Point of sale (POS) software integrates the physical devices in the POS systems with computer language and thus facilitates automated data processing. POS software not only monitors almost all day-to-day activities of any business, but also helps to run them systematically, keeping track of income and expenditures, inventory, stock, and clearance, billing, customer, and transaction records and customer service through touch screen information kiosks and vending machines. Speedy business transactions and accurate budgeting helps vendors increase their profits significantly. The software also helps in paging in hotels and restaurants, taking online food orders and delivery of food items.

The very first POS software was introduced by IBM, which came out with IBM 3650 and 3660 Store Systems in August 1973; the software was first installed in Pathmark Stores in New Jersey and Dillard