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Modern POS systems: Design, providers and cost structure

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Today, modern POS (point of sale) systems are much more than simple cash registers. They combine hardware, software, payment processing, merchandise management as well as analysis and reporting functions in one system. Well-known providers in German-speaking countries include SumUp, Zettle (PayPal), Square, Lightspeed, Orderbird, Ready2Order, Viva Wallet and Flatpay.


Most of these systems work with monthly subscriptions for the POS software. In addition, there are transaction fees per payment as soon as card payments or digital wallets are accepted. These fees are usually between 1.0 % and 2.5 %depending on the payment method, card provider and individual contract.


In addition to subscriptions and payment fees, many POS systems incur further costs: hardware leasing, support packages, tipping functions, multi-branch management or accounting interfaces are often additional modules that are subject to a fee.


Invisible fees for merchants and customers

Payments with Visa, Mastercard, Girocard, Apple Pay, Google Pay or PayPal seem convenient and free for customers. However, each of these transactions is actually processed by several parties: Payment networks, acquirers, payment service providers and banks each make a profit.


Even if providers such as Flatpay or others advertise with "fair" or "fixed" prices, the costs remain real. They do not disappear, but are included in fixed fees or device prices. In the end, the retailer pays - and the customer indirectly through higher product prices.


Banks are particularly efficiently positioned in this respect: they usually collect 1-2% per turnover without taking any entrepreneurial risk or providing any operational services in business operations.


Bitcoin as a POS alternative: digital payments without middlemen

Bitcoin takes a fundamentally different approach. Payments are made directly from customer to merchant, without banks, card companies or central payment networks.


With the Bitcoin Lightning Network, Bitcoin is becoming practical for stationary retail for the first time. Transactions are confirmed immediately, scalable and extremely inexpensive. While traditional POS systems usually charge around 1.39% or more, Lightning fees are almost zero - often well below one cent.


In contrast to card or PayPal payments, there are no chargebacks, no account blocking and no payment stop by third parties.


Bitcoin Lightning vs. classic POS systems

With card POS systems - whether variable (e.g. SumUp) or flat-rate (e.g. Flatpay) - the principle remains the same: a portion of the revenue always goes to payment providers and banks.


With the Lightning Network, this principle no longer applies. The fees are not percentage-based, but network-based and minimal. This is a massive advantage, especially for many small payments (bakeries, cafés, events, bars).


The process for the customer is just as convenient as with traditional payment methods. Whether by QR code, Bluetooth, NFC or even via card solutions with stored Bitcoin credit - payment is quick and uncomplicated.


Ready-made Bitcoin POS solutions

Bitcoin payments are no longer a niche or hobbyist solution. There are professional POS systems that are already in productive use today. One well-known example is BTCPay Server.


BTCPay Server is an open source solution that allows merchants to accept Bitcoin and Lightning payments - without percentage fees, without a middleman. The merchant has full control over their revenue.


Ready-made payment solutions also exist in the Monero ecosystem, which also rely on strong privacy and work in a similarly cost-efficient manner.


Conclusion: Bitcoin as a structural advantage for merchants

Modern POS systems such as SumUp, Flatpay or Zettle are convenient - but expensive. The costs are often well hidden, either in percentage fees or flat monthly fees. Banks and payment service providers earn money on every transaction, without any real added value for merchants or customers.


Bitcoin, especially via the Lightning Network, offers a real alternative:

Digital payments without banks, without revenue sharing and virtually no fees.


For merchants, this means

  • higher margins
  • full control over revenue
  • less dependence on payment providers


Bitcoin could therefore be not just another means of payment, but a fundamental competitive advantage in the commerce of the future.

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Important note

The opinions and information provided by us do not constitute financial advice. They are for informational and educational purposes only and are not intended as a substitute for individual advice from qualified professionals.

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8 Commenti

immagine del profilo
Have you ever paid with Lightning? Here are some options near you: https://btcmap.org/map 😁
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immagine del profilo
@innovaclustersolution My first transaction was at a Bitcoin Stammtisch - https://portal.einundzwanzig.space/de/meetups
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It's advertising, what's it doing here?
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immagine del profilo
@fund_manager_272 But informative and something to learn, don't think the format is bad :)


Tell that to the guys who share their lurid YouTube links - that's advertising
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immagine del profilo
@fund_manager_272 The aim of this article is to educate, not to advertise. In today's system, banks and payment providers earn money from almost every transaction - often unnoticed. Bitcoin offers systemic advantages here, particularly because no traditional intermediaries are required. The fact that many people are unaware of this is precisely the reason for this article.
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immagine del profilo
@Alpalaka Thank you for your feedback! 🙏
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immagine del profilo
@innovaclustersolution Would you like to make a post and collect all the posts?
Then you would have a quick overview if you want to search for something.

See @stefan_21 in his pinned post
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immagine del profilo
@Alpalaka We only have this on our website so far. But we'd be happy to do the same here. Good idea, thanks for that! đŸ™đŸ”„
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