Eye on POS: Square Counts 140 ISO Partners; Toast Locations Increase 22%

Why It Matters

The rapid ISO expansion fuels Square’s ecosystem growth, while Toast’s AI‑enhanced platform and location surge signal intensifying competition in the restaurant POS market, reshaping merchant economics and investor expectations.

Key Takeaways

• Square partnered with 140 ISOs, saw 200% QoQ seller growth.
• Square Q1 payment volume up 13%; overall GPV up 8.2%.
• Toast GPV rose 22% YoY to $51.3B, locations at 171k.
• Toast revenue up 22% to $1.63B; net income $126M.
• Toast IQ Grow serves 40k weekly active locations, enhancing AI ops.

Pulse Analysis

Square’s renewed focus on independent sales organizations marks a strategic pivot back to a channel it abandoned in 2009. By aligning with over 140 ISOs, the company unlocked a 200% quarter‑over‑quarter increase in new sellers, directly contributing to its 13% payment‑volume uplift and an 8.2% rise in overall gross payment volume. This partnership model not only broadens Square’s merchant reach but also diversifies its sales pipeline, a critical advantage as the POS market tightens and fintech rivals vie for merchant loyalty.

Toast’s performance underscores the growing appetite for integrated restaurant technology. A 22% jump in gross payment volume to $51.3 billion, coupled with a 22% expansion in locations to 171,000, reflects both organic growth and the company’s push into drive‑through lanes—a response to evolving consumer dining habits. The launch of Toast IQ Grow, an AI‑powered assistant now active in 40,000 weekly locations, enhances operational efficiency by automating inventory, payroll, and marketing tasks, positioning Toast as a data‑centric platform that leverages 14 years of transaction history to drive merchant profitability.

The divergent strategies of Square and Toast illustrate a broader industry shift toward ecosystem depth and AI integration. Square’s ISO network expands its distribution reach, while Toast’s AI suite deepens engagement with existing merchants, creating sticky revenue streams. For investors, these moves suggest sustainable growth pathways: Square can capture new merchants at scale, and Toast can extract higher margins from its expanding user base. As POS providers continue to embed AI and broaden channel partnerships, the competitive landscape will reward those that combine scale with sophisticated data‑driven services.