Intro

Not long ago, taking card payments required bulky hardware. Now, software point‑of‑sale (SoftPOS) solutions turn smartphones into payment terminals. For small businesses, this technology reduces costs and increases flexibility.

TLDR

• SoftPOS turns NFC‑enabled phones/tablets into contactless payment terminals.
• Adoption is growing rapidly; merchant use of SoftPOS is predicted to rise 683 % between 2023–2028.
• Over half of UK adults are registered for a mobile wallet, and 87 % use it monthly.
• SoftPOS eliminates hardware rental and enables mobile trading – ideal for markets and pop‑ups.
• Businesses should assess compatibility, transaction security and customer demand before adopting.

Main post

Traditional payment hardware has long dominated UK retail. However, the point‑of‑sale landscape is changing. Software‑led solutions are overtaking hardware‑based card machines. At the centre of this shift is SoftPOS.

What is SoftPOS? SoftPOS (software point‑of‑sale) transforms any NFC‑enabled smartphone or tablet into a contactless payment terminal. Merchants don’t need additional hardware – they download an app and accept contactless payments using the phone’s built‑in NFC. Global Payments’ Tap to Pay on iPhone is one example.

Why it matters. SoftPOS eliminates upfront hardware costs and recurring rental fees. For mobile businesses – market traders, food trucks, on‑site contractors – carrying just a phone simplifies operations. It also allows staff to take payments anywhere in a venue, avoiding bottlenecks at the counter. Because the phone can also run POS software, businesses can manage inventory, analytics and staff scheduling on a single device.

Rapid adoption. Juniper Research predicts the number of merchants using SoftPOS will rise by 683 % between 2023 and 2028. By 2028, 61 million smartphones are expected to process $11.8 billion in sales. This growth is fuelled by Apple’s Tap to Pay, available in 43 countries as of December 2025.

Consumer behaviour drives the trend. SoftPOS adoption parallels the rise of mobile wallets. Over 57 % of UK adults are registered for at least one mobile wallet service, and 87 % make at least one mobile wallet transaction per month. In addition, about 15 % of shoppers say they wouldn’t buy if their preferred mobile wallet isn’t accepted. For small businesses, offering contactless and mobile wallet acceptance is becoming essential.

Considerations for businesses.

• Security: SoftPOS apps must comply with PCI DSS and use encryption/tokenisation. Businesses should choose providers with strong security credentials.
• Compatibility: Not all phones support Tap to Pay; you’ll need an NFC‑enabled device and the supported operating system.
• Connectivity: Ensure 4G or Wi‑Fi for transaction processing; offline support may be limited.
• Customer expectations: Mobile wallet users expect quick, seamless payments. SoftPOS meets this need by reducing queue times and allowing payments anywhere.

Local opportunities. Pop‑up shops in Sunderland city centre, market stalls at Roker or tradespeople working across the North East can benefit from SoftPOS. It removes the cost and hassle of carrying separate hardware. However, for high‑volume environments like busy restaurants, dedicated card machines may still offer faster processing and longer battery life.

Next steps. To explore SoftPOS, speak to providers that offer PCI‑compliant tap‑to‑phone solutions. Use our product recommendation tool to compare SoftPOS providers and decide if this technology suits your business. SoftPOS won’t replace every card machine overnight, but it’s a significant step towards a hardware‑light future where accepting payments is as simple as unlocking your phone.