Point of Sale (POS) is where the transaction happens, Point of Purchase (POP) is where marketing influences the purchase decision.
If you are ever confused by the POS system with POP and end up ordering the wrong marketing material, don’t worry, you’re not alone.
In Malaysia’s fast-paced retail and Fast-Moving Consumer Goods (FMCG) scenes, one is where the sale happens, the other is what drives it, and mixing them up can cost you more than just your budget.
In this quick guide, we’ll break down exactly what POS and Point of Purchase POP mean, how they differ, and when to use each for better results. Let’s get started.
What is Point of Sale (POS)
At its core, POS refers to the moment where a transaction occurs, or payment. It’s the culmination of a customer’s or buyer’s journey, where ownership of goods or services is transferred in exchange for payment.
The Point of Sale is best understood as the exact moment payment is exchanged for goods or services. For the customer, it marks the completion of their purchase. For the business, it’s the point at which revenue is realised.
In Malaysian businesses, a POS system includes both the software and hardware that process sales. Think touchscreen terminals, barcode scanners, receipt printers, and QR-enabled e-wallet readers all working together.
Example: At a Watsons outlet, the cashier’s machine that scans your items and processes your Touch ‘n Go eWallet payment, that’s the POS system.
Key Features of POS Systems in Malaysia:
- Sales tracking and digital receipts
- Inventory management sync
- E-wallet, FPX, debit/credit card compatibility
- SST integration for compliant invoicing
What is Point of Purchase (POP)
POP refers to any display, signage, or branded touchpoint at the place where the buying decision happens.
It could be a giant chocolate drink pyramid at Giant, a limited-time discount label in Jaya Grocer, or a digital promo banner right before checkout on an online shopping platform.
POP materials are designed to catch attention, drive impulse buys, and push promotions right where wallets open.
Example: That bright yellow “Buy 1 Free 1” stand stacked with a crisps brand at 7-Eleven. Pure POP strategy.
Common POP Materials in Malaysia:
- Shelf talkers & wobblers
- Floor stickers & bunting
- Product dump bins & counters
- In-app product banners (for ecommerce)
POS vs POP: What’s the Real Difference?
POS (Point of Sale) is where you pay. POP (Point of Purchase) is where you decide.
They often overlap, especially in retail but in marketing terms, they serve different purposes:
Feature | POP (Point of Purchase) | POS (Point of Sale) |
Purpose | Influences buying decision | Finalises transaction |
Location | Anywhere near the product (aisle, shelf, display) | Checkout counter or payment page |
Tools Used | Wobblers, shelf talkers, promo bins | Cashier system, payment terminal, receipt |
Main Goal | Grab attention, trigger impulse buy | Process payment, capture data |
- A display of Ribena with a “Buy 2 Save RM2” tag in the drinks aisle = POP.
- The cashier machine that prints your receipt = POS.
Just remember, one persuades consumers to buy, the other gets them to pay.
When Should You Use a POS System?
Every business eventually needs a POS system, not just to take payments, but to run smarter.
A POS doesn’t just process transactions, it tracks every sale, manages inventory, and gives you data on your best sellers or high margin items that help you scale.
Accept Payments, Seamlessly
From card and cash to QR and e-wallets, POS, credit card machines handle all major payment methods, online or in-store.
Track Sales and Inventory Automatically
Every transaction updates your stock levels in real time. No manual spreadsheets. No surprises.
Generate Receipts and Audit Trails for Compliance
A POS logs clean, traceable records for SST filing, bookkeeping, and financial audits.
Create a Smooth, Professional Checkout Experience
Whether you’re running a café, salon, or boutique, a polished and fast checkout leaves a lasting impression and frequent visits.
Access Insights to Optimise and Scale
Identify best-sellers, repeat customers, and revenue trends using built-in reports and analytics.
What a POP Display Helps You Do
Influence Customer Decisions at Checkout
POP displays are powerful last-minute nudges that boost basket size and product visibility, right where the decision happens.
Promote Specific Products Instantly
Launching something new or running a seasonal offer? POP puts the spotlight on hot items without the need for full-scale campaigns. Even a simple display near the counter can do the trick.
Drive Impulse Purchases
Place low-cost, grab-and-go items near checkout, like snacks, accessories, or daily-use products customers didn’t plan to buy but can’t resist.
Get a Low-Cost, High-Impact Marketing Tool
No ad spend needed. POP displays speak directly to in-store shoppers at the exact moment they’re most likely to buy.
Reinforce The Buyer’s Intent
Remind shoppers of what they may have missed: batteries for toys, sauces for pasta, socks for shoes, simple but effective upsells.
How to Use POS Data to Supercharge Your POP Strategy
We talked about the differences between POP and POS, but really the two are remarkably effective when used together. Here’s how to make that synergy work for your business.
1. Place Bestsellers Where They’re Seen First
Use POS data to decide which items get premium shelf space.
If your POS reports show certain products flying off the shelves,like seasonal Raya snacks or trendy bubble tea toppings, move them to eye-level or near the checkout counter.
Items that aren’t performing? Feature them in a clearance or “bargain corner” POP display with bold price tags to move stagnant stock.
2. Cross-Sell Based on Local Pairing Habits
Group complementary items in one POP zone.
If you run a kopitam and your POS reveals customers often buy kopi with kaya buns, create a breakfast-themed display promoting both as a “combo.”
This bundling works especially well in minimarts, convenience stores, or cafés where impulse buys are common.
3. Custom POP for Your Main Customer Groups
Let your sales reports guide your in-store messaging.
Are your biggest buyers’ parents shopping after school hours? Create kid-friendly POP displays near the checkout, think stationery, cartoon masks, or bread the kids will bring for school lunch.
POS segmentation by time and item type helps you match your POP to actual walk-in customer profiles.
4. Track Promotions Like a Pro (Then Tweak Fast)
Don’t guess, let your POS tell you what works.
Run a weekend POP promo, then pull the sales data on Monday. If it underperformed, test a new layout or headline.
Malaysia POS systems like Paydibs, let you run A/B-style testing with real-time results, so you’re not stuck repeating what doesn’t sell.
5. Adjust Prices, Highlight the Deal Instantly
Use real-time demand to power your pricing and POP.
If a certain item isn’t moving, say, RM7 instant noodles, drop the price by RM1 and update your POP tag immediately.
Shoppers in Malaysia respond well to “Limited Time Only” or “Last Piece!” signs, especially in hypermarkets and family-run retail shops. Urgency and timeliness goes a long way in creating demand.
Conclusion On POP and POS
In essence, both the POP and the POS are key to successful trading, albeit in different ways. The POS system handles the transaction itself and provides valuable data on sales and customer behaviour.
This information can then be used to make your POP, those in-store displays and promotions, more effective at grabbing attention and encouraging purchases.
At Paydibs, our Smart Payment Terminal seamlessly integrates with your existing POS systems, accepting various payment methods favoured by Malaysians, including Touch ‘n Go, DuitNow, and alongside traditional cards
Unleash your POS and POP strategy today through Paydibs and boost your bottom line today!
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Frequently Asked Questions About POS and POP
How Does Inventory Management Differ Between a Basic Till and a Sophisticated POS System?
A basic till primarily records transactions, whereas a sophisticated POS system automates inventory tracking in real-time with each sale, providing alerts for low stock and facilitating purchase order management.
Can POP Marketing Be Effective for Online Businesses?
Yes. While traditionally physical, POP principles translate online through strategic product placement on landing pages, “frequently bought together” sections, and limited-time offer banners during checkout.
What Security Measures Should Businesses Look For in a POS System?
Businesses should prioritise POS systems with end-to-end encryption, PCI DSS compliance, robust user access controls, and regular software updates to protect sensitive customer and transaction data.
How Can Businesses Measure the ROI of Their POP Displays?
ROI can be assessed by tracking the sales uplift of products featured in specific POP displays during the period they are active, compared to their baseline sales before the display.
How Can Small Businesses with Limited Budgets Implement Effective POP Strategies?
Small businesses can utilise cost-effective POP tactics like creative product placement, handwritten signs highlighting value, and leveraging window displays to attract attention.
Do Integrated POS and E-commerce Platforms Offer Any Unique Advantages for POP Strategies?
Yes. These platforms provide a unified view of customer behaviour across online and offline channels, allowing for more targeted and consistent promotional messaging both online and at the physical point of purchase.
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