UK merchants want point-of-sale tech beyond payments

Castles Technology has published analysis showing that UK merchants now expect point-of-sale technology to do more than process payments. The findings point to a broader shift in how merchants assess payment systems.

For many businesses choosing point-of-sale tools, payment acceptance is no longer the main differentiator. Instead, merchants are focusing on how payment technology fits into wider operations, including inventory oversight, customer insight, deployment, maintenance and long-term use.

That change is being shaped by the spread of contactless cards and mobile wallets across the UK. According to The Payments Association's 2025 merchant survey, about 90% of UK merchants support mobile wallets, while the removal of the UK's fixed £100 contactless limit has opened the way for higher-value contactless purchases in sectors including hospitality, healthcare and luxury retail.

Behind the shift is a broader move towards connected systems. Cloud-based software, artificial intelligence and real-time transaction data are turning the point of sale into part of a merchant's operating infrastructure rather than a standalone payment device.

Different parts of the market are responding in different ways. Smaller merchants are placing greater weight on ease of deployment, affordability and day-to-day simplicity. For cafés, independent retailers and service providers, cloud-based point-of-sale systems can offer sales reporting, stock management and customer data tools without the cost of larger on-site systems.

Larger merchants, by contrast, are seeking closer links between payments and existing business software. Retailers in the mid-market and enterprise segments often need systems that connect with enterprise resource planning, customer relationship management and eCommerce platforms, while handling high transaction volumes across stores and online channels.

Sector-specific requirements are also adding complexity. Hospitality businesses may need tableside payment or self-service kiosks, while transport operators tend to prioritise speed and reliability at checkout. Outdoor settings and high-throughput locations often rely on unattended terminals that can operate consistently in more demanding conditions.

Merchant priorities

Castles Technology identified five factors that now have a strong influence on merchant satisfaction and loyalty when selecting point-of-sale technology: reliability and performance, ease of use, payment flexibility, integration with wider business systems, and transparent pricing and support.

The analysis also suggests these demands are reshaping the competitive landscape for independent sales organisations, or ISOs. Industry estimates cited in the analysis suggest ISOs account for more than half of new merchant acquisitions for UK card acquirers, and that more than 60 are active in the UK market.

With competition at that level, providers are increasingly trying to stand out through service rather than hardware alone. Deployment speed, device lifecycle management and ongoing support are becoming more prominent, especially as merchants expect providers to help manage terminal estates over time rather than simply supply equipment.

ISOs are also broadening their offers beyond basic card acceptance. Providers are adding integrated point-of-sale systems, reporting tools, loyalty programmes, analytics and services tailored to specific sectors.

Jean-Philippe Niedergang, acting group chief executive officer of Castles Technology, set out the company's view of the change in merchant expectations. "For years, the conversation centred on accepting more payment methods. Today, that is simply the starting point. Merchants expect payment technology to become part of how they run their business. They want terminals that connect with wider operations, can be deployed and managed remotely and continue delivering value long after installation. Hardware has become table stakes," he said.

Service pressure

For payment providers, the shift creates a larger operational burden. Large terminal estates must be configured, deployed, monitored, maintained, updated and eventually retired across merchants operating in different sectors and environments.

That requirement is helping to push lifecycle services higher up the agenda. Support models now extend beyond installation to include remote management, repair, refurbishment and recycling, as acquirers and ISOs seek to keep devices in use and reduce operational disruption for merchants.

Castles Technology said its managed services platform, CaSERV, is designed to support those needs across large-scale point-of-sale estates, covering warehousing, configuration, deployment, multilingual support, device monitoring, maintenance, repair, refurbishment and recycling.

The broader message from the analysis is that merchant buying decisions are moving further away from the terminal as a standalone product. Reliability, usability, system integration and support are now more central to purchasing decisions as point-of-sale systems become more embedded in the running of a business.