TSG (The Strawhecker Group) has released its 2025 Directory of POS Providers, revealing that 78% of point-of-sale (POS) providers now offer cloud-based products, signaling a major shift in the payments industry. Sponsored by Global Payments, the directory aggregates over 5,500 data points from 215 companies, highlighting trends in hosting models, market reach, and integrated business tools.
The 2025 Directory underscores the dominance of cloud-based POS systems, with 78% of providers offering at least one cloud-based product, compared to just 5% maintaining on-premise solutions. This shift reflects the industry’s move toward flexible, scalable platforms that integrate with tools like CRM and inventory management. As Mike Strawhecker, President of TSG, stated, “The POS industry is no longer just about processing transactions—it’s about enabling smarter, more connected commerce.”
The report highlights that 41% of providers offer all-in-one hardware/software platforms, streamlining operations for businesses. Additionally, 39% support kiosk and unattended solutions, while 16% provide SoftPOS, indicating a pivot toward contactless and mobile payment models. These trends align with growing demand for omnichannel commerce and enhanced customer engagement.
Processor-agnostic platforms are marketed by 12% of providers, offering businesses greater flexibility in payment processing. The directory also notes that 50% of providers support surcharging, with 30% enabling both surcharging and cash discounting, helping merchants offset transaction costs. Only 29% of providers focus solely on U.S. clients, reflecting the global expansion of POS markets.
Retail (43%) and restaurants (42%) remain the dominant verticals, but the rise of cloud-based systems is enabling providers to serve diverse industries with tailored solutions. The integration of advanced analytics and business tools is helping merchants optimize operations and improve customer experiences in a competitive landscape.
TSG’s 2025 Directory of POS Providers, accessible via eReports subscription, provides actionable insights for payments professionals. By embracing cloud technology and innovative payment models, POS providers are driving smarter commerce, meeting the evolving needs of global businesses.
TSG (The Strawhecker Group) is a globally recognized analytics and consulting firm that supports the entire payments ecosystem, serving over 1,000 clients from Fortune 500 leaders to more than a dozen of the world's most valuable brands. Trusted by industry leaders, TSG's strategic services, market intelligence, and analytics merge to empower clients with actionable and accessible information.
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