How Have Outdoor Payment Terminals Reshaped the Fintech Sector?
The rise of digital financial services over the past few decades has introduced numerous products that allow people to deposit and withdraw money conveniently without needing to visit a bank. The emergence of outdoor payment terminals (OPT) is one such example of this trend. These terminals are self-service kiosks that offer full functionality including different card payment options. While OPTs are installed in residential complexes also for personal use, they are also seen in public places such as airports, theaters, petrol pumps, etc.
Increasing popularity of outdoor payment terminals
Along with the rising penetration of fintech services, the COVID-19 pandemic significantly contributed to the increasing popularity of outdoor payment terminals. Several governments across the globe enacted social distancing regulations to reduce the spread of the SARS-CoV-2 virus. Naturally, people across the globe started opting for cashless payment options to bring down the rate of infection, thereby creating favorable conditions for the rise in popularity of outdoor payment terminals.
Along with this, the advent of technologies such as AI and cloud computing has further increased the utility of these payment kiosks. Artificial intelligence, especially, has proven to be an excellent innovation for enhancing the overall security of financial transactions and helping the user maintain his/her privacy. AI-based tools are integrated into outdoor payment terminals to improve their fraud detection capabilities. These tools assess the transaction patterns and detect anomalies using machine learning algorithms, thereby aiding in real-time monitoring of possible threats.
Moreover, machine learning algorithms and solutions are embedded into OPTs for credible identity verification. AI-powered biometric authentication systems installed as part of these kiosks help in detecting fraudulent actors easily, thereby reducing the chances of financial misappropriation. AI and cloud computing software programs also enable banks and other fintech companies to complete the KYC process seamlessly, expanding the customer base globally. From the perspective of banks, another important advantage of deploying AI-based solutions is that of advanced analytics. Coupled with big data, these advanced payment kiosks aid monetary organizations in analyzing customer behavior, spending patterns, transaction history, etc., to develop a reliable credit score and similar other such metrics. These parameters help banks to make informed decisions regarding the provisioning of different services such as loans, credit cards, etc., to these customers.
Apart from these functionalities, AI-based chatbots are also being deployed into outdoor payment terminals to assist customers in resolving their queries seamlessly. These chatbots guide users through transactions and help complete intricate tasks such as sending money orders or settling credit card dues. In the last few years, banks have started using the data collected through payment kiosks to offer personalized services to customers. Based on user preferences, these OPTs provide multiple options to the account holder including mobile payments, cashless transactions, credit cards, etc., thus enhancing customer satisfaction.
Fintech companies investing heavily in outdoor payment terminals
Recently, Allied Market Research published a report on the outdoor payment terminal (OPT) market which states that the industry accounted for $1.6 billion in 2022. The sector is expected to gather a revenue of $4.8 billion by 2032, rising at a CAGR of 11.8% during 2023-2032. The presence of multinational giants such as Apple Inc., Verifone, Inc., Finastra Group Holdings Limited, Capgemini SE, etc., has contributed to the growth of the landscape. Many of these businesses have invested in OPTs to expand their footprint across the globe.
For instance, in June 2023, TNS, a financial services provider, unveiled its Android-based indoor and outdoor payment terminal specifically designed for gas and petrol stations. Launched at ReFuelForum UK in Marbella, the product provides an entire payment ecosystem with smart security features. The payment kiosk offers support to almost all major credit cards, proprietary cards, digital wallets, etc. Similarly, in October 2023, Invenco, a self-service payment solutions developer, announced the expansion of its portfolio with the launch of the FlexPay 6 line of OPTs. With native cloud connectivity and contact payment features, this product is expected to cater to the demands of the industry holistically.
Summing up, the gradual transition toward cashless transactions and digital financial services has expanded the scope of the outdoor payment terminal industry. The increasing integration of AI and other advanced technologies is expected to increase the utility of these payment kiosks in the coming period.
