Commerce is a foundation of almost every society, even looking back to the earliest records of humanity. Whether we’re bartering for goods or processing transactions via our phones, these activities have provided a structured way to exchange goods, services, and currencies. They serve as safeguards and hubs for business operations, while also providing records of services rendered. In commerce, point of sale (POS) systems are the tools that support economic transactions, and throughout history, they’ve developed from simple bartering to the digital and cloud-based systems we use today. The story of how these systems evolved tells us all about the history of economies, how early people managed risks, and how buyers and sellers adapted to their changing world.
In this timeline from Qualtrics, we explore the history of trade and the evolution of point-of-sale technology.
Long before paper cash (let alone barcodes and payment terminals), communities exchanged goods based on immediate need. Trade began with practical items: livestock, food, and furs for clothing and shelter. Value wasn’t set by a central authority but negotiated, item by item. Beads, shells, and tally sticks were among the first point-of-sale advancements, marking the beginnings of symbolic exchange. Cowry shells, in particular, have been found by archaeologists across multiple continents and were used as currency in societies that had never met. Tally sticks, a notched bone or wooden rod, represented early accounting and, in some ways, the original receipt.
Around 3,000 BCE, we start to see the first organized systems appear. In Mesopotamia, temples issued clay tokens as receipts for stored grain. These tokens, accepted as payment, acted as a form of asset-backed credit. In addition to being practical, they showed how economic systems could scale when tied to a trusted institution. Ancient Egypt followed with labor tokens and a tiered pay system, which served as a prototype for both payroll and loyalty programs. These ancient systems demonstrate that early trade was developed for organization and trust, as well as the exchange itself.
Ancient and medieval inovations
As societies expanded and trade became more complex, the tools supporting commerce evolved to meet new demands, and trade as we know it today began to develop. The introduction of metal coins in the seventh century BC, in Lydia, now part of modern-day Turkey, laid the groundwork for early international commerce. These coins, made of electrum, facilitated faster and more reliable transactions, especially across regions with different languages and customs.
One of the most impactful trade routes to emerge was the Silk Road. In 138 BC, Chinese envoy Zhang Qian’s journey helped establish a connection between China and the West, enabling goods, currency, and ideas to travel across thousands of miles. With the growth of such expansive trade networks came the need for alternative methods of exchange. Silent trade, used across parts of Africa and Asia, allowed merchants to trade without direct interaction. Goods were left at a designated spot, and parties took turns adding or removing items until both were satisfied.
Meanwhile, financial tools became more sophisticated. In the Islamic world, merchants developed the sakk, a document instructing a bank to make payment to a third party. This early form of the check allowed traders to avoid carrying large amounts of coin, which was safer and more efficient for long-distance travel. A few centuries later, during the Song Dynasty in China, merchants began using paper money called jiaozi to reduce the burden of transporting heavy metal coins. By the early 11th century, the government took control of the system, issuing the world’s first official paper currency.
These innovations addressed common trade challenges, such as security, portability, and standardization, and each new tool made transactions more manageable, setting the stage for the structured financial systems that would follow in the early modern period.
When was the cash register invented?
The Industrial Revolution completely changed how we paid for goods and services. In the late 19th century, James Ritty invented the first mechanical cash register after noticing money disappearing from his bar. Fraud prevention was a pressing issue, and the “Incorruptible Cashier” delivered a paper trail, a turning point in the history of POS. Soon after, John H. Patterson founded the National Cash Register Company, adding paper rolls and receipt printing to the equation.
The 20th century brought even more secure tech with the era’s growing need for speed, accuracy, and accountability within commerce. Loyalty programs gained traction when American Airlines introduced a form of “buy now, pay later” with their Air Travel Card. Plastic credit cards soon followed, starting with Diners Club and American Express, allowing purchases without tabs or the need to carry cash. Though they’re everywhere today, the first barcode wasn’t introduced until 1974, when a pack of gum changed inventory forever by becoming the first product ever scanned.
When did contactless payments start?
Over the last 50 years, POS technology has moved from manual to machine-based, and from handwritten ledgers to computer-based systems. The cash register became electric, then digital. IBM launched the first PC-based POS system in the 1980s, quickly followed by touchscreen software, self-checkout machines, and graphical interfaces. In this modern era of commerce, sales have become data.
By the 1990s, point-of-sale technology became more connected and customizable. With the introduction of the Internet, e-commerce exploded, beginning with simple online food orders and blossoming into full-scale marketplaces. Companies like Amazon showed the potential convenience and speed that could be offered with online retail.
Debit cards, contactless payments, and QR codes emerged in quick succession. Restaurants and retail shops began embracing digital POS systems with mobile compatibility. In 2009, Square introduced a system that turned any smartphone into a register, dramatically lowering the barrier to entry for small businesses.
While not yet widely adopted, biometric systems like Pay by Touch and PayEye showed that payment via fingerprints and eye scans were possibilities.
Every advancement in the history of point of sale, from cowry shells to eye scans, tells a story of how societies grow, solve problems, and connect. Of course, as communication solutions continue to improve, the link between sales, service, and human connection will only deepen.
For businesses looking to stay ahead, your POS system is more than a tool. It’s a reflection of your promise to your customers. At Qualtrics, we help build the infrastructure that supports this relationship. Together, we can help your business keep ahead of the future of communication and commerce.
