Self-checkout (SCO): Transforming the in-store payment journey for customers

With consumers demanding greater speed and ease, self-checkout is revolutionizing the payment process. It streamlines operational costs and enhances the modern image of retail brands. This article delves into how self-checkout systems are affecting store performance.

Definition and scope

Self-checkout, SCO, and automatic checkout

Self-checkout refers to a terminal installed in stores that allows customers to scan their items and pay independently. It serves as either a replacement or a complement to traditional checkout counters.

More broadly, self-checkout encompasses all technologies enabling consumers to complete their payments independently, in line with unified commerce principles.

In contrast, automatic checkout uses detection technologies to fully automate the purchase without manual scanning or validation.

Store formats suited to self-checkout systems

Self-checkout can be adapted to various store formats:

• In supermarkets and large retail spaces, it streamlines queues and meets the expectations of customers familiar with digital technology;
• In hardware stores, it speeds up simple purchases and allows sales associates to focus on advisory roles;
• In sports stores, it handles seasonal peaks efficiently;
• In fashion retail, it represents modernity and integrates with CRM systems for a seamless experience.

4 payment journeys compared

No. 1: Traditional checkout

The classic payment process relies on human interaction and a linear model.

1. The customer heads to the checkout area.
2. They wait their turn in the queue.
3. The cashier scans the products, processes the payment, and packs the items into a bag.
4. The customer collects their receipt and leaves the store.

No. 2: Self-checkout

Fixed self-checkout terminals feature a barcode reader (or RFID sensors), a payment terminal, and a weighing or packaging area.

1. The customer approaches an available self-checkout terminal.
2. They scan their products using the reader.
3. The system checks the consistency of the scans.
4. The customer completes the payment and packs their items into bags while a cashier supervises the area.

No. 3: In-aisle checkout

In-aisle checkout using mPOS or SoftPOS represents a shift towards mobile and assisted payment methods. The sales associate becomes a key player, capable of completing transactions within the store space.

1. The sales associate accompanies the customer in the aisle, offers advice, and finalizes product selection.
2.  Using a mobile terminal or a smartphone app, they scan the items.
3. Payment is processed instantly on the terminal.
4. The customer receives their receipt and can leave the store.

No. 4: Hybrid journey

The hybrid journey combines multiple payment methods (self-checkout, sales associate assistance, and mobile payment) to offer customers more flexibility.

1. The customer shops independently, with the option to scan their products throughout the journey.
2. At the end of their visit, they choose their preferred payment method.
3. Purchase data is centralized, ensuring unified traceability.

Comparative table

Advantages and drawbacks of self-checkout systems

Advantages

The primary benefit of installing self-checkout systems is optimizing flow management. The average wait time drops, and irritants related to queues disappear, addressing the growing demand for autonomy and speed.

Self-checkout systems also reduce the time employees spend on repetitive tasks, allowing them to focus on more relational activities. Additionally, automated payments enable certain stores to extend their hours without increasing staff costs.

Self-checkout enhances the perception of innovation for the brand, positioning the store as a fluid, future-oriented space.

Drawbacks and points to consider with self-checkout systems

Self-checkout systems come with some limitations to anticipate. The main risk involves losses due to theft or scanning errors. Moreover, the promised autonomy can quickly become a source of frustration in case of malfunctions.

Some terminals remain unsuitable for people with reduced mobility or difficult to read for certain groups, while customers less familiar with technology may feel excluded.

Lastly, frequent contact with screens raises hygiene concerns, and maintenance needs should not be overlooked.

Mitigating risks

The layout of self-checkout systems directly affects the perception of fluidity. The station must be ergonomic and inclusive, designed for all consumer profiles. The user interface should guide the customer with clear messages and visible signage to simplify each step.

The presence of a dedicated agent in the self-checkout area remains crucial: they resolve blockages, reassure customers, and secure the self-checkout systems simply by being visible.

Finally, RFID technology offers significant reliability gains, especially in fashion and sports, where it allows identifying items without manual scanning, speeding up checkout while reducing errors.

Business impact of self-checkout systems

Typical economic model vs gains

To assess deployment costs, consider:

• The number of self-checkout terminals;
• Software infrastructure;
• Setup.

Once installed, self-checkout systems generate recurring costs:

• Technical maintenance;
• Employee training;
• Software fees.

ROI comes from reducing the unit checkout cost. A single agent can supervise 4 to 6 self-checkout terminals, compared to just one traditional checkout. SCO also impacts the Net Promoter Score by reducing irritants related to waiting, and integrating connected journeys (loyalty cards, promotions) generates incremental sales.

Sizing

The sizing of a self-checkout area determines the ROI of the system. To find the right balance, the average number of transactions per hour is the base indicator. A fixed self-checkout terminal can handle an average of 25 to 40 transactions per hour.

Self-checkout is more efficient for small and low-volume baskets. Beyond 20 items, a traditional system becomes more suitable.

ROI scenarios

In a store with stable traffic, a majority of card payments, and a moderate average basket, self-checkout generally achieves rapid adoption (over 60% of customers within the first months). It allows a reduction of 25 to 35% in checkout time and reaches ROI in 15 to 18 months.

In high-traffic urban stores with light baskets, self-checkout systems achieve over 80% usage during peak hours. The reallocation of 1 to 2 cashiers to advisory roles enhances service quality, allowing ROI in less than 12 months.

Security and theft prevention

Controls and compliance

Payment automation requires enhanced security at each stage. Weighted controls adjust the verification level based on the basket or customer profile, limiting theft. Similarly, computer vision and RFID technologies improve reliability.

Every transaction must be traceable to ensure accounting and legal compliance; the audit trail serves both as proof in case of disputes and as an operational analysis tool.

Finally, automatic checkouts process sensitive data: their use must comply with GDPR, with anonymized flows and clear access governance.

Best practices for anti-shrink

Shrink prevention (shoplifting, and more generally, unknown loss) starts with clear and open layout design, which limits blind spots and naturally guides the customer. Some products can be fitted with anti-theft systems or RFID tags. However, not all items are suitable for automatic checkouts; it is advisable to exclude high-risk products from self-checkout.

The presence of a self-checkout host remains crucial: a visible and friendly human presence deters theft while reassuring customers.

IT integration and unified commerce

Prerequisites

An effective self-checkout system relies on an interoperable POS that can communicate via API with self-checkout terminals, mobile terminals, and payment solutions. Real-time sales updates prevent stock discrepancies, while integration with CRM allows recognizing the customer during each transaction.

OMS ensures real-time inventory management across all channels: every SCO sale immediately updates store and warehouse stock levels. ERP centralizes all data. An API-first and real-time architecture guarantees the scalability of the system and facilitates the integration of new interfaces.

Reference architecture

The self-checkout solution should be a native extension of the POS, sharing the same transactional engine as traditional checkouts. Every sale is instantly recorded in the central system to ensure consistency and reliability.

It relies on a real-time connected inventory with OMS and ERP, so that each transaction simultaneously updates store and central stock levels. Finally, the solution must integrate a unified payment platform, allowing the customer to use the same payment method on the terminal, mPOS, or mobile app.

Key indicators

Several KPIs allow tracking the performance of self-checkout systems:

• TPS (transactions per hour and per terminal): measures terminal productivity.
• Average transaction duration: evaluates the fluidity of the customer experience.
• Diversion rate: indicates the proportion of customers preferring traditional checkouts.
• Control rate: tracks the proportion of transactions manually verified.
• Shrink SCO vs. non-SCO: compares unknown loss across different checkout methods.

Change management & employee experience

Support and training

The SCO host welcomes, guides, and assists customers during their interaction with the terminal, providing the essential human touch to self-checkout. Training should be swift, integrated from the onboarding of cashiers. Assistance scripts help unify practices.

In-store communication

Clear signage naturally guides the customer. Usage rules should be simple and positive to encourage autonomy without constraint.

The adoption of automatic checkouts often depends on the first use: a reassuring onboarding facilitates handling and strengthens customer confidence.

Case studies

Fashion sector case study

A network of 80 urban fashion boutiques aimed to reduce waiting lines during peak periods while modernizing its brand image.

Three self-checkout terminals were installed in each pilot store, with express training for sales associates. The customer journey was simplified with RFID scanning of items and contactless payment.

Results after 6 months:

• Average waiting time dropped from 4 minutes to 1 minute 30;
• Customer adoption rate of 62% in the first phase.

DIY sector case study

A national DIY chain aimed to streamline weekend flows while refocusing its sales associates on technical advice.

The setup included six fixed SCO terminals installed near secondary exits, with product filtering excluding high-value items.

Results after 12 months:

• Average checkout time reduced from 3 minutes 40 to 2 minutes 10;
• Productivity increased from 22 to 36 transactions per hour per terminal.