Modern businesses across the UK — from bustling London cafés to independent retailers in Manchester — depend on technology to manage payments and operations efficiently. Two common terms often surface in the conversation: POS (Point of Sale) and EFTPOS (Electronic Funds Transfer at Point of Sale).
Although they’re closely related, they serve different purposes. A POS system offers full business management functionality, while EFTPOS focuses purely on payment processing. Understanding how they work — and how they can complement each other — is crucial for any business looking to streamline operations and improve customer experience.
This guide breaks down the differences between POS and EFTPOS systems, explores when to use each, and explains why many UK businesses benefit from integrating both.
What Is a POS System?
A Point of Sale (POS) system is an advanced platform that combines hardware and software to manage your business’s transactions and daily operations.
It goes beyond payment processing by handling sales, staff management, inventory, and analytics — effectively acting as the operational command centre of your business.
Core Components
- Hardware: Terminals, tablets, card readers, receipt printers, and cash drawers.
- Software: Order management, financial reporting, inventory tracking, and customer data.
- Integrations: Connects seamlessly with accounting software (like Xero or QuickBooks), loyalty tools, and online ordering platforms.
For a restaurant, for instance, a POS system connects front‑of‑house operations, the kitchen, and back‑office functions in one centralised hub.
Key Functions
- Order management: Handles dine‑in, takeaway, and delivery orders efficiently.
- Inventory control: Tracks stock levels in real time to prevent waste.
- Financial reporting: Automates VAT and provides accurate, up‑to‑date sales insights.
- Customer relationship management (CRM): Runs loyalty programmes and tracks purchase history.
- Staff management: Monitors attendance, performance, and shift patterns.
A POS system gives business owners complete visibility into operations, supporting data‑driven decision‑making.
What Is EFTPOS?
EFTPOS (Electronic Funds Transfer at Point of Sale) is a payment system that enables businesses to accept electronic transactions securely — including debit, credit, and contactless payments.
Think of EFTPOS as your card payment terminal, while POS is a full business management suite.
Key Features
- Card‑based payments: Accepts debit, credit, and mobile wallet transactions.
- Instant transfers: Payments move securely from the customer’s account to the business’s bank account within seconds.
- Portable and flexible: EFTPOS terminals can work independently or integrate with a POS system.
- Popular UK providers: SumUp, iZettle (PayPal Zettle), Worldpay, and Square.
EFTPOS focuses on fast, secure payment processing, but it doesn’t track stock, manage staff, or produce detailed reports.
POS System vs EFTPOS: A Side‑by‑Side Comparison
| Feature | POS System | EFTPOS |
| Primary Function | Comprehensive business management — orders, inventory, analytics | Secure payment processing |
| Hardware | Terminals, tablets, printers, and integrated card readers | Stand‑alone or mobile terminals |
| Software | Full operational suite (order management, reporting, CRM) | Limited software for payment authorisation |
| Inventory Management | Yes | No |
| Customer Management | Yes (CRM and loyalty tools) | No |
| Accounting Integration | Yes (connects with accounting systems) | Minimal or none |
| Multi‑Location Support | Yes, with cloud‑based access | Not applicable |
| Reporting & Analytics | Advanced analytics and insights | Limited to transaction history |
| Ease of Use | Requires setup and staff training | Quick to install and use immediately |
| Cost | Higher upfront or subscription costs | Lower upfront cost, transaction fees apply |
In short:
- EFTPOS focuses solely on accepting and processing payments.
- POS systems manage the entire business ecosystem, from orders to analytics.
When to Choose a POS System
A POS system is ideal for businesses that need more than basic payment functionality. It’s best suited to:
- Restaurants, cafés, and pubs handling high order volumes.
- Businesses with multiple outlets needing centralised management.
- Retailers managing stock and supplier relationships.
- Companies offering loyalty programmes or online ordering.
For example, a London bistro can use a POS to track sales trends, manage staff, and analyse food costs while integrating card payments for smooth customer service.
Many small and growing businesses start with cheap POS systems that provide essential features while remaining easy to use and budget-friendly, making them a practical entry point into more advanced POS capabilities.
When to Choose EFTPOS
EFTPOS systems fit smaller or mobile businesses that need simple and secure payment solutions, such as:
- Food trucks, pop‑ups, and market stalls.
- Small cafés or kiosks where inventory control is minimal.
- Start‑ups looking for low setup costs and ease of use.
A Brighton seaside ice‑cream stand, for instance, might rely solely on an EFTPOS terminal like SumUp or Worldpay for quick card transactions throughout the day.
Can You Use POS and EFTPOS Together?
Absolutely — in fact, most modern UK businesses combine them.
- The POS system manages orders, inventory, sales reports, and customer data.
- The EFTPOS terminal processes the payment instantly at checkout.
This integration connects both systems, eliminating manual data entry between order and payment amounts.
Benefits of Integration
- Faster service: Orders and payment sync automatically.
- Error reduction: Removes manual transaction entry.
- Detailed reporting: Combines sales and payment data for accurate insights.
- Customer convenience: Accepts multiple payment types via one interface.
- Compliance: Meets UK PCI and GDPR security standards.
Many top POS providers — such as Lightspeed, TouchBistro, and Square — now offer built‑in EFTPOS functionality, making integration seamless.
How to Decide Between POS and EFTPOS
Here’s how to determine which technology best fits your business needs:
- Business size: EFTPOS suffices for small setups; POS is better for large or growing operations.
- Operational complexity: Choose POS for inventory, staff, and multi‑channel sales management.
- Budget: EFTPOS has a lower entry cost; POS offers higher ROI over time.
- Growth plans: POS supports scalability and future expansion across multiple sites.
- Integration needs: If you use accounting, delivery, or loyalty systems, POS is a must.
A common strategy? Start with EFTPOS to manage payments and upgrade to a full POS system as your business expands.
Leading POS and EFTPOS Providers in the UK
POS Systems:
- Lightspeed – Cloud‑based, scalable, perfect for growth‑minded restaurants.
- Zonal – Great for pubs and large hospitality venues.
- POSApt – Perfect for Cafes and Small Restaurants
- TouchBistro – Specialised for the hospitality industry.
- Square POS – Simple, mobile, and affordable for smaller businesses.
EFTPOS Terminals:
- SumUp – Compact, low‑cost, ideal for mobile vendors.
- iZettle (PayPal Zettle) – Easy to use, popular with small retailers.
- Worldpay – Trusted for reliability and multi‑card support.
- Square Terminal – Combines card payment and POS features for micro‑businesses.
Final Thoughts
Understanding the difference between POS and EFTPOS systems is essential for any UK business owner wanting to work smarter, faster, and more profitably.
- EFTPOS helps you process payments securely and efficiently.
- POS systems provide full control over orders, stock, staff, and reporting.
- Combining both delivers a powerful, integrated solution suited to modern UK hospitality and retail.
Whether you’re running a compact café in Edinburgh or a growing restaurant chain in London, choosing the right system — or combining both technologies — will improve efficiency, reduce admin work, and give your customers a seamless, stress‑free experience.
