Do I Need a Cash Drawer for My POS System in 2026?

As we step into 2026, businesses in Malaysia are rethinking how they manage transactions. Cashless payments, QR codes, e-wallets, and contactless cards are now part of everyday life, changing the way business owners approach their Point of Sale (POS) setups.

One common question arises:

Do I still need a cash drawer for my POS system in 2026?

The short answer: it depends. Whether you need a cash drawer depends on your customer base, business type, and the POS system you choose. In this guide, we’ll cover everything you need to know to decide, set up, and optimize your POS system for 2026.

The Changing Role of Cash in 2026

The way people pay has changed drastically in recent years:

• Digital payments dominate: QR Pay, e-wallets like GrabPay, Touch ‘n Go eWallet, and cards are now widely used.
• Contactless checkout is expected: Customers prefer fast, hygienic, and hassle-free payments.
• Government initiatives promote digital records: Initiatives like e-Invoicing encourage businesses to adopt cashless and traceable payment methods.

However, cash is not completely gone. Certain types of businesses still rely heavily on cash transactions:

• Hawkers and food stalls
• Seasonal bazaars (Ramadan, Raya, Chinese New Year)
• Small retailers in rural areas
• Senior customers or those who prefer cash

So instead of asking, “Do I need a cash drawer?”, the better question is:

Does my business still accept cash regularly?

When You DO Need a Cash Drawer

A cash drawer is still useful if:

• Your business accepts cash daily
• You operate in bazar Ramadan, bazar raya, pasar malam, or events
• Your customers include seniors or cash-preferred buyers
• You need better cash control and reconciliation

In these cases, pairing your POS system with a cash drawer improves:

• Cash tracking
• End-of-day reconciliation
• Staff accountability

When You DON’T Need a Cash Drawer

Not every business needs a cash drawer. You may not require one if:

• Your business is fully cashless or mainly QR/e-wallet-based
• You sell online or via delivery platforms only
• You operate mobile pop-up booths or temporary setups
• You want a low-cost, portable POS system

Example: A coffee cart that accepts only GrabPay and Touch ‘n Go e-wallets can run a POS system directly from a tablet or phone, without any bulky hardware or cash management.

In 2026, many businesses operate completely cashless, making the cash drawer optional rather than essential.

Popcorn POS: Flexible POS for 2026 Businesses

One of the most versatile POS systems for 2026 is Popcorn POS. It allows business owners to choose their setup based on needs:

1. Use Just an Android Phone

Popcorn POS runs directly on an Android phone or tablet—no additional hardware required:

• No cash drawer
• No receipt printer
• No bulky POS terminal

Perfect for:

• Startups or small businesses
• Mobile or event vendors
• Fully cashless operations

Just install the app, log in, and start selling.

2. Upgrade with Hardware: iMin or Sunmi

For businesses that want a professional, permanent setup, Popcorn POS supports Android-based POS hardware:

iMin POS

• Built-in receipt printer
• Compact, modern design
• Optional cash drawer connection

Sunmi POS

• Fast and reliable Android POS
• Suitable for retail, F&B, and cafes
• Can connect to a cash drawer if needed

With hardware options, you can choose:

• POS-only (cashless)
• POS + cash drawer (hybrid setup)

This flexibility means your business can adapt to changing customer payment habits without switching systems.

Hybrid POS Setup: Best of Both Worlds

Many businesses in 2026 choose a hybrid setup:

• Accept both cash and cashless payments
• Use cash drawers only when needed
• Adjust setup during peak seasons like CNY, Ramadan, Raya, or sales events

Popcorn POS supports hybrid setups seamlessly—no system changes required.

Example: A small retail store may operate cashless most of the year but connect a cash drawer during festive weekends to manage increased cash transactions efficiently.

Pros and Cons of Cashless vs Hybrid POS

Step-by-Step Guide to Connecting a Cash Drawer

If your business chooses a hybrid POS, here’s how to set up a cash drawer with Popcorn POS:

1. Choose Compatible Hardware: Use iMin or Sunmi POS models that support cash drawers.
2. Install the Cash Drawer: Connect via USB, Bluetooth, or printer port (depending on model).
3. Configure POS Settings: Enable cash drawer in Popcorn POS settings and assign it to the payment type “Cash.”
4. Test Functionality: Open and close drawer, ensure it registers in POS reports.

Train Staff: Teach proper cash handling, counting, and reconciliation procedures. 

Tips for Choosing a POS in 2026

1. Assess your customer base: If most customers pay digitally, a cash drawer may be optional.
2. Consider your business type: Mobile vendors prioritize portability, retail shops prioritize security and speed.
3. Plan for flexibility: Choose POS systems like Popcorn POS that allow both cashless and cash transactions.
4. Train staff: Ensure employees know when and how to handle cash, perform reconciliation, and operate the POS efficiently.
5. Monitor trends: Payment preferences can change; your POS should adapt without expensive upgrades.

Benefits of Modern POS Systems

Modern POS systems today do far more than just process payments. They are powerful tools that streamline operations, improve accuracy, and provide valuable business insights. Here’s how:

1. Real-Time Sales Tracking

With modern POS systems, you can monitor sales, inventory, and cash flow instantly. This means:

• You know exactly which products are selling well and which aren’t, helping you make informed inventory decisions.
• You can track daily revenue and compare it with past performance to identify trends.
• End-of-day reconciliation becomes effortless because all sales data is automatically recorded.

Example: A café can immediately see that their new seasonal drink is a hit and restock supplies before they run out, avoiding lost sales.

2. Flexible Payment Acceptance

Today’s customers expect convenience. Modern POS systems allow businesses to accept multiple payment methods:

• QR Pay and e-wallets (GrabPay, Touch ‘n Go eWallet, ShopeePay, etc.)
• Credit and debit cards
• Cash (if needed)

Having a system that handles both cash and digital payments ensures that you never turn a customer away, while also making it easier to track all transactions in one place.

Example: A retail store can sell to both tech-savvy shoppers using e-wallets and older customers who prefer cash, without juggling separate systems.

3. Reduced Errors

Human mistakes happen, especially when manually calculating totals, taxes, or discounts. Modern POS systems automate calculations:

• Taxes are calculated automatically based on your setup.
• Discounts, promotions, and loyalty points are applied correctly.
• Cash and digital transactions are reconciled without manual input.

This reduces errors that can cost money, damage trust, or complicate accounting.

Example: During a busy lunch hour, a restaurant POS automatically applies Happy Hour discounts without staff having to manually adjust bills, preventing errors and speeding up service.

4. Scalable Setup

Modern POS systems are designed to grow with your business. You can:

• Add hardware like receipt printers, cash drawers, or barcode scanners as your business expands.
• Remove hardware when you operate pop-up booths, mobile carts, or temporary stalls.
• Upgrade software modules to include inventory management, reporting, or customer loyalty programs.

Example: A retail shop may start with a tablet-only setup. As business grows, they can add a dedicated POS terminal, cash drawer, and printer without changing the software.

5. Staff Management

A modern POS system also doubles as a staff management tool:

• Track employee transactions and monitor who handled which sale.
• Manage staff schedules and shifts.
• Track performance metrics like upselling rates, average ticket value, and transaction volume.

Example: A café manager can see which barista generated the most sales for the week, helping with performance reviews and scheduling.

How to Future-Proof Your POS Setup

Technology is moving fast, and payment habits evolve every year. To future-proof your POS system and stay competitive in 2026 and beyond, consider the following strategies:

1. Choose Software That Updates Regularly

Payment options and regulations change frequently. Select a POS system that:

• Receives regular software updates
• Adds new payment methods like QR codes or new e-wallet integrations
• Updates tax or compliance rules automatically

This ensures your business stays compliant and never falls behind customer expectations.

Example: Popcorn POS regularly updates to support new digital wallets and e-Invoice compliance, keeping your business ready for regulatory changes.

2. Integration with Other Systems

Modern POS systems are most powerful when integrated with:

• Accounting software – Automatically sync sales, expenses, and tax reports.
• Payroll systems – Connect employee sales and commission data directly.
• Inventory management systems – Update stock in real-time and trigger alerts for restocking.

Integration reduces duplicate work, errors, and manual reconciliations, giving you more time to focus on growing your business.

3. Stay Flexible

Business needs change based on seasons, promotions, or market trends:

• Seasonal events like Ramadan, Raya, or Christmas sales can significantly increase cash transactions.
• Pop-up stalls or markets require portable and mobile POS setups.
• Online sales may need integration with delivery platforms like Foodpanda, GrabFood, or Shopee.

A flexible POS system allows you to adapt quickly without major upgrades or new hardware purchases.

4. Use Cloud-Based Solutions

Cloud-based POS systems offer many advantages:

• Remote monitoring: Check sales, inventory, and cash flow from anywhere.
• Automatic backups: Protect your business data from loss or theft.
• Multi-location support: Manage multiple stores or stalls from a single dashboard.
• Scalability: Add new locations, terminals, or users instantly.

Example: A retail chain can monitor sales across 5 stores in real-time, ensuring inventory and staffing decisions are data-driven.

5. Emphasize Security

With digital payments comes the need for robust security:

• Use POS systems with encrypted transactions
• Protect sensitive customer data with secure cloud storage
• Implement role-based access for staff to prevent misuse

A secure POS system protects your business and builds trust with your customers.

Being ready for these trends ensures your POS system continues to meet customer expectations and keeps your business competitive.

Final Verdict: Do You Need a Cash Drawer in 2026?

• Yes, if your business handles regular cash transactions
• No, if your operations are fully cashless
• Optional, if you want flexibility during seasonal peaks or mixed payment scenarios

The key is selecting a POS system that adapts to your business, not one that forces you into a single setup.