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80% of German retailers plan checkout hardware changes within two years, Castles finds

Friday, February 27, 2026 — 17:54:45 (UTC)

Castles Technology report finds 80% of German retailers plan checkout hardware changes within two years

Vélizy-Villacoublay, France. German retailers are entering a significant point-of-sale modernisation cycle, with 80% planning checkout hardware changes within the next two years and 50% expecting full POS software replacement, according to a new report from Castles Technology, leader in Android payment acceptance solutions.

The report, Germany at the Checkout: POS Outlook 2026, examines the forces reshaping transactions in Europe’s largest retail market. While Germany’s retail sector remains stable overall, the checkout environment is evolving in response to regulatory requirements, cost pressures, labour shortages and changing consumer payment preferences.

Cash now accounts for approximately 35% of merchant revenue in Germany, while card payments represent 38% and are forecast to reach 42% within five years. Contactless payments already account for more than 80% of card transactions, supported by widespread NFC adoption and higher transaction limits. Mobile wallets, including Apple Pay and Google Pay, represent over 12% of cashless transactions.

Operational pressures are accelerating automation. The number of self-checkout installations in Germany more than doubled between 2023 and 2025, and one in every 18 checkouts is now self-service. Around 67% of shoppers report using self-checkout when available, citing speed and queue avoidance as primary drivers. Retailers are also testing more advanced unattended formats, including AI-enabled monitoring, computer-vision-based loss prevention and automated age verification for regulated goods.

Mobile and portable POS devices are expanding faster than traditional fixed systems. Germany’s mPOS terminal market, valued at USD 0.9 billion in 2024, is projected to reach USD 2.8 billion by 2033, reflecting a compound annual growth rate of 16.6%.

Regulation is also influencing investment decisions. Key drivers include PCI DSS v4.0 implementation, the EU Accessibility Act and new digital tax reporting mandates across Europe. These developments are accelerating the replacement of legacy systems and increasing demand for software-driven platforms capable of supporting long-term compliance.

“The checkout in Germany is evolving in a measured but meaningful way,” said Jean-Philippe Niedergang, ACTING GROUP CEO and EMEA-PACIFIC-LATAM CEO at Castles Technology. “Retailers are balancing innovation with stability, upgrading POS environments to support contactless payments, self-service and regulatory compliance while protecting long-term reliability and return on investment.”

The report concludes that Germany’s retail transformation is characterised less by disruption and more by deliberate recalibration, aligning payment infrastructure with operational efficiency, accessibility requirements and sustainability priorities.

To learn more and download the whitepaper in full, visit: www.castlestech.com/germany-at-the-checkout-pos-outlook-2026/

To learn more, visit: www.castlestech.com/

ENDS

About Castles Technology

Castles Technology is a global leader in payment acceptance solutions, delivering secure, reliable, and innovative Android-based payment terminals and services that enable a seamless payment experience. The company partners with thousands of customers worldwide, including banks, merchants, FinTechs, acquirers, ISVs, and PSPs. It has deployed millions of POS terminals to support retailers of every size, from local businesses to global enterprises.

As a pioneering Android payment acceptance solution provider, Castles Technology combines powerful device performance with advanced security and localized market expertise, ensuring global reach with strong regional support. Backed by more than 30 years of industry experience, Castles Technology’s global network of payment experts continually innovates to anticipate, shape, and advance the future of commerce.

Driven by a commitment to innovation and sustainability, Castles Technology aims to create meaningful, long-term impact through its products, services, and operations, supporting smarter commerce, responsible technology, and a stronger payment ecosystem.

For more information, visit www.castlestech.com/

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Source: Company press release.

Categories: Reports and research