Smart Payment Terminals Market Size - By Type (Portable/Mobile Terminals, Fixed/Countertop Terminals, PIN Pad Terminals, mPOS Terminals, Smart POS Terminals), By Technology, By Connectivity, By Payment Method, By End-use Industry & Forecast, 2024 - 2032

Smart Payment Terminals Market Size

Smart Payment Terminals Market size was valued at USD 53.83 billion in 2023 and is anticipated to register a CAGR of over 12.5% between 2024 and 2032. The market's growth is driven by the increasing adoption of digital payment technologies, the rise in contactless transactions, and advancements in payment security. Smart payment terminals, which integrate advanced technologies such as Near Field Communication (NFC), biometrics, and artificial intelligence (AI), are revolutionizing the payment experience by offering enhanced convenience, security, and functionality.
 

The demand for these terminals is expanding as businesses and consumers seek more efficient, secure, and user-friendly payment solutions. For example, in May 2024, Taoping Inc. launched a new, upgraded AI-powered smart terminal that integrates AI Generative Artificial Intelligence (AIGC) with the company's intelligent cloud platform technology and product capabilities. The new enhanced AI-powered smart terminals leverage high-end video displays to seamlessly integrate AI technology, facilitating rapid interaction, data collection, analysis, and optimization of the user experience.
 

The surge in contactless payment adoption is a significant driver of the smart payment terminals market. With the growing preference for touch-free transactions due to hygiene concerns and convenience, businesses are increasingly investing in smart payment terminals that support NFC and QR code payments. The surge in contactless payments is leading to the expansion of the smart payment terminals market into new regions and sectors, including retail, hospitality, transportation, and healthcare.
 

Contactless payments offer faster transaction speeds and reduce physical contact, aligning with the evolving consumer preferences for quick and secure payment methods. For instance, according to data published by National Informatics Centre, Ministry of Electronics & IT India, in the year 2023 UPI’s total transaction volume stands on 83.75 billion. This showcases the increasing popularity and adoption of UPI as a convenient and secure platform for digital transactions in India.
 

The smart payment terminals market faces significant challenges due to the high initial costs associated with advanced terminal technologies. Developing and deploying smart payment terminals equipped with the latest features—such as NFC, biometric authentication, and AI-driven fraud detection—requires substantial investment in R&D and manufacturing. This cost burden can be particularly challenging for small and medium-sized businesses, which may find it difficult to justify the expense amid tighter profit margins and budget constraints.
 

Additionally, the need for frequent updates and upgrades to stay competitive and comply with evolving security standards can further strain financial resources. As a result, businesses may face difficulties in balancing investment in cutting-edge payment technologies with their operational budgets and overall financial health.
 

Smart Payment Terminals Market Trends

The integration of artificial intelligence (AI) and machine learning (ML) into smart payment terminals is a transformative trend that enhances the functionality and security of payment systems. AI and ML algorithms are being utilized to analyze transaction data in real-time, providing valuable insights into customer behavior, transaction patterns, and potential fraud. These technologies enable smart payment terminals to offer features such as advanced fraud detection, predictive analytics, and personalized customer experiences.
 

AI-powered fraud detection systems use machine learning models to identify and flag unusual or potentially fraudulent transactions based on historical data and real-time analysis. This helps in preventing fraud and minimizing chargebacks, providing both merchants and consumers with added security. For example, in August 2023, Surecomp, a leading provider of trade finance solutions, has announced a strategic partnership with Pelican AI, a global provider of AI-powered financial crime and compliance solutions.
 

The partnership will enable financial institutions using Surecomp's RIVO platform to benefit from Pelican AI's intelligent automation capabilities. This will allow for accurate extraction and validation of data from the trade finance process, leading to improved trade productivity, reduced risk, and enhanced compliance.
 

The shift towards omnichannel payment solutions is transforming the smart payment terminals market. Omnichannel payment solutions provide businesses with the capability to manage transactions across physical stores, online platforms, and mobile applications from a unified system. This trend reflects the growing consumer expectation for a consistent and integrated payment experience, regardless of the channel used. Omnichannel payment solutions enable businesses to offer a cohesive payment experience that integrates various payment methods, including in-store purchases, e-commerce transactions, and mobile payments. This integration helps businesses streamline their payment processes, reduce operational complexity, and improve customer satisfaction.
 

For example, in February 2024, Nuvei, a Canadian fintech company, has launched an enhanced omnichannel payments solution for merchants and platforms. The unified commerce offering, now available to customers outside of North America for the first time, enables businesses to develop new customer payments experiences with greater control and unified analytics
 

Smart Payment Terminals Market Analysis

Based on type, the market is segmented into portable/mobile terminals, fixed/countertop terminals, pin pad terminals, mPOS (mobile point of sale) terminals, and smart POS terminals. The fixed/countertop terminals segment accounted for the largest market share with over 32% in 2023.
 

• The fixed/countertop terminals segment leads the smart payment terminal market due to their reliability and widespread adoption in traditional retail environments. These terminals are designed for high-volume transactions, providing businesses with stable and secure payment processing solutions. Their robust features, including advanced security measures and integration capabilities with existing point-of-sale systems, make them a preferred choice for retailers, restaurants, and other service-oriented businesses. Additionally, the familiarity and trust associated with fixed terminals contribute to their dominance, as businesses prioritize proven technology in high-traffic locations.
   
• Moreover, the growing emphasis on customer experience and operational efficiency further drives the demand for fixed/countertop terminals. These devices often come equipped with user-friendly interfaces, enabling faster transaction processing and reducing wait times for customers. With the rise of omnichannel retail strategies, businesses are increasingly seeking systems that seamlessly integrate online and offline sales, and fixed terminals fit well within this framework. As companies look to enhance their payment processing capabilities while ensuring security and reliability, the fixed/countertop terminals segment continues to maintain its significant market share.
   

Based on connectivity, the smart payment terminals market is divided into wired and wireless. The wireless segment is set to grow at a CAGR of over 13% and is expected to reach over USD 73 billion by 2032.

• The wireless segment of the market is rapidly expanding, driven by the increasing demand for flexibility and mobility in payment processing. As businesses adopt more dynamic operating models, wireless terminals enable seamless transactions in various environments, from retail stores to outdoor events. This flexibility enhances customer experiences by reducing wait times and allowing for on-the-go payments. The proliferation of mobile payment solutions and contactless transactions further fuels this growth, as consumers increasingly prefer the convenience of using smartphones and digital wallets.
   
• Additionally, the growing emphasis on digital transformation across industries is contributing to the robust growth of the wireless segment. As more businesses embrace technology to streamline operations and improve customer engagement, wireless smart payment terminals provide essential capabilities to support these initiatives. The integration of advanced features, such as real-time data analytics and loyalty program functionalities, is becoming increasingly feasible with wireless connectivity. This ongoing evolution positions the wireless segment as a crucial player in the smart payment terminal market, with projections indicating a substantial increase in market value over the coming years.
   

North America held the largest smart payment terminals market share of over 33% in 2023, driven by the region's advanced technological infrastructure and high consumer adoption of digital payment solutions. The presence of major retailers and a well-established e-commerce landscape have driven significant investments in payment technologies. Businesses in this region are increasingly upgrading their systems to accommodate contactless and mobile payment options, ensuring a seamless shopping experience for consumers.
 

Additionally, stringent security regulations and a strong emphasis on fraud prevention have propelled the demand for sophisticated payment terminals. With initiatives promoting digital transformation, North American companies are keen on implementing innovative solutions that enhance operational efficiency and customer satisfaction.
 

China is a major player in the smart payment terminals market, with its rapidly growing retail and e-commerce sectors driving significant demand for advanced payment solutions. The country is a leader in mobile payments, with widespread use of digital wallets and QR code payments, which has propelled the adoption of smart payment terminals.
 

The Chinese market is characterized by a high rate of technological adoption and innovation, supported by strong government initiatives and investments in payment infrastructure. Major Chinese companies, such as Alipay and WeChat Pay, are at the forefront of integrating smart payment technologies into their platforms, contributing to the market's growth.
 

Germany's smart payment terminals market benefits from its strong emphasis on industrial automation and high-quality engineering. As Europe's largest economy, Germany has a well-established retail sector that increasingly adopts advanced payment solutions to enhance customer experiences and streamline operations. German companies, such as Bosch and Infineon, are leading the development of innovative payment technologies, focusing on secure and efficient transaction processing. The German market is driven by a growing demand for contactless payments and omnichannel solutions, supported by the country's strong regulatory framework and technological infrastructure
 

Japan is a key market for smart payment terminals, characterized by its technological sophistication and high adoption rate of digital payment solutions. The country has a strong consumer electronics sector and a high demand for innovative payment technologies. Japanese companies, such as Sony and Panasonic, are leading the development of smart payment terminals with advanced features such as biometric authentication and AI-driven fraud detection. The Japanese market is also influenced by the growing trend of contactless payments and the need for seamless integration across various payment channels.
 

South Korea's smart payment terminals market is driven by its advanced electronics industry and high adoption of digital payment technologies. South Korean companies, such as Samsung and Kakao Pay, are at the forefront of integrating smart payment solutions into their products, leveraging their expertise in semiconductor technology and consumer electronics. The South Korean market is characterized by a strong demand for contactless and mobile payments, supported by the country's emphasis on innovation and technological advancement. The rapid growth of e-commerce and retail sectors in South Korea is further boosting the adoption of smart payment terminals.

Smart Payment Terminals Market Share

Verifone and Ingenico hold a significant share in the market. Key players like Ingenico, Verifone, and Square dominate the market with robust portfolios that cater to diverse business needs, from small retailers to large enterprises. These companies leverage their extensive distribution networks and brand recognition to maintain a competitive edge, continuously enhancing their product offerings with features such as enhanced security protocols, advanced data analytics, and integration with emerging technologies like AI and IoT.
 

Emerging players are challenging incumbents by introducing innovative solutions tailored to specific niches or underserved markets. Companies like PAX Technology and Clover are gaining traction by offering cost-effective, customizable, and user-friendly devices that appeal to small and medium-sized enterprises. Additionally, the competitive dynamics are influenced by the increasing adoption of contactless payments and mobile wallets, prompting all market participants to innovate rapidly.
 

Smart Payment Terminals Market Companies

Major players operating in the smart payment terminals industry are:

• Verifone
• Ingenico
• PAX Global Technology
• Square (Block, Inc.)
• Clover Network
• NCR Corporation
• Diebold Nixdorf
   

Smart Payment Terminals Industry News

• In July 2024, Scheidt & Bachmann partnered with ChargePoint to launch the first OCPI-Compliant payment terminal. This terminal, known as the SIQMA PowerPay, offers a compliant, ready-to-use solution for electric vehicle (EV) charging payments. It meets the latest Open Charge Point Interface (OCPI) requirements and is also compliant with the Payment Card Industry (PCI) standards, ensuring the highest level of security for transactions.
   
• In June 2024, WSPN, a global digital payments leader, has announced a strategic partnership with DigiFT, the first regulated exchange for on-chain real-world assets (RWA) in Singapore. This collaboration aims to advance stablecoin applications and pioneer Web3 payment and investment solutions globally.
   

The smart payment terminals market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Type

• Portable/Mobile Terminals
• Fixed/Countertop Terminals
• PIN Pad Terminals
• mPOS (Mobile Point of Sale) Terminals
• Smart POS Terminals

Market, By Technology

• EMV Chip and PIN
• Contactless NFC
• Biometric
• QR Code
• Magnetic Stripe

Market, By Connectivity

• Wired
• Wireless
  • Wi-Fi
  • Bluetooth
  • Cellular

Market, By Payment Method

• Debit/Credit Cards
• Mobile Wallets
• Cryptocurrencies
• Others

Market, By End-use Industry

• Retail
• Hospitality
• Healthcare
• Transportation
• Entertainment
• Government
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA