How many types of payment terminals are there?
The checkout counter is no longer a simple transaction point, it represents the final stage of the customer experience. As European merchants, before delving into various devices, we must first grasp a fundamental concept: What is POS?
POS (Point of Sale) refers to the specific time and location where consumers complete payments for goods or services.
Modern POS systems are more than just cash registers, they integrate hardware (payment terminals) with software (systems that process transactions).
For merchants, the right POS system is a business tool that boosts efficiency, safeguards funds, and enhances customer experience.
Whether you're a small business owner planning a new store opening or a retailer pursuing digital transformation, you might be asking: “How many types of payment terminals are actually available? Which one truly fits my business?”
This article will provide an in-depth breakdown of the mainstream payment terminal types on the market, detailing the technological evolution from fixed POS to mobile POS, and highlighting the hardware-free SoftPOS solution.
Whether you have a small business or a chain brand pursuing global expansion, we'll help you find the perfect payment “powerhouse” for your business.
Countertop payment terminals
This device is the most commonly known as a card reader. As a classic solution, countertop terminals remain a staple in the majority of brick-and-mortar retail stores.
These devices connect to your Point of Sale system via physical cables or link directly to a phone line or Ethernet port. They rely on a constant power supply from an electrical outlet and maintain a fixed position on the checkout counter.
Key features:
Connectivity: exceptional stability through a dedicated Ethernet or telephone line.
User interface: physical keypads paired with small monochromatic or basic color displays.
Payment acceptance: full support for magnetic stripe (swipe) and EMV (chip) transactions. Most modern versions also include basic NFC (contactless) sensors.
This model suits traditional retailers, grocery stores, and boutiques where customers must complete transactions at a fixed station.
The limitations of countertop terminals
While these terminals offer superior durability and reliable connections, they lack mobility. Merchants cannot bring the device to the customer, and these units generally do not support third-party business applications.
Portable wireless terminals
Portable terminals eliminate the constraints of physical cables. These devices connect via Wi-Fi, Bluetooth, or cellular networks (4G/3G) and represent the first true step toward mobility in payment technology.
The implementation of table-side payments represents the primary example of the value portable terminals have within the food and beverages industry. This technology facilitates a superior service model where servers bring the device directly to the guest table to finalize the bill.
Customers avoid the need to leave their seats or surrender credit cards to staff, which eliminates a common security risk and drives operational efficiency.
Key features:
Durability: these units feature a rugged design to withstand frequent handling by multiple staff members.
Speed: transaction processing is generally rapid, provided the local network connection remains stable.
The limitations of traditional wireless POS terminals
Closed system:
These devices run on proprietary software which functions as a "black box." Merchants lack the flexibility to install or update management tools for inventory, loyalty programs, or split payments, as functional upgrades require the provider’s intervention.
Lack of integrated cameras:
Most traditional units feature only physical keypads and small screens. Because they cannot scan customer QR codes, the merchant must instead display a static code or use another terminal/device if they wish to integrate QR code payments.
This one-way interaction feels disjointed, especially during high-volume periods or in areas with poor network signals.
Smart POS terminals
The Smart POS terminal represents a deep integration of the open Android ecosystem, powerful computational performance, and professional financial payment modules. With an integrated camera, this device resolves the common inability of traditional hardware to scan QR codes.
At Silkpay, we offer the PAX A920Pro to merchants who demand peak efficiency and stability.
Key features
Omnichannel payment integration:
A single device solution accepts Visa, Mastercard, Maestro, and CB, along with essential digital wallets such as Alipay+, WeChat Pay, and UnionPay Yunshanfu. It also provides full support for Google Pay, Apple Pay, and various contactless payment methods.
Multidimensional payment modes:
Silkpay’s PAX A920Pro solution not only supports contactless taps, digital wallets and QR code payments but also generates PaybyLink for remote payment links.
Professional grade scan hardware:
To address the limitations of traditional POS hardware, the A920Pro features a professional infrared scan module. This ensures successful scans under poor light conditions or during high-frequency transaction periods so merchants never miss a potential sale.
Powerful business tools:
The PAX A920Pro terminal incorporates comprehensive reporting tools, which enable its detailed reporting capabilities. Merchants can view transaction data in real time and also make refunds autonomously.
mPOS (mobile Point Of Sale)
mPOS is a solution that allows merchants to accept payments using their smartphone as a payment terminal.
They can download the payment application to their personal device to accept card payments. The reader extracts encrypted card data while the phone utilizes Wi-Fi or cellular networks to transmit authorization requests to the bank.
Upon a successful transaction, the merchant sends a digital receipt through the app.
Key features
Portability and diverse payment acceptance:
This solution supports a comprehensive range of payment methods such as Visa, Mastercard or even UnionPay cards depending on your provider.
The limitations of mPOS
Dependence on devices is the most obvious limitation of mPOS. Since mPOS itself is a “plugin”, it relies entirely on your smartphone or tablet to function.
Battery and charging problems:
Marchants must ensure both the mobile phone and card reader remain powered. If the phone runs out of battery, the entire checkout terminal becomes disabled.
Examples of mPOS
SoftPOS (Tap to Pay)
SoftPOS represents the ultimate evolution of mPOS, completely removing external card reader hardware and turning your phone into a payment terminal.
Silkpay provides softPOS services to merchants in Europe. After registering a Silkpay business account and downloading the app, Merchants directly use the built-in NFC functionality of Android phones for contactless payments. Customers simply tap their bank card or digital wallets near the back of the merchant's phone.
Key features:
0 Hardware investment: your phone is your POS terminal.
Fully Digital experience: completely paperless with electronic receipts.
High Security: compliant with PCI DSS international security standards.
Conclusion
When choosing a POS system, merchants should not view them as a hardware expense, but rather as a strategic investment. Your core task is to determine: is your current payment equipment restricting your business, or empowering your growth?
From fixed counters to wireless mobile payments, and from cumbersome hardware plugins to software-based payment, the evolution of payment technology points clearly toward two keywords: flexibility and intelligence. Traditional closed systems are rapidly exiting the stage of history, replaced by smart hubs like the PAX A920Pro, which are capable of carrying complex business logic and processing omnichannel global payments.
At Silkpay, we don’t just provide you with a machine, we offer an omnichannel growth solution. Whether you choose the minimalist SoftPOS or the peak-performance POS terminal, our goal remains the same: to make every transaction secure, reliable, and lightning-fast.
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe and the Americas accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.