What is mPOS and how does it work?

27 Sep 2022

MPOS, or mobile POS, is a POS system that is designed to conduct cashless payment on mobile devices.

Compared to the traditional POS system, the mPOS is smaller, cheaper, simpler and faster to process payment, and can be fit in the user's pocket for them to get paid anywhere at any time.

When a business owner signs up to an app, the provider sends the business owner a card reader that plugs into the mobile device's audio jack to process debit/credit cards.The mPOS can function as a standalone device linked to a business bank account, or as part of a larger legacy POS system. Instead of the storage on the device, customer data when processing with mPOS is encrypted and stored in the cloud to protect cardholder data.

Typically, this is how an mPOS works in reality.

• Step 1: Submit request

The store/shop/mall will log in to the mPOS system, then access the transaction list. The business owner will select the eligible transaction and submit the corresponding withdrawal request, then press on the verification code, the system will authenticate immediately and proceed to the next steps.

• Step 2: Process the request

Immediately after receiving the request from the user, mPOS will process the request if it is confirmed as valid. In case the transaction is not valid, The mPOS device will:

• Refuse to process the request.
• Clearly notify the reason so that the user knows how to handle it
• Suggest the requirements needed for the order to be approved

• Step 3: Receive payment

When the request has been approved, mPOS will receive the money. From here, the transaction will be completed.

Disclaimer: This information, including the recommendations, is only general. It is an overview information for reference.