What is SoftPOS? 2026 guide for Singapore merchants

Key Takeaways:

• SoftPOS turns any NFC-enabled smartphone into a contactless payment terminal using only an app, with no card reader or extra hardware required.

• It is well suited to Singapore micro-merchants, pop-up operators, and service businesses that want a low-cost way to accept Visa, Mastercard, and mobile wallets beyond PayNow.

• Airwallex POS Payments lets you accept in-person payments through SoftPOS, alongside other payment options, all through the same platform.

What is SoftPOS? Simply put, SoftPOS stands for software point of sale.

It lets Singapore merchants accept contactless card payments using just a smartphone and an app; no card reader or payment terminal required.

This guide covers how SoftPOS works, how it compares with other payment options, which types of merchants it’s best suited to, and what to consider when choosing a SoftPOS provider in Singapore.

What is SoftPOS and how does it work?

SoftPOS is a mobile application that turns an NFC-enabled smartphone or tablet into a contactless payment terminal.

Unlike a traditional card reader or POS machine, there is no dedicated hardware involved. The payment capability lives entirely in the software.

NFC stands for near-field communication, a short-range wireless technology built into most modern Android phones and iPhones. When a customer taps their contactless card, phone, or wearable near the merchant's device, the NFC chip reads the payment credentials and passes them securely to the app.

Here is what happens during a SoftPOS transaction, step by step:

1. The merchant opens the payment app and enters the transaction amount

2. The customer taps their contactless card, Apple Pay, or Google Pay on the merchant's phone

3. The NFC chip captures the payment data and the app encrypts it immediately

4. The encrypted data is sent to a payment gateway for authorisation

5. The gateway returns an approval or decline in seconds

6. The merchant receives confirmation on screen and can send a digital receipt

The process is functionally identical to tapping a card on a traditional terminal. The difference is that the "terminal" is the merchant's own phone.

Airwallex POS Payments supports SoftPOS, letting merchants accept contactless card and mobile wallet payments directly through a compatible device without a separate card reader.

SoftPOS vs mPOS vs traditional POS terminal: What's the difference?

If you're comparing ways to accept card payments, SoftPOS, mPOS, and traditional POS terminals each have their own advantages. Here's a quick overview:

SoftPOS turns a smartphone into a payment terminal through an app. There's no additional hardware to buy, carry, or charge, making it the simplest option for merchants who want to start accepting contactless card payments quickly.

mPOS, or mobile point of sale, also uses a smartphone or tablet, but it requires a separate card reader, usually connected via Bluetooth. The reader allows merchants to accept a wider range of card payments, including contactless and chip-and-PIN.

Traditional POS terminals are the countertop machines commonly used in retail shops and restaurants. They support a wider range of payment methods and can often connect to other systems, such as receipt printers and inventory software. The trade-off is higher costs and a longer setup process.

Overall, SoftPOS is the lightest and most flexible option, while traditional terminals offer more functionality for established businesses with fixed payment counters.

Want a lighter, more flexible way to accept in-person payments? Airwallex POS Payments lets you turn a compatible smartphone or tablet into a payment device with SoftPOS, while supporting other payment methods on the same platform.

What payment methods can customers use with SoftPOS in Singapore?

SoftPOS accepts any payment that uses NFC contactless technology. In Singapore, that covers most of what your customers already use day to day.

One thing to keep in mind is that PayNow works differently from contactless payments. Instead of tapping a card or phone, customers scan a QR code to pay.

It’s a separate payment flow, although many SoftPOS providers let you accept both PayNow and contactless card payments from the same device.

For a full breakdown of every in-store payment method available to Singapore merchants, see our guide to in-store payment methods in Singapore.

Who should use SoftPOS in Singapore?

SoftPOS is not the right fit for every merchant. Here’s who benefits the most (and who doesn’t):

Merchants who benefit most from SoftPOS

These merchant types get the most out of SoftPOS in Singapore:

• Pop-up and market stall operators at ad-hoc events like Bazaar, where setting up a full terminal is impractical

• Home-based business owners selling baked goods, crafts, or clothing who meet customers at the door or at a handover point

• Freelancers and mobile service providers such as private tutors, personal trainers, and mobile beauticians who collect payment on-site

• Food truck and pasar malam operators who need to move fast and cannot afford terminal downtime

• Delivery drivers collecting payment at the door rather than pre-payment online

• Merchants who currently only accept PayNow and are losing sales from tourists or customers who prefer to tap a card

That last point matters in Singapore specifically. Foreign tourists cannot use PayNow, which requires a Singapore bank account. SoftPOS lets you capture those card-paying customers without any hardware investment.

Merchants who should use traditional terminals

SoftPOS comes with its share of limitations. It is likely not suitable for you if you:

• Need to accept chip-and-PIN cards or NETS CashCard

• Require a receipt printer at the point of sale

• Run a high-volume retail or F&B operation that needs inventory management, table mapping, or kitchen display integration

• Operate in a location with unreliable mobile data coverage, since SoftPOS requires an active internet connection to process transactions

If your business has outgrown basic payment acceptance and needs a full system, read our article on how to choose a POS system.

Is SoftPOS secure? What Singapore merchants need to know

Security is one of the first things merchants tend to ask about when considering SoftPOS, and understandably so.

Using your phone to take a payment feels quite different from using a dedicated card terminal. So, how does SoftPOS keep payment information safe?

How SoftPOS protects payment data

When a customer taps their card or phone, the payment information is encrypted on the device.

Their actual card number isn't sent to or stored on the merchant's phone. Instead, the transaction uses a one-time token that is unique to that payment. This is similar to the tokenisation technology used by Apple Pay and Google Pay.

SoftPOS providers also need to meet PCI MPoC (Mobile Payments on Commercial off-the-Shelf Devices), the global security standard for accepting payments through smartphones and other commercial devices.

Meeting the standard involves security testing, penetration testing and regular reassessment.¹ As a merchant, you don't need to get this certification yourself; the responsibility sits with your SoftPOS provider.

What to check before signing up

If you're choosing a SoftPOS provider in Singapore, there are two things worth checking:

• MAS licence: Providers offering merchant acquisition services in Singapore need to be licensed under the Payment Services Act (PS Act).² You can check a provider's licence status in the MAS Financial Institutions Directory.

• PCI MPoC certification: Check whether the provider's app has been certified under PCI MPoC, or the earlier CPoC standard. Reputable providers should be able to provide details of their certification.

If a provider can't clearly explain how it meets these requirements, that's a good reason to look at other options.

How to set up SoftPOS for your Singapore business

One of the main advantages of SoftPOS over a traditional terminal is how fast you can get started. Most Singapore merchants can go from sign-up to first transaction in under a day. Here is how the process works.

Step 1: Check your device

SoftPOS requires an NFC-enabled smartphone. Most Android phones released after 2018 include NFC. For iPhones, Tap to Pay is supported on iPhone XS and later models running iOS 16 or above.

Check your phone's settings to confirm NFC is enabled before you start.

Step 2: Choose a MAS-licensed provider

Select a provider that holds a valid MAS licence and is PCI MPoC certified, as covered in the previous section.

Airwallex is a good option: it holds a Major Payment Institution licence from the Monetary Authority of Singapore (Licence No. PS20200541), and its SoftPOS solution is PCI MPoC certified, so you get both regulatory backing and card-network-grade security out of the box.

Step 3: Create your merchant account

Sign up via the provider's app or website. You will typically need your Unique Entity Number (UEN) or NRIC, a local business bank account, and identity documents for verification. Most providers complete onboarding digitally, with approval in a few business days

Step 4: Download the app and run a test transaction

Once approved, download the app, log in, and run a test transaction before your first real sale. Confirm that the approval flow works and that you know where to find refunds in the app.

Accept payments with Airwallex SoftPOS

Airwallex POS Payments lets you turn a compatible Android phone, tablet or kiosk into a payment device, without adding a separate card reader. Customers can tap their contactless card or phone to pay, while you manage the transaction through the same platform.

Airwallex also supports other in-person payment methods in Singapore, including Visa, Mastercard, Amex, Apple Pay, Google Pay, WeChat Pay and PayNow. This means you can support both card and local payment methods without having to manage completely separate payment setups.

For businesses that sell both online and in person, Airwallex can also bring those payments together on one platform, with unified reporting and reconciliation across channels.

Frequently asked questions (FAQs)

Can I use my iPhone to accept card payments in Singapore?

Yes. Tap to Pay on iPhone is supported on iPhone XS and later models running iOS 16 or above. You will need to download a compatible SoftPOS app from a MAS-licensed provider that supports iOS. Not all Singapore SoftPOS providers offer an iPhone version, so check before signing up.

What is the difference between SoftPOS and PayNow?

SoftPOS accepts contactless card payments via NFC tap, covering Visa, Mastercard, Apple Pay, and Google Pay. PayNow is a QR code-based bank transfer system that requires the customer to have a Singapore bank account. The two methods are complementary, and most Singapore SoftPOS apps bundle both in a single app.

Is SoftPOS safe for merchants and customers?

Yes, when used through a certified provider. SoftPOS apps must meet PCI MPoC security standards, which require encryption, tokenisation, and independent penetration testing. Card data is never stored on the merchant's device. As a merchant, your main responsibility is choosing a provider that holds a valid MAS licence and PCI MPoC certification.

How much does SoftPOS cost in Singapore?

Most SoftPOS providers in Singapore charge a per-transaction fee rather than a monthly hardware rental. Transaction fees vary by provider and card type. There is typically no upfront hardware cost since you use your existing phone. Compare the full fee schedule, including any monthly account fees, before committing to a provider.

Can SoftPOS accept NETS payments in Singapore?

NETS acceptance depends on the provider. Some Singapore SoftPOS apps support NETS QR or NETS contactless, but not all do. Check directly with your chosen provider before signing up if NETS acceptance is important to your business.

Do I need a business registration to use SoftPOS in Singapore?

Most MAS-licensed SoftPOS providers in Singapore require a UEN for merchant onboarding, which means you need to be a registered business or sole proprietor. Some providers also accept applications from individuals with an NRIC, but requirements vary. Check the onboarding criteria of your chosen provider before applying.

Sources

1. pwc.com/sg/en/publications/payments-state-of-play.html

2. fime.com/blog/blog-15/post/pci-mpoc-what-you-need-to-know-about-the-global-security-standard-530

3. mas.gov.sg/regulation/payments

4. voffice-singapore.com.sg/2026/business/the-ultimate-singapore-business-payment-processing-guide