PAX Revenues Cross $1 Billion in 2022; SmartPOS Adoption Supports Growth

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PAX Revenues Cross $1 Billion in 2022; SmartPOS Adoption Supports Growth

Blogs
/ Apr 6, 2023
/ Team Counterpoint

The growth was primarily driven by the strong performance of Android-based payment terminals.
PAX’s expertise in Android SmartPOS technology and its MAXSTORE platform offers a centralized and seamless way for merchants to navigate an increasingly complex business.
PAX is expected to maintain its leading position in Android SmartPOS payment solutions.

PAX Global Technology, one of the world’s leading providers of electronic payment terminal solutions and related services, posted strong revenue of $1,003 million in 2022, showing great resilience in a period of economic challenges such as interest rate hikes and higher inflation. The growth was primarily driven by the strong performance of Android-based payment terminals. Fintech is playing a central role in the advancement of digital and cashless economies by providing greater efficiency, convenience and accessibility to consumers. However, PAX’s software-as-a-service (SaaS) solutions such as the MAXSTORE platform are enabling payment service providers (PSPs) and acquiring bank (financial institution that processes credit or debit card transactions on a merchant’s behalf) to combine core payment services with financial and non-financial applications in a much more flexible and cost-effective way.

Merchants can operate digitally and process orders more efficiently with the use of Android SmartPOS terminals. These terminals also provide valuable insights into consumer behavior, enable the development of automated marketing campaigns, and help to manage inventory more effectively, among other benefits. PAX’s expertise in Android SmartPOS technology and its MAXSTORE platform offers a centralized and seamless way for merchants to navigate an increasingly complex business. The MAXSTORE platform had well over 8 million managed devices by the end of 2022.

Key regional developments

Europe, Middle East and Africa (EMEA)

EMEA region clocked $319 million in revenue in 2022, an increase of 5% compared to 2021.
The growth was primarily driven by the large-scale adoption of Android SmartPOS devices across EMEA, primarily in Europe and the Middle East.
PAX’s partnerships with leading acquiring banks, PSPs and independent sales organisations (ISOs), and tailored solutions for the European market drive its growth across the region. The UK, Italy and Germany have increasingly become important growth drivers for PAX. Significant gains were made in France, Greece, Scandinavia, Balkans, Poland, Spain and Turkey.
Saudi Arabia’s ‘Vision 2030’ program for economic reform and the Saudi Arabian Monetary Authority’s (SAMA’s) openness to innovative technology finance across the Gulf Cooperation Council (GCC) and North Africa continues to accelerate the upgrade of legacy point-of-sale (POS), driving a big growth for PAX Android SmartPOS devices.

Latin America and Commonwealth of Independent States (LACIS)

LACIS region posted $385 million in revenue, a decline of 8% YoY. PAX experienced strong growth in this region in 2021, a major reason for the dip in 2022. However, PAX has a diversified product portfolio and a well-established channel partner network which can help increase its footprint in the region.
Brazil, Chile and Argentina are the major contributors to the growth in the region with increasing demand for Android SmartPOS solutions in sectors like multilane, hospitality and parking.

Asia Pacific (APAC)

APAC region recorded steady growth of 5% YoY with $172 million in revenue. PAX has expanded its footprint to more Asian countries.
India and Japan continued to show positive demand for Android-based smart payment terminals, which is expected to propel further growth.
Indonesia, Singapore and Thailand were the major contributors with double-digit revenue growth compared to the previous year. In Indonesia, sales were driven by the government’s ‘Payment System Blueprint 2025’ initiative, which is helping improve the nation’s core payment infrastructure.
PAX Technology, established as a Singapore subsidiary in 2021, focuses on local merchants and financial institutions. Singapore government’s ‘Retail Industry Transformation Map 2025’ is encouraging retailers to adopt innovative business models, which is expected to drive the demand for smart payment terminals.

United States and Canada (USCA)

USCA region posted a robust revenue of $127 million, up 35% YoY driven by PAX’s partnerships with PSPs and ISOs, and its expertise in Android SmartPOS solutions.
PAX Android smart payment terminals offer seamless integration and diversified payment methods such as mobile wallets, online ordering, curbside pickup and self-service ordering and checkout, which adds convenience for businesses operating in the retail, supermarket, hospitality and unattended segments.

Key takeaways

PAX is expected to experience greater adoption in the future, thanks to its ongoing investment in the research and development (R&D) of Android payment terminal technology. PAX spent $72 million on R&D in 2022, which was nearly 7% of its total revenue. Its terminals are user-friendly and offer a range of payment options, which makes them attractive to merchants.
However, POS vendors are now focusing on cloud-based software solutions to earn recurring revenue, increase profitability and offer better solutions to customers.
Along with strong payment solutions, partnerships play a crucial role in the fintech industry. PAX is also determined to strengthen its international sales network and customer relationships across geographies.
Due to ongoing economic challenges like interest rate hikes and high inflation, and geopolitical tensions, PAX is expecting flattish or lower-single-digit revenue growth in 2023.
With its strong portfolio across different sectors catering to different needs of merchants and businesses in different regions, PAX is expected to maintain its leading position in Android SmartPOS payment solutions.

Team Counterpoint

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

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