POS middleware or direct integration? What you should look out for when tendering.

22 July 2025

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In the retail sector, new payment technologies or additional functions (key term «barrier-free terminals») regularly require the POS terminal landscape to be replaced and upgraded – across all branches. When there are a lot of branches or different cash register systems, the integration of these new terminal models can quickly develop into a major IT project, which is often outsourced to an external partner within a tendering process.

Which means IT managers in retail are increasingly facing a key strategic question: should the new terminal models be integrated directly into the cash register software or might POS middleware as an “adapter” be the better solution? And of course: what specific things do you need to bear in mind when choosing the optimal project partner within a tendering process?

Content of the article

    At a glance: Which solution and when for POS integration?

    • More than two branches
    • Heterogeneous terminal landscape
    • Long-term flexibility wanted

    → Recommendation:
    POS Middleware

    • One to two branches
    • Homogeneous terminal landscape
    • No changes in the future

    → Recommendation:
    Direct integration

    The aims of your integration project

    The aims of the project are clear: cashless payments should be stable, secure, maintainable and future-proof. New POS terminals should also be productive as quickly as possible and generate revenue. So the time to market needs to be as short as possible.

    As the strategic icing on the cake, you might also want to stay flexible when replacing your terminal landscape in the future. So not only can you offer new functions more quickly, but you can also change acquirer or payment service provider at any time when necessary – thus avoiding a lock-in effect.

    The central question is whether direct integration or payment middleware is the better way to achieve your aims.

    Direct integration: Direct means closely linked.

    With direct integration, POS terminal integration is realised directly in the code of the cash register software. In many cases, this is done by the provider of the cash register software. What initially sounds like a streamlined solution also brings a series of challenges:

    Low flexibility

    Only one new communication protocol is usually integrated into the cash register software. If this communication protocol changes in the future (e.g. if the acquirer – and thus the corresponding terminal model – is changed), further expense is again incurred for re-integrating this protocol.

    Technical lock-in

    Changes to the setup (e.g. integration of new terminal models) again require new adjustments directly in the cash register software – and thus dependence on the software provider.

    Time to market often longer

    Due to the development expense of direct integration, it often takes longer before new terminal models can be used at the POS.

    Complex scaling

    Particularly if different terminal types are used in several markets (e.g. in the international context), rolling out the new terminal landscape can become a complex process. This means that different protocols have to be integrated into different cash register systems in each case.

    High maintenance costs

    The same goes for maintenance of the communication protocols. Each update means expense here: you have to make sure that the cash register software, including the latest version of the communication protocol, is always fully up to date on all cash registers.

    In brief

    Direct integration only makes sense then if the general setup is manageable – and no more major adjustments are expected in the future. For example, if only a few branches are affected – and you’re not expecting to make changes to communication protocols or terminal models in the future.

    POS middleware: Flexibility means future security

    POS middleware, also called payment gateway middleware, acts – figuratively speaking – as an adapter between the cash register software and the EFT/POS terminals. It usually handles multiple different protocols at the same time. If it’s then integrated via a REST API, it also delivers central integration with a series of other benefits.

    High flexibility

    Because it acts as a kind of universal adapter, new terminal models or providers can be integrated into your POS setup quickly and easily at any time.

    Reduced technical lock-in

    The high flexibility of POS middleware reduces your dependence on the providers of cash register software.

    Faster time to market

    Because there’s no further development expense when integrating new POS terminals after the initial middleware integration, new devices or acquirers can be integrated more quickly. If POS middleware is also integrated via a REST API, the time to market can be reduced even further.

    Lower maintenance costs

    New POS middleware solutions often work with a REST API. This means all supported interfaces are maintained centrally by the middleware provider. This provides long-term relief for your IT team.

    Easier scalability

    Whether a mid-sized business or international retailer with hundreds of branches. POS middleware enables your terminal landscape to grow quickly. Integrating payment gateway middleware via REST API also accelerates deployment.

    In brief

    POS middleware is usually the more sensible strategic choice, particularly for major retailers with multiple branches in different countries that want to stay flexible in the long term.

    Whether POS middleware or direct integration: What you should bear in mind when choosing the right integration partner.

    Whether you choose payment middleware or direct integration in the cash register software: most companies entrust the integration of new POS terminal models to an experienced partner.

    In the case of direct integration, that is often the provider of the respective cash register software. If you choose POS middleware, the respective provider ensures secure and stable integration. In each case, however, it’s important that the particular partner can meet your requirements for stable, secure, maintainable and future-proof POS terminal integration.

    Just what should you bear in mind when choosing the right integration partner? RFPs (requests for proposal) are often developed within a tendering process, which allow you to “sound out” multiple potential partners in relation to your requirements. But what criteria should you definitely include? In other words: what do you actually need to know to make an informed decision?

    All criteria for choosing the optimal integration partner in our white paper

    If you’re planning a tendering process for POS middleware in the foreseeable future, or need to choose between multiple integration partners for direct integration, we recommend our white paper.

    Our white paper: «All criteria for choosing the optimal POS integration partner»

    Your checklist: POS middleware or direct integration?

    Are you still undecided? This checklist can help you make the right choice:

    «One to two branches, only active in one country, no further change to POS terminals expected?»

    → Direct integration

    «More than two branches, markets, providers or protocols?»

    → POS middleware

    «Have to integrate new payment terminals or acquirers regularly?»

    → POS middleware

    «Need the solution to be productive as quickly as possible?»

    → POS middleware

    «Want to minimise your dependence on providers so you can switch when you want?»

    → POS middleware

    «Plan to stay flexible long term when choosing terminal models or acquiring partners?»

    → POS middleware

    Is POS middleware the better solution for your requirements? Then you might be interested in the terminal integration software PepperQik.

    In summary

    The choice between direct integration and POS middleware is heavily dependent on your individual requirements. If you need long-term flexibility, a short time to market and the lowest possible dependence on partners, you should consider payment middleware. When choosing the right partner for POS integration, it’s worth going through a diligent tendering process to find the right integration partner.

    To make such a tendering process easier for you, we’ve developed a white paper that includes all key criteria for the right decision – and helps you quickly develop an RFP for your POS integration.

    White paper for tendering (POS middleware or direct integration)

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