diff --git a/packages/point-of-sale/jest.config.js b/packages/point-of-sale/jest.config.js
new file mode 100644
index 0000000000..cdb688ff95
--- /dev/null
+++ b/packages/point-of-sale/jest.config.js
@@ -0,0 +1,30 @@
+'use strict'
+// eslint-disable-next-line @typescript-eslint/no-var-requires
+const baseConfig = require('../../jest.config.base.js')
+// eslint-disable-next-line @typescript-eslint/no-var-requires
+const packageName = require('./package.json').name
+
+module.exports = {
+  ...baseConfig,
+  clearMocks: true,
+  testTimeout: 30000,
+  roots: [`<rootDir>/packages/${packageName}`],
+  setupFiles: [`<rootDir>/packages/${packageName}/jest.env.js`],
+  globalSetup: `<rootDir>/packages/${packageName}/jest.setup.ts`,
+  globalTeardown: `<rootDir>/packages/${packageName}/jest.teardown.js`,
+  testRegex: `(packages/${packageName}/.*/__tests__/.*|\\.(test|spec))\\.tsx?$`,
+  testEnvironment: `<rootDir>/packages/${packageName}/jest.custom-environment.ts`,
+  moduleDirectories: [
+    `node_modules`,
+    `packages/${packageName}/node_modules`,
+    `<rootDir>/node_modules`
+  ],
+  modulePaths: [
+    `node_modules`,
+    `<rootDir>/packages/${packageName}/src/`,
+    `<rootDir>/node_modules`
+  ],
+  id: packageName,
+  displayName: packageName,
+  rootDir: '../..'
+}
diff --git a/packages/point-of-sale/jest.custom-environment.ts b/packages/point-of-sale/jest.custom-environment.ts
new file mode 100644
index 0000000000..d725c84b67
--- /dev/null
+++ b/packages/point-of-sale/jest.custom-environment.ts
@@ -0,0 +1,9 @@
+import { TestEnvironment } from 'jest-environment-node'
+import nock from 'nock'
+
+export default class CustomEnvironment extends TestEnvironment {
+  constructor(config, context) {
+    super(config, context)
+    this.global.nock = nock
+  }
+}
diff --git a/packages/point-of-sale/jest.env.js b/packages/point-of-sale/jest.env.js
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/packages/point-of-sale/jest.setup.ts b/packages/point-of-sale/jest.setup.ts
new file mode 100644
index 0000000000..1e38fe1c26
--- /dev/null
+++ b/packages/point-of-sale/jest.setup.ts
@@ -0,0 +1,74 @@
+import { knex } from 'knex'
+import { GenericContainer, Wait } from 'testcontainers'
+require('./jest.env') // set environment variables
+
+const POSTGRES_PORT = 5432
+
+const setup = async (globalConfig): Promise<void> => {
+  const workers = globalConfig.maxWorkers
+
+  const setupDatabase = async () => {
+    if (!process.env.DATABASE_URL) {
+      const postgresContainer = await new GenericContainer('postgres:15')
+        .withExposedPorts(POSTGRES_PORT)
+        .withBindMounts([
+          {
+            source: __dirname + '/scripts/init.sh',
+            target: '/docker-entrypoint-initdb.d/init.sh'
+          }
+        ])
+        .withEnvironment({
+          POSTGRES_PASSWORD: 'password'
+        })
+        .withHealthCheck({
+          test: ['CMD-SHELL', 'pg_isready -d testing'],
+          interval: 10000,
+          timeout: 5000,
+          retries: 5
+        })
+        .withWaitStrategy(Wait.forHealthCheck())
+        .start()
+
+      process.env.DATABASE_URL = `postgresql://postgres:password@localhost:${postgresContainer.getMappedPort(
+        POSTGRES_PORT
+      )}/testing`
+
+      global.__POS_POSTGRES__ = postgresContainer
+    }
+
+    const db = knex({
+      client: 'postgresql',
+      connection: process.env.DATABASE_URL,
+      pool: {
+        min: 2,
+        max: 10
+      },
+      migrations: {
+        tableName: 'pos_knex_migrations'
+      }
+    })
+
+    // node pg defaults to returning bigint as string. This ensures it parses to bigint
+    db.client.driver.types.setTypeParser(
+      db.client.driver.types.builtins.INT8,
+      'text',
+      BigInt
+    )
+    await db.migrate.latest({
+      directory: __dirname + '/migrations'
+    })
+
+    for (let i = 1; i <= workers; i++) {
+      const workerDatabaseName = `testing_${i}`
+
+      await db.raw(`DROP DATABASE IF EXISTS ${workerDatabaseName}`)
+      await db.raw(`CREATE DATABASE ${workerDatabaseName} TEMPLATE testing`)
+    }
+
+    global.__POS_KNEX__ = db
+  }
+
+  await Promise.all([setupDatabase()])
+}
+
+export default setup
diff --git a/packages/point-of-sale/jest.teardown.js b/packages/point-of-sale/jest.teardown.js
new file mode 100644
index 0000000000..12f33b679b
--- /dev/null
+++ b/packages/point-of-sale/jest.teardown.js
@@ -0,0 +1,10 @@
+module.exports = async () => {
+  await global.__POS_KNEX__.migrate.rollback(
+    { directory: __dirname + '/migrations' },
+    true
+  )
+  await global.__POS_KNEX__.destroy()
+  if (global.__POS_POSTGRES__) {
+    await global.__POS_POSTGRES__.stop()
+  }
+}
diff --git a/packages/point-of-sale/package.json b/packages/point-of-sale/package.json
index 75ba472fde..3d94916d10 100644
--- a/packages/point-of-sale/package.json
+++ b/packages/point-of-sale/package.json
@@ -4,7 +4,11 @@
   "description": "",
   "main": "index.js",
   "scripts": {
-    "test": "echo \"Error: no test specified\" && exit 1",
+    "test": "NODE_OPTIONS=--experimental-vm-modules jest --passWithNoTests --maxWorkers=50%",
+    "test:ci": "NODE_OPTIONS=--experimental-vm-modules jest --passWithNoTests --maxWorkers=2",
+    "test:cov": "pnpm test -- --coverage",
+    "test:sincemain": "pnpm test -- --changedSince=main",
+    "test:sincemain:cov": "pnpm test:sincemain --coverage",
     "knex": "knex",
     "dev": "ts-node-dev --inspect=0.0.0.0:9229 --respawn --transpile-only src/index.ts",
     "build": "pnpm build:deps && pnpm clean && tsc --build tsconfig.json",
@@ -35,6 +39,12 @@
     "@types/koa-bodyparser": "^4.3.12",
     "@types/koa__cors": "^5.0.0",
     "@types/koa__router": "^12.0.4",
-    "@types/uuid": "^9.0.8"
+    "@types/uuid": "^9.0.8",
+    "nock": "14.0.0-beta.19",
+    "jest-environment-node": "^29.7.0",
+    "jest-openapi": "^0.14.2",
+    "testcontainers": "^10.16.0",
+    "tmp": "^0.2.3",
+    "@types/tmp": "^0.2.6"
   }
 }
diff --git a/packages/point-of-sale/scripts/init.sh b/packages/point-of-sale/scripts/init.sh
new file mode 100755
index 0000000000..a1fa255c7d
--- /dev/null
+++ b/packages/point-of-sale/scripts/init.sh
@@ -0,0 +1,8 @@
+#!/bin/bash
+set -e
+
+psql -v ON_ERROR_STOP=1 --username "$POSTGRES_USER" --dbname "$POSTGRES_DB" <<-EOSQL
+    DROP DATABASE IF EXISTS TESTING;
+    CREATE DATABASE testing;
+    CREATE DATABASE development;
+EOSQL
diff --git a/packages/point-of-sale/src/config/app.ts b/packages/point-of-sale/src/config/app.ts
index 2691d7397b..78cb416d37 100644
--- a/packages/point-of-sale/src/config/app.ts
+++ b/packages/point-of-sale/src/config/app.ts
@@ -34,5 +34,6 @@ export const Config = {
   env: envString('NODE_ENV', 'development'),
   port: envInt('PORT', 3008),
   trustProxy: envBool('TRUST_PROXY', false),
-  enableManualMigrations: envBool('ENABLE_MANUAl_MIGRATIONS', false)
+  enableManualMigrations: envBool('ENABLE_MANUAl_MIGRATIONS', false),
+  dbSchema: undefined as string | undefined
 }
diff --git a/packages/point-of-sale/src/index.ts b/packages/point-of-sale/src/index.ts
index d9d359db53..e48406774f 100644
--- a/packages/point-of-sale/src/index.ts
+++ b/packages/point-of-sale/src/index.ts
@@ -4,6 +4,7 @@ import { Model } from 'objection'
 import { Config } from './config/app'
 import { App, AppServices } from './app'
 import createLogger from 'pino'
+import { createMerchantService } from './merchant/service'
 
 export function initIocContainer(
   config: typeof Config
@@ -55,6 +56,15 @@ export function initIocContainer(
     )
     return db
   })
+
+  container.singleton('merchantService', async (deps) => {
+    const [logger, knex] = await Promise.all([
+      deps.use('logger'),
+      deps.use('knex')
+    ])
+    return createMerchantService({ logger, knex })
+  })
+
   return container
 }
 
diff --git a/packages/point-of-sale/src/merchant/service.test.ts b/packages/point-of-sale/src/merchant/service.test.ts
new file mode 100644
index 0000000000..61fa24cc16
--- /dev/null
+++ b/packages/point-of-sale/src/merchant/service.test.ts
@@ -0,0 +1,65 @@
+import { IocContract } from '@adonisjs/fold'
+
+import { Merchant } from './model'
+import { MerchantService } from './service'
+
+import { createTestApp, TestContainer } from '../tests/app'
+import { truncateTables } from '../tests/tableManager'
+import { Config } from '../config/app'
+
+import { initIocContainer } from '../'
+import { AppServices } from '../app'
+
+describe('Merchant Service', (): void => {
+  let deps: IocContract<AppServices>
+  let appContainer: TestContainer
+  let merchantService: MerchantService
+
+  beforeAll(async (): Promise<void> => {
+    deps = initIocContainer({
+      ...Config
+    })
+
+    appContainer = await createTestApp(deps)
+    merchantService = await deps.use('merchantService')
+  })
+
+  afterEach(async (): Promise<void> => {
+    jest.useRealTimers()
+    await truncateTables(deps)
+  })
+
+  afterAll(async (): Promise<void> => {
+    await appContainer.shutdown()
+  })
+
+  describe('create', (): void => {
+    test('creates a merchant', async (): Promise<void> => {
+      const merchant = await merchantService.create('Test merchant')
+      expect(merchant).toEqual({ id: merchant.id, name: 'Test merchant' })
+    })
+  })
+
+  describe('delete', (): void => {
+    test('soft deletes an existing merchant', async (): Promise<void> => {
+      const created = await merchantService.create('Test merchant')
+
+      const result = await merchantService.delete(created.id)
+      expect(result).toBe(true)
+
+      const deletedMerchant = await Merchant.query()
+        .findById(created.id)
+        .whereNotNull('deletedAt')
+      expect(deletedMerchant).toBeDefined()
+      expect(deletedMerchant?.deletedAt).toBeDefined()
+    })
+
+    test('returns false for already deleted merchant', async (): Promise<void> => {
+      const created = await merchantService.create('Test merchant')
+
+      await merchantService.delete(created.id)
+      const secondDelete = await merchantService.delete(created.id)
+      expect(secondDelete).toBe(false)
+    })
+  })
+})
diff --git a/packages/point-of-sale/src/merchant/service.ts b/packages/point-of-sale/src/merchant/service.ts
new file mode 100644
index 0000000000..8540c74c54
--- /dev/null
+++ b/packages/point-of-sale/src/merchant/service.ts
@@ -0,0 +1,48 @@
+import { BaseService } from '../shared/baseService'
+import { TransactionOrKnex } from 'objection'
+import { Merchant } from './model'
+
+export interface MerchantService {
+  create(name: string): Promise<Merchant>
+  delete(id: string): Promise<boolean>
+}
+
+interface ServiceDependencies extends BaseService {
+  knex: TransactionOrKnex
+}
+
+export async function createMerchantService({
+  logger,
+  knex
+}: ServiceDependencies): Promise<MerchantService> {
+  const log = logger.child({
+    service: 'MerchantService'
+  })
+  const deps: ServiceDependencies = {
+    logger: log,
+    knex
+  }
+
+  return {
+    create: (input: string) => createMerchant(deps, input),
+    delete: (id: string) => deleteMerchant(deps, id)
+  }
+}
+
+async function createMerchant(
+  deps: ServiceDependencies,
+  name: string
+): Promise<Merchant> {
+  return await Merchant.query(deps.knex).insert({ name })
+}
+
+async function deleteMerchant(
+  deps: ServiceDependencies,
+  id: string
+): Promise<boolean> {
+  const deleted = await Merchant.query(deps.knex)
+    .patch({ deletedAt: new Date() })
+    .whereNull('deletedAt')
+    .where('id', id)
+  return deleted > 0
+}
diff --git a/packages/point-of-sale/src/tests/app.ts b/packages/point-of-sale/src/tests/app.ts
new file mode 100644
index 0000000000..09a18d756d
--- /dev/null
+++ b/packages/point-of-sale/src/tests/app.ts
@@ -0,0 +1,41 @@
+import { Knex } from 'knex'
+import { IocContract } from '@adonisjs/fold'
+
+import { start, gracefulShutdown } from '..'
+import { App, AppServices } from '../app'
+
+export interface TestContainer {
+  app: App
+  knex: Knex
+  connectionUrl: string
+  shutdown: () => Promise<void>
+  container: IocContract<AppServices>
+}
+
+export const createTestApp = async (
+  container: IocContract<AppServices>
+): Promise<TestContainer> => {
+  const config = await container.use('config')
+
+  const app = new App(container)
+  await start(container, app)
+
+  const nock = (global as unknown as { nock: typeof import('nock') }).nock
+
+  const knex = await container.use('knex')
+
+  return {
+    app,
+    knex,
+    connectionUrl: config.databaseUrl,
+    shutdown: async () => {
+      nock.cleanAll()
+      nock.abortPendingRequests()
+      nock.restore()
+      nock.activate()
+
+      await gracefulShutdown(container, app)
+    },
+    container
+  }
+}
diff --git a/packages/point-of-sale/src/tests/tableManager.ts b/packages/point-of-sale/src/tests/tableManager.ts
new file mode 100644
index 0000000000..665a67713d
--- /dev/null
+++ b/packages/point-of-sale/src/tests/tableManager.ts
@@ -0,0 +1,45 @@
+import { IocContract } from '@adonisjs/fold'
+import { Knex } from 'knex'
+import { AppServices } from '../app'
+
+export async function truncateTable(
+  knex: Knex,
+  tableName: string
+): Promise<void> {
+  const RAW = `TRUNCATE TABLE "${tableName}" RESTART IDENTITY`
+  await knex.raw(RAW)
+}
+
+export async function truncateTables(
+  deps: IocContract<AppServices>
+): Promise<void> {
+  const knex = await deps.use('knex')
+  const config = await deps.use('config')
+  const dbSchema = config.dbSchema ?? 'public'
+
+  const ignoreTables = [
+    'knex_migrations',
+    'knex_migrations_lock',
+    'pos_knex_migrations',
+    'pos_knex_migrations_lock'
+  ]
+  const tables = await getTables(knex, dbSchema, ignoreTables)
+  const RAW = `TRUNCATE TABLE "${tables}" RESTART IDENTITY`
+  await knex.raw(RAW)
+}
+
+async function getTables(
+  knex: Knex,
+  dbSchema: string = 'public',
+  ignoredTables: string[]
+): Promise<string> {
+  const result = await knex.raw(
+    `SELECT tablename FROM pg_catalog.pg_tables WHERE schemaname='${dbSchema}'`
+  )
+  return result.rows
+    .map((val: { tablename: string }) => {
+      if (!ignoredTables.includes(val.tablename)) return val.tablename
+    })
+    .filter(Boolean)
+    .join('","')
+}
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 3cf9679cad..9ae09e7007 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -827,9 +827,27 @@ importers:
       '@types/koa__router':
         specifier: ^12.0.4
         version: 12.0.4
+      '@types/tmp':
+        specifier: ^0.2.6
+        version: 0.2.6
       '@types/uuid':
         specifier: ^9.0.8
         version: 9.0.8
+      jest-environment-node:
+        specifier: ^29.7.0
+        version: 29.7.0
+      jest-openapi:
+        specifier: ^0.14.2
+        version: 0.14.2
+      nock:
+        specifier: 14.0.0-beta.19
+        version: 14.0.0-beta.19
+      testcontainers:
+        specifier: ^10.16.0
+        version: 10.16.0
+      tmp:
+        specifier: ^0.2.3
+        version: 0.2.3
 
   packages/token-introspection:
     dependencies: