Toast, Square jockey on POS discounts

Hardware costs at the point of sale are dropping as major players like Toast and Square compete for market share. For your business, this means you likely have more leverage to upgrade your checkout tech or negotiate better rates on hardware bundles. The price war is driven by a shift in merchant needs. Businesses now want more than just a card reader; they want integrated systems that handle payroll, inventory, and, most importantly, flexible consumer financing options like Buy Now, Pay Later (BNPL). If you are still using legacy hardware, now is the time to shop around. The cost of entry for sophisticated POS systems is hitting new lows. However, remember that the hardware is often a 'loss leader.' These companies are happy to give you a discount on the terminal if it locks you into their payment processing ecosystem for years. Look closely at the long-term processing fees and the financing tools integrated into the software. A cheap screen is not a deal if it prevents you from offering the specific lending products your customers prefer. As retailers demand more 'all-in-one' solutions, expect these providers to keep sweetening the deal with hardware subsidies to win your processing volume.

Source: Payments Dive

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