Outdoor Payment Terminal (OPT) Market Expected to Reach $4.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Outdoor Payment Terminal (OPT) Market," The outdoor payment terminal (OPT) market By Type (Contact Payment, and Contactless Payment), and Application (Refuel, Carwash, Malls, and Others): Global Opportunity Analysis And Industry Forecast, 2022-2031". The market was valued at $1.6 billion in 2022, and is estimated to reach $4.8 billion by 2032, growing at a CAGR of 11.8% from 2023 to 2032.

Outdoor payment terminals enhance transaction processes’ security, effectiveness, and flexibility. The use of OPT's also improves customer service, boosts service availability around-the-clock, and lowers operating expenses by removing the requirement for staff to handle transactions. Additionally, communication between outside payment terminals and management systems enhances monitoring and control of transaction processes. 

Furthermore, increasing penetration of smartphones and rise in adoption of cloud-based OPTs and AI integration is boosting the growth of the global market. In addition, growing preference to non-cash transactions is positively impacts growth of the OPT market. However, security issues and privacy concerns and high deployment and maintenance cost is hampering the outdoor payment terminal (OPT) market growth. On the contrary, rising adoption of OPT solutions among SMEs is expected to offer remunerative opportunities for expansion during the outdoor payment terminal (OPT) market forecast. 

Depending on application, the refuel segment holds the largest outdoor payment terminal (OPT) market share owing to, rising adoption of smart fueling due to its benefits such as customers get flexible payment solutions with security standards which reduces traffic at stations. However, the malls segment is expected to grow at the highest rate during the forecast period, owing to the rise in the adoption of OPTs by various merchants to improve their operational efficiency and control various processes. 

Region-wise, the outdoor payment terminal (OPT) market size was dominated by North America in 2022 and is expected to retain its position during the forecast period, owing to increase in demand for the type of payment methods such as credit, debit, prepaid cards, and others is growing among people in the countries such as the U.S. and Canada. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the rising deployment of OPTs, predominantly in developing countries like China and India. Lack of awareness about digital payment solutions in most economies in the region also strengthens the role of OPTs for cash-based and other financial transactions in this region. 

The outdoor payment terminal (OPT) market trends has witnessed stable growth during the COVID-19 pandemic, owing to the stringent restrictions on movement and varying degrees of lockdowns across several countries paralyzed business activities, many people shifted toward digital platforms for banking transactions. in addition to accelerating banks' digital strategy and forcing more usage of the internet and mobile banking.

Financial organizations acknowledged that their branches offer valuable services and that having a physical presence is important, but they are also expensive to open, staff, and maintain during the pandemic. The pandemic proved to be a significant catalyst for the acceleration of trends such as the digitization of money, money management, and more technology-based solutions. However, the demand for OPT is expected to rise after the pandemic is over owing to the high demand in rural areas of developing countries such as China and India. 

With the rapid spread of COVID-19, the majority of people faced sudden surges in demand for financial resources, owing to sudden increase in panic among public, which, in turn, increased the number of transactions performed at one time. This, in turn, augmented the demand for AI and advanced machine learning in BFSI to smoothly regulate the delay. Furthermore, various financial institutes are collaborating with Fintech institutes to improve the video technology capabilities. For instance, in August 2021, Invenco partnered with Centrapay, a company that specializes in the adoption of digital assets and merchant payments. This partnership aimed to allow the transition from card-based payments to fully digital app-based payments. Moreover, the companies would also provide a personalized, data-driven, and digital payment experience to their customers. Thus, these are the factors driving the growth of the outdoor payment terminal (OPT) market during COVID-19 pandemic. 

The integration of advanced technologies such as AI, video analysis and big data in BFSI is helping the industries to improve various aspects of a company such as perception, reasoning, learning, and problem solving of the human mind for detecting and predicting risks, which, in turn, is driving the growth of the market. Moreover, the integration of improved security mechanisms such as fingerprint, biometrics, and double authentication adds an additional security layer to technologically advanced OPT, which is expected to help prevent fraud and drive the adoption of OPT. For instance, in June 2020, Gilbarco rolled out the Passport Version 11.02, an EMV software. The new product aimed to allow full chip-card functionality both inside and outside of the store to enable retailers to use Passport POS in order to safeguard their companies from fraud while also complying with EMV regulations, which are expected to provide lucrative opportunity for the OPT market. 

Key Findings of The Study

• By type, the contact payment segment accounted for the largest outdoor payment terminal (OPT) market share in 2022. 
• Region wise, North America generated highest revenue in 2022. 
• Depending on application, the refuel segment generated the highest revenue in 2022. 

The key players profiled in the outdoor payment terminal (OPT) market analysis are Apple Inc., Capgemini SE, dover fueling solutions, Finastra Group Holdings Limited, Gilbarco Inc, Invenco Group Ltd., Scheidt & Bachmann GmbH, Temenos AG, NCR Corporation, and Verifone, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the outdoor payment terminal (OPT) industry.