Emerging Adoption of SoftPOS

As contactless payments continue to dominate global transaction volumes, the next evolution is already in motion: SoftPOS (Software Point of Sale) technology. By turning any Android device with NFC capability into a secure payment terminal—without additional hardware—SoftPOS is radically reshaping how merchants accept payments. 

But behind this seamless user experience lies a complex and highly regulated backend. From secure NFC tokenization to compliance with PCI CPoC (Contactless Payments on COTS) and PCI MPoC (Mobile Payments on COTS) standards, building and scaling SoftPOS systems introduces a new wave of engineering challenges. 

Let's explore how SoftPOS works, what developers need to consider when building these systems, and how this shift is influencing mobile-first payments in fintech. 

What is SoftPOS and Why It Matters 

SoftPOS allows merchants to accept contactless card or mobile wallet payments directly on a commercial off-the-shelf (COTS) Android phone or tablet, with no need for traditional POS terminals or dongles. This is achieved through: 

• NFC-based tap-to-phone technology 
• Software-only transaction processing, typically via a mobile app 
• Secure back-end communication with acquirers and payment networks 

Adoption is being driven by a clear set of benefits: 

Lower onboarding costs for merchants (no hardware) 

Instant go-to-market capabilities for PSPs and acquirers 

Wider merchant coverage, especially in emerging markets and gig economies 

Major payment players—like Visa, Mastercard, and Stripe—are already piloting or offering SoftPOS solutions in key markets. But building these systems securely and at scale introduces significant backend considerations. 

Security Architecture and Tokenization: What's Under the Hood 

At the heart of SoftPOS is secure mobile NFC tokenization. Unlike hardware-based POS terminals, the security of tap-to-phone relies entirely on the mobile OS, embedded secure elements, and cloud-based validation flows. 

Key technical components include: 

EMVCo Contactless Kernel Integration 

Enables the mobile device to process EMV-level interactions with contactless cards. 

NFC tokenization flows via HCE (Host Card Emulation) 

Allows the app to mimic a physical card reader while isolating sensitive data. 

Remote attestation & integrity checks 

SoftPOS solutions must constantly verify device trustworthiness using mechanisms like Android SafetyNet or Google Play Integrity API. 

End-to-end encryption with cloud validation 

Since SoftPOS doesn't use a Secure Element (SE), PAN and cryptogram data is typically encrypted and transmitted to a PCI-certified backend service for validation. 

Cloud-based key management systems (KMS) 

To manage token lifecycles, cryptographic key rotation, and fraud mitigation logic. 

This creates an architectural tension between performance and compliance—especially when handling peak transaction volumes across mobile fleets. 

Navigating PCI Standards: From CPoC to MPoC Compliance 

Security and compliance are non-negotiable in the world of SoftPOS. Payment applications must align with the PCI CPoC or the more recent PCI MPoC standard to be certified and commercially viable. 

PCI CPoC (Contactless Payments on COTS): 

Defines the baseline security and software architecture for contactless-only SoftPOS apps. It includes encryption, monitoring, and attestation requirements. 

PCI MPoC (Mobile Payments on COTS): 

Expands on CPoC by allowing PIN entry on-screen, creating a hybrid solution that mirrors full terminal capabilities. 

Compliance mandates the use of: 

Isolated PIN entry environments (for MPoC) 

Tamper-proof telemetry monitoring 

Application lifecycle management, including remote app revocation 

Transaction logs and audit trails for regulators and acquirers 

Building compliant SoftPOS systems requires tight integration between mobile SDKs, cloud-based payment gateways, and certified security vendors—often under aggressive release timelines. 

Developer Considerations: CI/CD, Testing, and OTA Updates 

For developers, SoftPOS development is unlike traditional fintech app engineering. Some unique challenges include: 

Device fragmentation: NFC performance and hardware access vary widely across Android devices, requiring robust QA across vendors and OS versions. 

Automated security validation in CI/CD: Every build must pass tamper detection, telemetry config validation, and PCI-mandated test suites before deployment. 

Remote monitoring and OTA updates: Because compliance is tied to specific app versions, ensuring real-time updates and remote configuration management is critical. 

Transaction emulation and simulation environments: Building in test environments that support simulated NFC interactions (via tokenization) is key to fast iteration and safe deployment. 

The move toward SoftPOS is also pushing more PSPs and banks toward DevSecOps maturity—embedding security into build pipelines, automating audits, and testing under real-world conditions. 

The Road Ahead: Scaling SoftPOS in Fintech 

As SoftPOS gains traction, fintechs and payment providers have a unique opportunity to expand their merchant reach, especially among micro- and mobile-first businesses. 

Key trends shaping the next wave of SoftPOS adoption: 

Expansion to iOS – Apple has begun to open up tap-to-pay on iPhone in select regions 

Integration with value-added services – Loyalty, invoicing, and CRM embedded into SoftPOS apps 

White-label SDKs for PSPs – Accelerating time to market with pre-certified modules 

Offline transaction support – For emerging markets or high-latency environments 

Real-time fraud monitoring and AI-powered telemetry 

Ultimately, SoftPOS isn't just a new form of acceptance—it’s a new interface for merchant enablement, backed by complex cloud infrastructure, real-time security validation, and mobile-native engineering.