Hospitality POS shifts to connected self-service platforms

Castles Technology has published research on how self-service is changing the role of point-of-sale systems in hospitality. The study suggests operators are moving from standalone terminals to connected platforms.

The company's white paper examines changes across hotels, restaurants and quick-service outlets as businesses adopt self-service kiosks, mobile ordering and Android-based systems. It argues that payment infrastructure is becoming part of a broader operating system linking ordering, payments, loyalty, inventory and guest engagement.

Research cited in the report suggests the shift is already affecting spending patterns and investment decisions. Customers spend up to 20% more when using self-service technology, according to the findings, while more than 75,000 self-ordering kiosks were delivered to the hospitality industry in 2025.

Industry forecasts referenced in the paper value the hospitality POS terminals market at USD 8.3 billion by 2032, with compound annual growth of 9.9%. That growth comes as many operators still rely on proprietary systems that do not connect easily with newer payment methods, loyalty schemes or cloud-based management tools.

Drivers of change

The report identifies three main pressures behind the shift: changing consumer payment behaviour, tighter regulatory demands and the need for closer links between front-of-house systems and back-office operations.

More than 70% of diners now prefer cashless transactions, according to the cited research, while three in four travellers rely on digital wallets during trips. At the same time, PCI DSS v4 requirements are fully in force and PSD2 continues to shape digital payment flows, adding pressure on hospitality operators to review security, interoperability and customer journeys.

Operational needs are also becoming more complex. Businesses are under pressure to connect payment systems with stock management, reporting tools and loyalty programmes in a single environment rather than across separate systems.

The study breaks down the effect by sector. In quick-service settings, self-service kiosks and mobile ordering are raising average order values while cutting queue times and increasing throughput without extra staff.

In full-service restaurants, mobile POS systems are used for tableside ordering and payment, which can support faster table turnover. In hotels and resorts, connected systems tie together restaurant spending, amenities and room charging within a single guest profile.

The paper also points to a broader overlap between hospitality and unattended commerce. Operators are increasingly using kiosks, self-checkout and mobile ordering to remove traditional handover points from the guest journey.

Castles sells countertop, mobile and unattended Android payment devices to hospitality customers in these settings. The findings are intended to help operators assess future POS deployments and upgrades, including mobility, unattended use, security, compliance and support for newer payment methods.

Jean-Philippe Niedergang outlined the company's view of how payment systems now sit within wider hospitality operations.

"The POS is no longer just a device that processes a transaction at the end of a meal or a stay. It is the operational foundation of a modern hospitality business, connecting the front of house to the back office, the guest to the brand, and the moment of payment to a wider picture of loyalty and value. Hospitality has undergone a remarkable transformation in how it thinks about the guest experience, and payment infrastructure must keep pace. This white paper is designed to help operators understand what that transition demands, and how to make the right technology choices for the long term," said Jean-Philippe Niedergang, Chief Executive Officer, EMEA, Pacific and LATAM, Castles Technology.

The findings come as hospitality groups face pressure to raise sales while managing staffing costs and meeting customer expectations for faster service. By placing payment systems within a wider software framework, operators are treating the POS less as a terminal and more as a control point for revenue, service flow and customer data.

That marks a clear departure from older electronic cash register models, which were largely fixed in place and focused on processing sales at the end of a transaction. The newer systems described in the study are designed for use across venues, including the counter, the table, the kiosk and other unattended locations.

For operators weighing investment choices, the report concludes that infrastructure decisions now have wider consequences than they once did. Those choices affect not only how guests pay, but also how hospitality businesses manage service, integrate systems and build repeat custom.