PAX Technology 2022 Financial Results Announcement
Huge demand for PAX Android SmartPOS terminal solutions
helps drive record-high revenues and profitability
Financial numbers converted to US Dollars for ease of reference. The company's official numbers are reported in Hong Kong Dollars.
PAX Global Technology Limited (“PAX” or the “Group”, HKSE stock code: 00327.HK), one of the world’s leading providers of electronic payment terminal solutions and related services, is pleased to release audited financial results for the year ended 31st December 2022.
The global payments sector continued to boom in 2022, showing great resilience in the face of economic challenges such as interest rate hikes and higher inflation. A key investment priority for all countries continues to be the development of digital and cashless economies, with fintech becoming an indispensable part of such progress, providing increased efficiency, convenience and accessibility to consumers. Today, we are in the midst of a new era of consumption, with more convenient ways to spend - from digital wallets to QR codes to wearable smart devices - with even more payment innovation ahead.
In 2022, PAX Technology further cemented its position as one of the world’s preferred payment terminal solution providers, achieving sales revenues of just over USD 1 billion, with profit surging 16% to just under USD 162 million.
PAX continues to work closely with Acquiring Banks and Payment Service Providers (“PSPs”) around the world, helping lead their merchants & customers into a new era of smarter electronic payments. To date, PAX has shipped over 70 million payment terminals to more than 120 countries; a scale of business that places the Group at the forefront of its industry.
Android SmartPOS & SaaS solutions are reshaping commerce
The Android SmartPOS technology used by PAX, and the Group's Software as a Service (“SaaS”) solutions such as the market-leading MAXSTORE platform, are enabling PSPs and Acquiring Banks to combine core payment services with financial & non-financial applications, in a much more flexible and cost-effective way than ever before.
PAX solutions empower merchants to operate digitally, allowing them to process orders faster, to better analyse consumer behaviour, to develop automated marketing campaigns, to better manage inventory, and much more. The combined suite of PAX devices and MAXSTORE, offers a centralised and seamless way for merchants to navigate an increasingly complex business world. Secure certified payment devices running Android-based operating systems have become a new trend, and are reshaping the future of commerce.
In 2022, over half of Group revenue - USD 566 million - was generated from sales of Android SmartPOS terminals alone, a year-on-year increase of over 37%. This impressive growth highlights the Group’s expertise and global leadership in the field of Android payment terminal solutions technology. The MAXSTORE platform had well over 8 million devices connected by the end of 2022, offering merchants over 8,500 software business applications.
Mr. Jack LU, Chief Executive Officer of PAX, commented, “For Banks and PSPs to provide better services to their merchants, continuous innovation in payments and merchant services is critical. Over the past couple of decades, the PAX brand has steadily garnered a reputation for being synonymous with superior innovation, higher quality, and rock solid security. The Group will continue to focus on developing Android smart terminals and SaaS solutions in order to create differentiated advantages, helping our global customers leverage opportunities in increasingly diversified payment scenarios.”
PAX Technology's leading market position strengthened further
The Group recorded impressive results during 2022, with the strongest performances coming from the EMEA region and North America, where revenue growth surged by over 41% and 35% respectively.
Europe, the Middle East, and Africa (EMEA)
PAX expanded its footprint thanks to large-scale deployments of Android SmartPOS devices across the EMEA region in 2022, with the Group continuing its high-growth trend by achieving record sales of USD 319 million, an increase of 41.5% compared to 2021. The region’s impressive growth was primarily driven by success in Europe and the Middle East.
Ongoing investment in product innovation, often tailored specifically for the European market, resulted in PAX becoming the preferred provider of payment terminals to leading Acquiring Banks, PSPs, and ISOs (Independent Sales Organisations). The Group's first-mover advantage in launching high-quality Android SmartPOS terminals - such as the best-selling A920Pro model and the IM30 UPT (Unattended Payment Terminal) - strengthened PAX market share throughout Europe. The United Kingdom, Italy, and Germany have become increasingly important growth drivers for the Group, while significant gains were secured in France, Greece, Scandinavia, the Balkans, Poland, Spain, and Turkey.
As the largest economy in the Gulf Cooperation Council (GCC) region, Saudi Arabia’s “Vision 2030” program for economic reform and the Saudi Arabian Monetary Authority’s (SAMA) openness to innovative technology finance, have promoted the rapid development of electronic payments in the region and created huge wins for PAX in the Android payment terminal market.
Merchants across the GCC and North Africa continue to accelerate their upgrade of legacy POS terminal to PAX Android SmartPOS devices.
In South Africa and Nigeria, the Group’s new partnerships with major Acquiring Banks and PSPs continue to further increase market exposure of the PAX brand.
Latin America & the Commonwealth of Independent States (LACIS)
PAX continued to expand its presence in the LACIS region, leveraging its diversified product portfolios and well-established channel partner network. According to the Nilson Report, PAX has been ranked as the largest payment terminal provider in Latin America for five consecutive years.
The Group's competitive edge was maintained in Brazil (despite the country's unstable economic environment) where implementation of the “PIX” instant payment system by the Central Bank - which PAX terminals fully support - contributed to the country's advancement in digital payments.
Mexico, Chile, Argentina
PAX also expanded its presence in other South American countries - including Mexico, Chile and Argentina - where the Group intensified cooperation with channel partners and the PSPs they serve, to provide more innovative solutions in sectors such as multilane, hospitality, and parking. Demand for PAX Android SmartPOS solutions continues to grow in the region.
Asia Pacific (APAC)
Across Asia, the Group continued to expand its presence in many countries, achieving a steady sales increase year-on-year.
As the largest provider of payment terminal solutions in India, PAX continued to leverage its strong partnerships with major Acquiring Banks and PSPs, further increasing market share and achieving record-high sales revenues.
There was, and continues to be, strong demand for PAX Android SmartPOS devices in Japan, particularly the A920 model which was very well received by merchants and which continues to be certified and adopted by more customers. With the easing of COVID restrictions, PAX expects the A920 and IM10 UPT models to help propel further growth.
During 2022, sales growth was particularly impressive in Indonesia, Singapore and Thailand.
In Indonesia, where the government's "Payment System Blueprint 2025” initiative is helping the nation's core payment infrastructure to improve, PAX more than doubled sales revenues compared to the previous year. The country is expected to become another key growth driver for PAX in the APAC region in future.
Following the establishment of a Singapore subsidiary in 2021, PAX Technology made important breakthroughs with local financial institutions. The government’s “Retail Industry Transformation Map 2025” is encouraging retailers to adopt innovative business models, which is in turn expected to drive market demand for more PAX Android SmartPOS solutions.
United States of America and Canada (USCA)
The PAX brand is increasingly respected by North American PSPs and ISOs, where the Group is seen as a market leader in the Android SmartPOS field. With year-on-year sales growth of more than 30% in each of the last three consecutive years, PAX has become one of the fastest-growing payment terminal solutions providers in the USA and Canada. Revenues increased more than 35% in 2022, reaching over USD 127 million for the first time. Demand for PAX solutions continued to show strong growth momentum, with Android SmartPOS sales increasing by over 60% compared to the previous year.
North American consumers increasingly expect more convenience when transacting, which is why contactless ordering and different payment methods, such as mobile wallets, online ordering, curbside pickup, and self-service ordering & checkout, have become the new normal. PAX Android smart payment terminal solutions effectively integrate diversified payment methods, providing business solutions that meet the growing needs of North American businesses operating in the retail, supermarket, hospitality and unattended segments.
Mr. Jack LU, Chief Executive Officer of PAX, commented, “Looking to the future, we expect the world’s development of cashless & digital economies to progress at a sustained pace, steered by advances in financial technology and local government policies, delivering excellent opportunities for the electronic payment terminal industry in general, and for the PAX Group in particular. We shall continue to invest significant resources in Research & Development of Android payment terminal technology and related cloud-based software solutions, while at the same time strengthening our international sales network and customer relationships, laying a solid foundation for the long-term business development of PAX.”