Fiserv's Clover unit leads the small restaurant point-of-sale market with a 20% share, equating to around 175,000 locations. Fintech competitor Toast holds a 17% share with about 145,000 locations. This information comes from a Baird report that estimates the U.S. restaurant and bar market generated approximately $1.1 trillion in sales last year. The report also highlights that the top 250 restaurant groups typically process payments through major providers like Fiserv and JPMorgan Chase, while smaller establishments represent 75% of the overall market. In the smaller restaurant segment, Block's Square follows Clover and Toast with a 13% market share, while Global Payments, which recently acquired Worldpay, holds an 11% share. The competition has intensified as fintech companies disrupt the traditional market, particularly in smaller establishments, where processing rates tend to be more favorable. Baird analyst David Koning noted that larger restaurants benefit from lower processing rates due to their volume, allowing newer entrants to thrive in the smaller segment. According to Baird, credit and debit cards account for about 85% of restaurant payments. Most restaurateurs surveyed expressed satisfaction with their current POS providers and showed no intention of switching. Clover's growth has been bolstered by its parent company, Fiserv, which acquired Clover in 2019 for $22 billion. The report also forecasts Toast's growth, estimating an increase from 134,000 locations in 2024 to 244,000 by 2028. However, the analysts predict a slower growth rate for the market overall due to rising inflation and changing consumer preferences, estimating a mid-single-digit growth rate for the year.