This report provides Transforma Insights’ view on the Payment Processing market with a primary focus on Checkout Systems, Parking Payments, Self-Checkout Systems and Pay Stations, and Card Payment Terminals.
A fully integrated Payment Processing system allows the monitoring of purchases to obtain accurate figures for stock movement that will, in turn, assist in supply chain management, enable leaner on-shelf inventory, and avoid stock shortages. The use of cashless payments is rising on a daily basis and is acting as a major driver for the adoption of contactless payment processing terminals. The adoption of contactless payments has also been further driven by its use in sectors beyond retail, such as public transport.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue. A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.
The report examines key factors that are influencing the development of the payment processing market, including:
This section begins by charting the drivers of payment processing systems and then it discusses its benefits, like monitoring purchases to determine accurate figures for stock movement, which in turn, assists in supply chain management.
This subsection talks about payment through cards have now become a norm, encouraging the adoption of Payment Processing solutions. For instance, a 2024 Nilson Report claims that the global number of credit, debit, and prepaid cards in circulation reached 26.71 billion by the end of 2023 and should reach 29.99 billion by 2028. It also argues that this growth is mostly visible in countries, where cards payments weren’t very popular till now, and further points out that factors like covid and government relaxation have also encouraged card payments, resulting in increased deployment of payment processing terminals.
This subsection discusses how the Covid-19 pandemic rapidly increased the use of contactless payments, backed by factors like increasing limits for contactless purchases. It then charts how contactless cards dominate the market, with 97% of all issued cards in 2022 in Middle East and Pakistan being contactless. It also explains how these cards have gained popularity, owing to their usage in other sectors (like public transport), and adds that challenges like security concerns still hamper their adoption.
This subsection explains how the increasing dominance of e-commerce platforms (further exacerbated by Covid-19) has limited the demand for traditional brick-and-mortar retail stores, limiting the market for Payment Processing solutions. It also discusses some of the other barriers towards the adoption of Payment Processing solutions, such as the use of smartphone app-based payment software, increasing adoption of QR codes, and early-stage development of biometric devices. It also mentions some of the potential steps undertaken by international banks, which is also reducing the use of case by international travellers.
This section charts the benefits (like improved efficiency) and drivers (such as ease of operations) of smart checkout systems. It also explains the kind of connectivity technology these systems use – like a LAN network using Ethernet or Wi-Fi. It also provides a few examples of relevant IoT deployments in this application, like Xiaomi adopting Ezetap integrated payment solution to streamline its payment processes.
This section discusses the potential of smart parking facilities as a crucial market for payment terminals. For instance, in the UK, 84% drivers prefer making parking payments via contactless methods, website, app, or by card. However, it also mentions that in-vehicle payment methods by OEMs (like BMW’s ConnectedDrive system) will hinder the adoption of payment processing terminals. It also discusses the benefits of deploying cashless parking payment systems in general, like improving service efficiency and eliminating the risk of theft and fraud.
It then shifts its focus on automated payment systems (which are mostly deployed in parking lots with limited number of entrances and exits) and explains how they work. These systems rely on RFID tags used to collect parking payments without any human intervention. It also provides a few examples of relevant IoT deployments in this application, like the City of Copenhagen deploys NFC-based parking payment systems.
This section focuses on how a large section of the retail industry has shifted towards a cashier-less model and charts the benefits of doing so (like saving operational costs). It also explains how labour shortage in countries like Sweden and Japan is also leading to the adoption of the model.
It also charts the barriers faced during the implementation of such model, including the high initial investment costs and security issues. It also gives a few examples of relevant IoT deployments in this application, like JC's Supermarket installing NCR's FastLane SelfServ checkout solution.
This section first charts the drivers of Card Payment Terminals, like the growing demand for cashless transactions and the availability of wide-area networks. It then discusses the benefits of mobile Card Payment Terminals, like allowing staff to be engaged more efficiently. This section also provides a few examples of relevant IoT deployments in this application, like TGI Friday deploying 600+ Verifone payment devices across the UK.
The key vendors section lists some of the main providers of products and services related to the market such as PAX, Verifone, IPS, Flowbird, Ingenico, NEXGO, NCR Voyix, Diebold Nixdorf, and Pine Labs. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of devices, which will grow from 189 million in 2023 to 297 million in 2033.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the payment processing application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Payment Processing Application Group will grow at a CAGR of 5%.
