Blockchain For Point Of Sale (POS) Business Solutions: A Practical Use Case
The introduction of blockchain for Point of sale (POS) is currently disrupting the traditional Point of sale business solution across the globe. The business competition of today has made it crucial for virtually everyone to adopt the Point-of-Sale (POS) solution in their businesses. Point of sale (POS) business solutions allow businesses to improve their payment services, inventory process, and customer services.
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There has always been the issue of process complexity with the traditional POS process. The involvement of multiple and different entities has lead to taxation complications, supply chain, and billing bottlenecks. To have a good understanding of the complicated process of the traditional POS system, let us consider a hotel business.
Nowadays, almost every hotel has a Point of Sale software to run business operations efficiently. Let me ask, do you know the working process of the POS? Well, let us dwell a bit on that before we go further.
Components Of The Current POS System
- A computer system that allows you to place or enter the order
- The swiping device for credit or debit cards
- Bar code reader for scanning products
- The printer
- Software to maintain and record all data
The Working Principle Of POS Billing Solution
Our traditional Point of sale system maintains three different databases such as product, purchase, and the inventory database. Immediately a customer places a food order; the product database automatically sends the price information of the product to the screen of the computer. Once the customer pays his or her bill for the food, the status of purchase with the payment mode is immediately updated in the purchase database.
The system will also update the information about the placed order in the inventory database. This is all in the bid to track the availability of items in a timely manner. You have to understand that the Point of Sale system is not limited to just storing information that is related to transactions. The system involves various parties like regulators and government entities which adds high cost to the system.
For instance, the management of the hotel has to report to food regulators that the food they offer is safe and correctly packaged. The hotel owner needs to file taxes on a timely basis. In a situation where the government changes the taxation policies, the business owner will have to apply for the new regulations to be added to the POS system. As you can see, the entire process can be tiring and quite time consuming too.
This brings us to the application of blockchain for Point of sale. Connecting the Point of sale system to the decentralized network (blockchain platform) has the potential to eliminate all bottlenecks experienced with the traditional Point of Sale system. From the inventory management to the calculation of sales and taxes, blockchain for Point of sale can simplify the POS system securely and efficiently.
The Parties Involved In Blockchain For Point Of Sale Billing Station
- A business owner (seller) who requires a POS solution for his/her business
- The customer that has to buy products or services and pay bills through POS solution
- All authorities responsible for adding government regulations to calculate taxes based on different types of bills
How Blockchain For Point Of Sale Could Bring The Needed Transformation
All information relating to billings, taxes, customer’s ratings, the orders placed per day, and the inventory can be stored on the blockchain network. The smart contract ensures that incoming data and tax regulations are maintained before the execution of a business transaction. The parties involved in the POS business system can access immutable data stored on the distributed ledger.
Blockchain technology ensures that all participants can access the information saved on the network. It brings transparency by allowing customers o access the past invoice anytime they desire.
The payment through crypto wallets ensures an automatic payment system from the customer to the business owner. The transaction details can be saved on the blockchain, which can be used for taxation or audit purposes. Blockchain for Point of sale business solution enables relevant authorities to access the time-stamped records related to taxation and payment. It becomes possible to conduct annual or quarter audits efficiently and seamlessly with smart contract.
Blockchain For Point Of Sale Use Case
The Pundi X Point of Sale system hopes to bring blockchain-enabled payment technology to the mainstream while keeping transactions cost-effective and seamless. Pundi X combines highly sophisticated multi-card readers, secure encryption standards, and cryptocurrency features to provide an uncompromising POS system. According to the statement by Melcom Copeland on his LinkedIn page, “Pundi X makes it easy for merchants and consumers to conduct retail transactions in digital currencies through their blockchain-based point of sale.”
Benefits Of Blockchain For Point Of Sale
There are many ways stakeholders can benefit from this excellent business solution. By adding regulations to the smart contract, blockchain helps the POS seller to cut cost through the elimination of intermediaries like accountants, advisors, and auditors. Tax filing is done perfectly because the management can run tax audits without complications. The ease of access to the data stored on the blockchain enables companies to manage inventory efficiently.
On the part of customers, they can keep track of monthly expenses by tracing back the available information any time they want. Buyers can also pay bills automatically through crypto-wallets.
The smart contract helps to reduce complexities as government authorities can build regulations in the smart contract, thus making sure that taxes are applied accurately. It could also ensure that raw material providers meet the agreed and required quality standards.
The Point of Sale business solution comes with many benefits, especially to retailers and business owners. It provides a detailed and sophisticated sales report with software that analyzes sales in different ways. In as much as all these are done on the traditional POS system, there are complexities that blockchain technology can eliminate. The use of blockchain for Point of sale business solutions certainly has great benefits.
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