The Rise of Artificial Intelligence in the POS World

You may have watched a movie at some point in your life where the concept of artificial intelligence (AI) captured your attention and left you imagining a world where it exists. You’re not the only one. Since the mid-20th century, scientists and researchers have been on the course of making AI a reality for future generations.

Artificial intelligence (AI) makes it possible for machines to learn from experience, adjust to new inputs and perform human-like tasks. Using deep learning and natural language processing, computers can be trained to accomplish specific tasks by processing large amounts of data and recognizing patterns in that data. Here is just a handful of what AI can do:

  • Automate repetitive learning and discovery through data
  • Find meaning in language
  • Adapt through progressive learning algorithms 
  • Analyze more and deeper data and make predictions based on that analysis
  • Protect from Cyber Attacks 
  • Write music
  • Recognize human faces and emotion

In addition to the benefits above, AI has become increasingly popular in the point of sale (POS) market. It provides consumers with the ability to both handle virtually all payment methods, as well as layer on customer loyalty, additional convenience and rewards. Join us as we look at some of what AI can accomplish within the POS world:

Contactless Payments

Contactless payments are all the rage right now, with strong trends further accelerated by the COVID-19 pandemic. Both allow customers to complete transactions with credit and debit cards, smartphones, and other devices that use radio-frequency identification (RFID) or near field communication (NFC) for making secure, no-contact payments. Customers simply hover their card or device of choice over the contactless reader to complete the transaction. It is a quick and easy solution that will not only keep customers safe but also decrease checkout time. AI-powered POS technology is able to walk customers through the checkout process and complete payments for them.

Enable Unattended Retail Experiences

AI is enabling retail to go unattended – moving goods and services into more locations, and bringing speed and convenience to consumers where they live, travel, play and work. As unattended retail becomes more sophisticated – buoyed by digital payments and AI – consumers are getting a self-service experience that is similar, or better than they get with an attendant in a brick-and-mortar store. Machines can identify you by facial recognition, remember your preferences, make recommendations, remember your preferred payment method and reward you for your repeat business, all without ever talking to a live person. The proliferation of the smart phone brought with it a consumer base that is accustomed to self-service and often seeks it out as a preference. Again, COVID-19 health concerns are only aiding in the growing popularity of these unattended experiences[LN1]  – a bright spot for retailers looking to expand and grow.

Answer Questions

One of the most frustrating encounters is when you are trying to use an unattended payment system and it does not cooperate. You are left dazed and confused with no one to communicate with. AI enables you to avoid this situation altogether. Much like Apple’s Siri product, POS providers are incorporating voice recognition software into their systems to assist customers through the checkout process. Now, if you have a question, you can simply ask the machine and it will have a preprogrammed response.

Perform Mundane Tasks

One of the greatest benefits of AI is that it has the capabilities to handle complex tasks, freeing employees of time-consuming and overwhelming work. This allows employees to increase overall organizational productivity, as well as direct more of their time and energy toward creating relationships and building their business. AI can perform a variety of tasks including arranging product pickups, customized screenings, inventory, and performing payment transactions.

Facial Recognition

Face recognition is not necessarily a new approach, as it’s a common feature in many smartphones today. However, as AI becomes increasingly popular and expands more into the POS market, we are likely to see it incorporated into payment terminals and other devices as well. The hope is that AI will be able to identify age, gender, and other aspects that may affect what an individual would order at a specific moment. This will allow companies to collect consumer data such as a person’s recent orders and create a more personalized customer experience based off that information.

Voice Ordering   

Another benefit of AI within POS is its voice recognition capabilities and the ability to understand multiple languages. POS devices now have the bandwidth to be programmed with a variety of dialogues, making it more user-friendly for those who wish to communicate with others who speak a different language. Customers can complete orders and ask questions without the fear of being misunderstood. This is especially useful in common areas such as airports, shopping malls and restaurants.

To stay ahead of the competition and create the most efficient and successful customer experience, businesses must keep track of current market trends including the rise of AI-powered POS technology.  

ID TECH and Artificial Intelligence

ID TECH is expanding its product offering to incorporate each of these AI functionalities.  As a leader in contactless technologies and unattended payment solutions, ID TECH already offers an established lineup of NFC readers for accepting contactless payments.  In addition to its current products, ID TECH is developing innovative technologies to enable customers to integrate touchless operation, voice commands, facial recognition, and remote operation and device management into their everyday payment solutions.

ID TECH has also worked with its valued partners to integrate ID TECH products into their solutions.  For example, ViaTouch Media, Inc.’s VICKI is an AI Powered Smart Store that offers a touch free, unattended retail experience using ID TECH’s VP3300 OEM for payments. Ahead of its time, VICKI is a virtual attendant that can answer product related customer questions, arrange for advanced product pick-ups, and more. Plus, VICKI promotes social distancing and has COVID-19 virus killing technology that uses UV-C light to routinely clean products and interior surfaces after each customer use.

To learn more about the VICKI and the VP3300 OEM, download our case study here.


ID TECH has established a solid reputation in the industry as a leading payment peripheral provider with magnetic stripe, EMV contact, and EMV contactless expertise. We are also an OEM payment solution provider with the capability and willingness to customize solutions to fit our customers’ needs. With a strong foundation and continued success rooted in card readers, ID TECH is currently expanding its reach in the ever-evolving payments industry.

To learn more about ID TECH, please visit our About Us page.

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