Sluggish fixed point-of-sale (POS) terminal sales are forcing providers to rethink their strategies. From adding softPOS capabilities to adding AI tools and vertical-specific offerings, POS software is becoming the real competitive battleground.

Adyen launched two point-of-sale (POS) terminals ahead of the holiday season, per a press release.As SMBs approach the critical holiday season, POS providers need to offer value to court cash-strapped vendors, reminding them the importance of a reliable, durable terminal system. Add-ons like AI-powered software can help convince vendors the value of their hardware with high-powered tools to boost conversions and payment volume.

The explosion of softPOS is reshaping the POS landscape and forcing hardware and software providers to pivot

But its verticalized offerings may struggle to stand out in the crowded field

In the third of five reports in our “Payments Ecosystem 2024” collection, we unpack how the lines between POS hardware and software are disappearing as providers push the innovation envelope.

Payment service providers competing to serve small and medium-sized businesses have a new opportunity to win them over with cutting-edge payment, cash flow, capital, and marketing tools.

This second installment of the “Payments Ecosystem” collection unpacks how point-of-sale (POS) hardware, software, and payment gateway services are becoming increasingly intertwined as merchants adapt to economic turmoil and consumer payment changes.

Increasing digitization among the 32 million US small businesses is changing the competitive landscape and forcing banks, acquirers, and fintechs to invest in next-generation features. These features range from payments and value-added services to outreach.

Payments Ecosystem: POS hardware, POS software, and gateway providers are working to become one-stop shops for merchants. Offering simple, robust access to front- and back-end solutions across industries lets them better serve merchants demanding integrated solutions.

The offering could pose a threat to mPOS hardware providers but helps Apple grab more in-store volume and bolsters its payments business.

The offering gives small merchants an affordable digital payments tool and could complement existing POS tech for large businesses.

An iOS app update reportedly contains language about two forthcoming bank accounts from Square—which, if true, put it ahead of the competition.

The pandemic accelerated payments industry digitization across the entire landscape, as merchants turned to ecommerce to keep doors open, consumers eschewed cash in favor of electronic and contactless payments, and payments technology providers rapidly developed and launched new solutions to keep up.

Cash has always been king in Japan—and continues to be the primary payment method used. But over the past year, the country has made inroads in becoming more of a cashless society with significant investments in the mobile payments space.