In 2025, modern PIN pads will be essential for keeping up with evolving consumer payment preferences. In North America alone, digital payment transactions reached CAD 415.05 billion, with credit card penetration reaching 82.7% in Canada. However, consumers want more choices than only using a credit card. As merchants align with a digital-first payments landscape, merchants need to ensure PIN pads have the features and flexibility necessary to craft the in-store experiences their customers want and to capture every possible sale.
Is it Time for a Change?
Since the initial deployment of PIN pads, merchants have adapted their business processes significantly in response to consumer demand. While PIN pads have primarily enabled secure contact debit and credit card transactions, today’s consumers want their choice of a variety of payment methods. For example, contactless payment transactions continue to rise in popularity. Juniper Research predicts 113% growth annually through 2029 with a value reaching $15.7 trillion worldwide. Furthermore, drilling down specifically to mobile wallet use, Precedence Research expects those transactions to grow from $8 million in 2023, to over $88 billion in the next decade.
Near-field communication (NFC) allows payment devices to communicate with contactless cards and mobile wallets. However, to keep up with consumer demands, PIN pads need to do more – accepting payments is now just table stakes. A Statista survey found that more than 60% of consumers from 18-44 are interested in buy now, pay later (BNPL) online, and those consumers may begin to look for merchants that offer that option in-store. Canadian consumers have also embraced the concept of self-checkout, while savvy merchants are using mobile devices to enhance payment experiences with line-busting capabilities in-store and pay-at-the-table in restaurants. Today, merchants can accept payments leveraging traditional methods, however, expanding payment options requires more sophisticated payment solutions. If current PIN pad solutions can’t accommodate these trends, merchants WILL explore their options.
Which Merchants Need to Make a Change?
While the above statistics observe general trends in consumer payment preference, merchants doing business in certain markets or industries have unique requirements. These merchants need to ensure their PIN pads can meet their specific needs.
- Grocery Stores
Grocery store customers want seamless integration across in-store and online experiences as the demand for online ordering and curbside or in-store pickup continues. Shoppers also expect to earn and use loyalty rewards easily and use the full range of payment options to purchase their groceries.
- Convenience Stores
Speed and security are the name of the game for convenience stores. Ensure that PIN pad solutions support credit and debit transactions along with contactless payments, mobile wallets, and EBT acceptance.
- Specialty Retailers and Department Stores
Accepting payments on mobile devices allows retailers to enhance customer experiences with minimal waiting and personalized service. Retailers who sell high-ticket merchandise may capture more sales by promoting alternative methods such as buy now, pay later in-store.
- Restaurants
In addition to a variety of mobile payments and contactless payments, restauranteurs need PIN pad technology that accepts gift and loyalty payments. Payment solutions should also support tipping and pay-at-the-table for excellent dining experiences.
- On-site Service Providers
Accepting payments on the go is critical for merchants in this vertical. Not only will it increase cash flow, but it will also help decrease operational expenses related to paper invoicing. With the widespread use of smartphones and tablets, service technicians can create an invoice with a few clicks of a button and accept digital payments on the spot.
Essential PIN Pad Features
When selecting a PIN pad solution in a highly competitive space, both hardware and software features play a key role in ensuring seamless, secure, and adaptable payment experiences for both customers and retailers.
- Hardware
It’s important to select PIN pads that can keep pace with high-volume retail environments. Terminals should be physically designed to manage non-stop transactions. Sticking keys or unresponsive touchscreens can quickly turn a positive customer experience into a frustrating one. Additionally, ensure that PIN pad terminals can seamlessly integrate with your existing retail footprint, point of sale (POS) technology, and IT infrastructure.
- Operating System
More important than what’s on the outside of a PIN pad is what’s on the inside. Merchants need to select PIN pads with an operating system that will provide optimal efficiency. With an Android terminal backed with a flexible platform, retailers can easily accept a broad range of payment methods. Beyond that, Android provides the flexibility to help merchants pivot quickly as consumer behavior changes or payment technologies evolve. Android also supports efficient device estate management, giving administrators remote visibility and control over device status across all business locations.
- Estate Management
Estate owners will look beyond device capabilities to how easily they can remotely manage devices in the field, such as upgrading encryption keys, pushing software updates and remote diagnostics. As merchants expand payment options in store, device management will be even more important. Merchants are looking for a flexible system that enables managing their estate with one centralized solution, streamlining Payment Card Industry (PCI) compliance, adding another layer of device security, and increasing operational efficiency.
Ask the Experts
With so many PIN pad options available – and a merchant’s competitiveness and operational efficiency riding on the decision — a smart strategy is to seek advice from the experts. Our team is here to listen to your needs and recommend the payment technology and PIN pad features that align with the unique way you do business. Get ready to take customer satisfaction to the next level with payments in 2025. Contact us to learn more.
