access your POS from anywhere and stay synced across devices and locations. Updates are made automatically.
- Secure payment processing: Protect your business and customers. Look for a retail POS that ensures PCI compliance and has built-in fraud prevention.
- Customisable receipts: Little touches like branded receipts or personalised post-purchase messages can strengthen your brand.
- Accounting software integration: Whether you use QuickBooks, Xero or MYOB, look for a POS that syncs sales data with your accounting software and offers other helpful integrations.
- Customer support: Choose a POS that doesn’t charge extra when you need urgent help right before Black Friday and Cyber Monday.
- Hardware compatibility: Whether you need a credit card machine or a receipt printer, your retail POS software needs to be compatible with it.
- Cost considerations: Read the fine print and compare pricing models when shopping for a retail POS – add-ons and monthly recurring fees can impact your budget.
How to set up the Square retail POS system
With a suite of easy-to-use tools designed to meet the needs of different types of retailers, many Australian businesses consider Square the best retail POS choice. Ready to get started? Follow these simple steps:
- Sign up for Square for Retail and create your free account.
- Order any hardware and accessories you may need.
- Download the Square POS app to start taking payments from mobile devices.
- Verify your identity and link your bank account to start receiving payments.
- Create items to build your inventory. You can do this from Square Dashboard on a laptop or desktop computer, or from the Square POS apps and devices. When you add, update or delete an item, the change is reflected across the board. You can also bulk import items.
POP Canberra turned to Square for Retail as their inventory grew and they needed what owner Gabe Trew called “hardcore inventory management.” It gave them clear visibility over orders and consignment stock, helping the shop run efficiently. “The transition was 80 times easier than I imagined,” said Gabe. The system also sped up checkout, especially on busy weekends. “It’s just so easy that it reduces people’s time at the till by a good amount.”
How to choose the right POS system for your retail store FAQ
How much does a good POS system cost?
POS system costs vary depending on features, hardware and payment processing needs. For example, the $0 plan with Square POS software gives you essential tools to take payments, track inventory and monitor sales, with optional POS hardware like registers or card readers starting from $65. Many providers offer flexible pricing, allowing you to start affordably and scale as your business grows.
What is the difference between retail POS and restaurant POS?
Retail POS systems focus on inventory tracking, multi-location management and customer loyalty, while restaurant POS solutions prioritise table management, menu customisation and order tracking. Both handle payments, but each is designed to meet the unique workflow of the business type.
What is the most cost-effective POS system for small business?
The most cost-effective and best retail POS for small businesses depends on your business needs and growth plans. Look for software with low upfront costs, minimal monthly fees and flexible hardware options. Many small retailers find Square appealing because it offers free POS software, pay-as-you-go payment processing and scalable features, so you can start small and expand as your business grows.
What is the most popular payment method in Australia?
Debit and credit cards remain the most common payment methods in Australia, with contactless tap-to-pay rapidly increasing. Mobile wallets like Apple Pay and Google Pay are also growing in popularity. A good POS system should support these options reliably to make checkout fast and easy.
Which POS service is best?
To choose the right POS, retailers should consider their size, industry and workflow. Look for flexibility, reliable reporting, multi-channel support and ease of use. Many Aussie retailers love Square for its combination of affordable and aesthetic hardware, cloud-based tools and rich features to help run their business.
