A point-of-sale (POS) system is a combination of hardware and software that facilitates sales transactions at a business location. The functionality of a POS system can vary, but it typically includes the ability to process sales transactions and accept payments. Some can track inventory and manage customer data. The Australian POS market was valued at more than US$620 million in 2024 and is expected to grow at a compound annual growth rate of over 12.4%, reaching US$1.25 billion by 2030.
Below, we'll share what businesses need to know about Australian POS systems: their components and how they work together to facilitate transactions, the risks and benefits of POS systems, and how to choose the right one for your business.
What's in this article?
- What to consider when choosing a POS system in Australia
- Benefits of using a POS system in Australia
- Challenges with POS systems
- How to choose a POS system for your Australian business
- How Stripe Terminal can help
What to consider when choosing a POS system in Australia
Australia has several POS-specific requirements and market expectations. If you're localising a POS, these are the main differences worth considering:
|
Area |
Australia-specific considerations |
|---|---|
|
Tax (GST) |
Australia applies a 10% Goods and Services Tax (GST). Items are classified as GST-inclusive, GST-free (e.g., basic foods, medical supplies), or input-taxed. Systems must calculate and report exact GST breakdowns. |
|
ABN and receipts |
Businesses must display their Australian Business Number (ABN) on receipts. By law, purchases over AU$82.50 require a formal "tax invoice" detailing the ABN, supplier name, date, and exact GST amount. |
|
Payments methods |
Australia's domestic EFTPOS network is used heavily alongside Visa and Mastercard. POS systems should support least-cost routing (LCR), which routes debit transactions through the cheapest network to save merchants on fees. |
|
Surcharging |
The ACCC enforces a strict ban on excessive surcharging. Surcharges cannot exceed the merchant's cost of acceptance. Compliant POS systems automatically calculate and cap these fees by card type. |
|
Rounding |
Because 1c and 2c coins were removed from circulation in 1992, all cash payments must be rounded to the nearest 5 cents (known as Swedish rounding). Card and mobile payments remain exact. |
|
Age-restricted sales |
Alcohol, tobacco, vaping products, and some other goods require age verification. Many Australian POS systems include prompts for ID checks. |
|
Payroll integration |
Hospitality and retail POS systems commonly integrate with Australian payroll systems, including award interpretation and Single Touch Payroll (STP) reporting. |
|
Accounting integrations |
Integration with Australian accounting software (Xero, MYOB, Reckon) is often expected. |
|
Loyalty and gift cards |
Common feature, but Australian consumer law governs expiry dates and disclosures in some states. |
|
Kitchen printing |
Hospitality POS systems frequently support Australian café and restaurant workflows, including table service and kitchen printers. |
Benefits of using a POS system in Australia
POS systems simplify payment processing for businesses of all sizes. Here's a rundown of the main benefits:
Faster transactions: Australia has one of the highest contactless payment adoption rates in the world. Modern POS terminals support instant tap-and-go via EFTPOS chip cards and digital wallets, which reduces queue times even during busy times. POS systems efficiently scan and total items for faster checkout, reducing wait times for customers.
Automated tasks: A localised POS automatically separates 10% GST from GST-free items, calculates ACCC-compliant card surcharges, and applies 5-cent cash rounding to cash transactions, eliminating manual calculations at the register.
Minimised human error: POS systems minimise manual entry errors by automating data entry at various points of the sales process, from scanning products to calculating totals and taxes.
Consistent sales experience: For businesses operating both online and offline, a POS system can unify sales channels to provide a consistent customer experience and pricing across all platforms.
Real-time inventory tracking: POS systems update inventory in real time, preventing overstocking or stockouts.
Transaction data: Capture customer purchase histories and issue digital tax invoices via SMS or email, allowing you to build repeat business while staying compliant with Australian Consumer Law (ACL) and privacy standards.
Personalised interactions: Some POS systems can store customer purchase histories, allowing businesses to personalise service and make tailored recommendations.
Accounting integration: Cloud POS systems sync daily sales totals, merchant fees, and tax splits directly with Australia's leading accounting platforms, including Xero, MYOB, and Reckon. This streamlines bookkeeping and simplifies quarterly Business Activity Statement (BAS) preparation.
Security features: POS systems have enhanced security features to protect sensitive payment information and prevent fraud.
Remote access: Modern POS systems are often cloud-based and allow for access from anywhere, which can help businesses that are managing multiple locations or those with owners and managers who need to oversee operations remotely.
Challenges with POS systems
Along with their benefits, POS systems have inherent challenges. To mitigate common issues, choose a POS system with an impressive vendor reputation and strong security features and encryption. Keep up with regular software updates and staff training, and consider using backup systems such as offline payment processing options or manual processes in case of system downtime. Common POS system challenges include the following:
Up-front costs: A POS system can require a substantial up-front investment in hardware, software, and setup, which can cost thousands of Australian dollars depending on the system. Many POS systems also operate on a subscription-based model, requiring recurring licence fees on top of separate EFTPOS terminal rental costs.
Maintenance and upgrades: Hardware may require repairs or replacement, and software updates might be needed for security patches and new features. If your business operates outside of major metro areas, relying on a vendor without a localised Australian distribution network can mean waiting days for a replacement terminal to arrive in the mail.
Downtime: Cloud-based POS systems rely on a stable internet connection. A National Broadband Network (NBN) dropout or local Wi-Fi interference can freeze your registers mid-service. To prevent lost sales during an outage, businesses should ensure their systems have cellular fallback and offline EFTPOS capabilities.
Learning curve: Australia's retail and hospitality sectors rely heavily on casual workers, university students, and working holidaymakers. A POS with a steep learning curve requires costly, ongoing training and increases the risk of manual keying error.
Regulatory requirements: Beyond global data security protocols like PCI DSS, your POS system must adhere to local frameworks. This includes Australian Payments Network (AusPayNet) mandates for terminal security, the Australian Privacy Principles (APP) for storing customer loyalty data, and strict ACCC regulations regarding card surcharging.
Vendor dependence: Relying on the POS vendor for technical support and troubleshooting may potentially leave you vulnerable to vendor outages or price changes.
Limited customisation: Some POS systems have limited options for modification based on your business's specific needs.
How to choose a POS system for your Australian business
Here's a roadmap for choosing the right POS system for your business.
Identify your business needs
Industry: POS system needs differ between retail stores, restaurants, salons, and service-based businesses. Consider features specific to your industry, such as inventory management for retail or table management for restaurants.
Business size: Scalability is important. Consider a system that can grow with your business, whether you have one store or multiple locations.
Budget: Determine your budget for up-front costs, ongoing licensing fees, and potential hardware upgrades.
Features: Make a list of features you need, such as inventory management, CRM, reporting and analytics, and payment processing capabilities.
Research POS system options
Software reviews: Read reviews and comparisons of different POS systems to understand their strengths, weaknesses, and user experiences.
Industry resources: Industry associations or publications often provide recommendations or reviews of POS systems relevant to your business type.
Vendor demos: Schedule demonstrations with a short list of vendors to get a firsthand feel for the system's interface, features, and ease of use.
Evaluate and compare systems
Functionality: Ensure the system has the features you need now and can accommodate your potential future needs.
Ease of use: Consider how user-friendly the system is for your staff, especially those who are less tech-savvy.
Hardware compatibility: See if the software works with your existing hardware or if additional equipment is needed.
Scalability: Choose a system that can grow with your business – whether you need to add more terminals, manage multiple locations, or integrate with new applications.
Security: Evaluate the system's security features and its compliance with industry regulations.
Cost: Compare the total cost of ownership, including hardware, software, subscription fees, and any additional charges or merchant fees associated with payment processing. Don't be afraid to negotiate. POS vendors may be willing to negotiate pricing or offer additional features based on your specific needs and commitment.
Customer support: Assess the quality and availability of customer support offered by the vendor.
Trial experience: Many vendors offer free trials, allowing you to test the system and see if it's a good fit for your business.
Long-term use: While the initial cost is important, prioritise a system that can grow with your business and meet your evolving needs.
Contract terms: Carefully review contracts and service level agreements (SLAs) to understand any hidden fees or limitations.
How Stripe Terminal can help
Stripe Terminal allows businesses to grow their revenue with unified payments across in-person and online channels. It supports new ways to pay, simple hardware logistics, global coverage and hundreds of POS and commerce integrations to design your ideal payments stack.
Stripe powers unified commerce for brands like Hertz, URBN, Lands' End, Shopify, Lightspeed and Mindbody.
Stripe Terminal can help you:
Unify commerce: Manage online and in-person payments on a global platform with unified payments data.
Expand globally: Scale to 24 countries with a single set of integrations and popular payment methods.
Integrate your way: Develop your own custom POS app or connect with your existing tech stack using third-party POS and commerce integrations.
Simplify hardware logistics: Easily order, manage and monitor Stripe-supported readers, wherever they are.
Learn more about Stripe Terminal or get started today.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.