Why the subscription-based POS model is boosting revenue and delivering better service across the payments ecosystem.
Point-of-sale (POS) technology is once again undergoing a major shift. While offices have generally made money selling terminals and collecting modest service fees, the new model centers on recurring revenue through Software-as-a-Service (SaaS).
While merchants may initially resist the shift away from one-time costs, the move to monthly software subscriptions is proving to be a long-term win for both offices and their clients. It’s also creating a massive opportunity for processors.
SaaS and cloud-based solutions have become the industry standard for everything from accounting software to website hosting. The POS space is no different. A SaaS approach allows offices to build stable, growing income streams while offering merchants a richer set of tools than ever before.
Let’s dive into what is driving the shift, and why it’s good news for the merchants we serve.
A Stronger Revenue Model
For offices, the financial upside of SaaS is hard to ignore. Instead of relying on the occasional hardware sale or infrequent support calls, offices that offer SaaS POS solutions generate predictable, scalable monthly revenue. Every time a new merchant signs up for a POS subscription, that becomes recurring income that can be counted on month after month.
This shift transforms the economics of the relationship. Rather than chasing one-time transactions, offices now benefit from lifetime customer value (LTV). As merchants add new locations, employees, or features, their monthly spend increases—no upsell required. The more your clients grow, the more your office earns.
Cloud, SaaS Drive Post-Pandemic Industry Growth
Source: marketresearchfuture.com
From a market standpoint, SaaS growth is leading the way. While the broader POS software market is growing at a healthy 10–14% CAGR, cloud POS is projected to grow nearly twice as fast—at around 24.7% CAGR through 2033.
That level of acceleration is not only outpacing the services segment, which includes installation, training, and customization, it is slowly replacing the need for some of those physical services in the first place.
Merchants: What’s in it for Me?
Although some merchants resist subscription pricing at first, the value becomes clear when the system is done right. More than handling transactions, a cloud-based POS system tracks inventory, manages staff, integrates loyalty programs, enables online ordering, and pulls real-time data to any device.
The merchant pays monthly, but in exchange, they get a true command center for their business—and ongoing updates to keep it relevant. Combining the functionality of a typical CRM suite with their POS software leads to a more streamlined, informative system.
The benefits include:
- Remote access: Owners can check sales, labor, and inventory from anywhere.
- Faster support: No waiting for on-site service when something goes wrong.
- Lower upfront costs: Many SaaS programs include equipment or spread costs out over time.
- Future-proofing: Software updates, security patches, and new features roll out automatically.
- Environmental Benefits: Digital Updates mean less frequent terminal replacements and lower resulting e-waste!
Put simply, the system keeps getting better over time—without the merchant needing to buy a new terminal or wait for a rep to visit.
Happier Offices, Better Relationships
The SaaS model also changes how offices interact with merchants. Instead of a single setup appointment and the occasional support call, SaaS encourages deeper, ongoing engagement. That opens the door for account expansion: more features, more devices, more integrated services.
Because offices are no longer just selling hardware, they become long-term partners. You’re the one who helps the merchant adapt as their needs evolve.
Maybe that means adding tableside ordering for a restaurant, online checkout for a retailer, or an integrated time clock for employee management. Each add-on improves the merchant’s business, driving customer loyalty and increasing recurring revenue.
This is the kind of alignment that makes SaaS so powerful. Merchants pay more when they get more. And because offices benefit from long-term client success, they’re incentivized to offer support and solutions that actually work.
Upsell Without Selling
A key advantage of SaaS POS is the way it allows for natural account growth. Unlike traditional sales, where upselling meant pitching new hardware or services, SaaS growth can happen seamlessly. A merchant who starts with a single-user POS setup might later want gift card integration, employee tracking, or mobile order taking. Each one is an easy add-on within the system, either through a-la-cart selection or an upgraded subscription.
Instead of pressuring merchants to upgrade, you can simply show them what’s possible. “Did you know you can text customers when their orders are ready?” or “Would real-time inventory help reduce shrinkage?” These features are easier to sell and demonstrate when there’s no physical install required.
The Market Is Moving
Across the industry, SaaS POS adoption is accelerating. Legacy systems are being replaced by cloud-first platforms, and processors that don’t keep up risk losing ground. SaaS platforms now dominate the POS M&A market, and across the software sector, SaaS models represent over 60% of recent software deals.
COCARD offices have a leg up. Our infrastructure and software solutions are already built for this model, and our support culture makes the transition easier for merchants. As always, we’ve identified the trends that drive the industry’s future, and we’re staying ahead.
Rather than a locked ecosystem, we give merchants access to powerful tools that help them sell more, manage more, and stress less—all backed by a service that puts their business first.
COCARD: Leading Tomorrow’s Industry
For the POS industry, the shift to SaaS is here to stay. For offices, it creates new revenue streams and deeper merchant relationships. For clients, it brings better software, lower upfront costs, and more flexibility.
COCARD offices are positioned to lead this transition. By offering smarter solutions and standing behind the service, we add revenue and build value, month after month. If your office is ready to grow recurring revenue and help merchants win, now is the time to lean into SaaS.