The Group’s revenue and profit for the year both reach record highs driven by huge market demand for PAX Android smart payment terminals
PAX Global Technology Limited (“PAX” or the “Group”, HKSE stock code: 00327.HK), one of the world’s leading providers of electronic payment terminal (“E-payment terminal”) solutions and related services, is pleased to announce the audited annual results for the year ended 31 December 2022.
Global payments sector continued to boom and grow in 2022, showing great resilience in face of multiple challenges such as interest rate hikes and higher inflation in the global economy. The development of digital and cashless economies continues to be a key investment priority for all countries, 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 extensive and convenient ways to spend, ranging from digital wallets to QR codes and wearable smart devices, with even more payment innovation ahead. With the continual advancement of payment technology, electronic payments will continue to expand to a wider range of consumption aspects.
PAX is committed to strengthening the cooperation with banks and payment service providers (“PSPs”) around the world. Together, we are helping to lead the merchants they serve and their consumers into a new era of smarter electronic payments. The Group has deployed over 70 million payment terminals in more than 120 countries, and its business scale places it at the forefront of the industry.
In 2022, PAX further cemented its position as one of the world’s preferred payment terminal solutions providers, achieving record-high revenue of HK$ 8,062.7 million. The Group’s profit continued to increase, which was mainly attributed to the high demand for PAX Android smart payment terminals. During the year, profit for the year surged by 16.1% to HK$ 1,268.2 million.
Android smart payment terminals combined with SaaS solutions reshape the future of commerce
PAX’s Android smart payment terminal technology and Software as a Service (“SaaS”) solutions, such as the market-leading MAXSTORE platform, enable PSPs and acquiring banks to combine core payment services with financial and non-financial applications in a more flexible and cost-effective way. The value proposition goes well beyond payments, supporting small and medium-sized merchants to embrace advanced payment technology, and support multiple in-store payment acceptance methods for retailers.
PAX Android smart payment terminal solutions empower merchants to operate digitally, allowing them to process orders faster, better analyse consumer behaviour, develop automated marketing campaigns, manage inventory, and much more. It offers a centralised and seamless way for merchants to navigate the increasingly complex business world. Payment terminals running Android-based operating systems have become a new trend in the industry and are reshaping the future of commerce.
In 2022, sales of PAX Android smart payment terminals experienced strong growth, significantly increasing by 37.4% year-on-year to HK$ 4,438.3 million and representing over 50% of the Group’s total revenue. The impressive growth highlights the Group’s expertise and global leadership in Android payment terminal technology solutions. The Group also continued to invest resources in strengthening the MAXSTORE platform. As of 31 December 2022, the platform had over 8 million payment terminals connected, offering merchants over 8,500 software and 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, high quality and security internationally. 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 the opportunities of increasing diversified payment scenarios.”
Remarkable results performance further strengthens PAX’s leading position in the international market
The Group recorded impressive results in multiple international markets in 2022. The Group’s strongest performances came from EMEA and USCA, with growth in these regions surging respectively by 41.5% and 35.4%.
Latin America and the Commonwealth of Independent States (LACIS).
In LACIS, leveraging its diversified product portfolios and well-established sales channel partner network, PAX continued to expand its presence. According to the Nilson Report, the international payment industry report, PAX has been ranked as the largest payment terminal provider in Latin America for five consecutive years.
In 2022, PAX maintained its competitive edge in the market despite Brazil’s unstable economic environment. The implementation of the “PIX” instant payment system by the Central Bank of Brazil contributed to the advancement of the digitalisation process, which is favourable for the long-term development of digital payments in Brazil. PAX terminals fully support the PIX payment method.
While strengthening its market share in Brazil, PAX is also expanding its presence in other Latin American countries, including Mexico, Chile and Argentina, the Group stepped up cooperation with PSPs and distributors to further expand application scenarios in supermarkets, restaurants, parking lots and other fields. The demand for PAX Android smart payment terminal solutions continues to grow.
Europe, the Middle East, and Africa (EMEA)
In Europe, the Middle East and Africa, PAX expanded its footprint through large-scale deployments of Android smart payment terminals. In 2022, the Group continued its high-growth trend in the EMEA region, with sales increased year-on-year by 41.5%, and reached the milestone of HK$ 2.5 billion for the first time. The region’s impressive growth was primarily driven by success in Europe and the Middle East.
Thanks to the Group’s ongoing investment in product innovation tailored for the European market, PAX has become the preferred provider of payment terminals to many leading acquiring banks and PSPs. Our first-mover advantage in launching high-quality Android smart payment terminals, such as the best-selling A920 and A920Pro models, as well as the unattended IM30 terminal, has strengthened our market share throughout Europe. The United Kingdom, Italy and Germany have become increasingly important growth drivers for the Group, while France, Spain and Turkey achieved a significant growth.
In the Middle East and Africa, PAX continued to focus on capturing the region’s tremendous potential by deepening ties with payment system integrators and acquiring banks. 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 opportunities for the Android payment terminal market. Saudi merchants are accelerating the upgrade of legacy POS terminals models to PAX smart payment terminal solutions. In 2022, PAX reported high double-digit sales growth in Saudi Arabia. In South Africa and Nigeria, the Group’s new partnerships with major acquiring banks and PSPs have borne fruit, further increasing market exposure of the PAX brand.
Asia Pacific Region (APAC)
In the Asia Pacific region, the Group continued to expand its presence in many markets, achieving a steady increase in sales. As the largest provider of payment terminal solutions in India, PAX successfully leveraged its strong partnerships with major acquiring banks and PSPs to further increase market share. PAX’s sales in India continued to grow during the year, reaching record highs.
In Japan, there is a strong demand for PAX Android products, particularly the A920, which has received positive feedback from merchants and continues to be certified and adopted by more customers. With the easing of COVID restrictions in Japan, we expect our A920 and unattended IM10 terminals to propel another round of growth.
In 2022, the Group continued to strengthen its presence in Southeast Asia, where sales growth was particularly impressive in Indonesia, Singapore and Thailand. Driven by the government initiative of the “Indonesia Payment System Blueprint 2025”, the core payment infrastructure has continued to improve. During the year, PAX achieved good results in Indonesia and recorded a year-on-year more than doubled sales. Indonesia is expected to become another key growth driver for the Asia-Pacific business in the future.
Following the establishment of its Singapore subsidiary in 2021, PAX 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 expected to drive market demand for PAX Android smart payment terminal solutions.
The United States of America and Canada (USCA)
In the United States of America and Canada, PAX is increasingly recognised by PSPs and ISOs as a market leader in the Android smart payment terminal solutions field. With year-on-year sales growth of more than 30% for the last three consecutive years, PAX has become one of the fastest-growing payment terminal solutions providers in North America. In 2022, PAX sales increased year-on-year by 35.4%, and reached the milestone of HK$ 1 billion for the first time. Demand for the Group’s Android smart series continued to show strong growth momentum, with Android products sales in North America increasing by more than 60% compared with the previous year.
North American consumers increasingly expect more convenience when transacting, which is why contactless ordering and payment methods, such as mobile wallets, online ordering, curbside pickup, and self-service ordering and 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.
In 2022, PAX entered into a new strategic partnership with one of the largest banks in the United States to promote various Android models to its nationwide merchant network, and cooperated with a leading PSP to further expand the Group’s market exposure.
Mr. Jack LU, Chief Executive Officer of PAX, commented, “Looking to the future, we expect the world’s development of cashless and digital economies will continue to progress at a sustained pace, as steered by advances in financial technology and local government policies, delivering golden opportunities for the electronic payment terminal industry in general, and for the Group in particular. We shall continue to focus on investing significant resources in research and development of Android payment terminal technology and related cloud-based software platform, 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.”