The demand for POS software development is rapidly increasing due to its higher flexibility, adaptability, and scalability, which help retail and e-commerce businesses drive potential growth. When it comes to building POS systems from scratch, businesses often wonder how much it will cost to build custom POS software in 2025. In this blog, we will discuss the cost of POS software development and explore various types of POS systems.
Just like the cost of ERP software development, POS system development requires numerous factors to consider. Finding the right POS development company is crucial to getting a scalable and affordable POS system due to their extensive knowledge and experience in software development.
However, it is important to keep in mind your core business needs, especially when you hire dedicated software developers for custom POS development in 2025. Whether you choose a traditional POS system or a modern mobile POS system, or planning to build your first POS system, there are various things to consider.
Are you still wondering why should you use a custom POS system in your business, you have come to the right place?
Table of Content
What is POS Software?
POS software is more than just a traditional cash register since it combines sales, inventory control, and customer relationship management into one system. In today’s retail & hospitality sectors, POS (Point of Sale) software has become an essential tool that helps businesses streamline their processes more efficiently.
There are a number of benefits of using a POS system, allowing businesses to seamlessly handle their customers, sales, and orders while providing immersive experiences. POS system works like a central point where sales, customer data, and stock meet to streamline business operations.
The main function of a POS system is to streamline sales, it also provides various other features, including inventory tracking, real-time stock updates, and sales reporting to help you gain valuable insights into the business’s health.
It also handles customer data, which helps you create customized marketing strategies and enhance overall customer service.
POS Software Development: Market Overview
It’s interesting to know that a large proportion of retail and restaurant businesses rely on point-of-sale (POS) systems for their day-to-day operations. Nearly 95% of all transactions are processed through POS systems, which record sales, process payments, and much more.
It is crucial to work with an experienced and skilled POS system development partner to ensure the development of a fast and cost-efficient POS system. In addition, it’s also worth noting that the global market for point-of-sale software was valued at USD 11.99 billion in 2022 and is expected to grow at a compound annual rate of 10.8% from 2023 to 2030.
According to Statista, the POS software development market is further estimated to reach 42.5 billion U.S. dollars in 2027.
Different Types of POS Systems
There are various types of POS systems used today, which are included but not limited to;
1. Mobile Point of Sales (mPOS)
mPOS system is a system that can be fully integrated into different mobile devices, including smartphones, tablets, or other related gadgets. Mobile point-of-sales systems (mPOS) are designed to work on multiple devices, like card readers and barcode scanners.
These kinds of POS systems are used to handle various things, including managing inventory, monitoring real-time sales, and more.
2. Cloud-based POS Systems (Cloud PoS)
Cloud-based POS Systems (Cloud PoS) are run or managed in the cloud and are mainly used by POS vendors who use data centers to maintain this type of POS. Cloud-based PoS systems can be seamlessly integrated into existing frameworks and functionality to ensure constant business running.
Cloud POS systems are best suited for businesses of all types and sizes, providing a variety of features and functionality faster than ever before in the world.
3. Terminal PoS
This type of point-of-sale (POS) system is most commonly used in stores and outlets like grocery stores and restaurants. It sounds like these systems are known for offering innovative services that help address industry-specific issues.
Additionally, you mentioned that terminal POS systems are designed to maintain certain standards and can be easily integrated into different frameworks.
Factors that affect the cost of POS Software development
Several factors influence the overall cost of POS software development. These factors include;
1. Project Complexity
The complexity of software architecture, design, and functionality can affect the overall cost of POS software development. Maintaining complex systems may require more testing, debugging, and refactoring, leading to higher expenses and third-party IT costs. In addition, the size and scope of a software application can also positively influence maintenance costs.
Larger applications with more extensive codebases and a greater number of features may generally require more effort and resources to maintain. To get an accurate cost estimation for your POS software development, businesses need to consult with a leading POS development firm in India.
2. Technology Stack
The technology stack for POS software development can also influence the cost of custom POS software design and development. If the chosen technology is less common or requires specialized expertise, it may result in higher maintenance expenses.
By carefully selecting a stack that is both widely used and readily accessible, businesses can empower themselves to achieve their goals with greater ease and efficiency. Companies can unlock their full potential and reach new heights of success using the right tools & technologies at their disposal.
3. Number of features
It’s good to be aware that some point-of-sale providers may charge additional fees for certain features beyond their basic plans. Having cloud-based features, such as a reporting dashboard and a virtual back-end in your Point of Sale software development is fantastic.
And it’s even better that all of your packages offer the most popular features used by large companies in the industry. Ultimately, the actual cost depends on the core features and functionality you want to add to your POS software.
4. Frequency of Updates
The frequency of updates and changes to software can significantly impact the maintenance costs associated with it. Updates, bug fixes, and feature enhancements to numerous applications are more likely to incur higher ongoing maintenance costs than those with fewer updates.
Furthermore, it’s always a good idea to plan for maintenance costs and factor in the frequency of updates while estimating the overall cost of building an MVP for software development.
5. Quality of Code
The quality of the codebase can have a significant impact on the cost of PoS software development in 2024 and beyond. When the code is well-structured and modular, it becomes easier to maintain and requires fewer resources for debugging and troubleshooting, resulting in lower maintenance costs over time.
That’s why it’s always important to follow best practices when it comes to coding. Moreover, it is highly recommended to hire QA experts from a reputed software testing and QA company to ensure your software is bug-free and functioning smoothly.
6. Sales Revenue
We understand that some point-of-sale software development vendors may charge extra fees for handling larger databases, but that’s not the case with a robust PoS system.
You can upload a listing of products or individual items, and the database will keep track of all relevant details, such as UPC, vendor’s name, department category, price of the day, and cost of sale.
Whether you’re a small business or a large corporation, a robust inventory system is all that you need. The volume of sales you’re getting ultimately determines the cost of the POS system.
7. Security Needs
The level of security required for a POS software application can have a potential impact on overall support and maintenance costs. In cases where the application deals with sensitive data or operates in industries with strict regulations, additional security measures such as regular security audits, penetration testing, and compliance assessments may be necessary.
These measures can increase maintenance expenses, affecting the overall cost of POS software for your business.
8. Support & Maintenance
Some vendors offer paid support and maintenance to help users optimize their computer experience. However, what sets Crest’s POS development services apart from other software development companies is its exceptional customer service and 100% satisfaction. You get free access to their extensive online video training library with every point-of-sale system.
Additionally, for those seeking more hands-on training opportunities, there is an option to join their monthly support program. Their onboarding program is also a helpful resource for getting new staff members up to speed quickly.
How Much Does it Cost to Create a Custom POS Software?
When it comes to developing a scalable point-of-sale (POS) application, there are a variety of factors that influence the overall cost. One of the primary factors is the app development platform, such as iOS or Android, may be more expensive to develop than others.
Furthermore, the number of basic and advanced features in the POS system can also impact the cost. More advanced features, such as inventory management or customer loyalty programs, may require additional development time and resources. Another important factor to consider is 3rd party API and platform integrations.
Integrating with other services and platforms, such as payment gateways or accounting software, can add to the overall cost of development. The timeline for completion of the project is also a significant factor, as more complex systems may require longer development times and therefore a higher cost.
Geographical location can also play a role in the cost of developing a POS system. Development teams in different countries may have different hourly rates, which can impact the overall cost of software development. Taking all of these factors into account, the cost of developing a basic POS system typically ranges between $30,000 and $50,000.
This type of system generally includes essential features such as sales tracking and inventory management. However, more advanced POS systems with additional features and mobile compatibility can range in cost from $60,000 to $100,000. It’s important to keep in mind that these are just ballpark figures, and the actual cost of developing a POS system can vary depending on a variety of factors as discussed above.
However, understanding these factors can help businesses make informed decisions about their POS development needs and associated costs.
Conclusion
The bottom line is that it can be concluded that by building a custom Point of Sales (PoS) system and working with a POS app developer, it’s important to ensure that your requirements are met and that you get value for your money.
It’s a good idea to hire a reputable POS system developer or a well-known POS app development company that can help you create highly reliable, scalable, and feature-rich POS software.
A leading POS development partner like Crest Infosystems is committed to delivering quality POS development solutions with outstanding results that are tailored to your business needs. The company uses the latest technology and provides high-quality support to ensure you don’t have to struggle with technical issues.
If you’re ready to take your business to the next level with the help of emerging technology, hire the right developer, and get a POS system that brings you into the digital domain, don’t hesitate to contact us today.
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