The global outdoor payment terminal market was valued at around USD 1,679.0 million in 2023. Over the projection period, outdoor payment terminal sales are expected to grow at a high CAGR of 10.4%, reaching a worth of USD 4,529.5 million by 2033.
Increased smartphone usage, cloud-based solution acceptance, and consumer need for faster payment settlements are driving market expansion. However, high implementation costs and increased market rivalry are projected to stifle industry expansion.
On the other hand, the surge in internet-of-things adoption is viewed as an opportunity for the outdoor payment terminal industry. Furthermore, during the pandemic, the work-from-home lifestyle and growing demand for e-commerce boosted the global expansion of the outdoor payment terminal (OTP) industry.
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Customers perform contactless payments using outdoor payment terminals (OPTs) using payment cards approved by Europay, MasterCard, and Visa (EMV) and technologically integrated with Near Field Communication (NFC), fueling industry growth.
These technology-enabled payment cards exceed client expectations by lowering wait times at payment terminals and providing a variety of payment alternatives. Furthermore, outdoor payment terminals are mostly chosen by millennials and Gen Z populations globally, which is one of the primary drivers driving the market growth.
The huge push to contactless payment technology was received by the COVID-19 pandemic, ensuring that businesses did not experience disruptions in operational continuity. As per findings, in the United States, 51% of customers have resorted to the use of digital wallets, including Apple Pay and other tap-to-go credit cards, since 2020. Furthermore, nearly three out of five people across the United States are more likely to rely on contactless payment methods in forthcoming years.
Fintech companies have played a pivotal role when it comes to facilitating contactless outdoor payments. For instance, Pismo, a fintech start-up established in 2016, is at the forefront when it comes to contactless outdoor payments. By leveraging its platform, financial institutions avail a host of services, including zero balance network integration, issuance of prepaid cards, fraud prevention integration, and dynamic spending controls, to name a few.
The increased usage of smartphones, as well as consumer awareness of online payments, face recognition, fingerprint software for smartphones, and the availability of online groceries, clothes, and electric items, is boosting demand for smart payment systems such as OPT.
Users have increased customer trust by providing a layer of authentication to payment gateways in order to safeguard information. Furthermore, real-time payment technology provides payment access 24 hours a day, seven days a week.
| Attributes | Details |
|---|---|
| Outdoor Payment Terminal Market CAGR (2023 to 2033) | 10.4% |
| Outdoor Payment Terminal Market Size (2023) | USD 1,679.0 million |
| Outdoor Payment Terminal Market Size (2033) | USD 4,529.5 million |
Principal Consultant
When deciding on new technologies, such as outdoor payment terminals (OTP), UPI, debit cards, and Internet banking, cost is a crucial factor to consider. High-security applications are usually costly. In most cases, the expense of integrating or giving access to an online payment gateway program is prohibitively high.
The high cost of components for real-time payment solutions, as well as the expense of introducing payment gateways into the online payment industry, is hindering market expansion. Furthermore, the installation of tight security to safeguard the interests of others is an expensive component. These are significant factors that limit the need for technology in both private and public enterprises.
As a result, high prices and complex implementation are projected to stymie the market's growth throughout the forecast period.
| Countries | Market Share (2022) |
|---|---|
| United States | 15.3% |
| Germany | 9.4% |
| Japan | 6.4% |
| Australia | 3.2 |
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The United States dominated the outdoor payment terminal market, accounting for 15.6% of revenue in 2022. People in the United States are increasingly interested in payment methods such as credit, debit, and prepaid cards, which are driving the expansion of the outdoor payment terminals industry.
At the same time, the country's expanding number of self-service retail establishments is boosting development. Furthermore, the existence of important competitors in the area, such as MasterCard and Visa, among others, bodes well for market expansion.
The surge in the Adoption of Cloud-based Software to Boost Market Growth
The market for outdoor payment terminals in China is predicted to grow at a rapid rate during the forecast period. China is incorporating cloud-based software into OPTs. According to Future Market Insights, China is forecast to register a CAGR of 12.2% from 2023 to 2033.
This adoption simplifies operations by keeping data on a server, eliminating the need to set up an on-premise server for data storage. As a result, enterprises save money at the expense of developing infrastructure.
According to Future Market Insights, in 2022, the outdoor payment terminals malls accounted for 27.8% of revenue. Smart fueling is growing more popular as customers receive flexible payment choices with security requirements, reducing traffic at stations and making it easier for suppliers to control traffic.
Apart from that, the transaction records on OPTs are utilized to generate statistical data to investigate individuals' refueling patterns. This information enables suppliers to provide more accurate services and to implement cost-cutting techniques, such as moving working hours to peak hours. Furthermore, it eliminates the need for drivers to carry cash and decreases the hazards associated with lengthier travel routes, such as robbery and theft on highways.
Outdoor payment terminals for car experience heightened demand, accruing a revenue share of 38% in 2022. Outdoor payment terminals allow consumers to access numerous payment alternatives, such as mobile-based payments at kiosks and card-based payments, at their leisure, reducing waiting time.
As a result, increased knowledge regarding the benefits of deploying OPTs is pushing segment development. Merchants now deliver customer-centric services while also improving their operations.
Demand for Contact-based Payment Terminal to Remain High
In 2022, the contact payment terminal segment dominated the outdoor payment terminal sector, accounting for 52.4% of worldwide sales. The prevalence of contact OPTs is attributed to the fact that they are secure and cost-effective for businesses, as well as widely accepted by the general public.
One of the key reasons for the segment's development is the well-established infrastructure of contact payment terminals and their capacity to process debit and credit card-based payments. Moreover, many people, particularly the elderly, are still reliant on contact-based payments for a variety of reasons, including a lack of understanding and difficulty with alternative contactless payments.
The contactless payment terminal market is expected to expand the quickest throughout the projection period. The contactless payment terminal provides companies and consumers with a seamless experience and shorter checkout time, improving operational efficiency and removing the bother of carrying cash for customers.
Retailers that use these services generate additional cash through advertising and expand their existing consumer base. These features of OPT make it more beneficial than traditional methods.
The whole e-commerce market is estimated to be worth USD 4.89 trillion in the coming years. As a result of this expansion, there is an urgent need for additional payment choices, payment technologies, and back-end processing infrastructure. Some of the most inventive and intriguing outdoor payment terminal firms that are changing the way people pay for online purchases:
Key Players in the Outdoor Payment Terminal Set to Experience Technology Miracles
The outdoor payment terminal industry is defined by multiple important market competitors as a fragmented market. As part of their attempts to improve their services, industry leaders are investigating numerous strategies, such as strategic alliances and new product development.
Companies in the outdoor payment terminal industry strive to improve their product offerings in order to obtain a competitive advantage. As a result, players are spending on research and development to differentiate their products from competitors. To improve the user experience, OPT providers aim to include features such as multi-language and loyalty programs, among others, into their devices.
Recent key developments:
Key Players
The outdoor payment terminals holds high revenue potential.
The United States and China dominate the global market.
The market is forecast to register a CAGR of 10.4% through 2033.
During 2018 to 2022, the market registered a CAGR of 10.4%.
The popularity of smartphones increases current market trends.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Contactless 5.2. Contact 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Refuel 6.2. Carwash 6.3. Malls 6.4. Other Applications 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. NCR Corporation 17.2. Gilbarco Inc. 17.3. Invenco Group Ltd. 17.4. Verifone, Inc. 17.5. Dover Fueling Solutions 17.6. Scheidt & Bachmann GmbH 17.7. Apple Inc. 17.8. Temenos AG 17.9. Capgemini SE 17.10. Finastra Group Holdings Limited 18. Assumptions & Acronyms Used 19. Research Methodology
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Outdoor Payment Terminal Market
