SoftPOS is moving beyond pilot deployments and becoming part of broader acquiring strategy. What began as a way to enable payment acceptance on smartphones is now becoming part of a wider merchant management model.
For banks and payment providers, the question is no longer whether smartphones can support payment acceptance. It is how SoftPOS can help expand acceptance securely, efficiently and at scale across different merchant environments.
According to Juniper Research, SoftPOS transaction value is forecast to grow by 2,150% between 2025 and 2030, reaching $540 billion globally by the end of the decade. BPC’s new guide Powering your merchant network with SOFTPOS, estimates that 61 million smartphones globally will be using SoftPOS by 2028, reflecting how quickly software-based acceptance is moving into mainstream acquiring.
For banks, the value of SoftPOS now goes beyond the transaction. It can support merchant onboarding, service expansion, cost reduction and stronger merchant relationships. Here are seven reasons why banks should be introducing SoftPOS into their acquiring strategies.
All-in-one acceptance
One of the biggest advantages of SoftPOS is its ability to support multiple acceptance methods within a single environment. Instead of managing separate solutions, banks can offer merchants a more unified experience, simplifying payment acceptance and reducing operational complexity across different merchant segments.
Unification also reflects a wider shift in merchant expectations. According to McKinsey, small businesses value integrated solutions that combine payments, banking and business management capabilities, rather than relying on multiple disconnected systems. For banks, this makes SoftPOS part of a broader move towards more connected merchant ecosystems.
Frictionless merchant onboarding
Merchant onboarding has become an important part of the acquiring experience. Businesses now expect payment services to be activated with the same simplicity they experience in consumer applications. SoftPOS supports this by reducing reliance on physical device deployment and allowing merchants to activate acceptance through software. Combined with digital onboarding and remote provisioning, SoftPOS can help banks shorten the time between merchant sign-up and transaction acceptance, while creating a smoother onboarding journey.
Stronger merchant retention
Competition in acquiring is putting greater pressure on banks to retain and grow merchant relationships. SoftPOS can be deployed alongside value-added services such as loyalty programmes, inventory tools, digital invoicing, reporting and business analytics. When these capabilities are available through the same application, the platform becomes more embedded in the merchant’s daily operations, which allows banks to move beyond transaction processing and create a more useful, long-term relationship with merchants.
New revenue opportunities
The growth of software-based acceptance is creating opportunities for banks to expand beyond traditional acquiring revenues. Many institutions are exploring how SoftPOS can support services such as loyalty, instalments, Buy Now Pay Later, digital invoicing, merchant analytics and embedded financial services.
As payment acceptance becomes more commoditised, banks need new ways to differentiate their acquiring offering. SoftPOS provides a foundation for delivering broader merchant services through a single platform, creating additional revenue opportunities while helping businesses manage more of their day-to-day operations.
Contactless readiness
Consumer payment behaviour continues to move towards contactless transactions and digital wallets. SoftPOS enables merchants to accept contactless payments using smartphones and tablets they already own, helping banks extend acceptance coverage without relying only on dedicated payment terminals.
Reinforcing the need for modern acceptance models, Juniper Research forecasts that global contactless payment transaction values will grow from $7.7 trillion in 2025 to $18.1 trillion by 2030. Financial institutions modernising their technological stack get to efficient and scalable ways to deliver services to unbanked segments where traditional terminal deployment may not always be practical.
Operational flexibility
Not every merchant operates in the same way. Traditional POS terminals remain important in many retail environments. SoftPOS adds flexibility for merchants operating in mobile, distributed, seasonal or temporary settings. SMEs can activate additional acceptance points during peak periods, events or promotions without requiring new terminal deployments.
Lower total cost of ownership
One of the most practical benefits of SoftPOS is its potential to reduce the overall cost of payment acceptance. Traditional acquiring models often require financial institutions to procure, distribute, maintain, replace and support dedicated payment terminals. SoftPOS reduces this dependency by using commercial smartphones and tablets that merchants may already own.
This is particularly relevant for SME and micro-merchant portfolios, where terminal deployment economics can be challenging. By reducing hardware and logistics requirements, banks can support wider merchant coverage with a more cost-efficient operating model.
It is secure
The growth of SoftPOS would not be possible without advances in payment security standards.
For years, payment acceptance depended heavily on dedicated hardware because payment credentials and PIN entry needed to remain tightly protected. The PCI Security Standards Council’s CPoC and MPoC standards have created clearer frameworks for how software-based payment acceptance can operate securely on commercial off-the-shelf devices, including support for contactless and PIN-based transactions.
These standards provide the foundation for banks to expand software-based acceptance while maintaining the security, compliance and risk controls expected in traditional payment environments.
SoftPOS as part of a broader merchant ecosystem
SoftPOS is no longer just an additional acceptance option. It is becoming part of a wider merchant services strategy. Banks are evaluating how software-based acceptance can connect with merchant management tools, reporting, embedded finance, digital commerce capabilities and value-added services. Rather than operating as a standalone application, SoftPOS can help create a more connected merchant experience.
For many institutions, the focus is shifting from whether SoftPOS has a role in acquiring to how it can support merchant growth, improve efficiency and create new opportunities across the payments ecosystem.
Frequently Asked Questions
What is SoftPOS?
SoftPOS is software that enables compatible smartphones or tablets to accept contactless card and digital wallet payments without requiring a dedicated payment terminal.
Does SoftPOS replace traditional POS terminals?
No. Traditional POS terminals continue to play an important role in many merchant environments. SoftPOS complements existing acceptance options and expands payment acceptance into mobile, distributed and lower-cost settings.
Is SoftPOS secure?
Yes. Modern SoftPOS deployments operate under PCI Security Standards Council frameworks such as CPoC and MPoC, which define security requirements for software-based payment acceptance on commercial devices.
What types of merchants benefit most from SoftPOS?
SoftPOS is commonly used by SMEs, delivery services, hospitality operators, market vendors, mobile merchants and businesses looking for a more flexible way to accept payments.