Point of Sale (POS) systems are essential for any modern retail business, but in the cannabis industry—where compliance, inventory tracking, and security are critical—choosing the right POS infrastructure can make or break a dispensary. There are four primary types of POS systems, each with distinct advantages and use cases. While many industries can choose from these flexibly, cannabis retailers require highly specialized systems due to complex regulatory needs and product sensitivities.
We’ll explore the four main types of POS systems and uncover which framework cannabis-specific POS platforms are typically built upon—and why.
1. Legacy or On-Premise POS Systems
Definition:
Legacy POS systems are installed locally on a store’s server or computer system. These solutions typically operate offline and require in-house IT for updates, backups, and support.
Pros:
- Stable and not dependent on internet connectivity
- Direct control over data and server security
Cons:
- High upfront costs for hardware and licensing
- Difficult to scale across multiple locations
- Maintenance-heavy and often lacks modern features
Cannabis Relevance:
Legacy systems are largely outdated for the cannabis space, which demands frequent updates, cloud integrations, and real-time compliance syncing. These systems lack the agility required for modern dispensary needs.
2. Cloud-Based POS Systems
Definition:
Cloud-based POS systems store all data online, allowing access via web browsers or apps. This model has become the go-to for most retail sectors due to its scalability and flexibility.
Pros:
- Accessible from any internet-connected device
- Real-time syncing of inventory, sales, and compliance data
- Easier integration with APIs for CRM, delivery, and loyalty programs
- Automatic software updates
Cons:
- Requires a reliable internet connection
- Ongoing subscription costs
Cannabis Relevance:
This is the dominant architecture for cannabis POS systems. Dispensaries need real-time syncing with seed-to-sale compliance platforms like Metrc or BioTrack, and cloud systems make it easier to stay compliant across multiple locations or state markets. Providers like Dutchie, Treez, and BLAZE leverage cloud infrastructure to deliver scalable, regulation-ready cannabis solutions.
3. Mobile POS Systems
Definition:
Mobile POS (mPOS) refers to portable point of sale systems that run on tablets or smartphones, typically paired with a card reader.
Pros:
- Ideal for line busting, curbside pickup, and delivery
- Portable and space-saving
- Affordable hardware requirements
Cons:
- May have limited processing power or screen space
- Dependent on mobile internet connection
Cannabis Relevance:
mPOS is increasingly used in cannabis settings for curbside services and event sales, especially in states allowing flexible delivery or pop-up dispensaries. Some systems, like Meadow or KlickTrack, offer mPOS features as part of broader cloud platforms.
4. Self-Service or Kiosk POS Systems
Definition:
These systems allow customers to complete transactions independently, often using a touchscreen kiosk in-store.
Pros:
- Reduces wait times and budtender workload
- Enhances customer privacy and speed
- Can upsell or suggest products via intelligent UI
Cons:
- Higher hardware cost per unit
- Less personalized customer experience
- Requires intuitive UX design to prevent confusion
Cannabis Relevance:
Kiosks are being adopted in high-traffic dispensaries for order-ahead pickups or menu browsing. Systems like Greenbits and Cova offer kiosk integrations that allow customers to self-checkout or browse full digital menus while keeping the budtender line moving.
What Cannabis POS Systems Are Built Around
Most cannabis-specific POS platforms are hybrids of cloud-based and mobile systems, incorporating features that meet the industry’s unique operational and legal challenges. Here’s why cloud architecture is preferred:
- Real-Time Compliance Integration: Cannabis POS systems must integrate with state tracking systems like Metrc and Leaf Data Systems. Cloud-based setups make real-time syncing possible, helping dispensaries avoid violations or shutdowns.
- Multi-Location Management: As MSOs (multi-state operators) expand, they need centralized oversight. Cloud-based systems let operators manage sales, marketing, and inventory across several locations from one dashboard.
- API-Friendly: Integration with delivery services (like Eaze or Weedmaps), payment gateways, loyalty tools, and CRMs is essential. Cloud-based systems offer the necessary flexibility and development compatibility.
- Remote Access and Support: Dispensary owners and operators often manage stores from afar. Cloud POS platforms allow them to access reports, analytics, and inventory from anywhere.
Final Thoughts
Choosing the right POS system is a critical decision for any cannabis retailer. While the four types—legacy, cloud, mobile, and self-service—each serve a purpose, cloud-based systems dominate the cannabis industry due to their adaptability, compliance capabilities, and integration flexibility. For dispensaries aiming to remain competitive and compliant, cloud-first solutions with mobile or kiosk add-ons are proving to be the gold standard.
As the cannabis retail market continues to evolve with more complex compliance requirements and customer expectations, POS systems will play an even more strategic role in operational success.
Learn More: Inside a Cannabis POS: The Tools Powering Retail Success