Free POS System for Small Business: 5 Options in the Philippines (and What They Really Cost)

"Free" is the most attractive word in a small business budget. It's also the one that deserves the most scrutiny.

The good news: usable free POS options exist in the Philippines, and some are genuinely good. The catch is that "free" rarely means "no cost at all," and there's a compliance question most guides skip. Here are five free options, what you actually get, what you might pay later, and when it makes sense to spend money. Updated October 9, 2026.

Disclosure: Divergent POS publishes this guide and sells POS systems. We've described the other options as fairly as we can, including their limits.

The Quick Answer

• Five free options are worth a look: Peddlr, Loyverse, Zobaze POS, digabloPos, and HitPay (free to start, with per-transaction fees).
• The real costs tend to be hardware, add-ons, payment fees, and your own time.
• A free POS can work for a very simple shop, but check compliance first.
• Know the signs that it's time to pay (see below).

In this article

• What "free" really means
• What you get for free
• 5 free POS options
• The hidden costs
• Compliance in the Philippines
• Free vs. paid
• A one-afternoon test
• Who should use one
• FAQ

What Does "Free POS" Actually Mean?

Not all "free" is the same. Knowing how a vendor makes money explains the catch.

What Can You Realistically Get for Free?

Free plans tend to cover the basics well and charge for the extras.

The line moves from vendor to vendor, so always check the current plan page.

5 Free POS Options for Philippine Businesses

Here's how the five compare at a glance. Each is described in more detail below, with a "how free is it?" tag.

We haven't tested any of these ourselves. Everything below comes from vendor pages, app listings, and review sites, so confirm the details with each vendor before you commit.

1. Peddlr: free mobile POS built for the Philippines

How free is it? Free app, with optional premium services.
What you get: Peddlr's listing describes a free mobile POS that records sales, manages inventory, tracks expenses, and produces basic accounting reports. It is offline-first and syncs to the cloud when online. It also supports external hardware, e-load sales, bill payments, and a shareable online store link. Its App Store page adds a credit ledger with free SMS reminders and Bluetooth connections to external POS devices. G2's profile says it launched in July 2021, has been downloaded over 2 million times, and is used across more than 1,400 cities and municipalities.
The catch: a Philippine SME guide notes that optional premium services are also available. I couldn't find what they cost.
Best for: sari-sari stores, food stalls, and phone-based sellers.
Watch out for: it's mobile-first, so a busy counter may outgrow it. I couldn't confirm BIR registration or e-invoicing support.

2. Loyverse: free core POS with paid add-ons

How free is it? Free core, with two paid add-ons.
What you get: Loyverse's pricing page lists point of sale, sales analytics for the last 31 days, essential inventory, a loyalty program, customer display, kitchen display, and multi-store management as free features. You can start the free plan without entering payment details.
The catch: Employee management and advanced inventory are each $25 a month or $250 a year per store, with no per-employee or per-device charges and a 14-day free trial. A local comparison guide lists different add-on prices, including $5 a month per store for unlimited sales history and employee management. Check the live Loyverse pricing page before relying on any figure.
Best for: small shops and cafes that want loyalty and multi-store tools at no cost.
Watch out for: US-dollar pricing, a limited sales history on the free plan, and an unconfirmed BIR status.

3. Zobaze POS: free billing app for counter shops

How free is it? Free plan with an item cap.
What you get: Zobaze's Philippines page says its free plan includes unlimited billing and up to 100 items, with a paid Premium plan for unlimited items and staff logins. It describes the app as an Android app that works offline, tracks utang, and records cash, GCash, and Maya. Its own page claims a 4.8 rating from more than 28,000 reviews and over a million installs, which are self-reported figures. See the Zobaze Philippines page for current terms.
Best for: sari-sari stores, drugstores, hardware shops, bakeries, and other small counter businesses.
Watch out for: the 100-item limit will cap a bigger store, and the staff logins you'll need as you grow are a paid feature. It's Android-focused, and I couldn't confirm BIR support.

4. digabloPos: free core POS with e-wallet tracking

How free is it? Free core, with paid modules.
What you get: digabloPos describes a free core POS that records GCash, Maya, QR Ph, and card as separate payment methods, works offline, runs on any Android phone, and includes unlimited sales and products with two staff accounts. It adds that paid modules cover things like kitchen orders, batch and expiry tracking, and multiple branches.
Best for: phone-based shops that want cash and each e-wallet reconciled separately.
Watch out for: it's a newer vendor, the information comes from its own blog, and it isn't based in the Philippines. Importantly, its own page says BIR receipting is a separate regulated layer, and the product should be treated as a store-management and reporting system rather than the source of official receipts. That's an honest note worth taking seriously. Review its own page and test it carefully before relying on it.

5. HitPay: no monthly fee, pay per transaction

How free is it? Free to set up, with per-transaction fees. It's payments-first rather than a full POS.
What you get: HitPay says it charges no setup fee and no monthly fee, and it supports GCash, Maya, QR Ph, Visa, Mastercard, InstaPay, and PESONet, with next business day payouts in pesos. It also describes per-location inventory tracking and multiple terminals on one account. The HitPay Philippines page explains its fee structure.
The catch: you pay per transaction, and its card terminal carries a one-time cost of ₱10,500 with no monthly subscription. Check the transaction rates on its pricing page.
Best for: shops that mostly need to accept GCash, Maya, QR Ph, and cards.
Watch out for: it's strongest on payments, so if you need deep inventory, staff, or reporting tools, you may want something more complete.

Free options we left out

• Qashier isn't free: one guide says it starts at ₱1,299 a month.
• Tagrain: one guide lists a free one-store plan, but I couldn't verify it from any other source, so I left it out.

The Catch: 7 Hidden Costs of a "Free" POS

1. Payment processing fees. If you take cards or e-wallets, the provider usually takes a cut.
2. Hardware. The app may be free, but a printer, scanner, drawer, or card reader isn't. You can browse typical POS hardware to see what a full setup includes.
3. Paid add-ons. The features you'll want most, like advanced inventory or staff tracking, are often the paid ones.
4. Caps and limits. Item caps, store limits, and staff limits can force an upgrade sooner than you expect.
5. Limited support. When something breaks at 5 p.m. on a Saturday, free plans may not come with a person to call.
6. Data lock-in. If you can't export your data, switching later gets painful.
7. The jump when you outgrow it. The free plan may be generous, and the next tier may be a big step up.

And don't forget the cost of your own time. If a free tool leaves you counting stock by hand every Sunday night, you're paying with hours.

Is a Free POS Compliant in the Philippines?

This is the question most free-POS guides never ask, and it matters.

"Free" doesn't mean "compliant." Businesses issuing invoices through a POS must register their system with the BIR's eAccReg system, and some POS providers offer BIR registration services for free. Others charge. One provider's guide explains that the BIR itself doesn't charge a fee to register a POS, but supplier-side processing is a mandatory step that its third-party partner charges for. In other words, a free app doesn't automatically include free registration.

I couldn't confirm whether any of the five options above meets BIR registration or e-invoicing requirements, so ask each vendor directly.

There's also a deadline to know about. The BIR's RMC No. 98-2026 requires covered taxpayers to issue structured electronic invoices by December 31, 2026, with micro taxpayers excepted, and printed invoices from systems that can't electronically transmit them to buyers and report sales data to the BIR don't qualify. You can read the official circular, and check your classification with the BIR. We also explain the background on our page about BIR POS accreditation.

Before you commit to any free POS, ask:

• Can this system be registered with the BIR?
• Can it produce compliant receipts?
• If I'm covered by e-invoicing, can it issue and transmit electronic invoices?
• Who helps me with registration, and what does it cost?

Want a Straight Answer About Your Setup?

If you're not sure what your business needs, talk to the Divergent POS team. If a free option is enough, we'll say so.

Free vs. Paid: When Is It Time to Pay?

A free POS is a great place to start. It's time to look at paid options when:

• You can't tell what's in stock without counting.
• You've hit an item, store, or staff cap.
• You're hiring staff and need permissions and attendance.
• You're opening a second branch.
• You need reports you can trust.
• The e-invoicing rules apply to you.
• You spend more time on workarounds than on selling.

Here's a simple way to think about it: if a paid plan saves you more hours, or prevents more mistakes, than it costs, it's cheaper than free. A growing shop that outgrows the basics usually moves to a full retail POS with proper POS software, and add-on POS modules let you add inventory and multi-store tools as you grow. You can check pricing to see how plans are structured.

How to Test a Free POS in One Afternoon

Don't judge any POS by its website. Give it a real workout:

1. Add 20 real products, including a few with variations.
2. Ring up five sales, including one discount and one refund.
3. Turn off the internet and try a sale.
4. Record a GCash or QR Ph payment and check that your end-of-day report separates it from cash.
5. Pull a sales report. Is it clear and accurate?
6. Try exporting your data. Can you get it out?
7. Add a second user with limited permissions.
8. Contact support with a real question and see how fast you get an answer.

If it fails more than one or two of these, it's not ready for your business, no matter the price.

Who Should Use a Free POS, and Who Shouldn't?

Good fit

• A seasonal stall or weekend market seller
• A new side business testing demand
• A very small shop with a short product list

Think twice

• A shop whose stock, staff, or sales are growing
• A business with more than one branch
• Anyone who needs reliable inventory counts

Probably not free

• A business covered by e-invoicing
• A cafe or grocery shop with heavy daily volume, where a cafe POS or grocery POS is built for the pace

Frequently Asked Questions

Is there really a free POS system in the Philippines?

Yes. Options include Peddlr, Loyverse, Zobaze POS, and digabloPos, and HitPay has no monthly fee. Most have paid add-ons, caps, or per-transaction fees, so check each one.

What is the best free POS for a small business?

It depends on how you sell. Phone-based sellers might start with Peddlr or Zobaze, small shops that want loyalty and multi-store tools might try Loyverse, and shops that mostly need e-wallet payments might look at HitPay. Always confirm compliance.

Can I use a free POS in the Philippines?

You can, but check that the system can be registered with the BIR and can meet e-invoicing requirements if they apply to you.

What's the catch with free POS software?

Usually it's one or more of these: paid add-ons, item or staff limits, payment fees, hardware costs, limited support, and a pricing jump when you outgrow the free plan.

Do I need a card machine with a free POS?

Only if you want to take card payments. Some options accept GCash, Maya, and QR Ph without a terminal, while card payments usually need a reader or terminal.

Can I upgrade later without losing my data?

It depends on the vendor. Ask whether you can export your sales, products, and customers before you start.

Ready to Look Beyond Free?

The right POS is the one that costs less than the mistakes it prevents. Start free if it fits, test it properly, check compliance, and move up when the free plan starts holding you back.

Want to see what a full POS can do for your business? Book a demo with Divergent POS and see how much time your team could get back.