What Is an EPOS System? A 2026 Guide for Modern Retailers

While traditional cash registers are good for serving customers at the counter, they don’t automatically connect to your wider sales infrastructure.

An electronic point-of-sale (EPOS) system puts the most important parts of your business at your fingertips. With the right combination of POS hardware and software, your team can manage stock, maintain customer relationships, generate reports, finalize sales, and more. 

So what exactly is an EPOS system? How does it work? And what are the benefits of using an EPOS system in retail? Let’s answer these questions and look at the types of EPOS systems available to you, with tips on how to choose the best system for your business.

What is an EPOS system? 

An EPOS is a digital checkout and till system. It includes hardware such as card readers and payment terminals, and software that processes payments, tracks inventory, and performs other essential retail functions.

Using an EPOS system, you can efficiently complete transactions and monitor retail activity from a single device—even if you sell across multiple locations and channels.

EPOS vs. POS: What's the difference? 

While the terms are often used interchangeably today, EPOS emerged to describe the next generation of POS technology. 

A traditional POS handles basic in-store transactions but doesn’t connect your inventory, customer data, or online sales. An EPOS, by contrast, is a networked system that integrates payments, inventory, customer data, and online channels into a single, electronic ecosystem. For example, a retailer might use a digital touchscreen terminal that automatically updates stock levels and syncs with their ecommerce site.

The core components of a modern EPOS system

EPOS software: The command center 

EPOS software lets merchants view their sales on demand. With the right system, you can update your inventory in real time and track orders while keeping customer data secure. Most EPOS software also contain a reporting function, along with other third-party integrations.

Common EPOS software features include:

• An intuitive payment process for customers
• Ecommerce and brick-and-mortar integration 
• Order and inventory syncing
• Out-of-stock alerts
• Purchase order management and automation 

Some mobile EPOS systems, like the Shopify POS app, are also available for iOS and Android, so you can process payments on handheld devices you own without additional hardware.

EPOS hardware: The physical tools 

EPOS hardware are the devices that customers and retailers use to buy and sell products. 

Hardware can be as simple as a card reader combined with a phone app to process orders and accept payments. For a more permanent solution, you might choose to use a barcode scanner, a Bluetooth receipt printer, or a cash drawer.

Many retail stores use a touchscreen EPOS at the counter to quickly process card payments. Some systems (including Shopify) will also allow you to use an iPad to run your store.

Common EPOS hardware devices include:

• Touchscreen terminal
• Chip and PIN card reader
• Barcode scanner
• Receipt printer
• Cash drawer

💡Tip: Skip the need for hardware with Shopify Tap to Pay. It turns your mobile device into a credit card reader, so you can operate your entire store from your smartphone.

EPOS payments: The transaction engine 

With the right EPOS, you can accept credit and debit cards, contactless payments, mobile payments, and online orders. Even if your customer wants to put down a deposit or pay with a gift card, you’ll be able to accommodate them. 

Plus, because all transactions are tracked within the same system, an EPOS makes bookkeeping more efficient than using traditional cash registers.

💡Tip: Shopify Payments is the fastest way to start accepting payments in-person, online, and on the go. It’s included in all Shopify EPOS plans, so you can skip lengthy third-party activations and go from setup to selling faster.

How does an EPOS system work? 

An EPOS system lets you accept in-person payments, track sales, and manage inventory, without the hassle and potential inaccuracies of manual reporting. 

It allows customers to pay for their orders with payment methods such as cash, credit and debit cards, and even mobile payment, improving the transaction process and giving customers options.

Here’s how an EPOS system works:

1. When a retailer enters product information into an EPOS (or scans a barcode), the system calculates the amount that a customer needs to pay. 
2. Once a transaction is made, stock levels will instantly be adjusted in your inventory management system (IMS). This allows your team to process payments and respond to questions around stock in a more efficient manner.
3. At the same time, the EPOS records sales and customer data. 

With accurate information at your fingertips, you can run different types of reports any time. EPOS data reports cover customer loyalty program information, sales, stock figures, and employee productivity, reflecting real-time business performance.

Cloud-based vs. on-premise EPOS systems 

EPOS systems can be set up in two main ways: cloud-based or on-premise. Your choice affects how data is stored, accessed, and managed.

Cloud-based software will store all of your sales and inventory data online, meaning it can be accessed from any device with an internet connection. Because of this, a cloud-based POS system is best for retailers with multiple locations or an online store. It offers a lower up-front cost and real-time reporting from anywhere, not just the retail location.

An on-premise EPOS stores data locally on your store’s server or hardware. You’re responsible for software updates, backups, and security—which is why on-premise EPOS systems are typically used by large retailers with dedicated IT teams, strict data security policies, or locations with unreliable internet.

The key benefits of an EPOS system for retail 

Modern retail EPOS systems are transforming how businesses serve customers. They’re driving the future of retail with smarter sales, more data-informed decisions, and an enhanced customer experience. 

Unify your sales channels 

It’s rare for customers to only shop online or in-store. Most are omnichannel—they jump between your online store, social media storefronts, and retail locations often within a single purchase decision. According to a 2025 study from Deloitte, retail executives cited enhancing omnichannel experiences as a top priority, as omnichannel shoppers spend 1.5x more. A good EPOS lets you deliver seamless shopping experiences as they switch between channels.

For example, with a unified EPOS system, you can:

• Allow customers to buy items online and schedule in-store pickup
• Save lost sales caused by stockouts by checking available inventory and sending an item directly to your customer, with shipping calculated at checkout
• Use the in-store EPOS to process a refund, issue store credit, or exchange items bought online —or vice versa—without causing inaccuracies in your inventory management system. 

Home furnishings brand Parachute, for example, uses Shopify POS to unify their sales channels. They processed 1,300 buy online, pick up in-store (BOPIS) orders in the final quarter of 2024 alone—all while saving over $1 million in annual operational costs. 

“Being able to leverage Shopify's buy online, pick up in-store feature actually allows us to tell our online customers that we even have stores,” says Meg Marsh, Parachute's SVP of operations. “This allows us to drive traffic to the stores where we know that customers have a really great experience.”

💡Tip: To get started, enable in-store pickup availability in Shopify admin to show online shoppers whether a product is available for pickup at one of your stores.

Make data-driven decisions with powerful reporting 

Once you’ve started making sales using an EPOS system, you can use it to help figure out what’s working for your business and what isn’t. An EPOS can help you answer questions like:

• Which staff members are selling the most? 
• Which locations are thriving? 
• What time periods create the best opportunities for sales? 
• What type of customer keeps returning?

Most EPOS systems offer an overview of your business for a quick snapshot of online and in-store activities. The best systems also create retail sales reports, cash tracking, cash flow reports, product reports, discount reports, inventory reports, financial reports, and more.

Streamline inventory and staff management 

A good EPOS system will offer purchase order suggestions based on recent product performance or seasonality. It will also tell you when stock is running low, based on vendor lead times and your current rate of sales. And if certain products are regularly performing badly and taking up inventory storage space, your system will alert you.

Your staff also have different roles and will, in turn, need access to different areas of your EPOS. Managers might need to make approvals. Warehouse staff might need to check on deliveries. 

With Shopify’s EPOS system, for example, you can assign different roles and permissions for what staff can do in your system without manager approval—like changing a product’s price or applying a custom discount to a sale.

You’ll also want to track performance, whether it’s in sales or another area of the business. Shopify POS lets you assign staff IDs to attribute sales, so you can provide commissions or kudos and prioritize training for low performers.

Enhance customer experience and loyalty 

Today, most consumers expect convenient checkout options, even from small sellers at popup stores or farmers markets. A unified EPOS lets you do this through:

• Automatic tax calculations
• Easy discounting
• Email or SMS receipts

For example, as your sales associate pulls up a customer’s unified profile, they can see what the customer has previously purchased and how many loyalty points they’ve accumulated. They use this information to strategically upsell—perhaps recommending a new product that complements one they already own, or using their loyalty points as partial payment. 

Plus, with the customer lists you’re building, you’ll have more opportunities to reach out post-purchase. You can email, SMS, or call customers with relevant, personalized promotions to retain more of the customers you’ve already acquired.

Increase efficiency with third-party integrations 

Most EPOS systems support integrated apps and tools to give you the features you need. You can connect loyalty and reward programs, customer relationship management (CRM) platforms, or pickup and delivery apps to schedule click-and-collect pickup times, control local delivery zones, and set delivery rates.

💡Tip: With Shopify, it’s easy to customize your EPOS and extend its capabilities. Find integrated apps built by our trusted partners in the Shopify App Store for almost anything, from counting foot traffic to launching a loyalty program.

How to choose the best EPOS system for your business 

Consider future needs, pricing, available features, and user-friendliness when choosing an EPOS for your retail business.

1. Assess your specific retail needs

It’s important to invest in a system that meets your unique needs, so work out exactly what you need your new EPOS to do ahead of time. Consider the challenges you’re facing with your current point-of-sale system, if you have one. Start with why you’re switching retail tech, and go from there.

Then, take a look at your business goals and how an EPOS will help you meet them. Your projected growth is going to hugely impact your needs. You might not need certain EPOS features today, but you could rely on them in 5 to 10 years. Choose a system that you can easily upgrade and continue using in the future. 

2. Identify essential software and hardware features 

Once you know what the future of your retail business will look like, shortlist which features you need from your EPOS hardware and software stack. 

For example, if you plan to open a second location, you’ll need a vendor with multi-store POS capabilities and customizable staff permissions. If you plan to host popups, you’ll need a portable card reader that you can take with you for each event.

Other important POS features include:

• Ecommerce integration
• Native payment processing
• Loyalty programs
• Email marketing integration
• Staff tracking
• Fulfillment options 

As for hardware, think about whether you need physical devices or can use those you already own. For example, if you’re opening a second location on a tight budget, consider a mobile-based EPOS system that turns your smartphone into a retail POS system. 

💡Tip: Shopify is the only platform to unify POS and ecommerce on the same platform. This gives you one central operating system for every aspect of business operations—without patchy middleware or expensive custom integrations typically required to unify customer, inventory, and sales data. 

3. Evaluate scalability and total cost of ownership 

As with any purchase for your business, you’ll need to balance EPOS pricing with value offered. You’ll have a budget, and the EPOS system you choose will need to fit within it—but there are several factors to think about when it comes to fee management:

Software fees

Whether monthly or annually, there’s usually a software fee that varies depending on the plan you choose. Opt for an EPOS software plan with more features and you’ll pay a higher monthly fee—but those features could also save you money or help you bring in more revenue over time. 

Remember that with software, there are more opportunities to upgrade later if you have the right hardware to support your future needs. You might only need a basic plan to cover the retail store you’re running today, but you’ll want to upgrade to a higher tier plan when you expand into a bigger storefront or more locations.

Hardware investment

EPOS system costs will vary by the number of stores and staff you have, and the payment types you want to accept. Since upgrading hardware can be costly, one option is to mitigate lease hardware at the start of your business endeavor. 

Payment processing fees

Every time you make a transaction, your payment card processor charges a fee. The amount you pay can vary depending on the card processor you use and the card your customer uses. 

Some of the best EPOS providers offer integrated payment processing. This takes away the risk of hidden costs. You’ll pay the same rate for all cards so you can forecast your cash flow.

Total cost of ownership

Consider whether you need add-ons, apps, and tools to make your shortlisted EPOS systems work the way you want it to. 

Cheaper EPOS vendors may only offer basic reporting and order fulfillment options for free. If you need to pay extra for advanced inventory management add-ons, confirm the total cost of ownership (TCO) to ensure that initial savings don’t represent a false economy.

Step 4: Prioritize ease of use and staff training 

When choosing the best EPOS system for your business, make sure it’s appropriate for your staff’s retail skill level. Features that solve your store’s sales and inventory problems are great—but only if your staff can use them. For example, if you need a software developer to customize the interface of your EPOS system, it might not be the right choice for a local coffee shop.

Also consider mobility. For some retailers, there’s no issue with tethering an EPOS to a checkout counter. Others, however, will greatly benefit from a mobile POS system to sell wherever customers are. 

Shopify POS excels in this area. It has portable mPOS systems to take with you anywhere on the shop floor, and a customizable Smart Grid to complete your most frequent checkout tasks. This simplicity and ease of use has helped brands like luggage retailer Monos reduce EPOS training time to just half a day.

“We train our retail staff not only on POS but the full online experience as well, which helps them understand how everything like order processing, refunds, and promotions work,” says Mike Wu, Monos’s director of ecommerce and customer experience. "Having it all on the same platform makes it much easier to connect the dots and gain a full understanding of the business, which results in better customer service.”