Table of Contents
In today’s competitive point-of-sale (POS) industry, businesses seeking to offer a POS solution have two main options: white-label POS or custom POS development. While both approaches provide opportunities to enter the POS market, they differ significantly in terms of cost, time to market, customization, and scalability. Understanding these differences is essential for businesses, especially merchant service providers (MSPs), independent software vendors (ISVs), and payment processors, looking to maximize their revenue while providing a reliable POS solution to their clients.
What Is White Label POS?
White label POS refers to licensing and rebranding an existing POS platform to sell under your own brand. Instead of developing the software from scratch, businesses partner with a POS provider who offers a fully developed, feature-rich system. The provider handles development, maintenance, security, and updates while the reseller focuses on branding, sales, and customer relationships.
Advantages of White Label POS:
✔ Faster Time to Market – You can launch your own branded POS system within days or weeks rather than months or years.
✔ Lower Upfront Costs – No need for expensive software development; you simply pay licensing or access fees.
✔ Reduced Maintenance Effort – The provider handles software updates, bug fixes, and security patches.
✔ Scalability – Easily onboard new merchants and expand your customer base without technical challenges.
✔ Integration Ready – Many white-label POS solutions come with pre-built integrations for payment processors, inventory management, and third-party apps.
Challenges of White Label POS:
❌ Limited Customization – While branding elements (logos, colors, UI adjustments) are available, deep customization may be restricted.
❌ Ongoing Fees – Some providers charge monthly licensing fees or revenue-sharing models, which may impact profitability.
❌ Dependence on Provider – You rely on the white-label POS provider for system performance and feature updates.
What Is Custom POS Development?
Custom POS development means building your own POS software from the ground up. This approach allows businesses to create a unique system tailored to their exact needs, offering full control over features, integrations, and user experience.
Advantages of Custom POS Development:
✔ Complete Customization – Design features, UI/UX, and workflows that perfectly fit your business model.
✔ No Revenue Sharing – Since you own the software, you keep 100% of the transaction fees and revenue.
✔ Scalability & Flexibility – Develop the system to support your specific growth plans and future expansions.
✔ Independence – You are not reliant on a third-party provider for feature updates or technical improvements.
Challenges of Custom POS Development:
❌ High Development Costs – Building POS software requires a significant investment in engineering, testing, and security compliance.
❌ Longer Time to Market – Development can take 6 months to 2+ years, delaying revenue generation.
❌ Ongoing Maintenance – You must handle bug fixes, security updates, compliance regulations (PCI DSS), and customer support.
❌ Risk of Failure – Without the right expertise, a custom-built POS system may lack market fit, leading to wasted investment.
Comparing White Label POS vs. Custom POS Development
| Feature | White Label POS | Custom POS Development |
|---|---|---|
| Time to Market | Days to weeks | 6 months to 2+ years |
| Upfront Costs | Low | High (development costs) |
| Customization | Limited to branding | Full customization |
| Maintenance & Updates | Handled by provider | Handled in-house |
| Scalability | Easy | Requires planning |
| Revenue Model | Licensing or rev-share | Full revenue retention |
| Independence | Dependent on provider | Full control |
Which Option Is Best for Your Business?
Choose White Label POS If:
- You want to launch a POS system quickly and with minimal costs.
- You prefer a low-risk, hassle-free solution with ongoing support.
- You are an MSP, ISV, or reseller looking to expand your services.
Choose Custom POS Development If:
- You have the budget and technical expertise to build a unique system.
- You want complete control over features, security, and updates.
- You aim for long-term independence and scalability.
Become a OrderPin partner, Level up your business!
OrderPin white label POS program and software development services are open to collaborate. Partner with us and build your brand, serving millions of restaurants to approach your success at the same time.