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A Market Overview of Payment Terminals in the USA in 2024

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Payment terminals, often referred to as point-of-sale (POS) terminals or credit card machines, are devices that enable businesses to accept electronic payments from customers. 

There is a difference between a payment terminal (credit card machine) and a POS. In general terms, a payment terminal is a tool that just takes payments, while a POS system is a full toolkit that not only takes payments but also helps run various parts of a business. If you only need to accept card payments, a payment terminal might be enough. But if you want to track sales, manage inventory, and analyze business data, a POS system would be more appropriate.

In the United States, payment terminals have become an integral part of commerce, facilitating transactions in retail stores, restaurants, service industries, and more. 

This article provides a look at the payment terminal landscape in the USA, highlighting key statistics, market leaders, popular models, and emerging trends.

Payment Terminal Market Overview

In the United States, the use of credit cards has grown over the years. As of 2023, there are approximately 1.1 billion credit cards in circulation in the U.S., with the average American carrying about four credit cards. This widespread use reflects the convenience and flexibility that credit cards offer for everyday purchases.

Annually, credit card transactions in the U.S. amount to $4.8 trillion, representing a substantial portion of consumer spending. Major credit card networks like Visa, Mastercard, American Express, and Discover dominate the market, processing billions of transactions each year. The rise of e-commerce has further boosted credit card usage, with online retail sales surpassing $1.2 trillion in 2023.

Total Credit Card Payments Amount in the USA by Year

Year

Credit Card Purchase Volume in USA (USD Trillions)

2013

$2.5 trillion

2014

$2.7 trillion

2015

$2.9 trillion

2016

$3.1 trillion

2017

$3.4 trillion

2018

$3.7 trillion

2019

$4 trillion

2020

$3.8 trillion

2021

$4.2 trillion

2022

$4.5 trillion

2023

$4.8 trillion

The adoption of payment terminals in the USA has seen significant growth over the past decade. With the increasing preference for cashless transactions, businesses are investing in advanced payment solutions to meet customer demands.

  • Payment Terminal vs Online: Payment terminals accounted for 70% of credit card transactions in 2021. The trend of online and remote payments have been increasing, especially since COVID, bringing estimates for 2024 being 63% for physical payment terminal transactions.
  • Widespread Usage: As of 2024, there are over 10 million payment terminals in operation across the country.
  • Transaction Volume: Electronic payments processed through these terminals exceed $8 trillion annually. This includes credit card, debit, gift cards, and other payment types.
  • Growth Rate: The payment terminal market is growing at an approximate rate of 7% per year, driven by technological advancements and consumer preferences.

Top Payment Terminal Companies in the USA

Several companies dominate the payment terminal industry in 2024 in the USA, each offering a range of products and services to meet diverse business needs. The below market share is based on the share of the installed base.
  1. Verifone
    • Market Share: Approximately 30%.
    • Overview: Verifone is a global leader known for its reliable and secure payment solutions. The company offers a wide range of terminals suitable for various industries.
  2. Ingenico Group
    • Market Share: Around 25%.
    • Overview: Ingenico provides innovative payment terminals that support multiple transaction types, including contactless and mobile payments.
  3. Square
    • Market Share: Estimated at 15%.
    • Overview: Square revolutionized the payment industry with its easy-to-use devices and transparent pricing, catering especially to small and medium-sized businesses.
  4. Clover (First Data)
    • Market Share: Approximately 10%.
    • Overview: Clover offers smart terminals with integrated software solutions, enabling businesses to manage payments, inventory, and customer engagement.
  5. PAX Technology
    • Market Share: Around 8%.
    • Overview: PAX provides cost-effective and secure payment terminals, gaining popularity among merchants looking for reliable solutions.

Top Credit Card Machine Models in the USA

Specific market share data for individual payment terminal models is not typically publicly disclosed. Market share figures are generally reported at the company level rather than for specific devices. However, here are some of the most popular credit card machine models in the USA:

Ingenico Move 5000Ingenico Move 5000

  • Features: Durable design, fast processing, supports multiple payment types including EMV chip and contactless payments over wireless payments with Wi-Fi, Bluetooth, and 4G/LTE connections.
  • Benefits: The Move 5000 is one of Ingenico’s flagship models, known for its advanced features and versatility.

Verifone VX520Verifone VX520

  • Features: Durable design, fast processing, supports multiple payment types including EMV chip and contactless payments.
  • Benefits: Ideal for high-volume merchants needing a reliable and efficient terminal.

Ingenico iCT 220 Payment TerminalIngenico iCT220

  • Features: Compact size, secure transactions, easy integration with existing systems.
  • Benefits: Suitable for businesses with limited counter space requiring robust security features.

Clover Flex by Clearly Payments in Canada and USAClover Flex

  • Features: Portable design, barcode scanner, camera, accepts all payment types.
  • Benefits: Offers mobility and flexibility, allowing businesses to take payments anywhere.

Square TerminalSquare Terminal

  • Features: All-in-one device, touchscreen interface, wireless connectivity.
  • Benefits: Perfect for small businesses looking for a modern and user-friendly solution.

PAX A920 Payment TerminalPAX A920

  • Features: Android-based system, high-definition touchscreen, 4G and Wi-Fi connectivity.
  • Benefits: Combines the features of a smartphone and a payment terminal, enhancing user experience.

Future Trends in Payment Terminals

The payment terminal industry is continually evolving, with several trends shaping its future:

  • Contactless Payments: The rise of NFC technology enables faster and more convenient transactions.
  • Mobile Wallet Integration: Increased acceptance of mobile wallet payment platforms like Apple Pay and Google Wallet.
  • Security Enhancements: Implementation of advanced encryption and authentication methods to protect against fraud.
  • Software Integration: Terminals are now integrating with business management software, offering analytics and customer relationship management features.
  • Adoption of AI and Machine Learning: AI (artificial intelligence) is enhancing transaction security and providing personalized customer experiences.

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