The Physical Edge of Payments Is Being Rebuilt

The industry’s narrative around payments modernization has focused overwhelmingly on software. Cloud-native acquiring, orchestration, and advanced risk systems have defined much of the sector’s recent progress. Yet in retail payments, the card-present edge has modernized far more slowly than the backend systems that support ecommerce. Terminals remain the point at which every transaction is initiated and authenticated, and this physical layer is now emerging as a strategic constraint.

Analyst groups such as RBR and IDC estimate that more than 130 million payment terminals are deployed worldwide, with the installed base continuing to grow. It is one of commerce’s largest and least visible infrastructure layers, but also one of the most fragmented. Divergent regional requirements, legacy certifications, and inconsistent hardware architectures have created uneven deployment cycles and operational friction for merchants operating across markets.

Nuvei’s position is that terminals can no longer be viewed as commodity peripherals.  The in-person layer remains a structural component of the payments stack, and merchants require an ecosystem that provides choice without introducing complexity. Nuvei’s entire ecosystem reflects this approach, connecting in-person, online, and semi-integrated payment experiences through a unified architecture. Within this ecosystem, partners such as Castles Technology provide certified devices that align with the same global standards for security, performance, and scalability.

“The terminal layer is shifting from commodity hardware to a foundational component of the payments infrastructure,” said Joe Mach, CEO of Castles Technology North America. “Merchants need devices that are secure, consistent, and globally deployable. Our work with Nuvei reflects a shared commitment to modernizing this layer with the discipline it now requires.”

The Android Transition

The on-site payments environment is undergoing a significant platform shift, driven by Android-based, semi-integrated solutions that align with omni-channel commerce. Research from Juniper and IDC indicates that Android devices already represent a substantial share of new terminal shipments and are expected to become the dominant platform in several major markets. The appeal is straightforward: Android brings a modern application environment, faster deployment capabilities, and better alignment with broader retail technology systems.

However, this transition is uneven. Asia-Pacific has moved rapidly. Europe is accelerating. North America remains a mix of legacy and modern fleets. Android alone does not resolve underlying fragmentation; instead, it often exposes it. Without consistent global architecture across in-person systems, businesses struggle to scale these benefits globally.

This underscores the need to treat the terminal layer with the discipline applied to other parts of the payments infrastructure.

Fragmentation as a Structural Limitation

Fragmentation across in-person and multi-channel payment systems continues to impede modernization. Reports from EMVCo and the PCI Security Standards Council document how certification timelines vary significantly across regions, particularly in regulated sectors such as fuel, gaming, EV charging, and healthcare. Many acquirers still maintain fleets comprising six to ten hardware families. Each additional device type introduces new certification cycles, integration requirements, and support burdens.

Although Android was expected to simplify this landscape, inconsistent hardware design across markets has allowed fragmentation to persist. For global merchants, this translates into slower rollouts, higher maintenance costs, and an inability to maintain a uniform customer experience at the point of sale.

“Global merchants need a predictable hardware environment, especially as regulatory and security standards tighten,” said Mach.  “Our partnership with Nuvei aligns our device architecture with an acquiring platform built for global scale.”

Partners such as Castles contribute to reducing this friction by prioritizing architectural consistency, security alignment, and predictable global supply. In combination with Nuvei’s acquiring infrastructure, this supports more reliable deployment and performance across markets.

The Emergence of a Software-Defined Edge

A more fundamental shift is taking place at the terminal itself. Analysts across IDC, RBR, and Juniper expect software, remote management services, and cloud-connected capabilities to grow faster than hardware revenue in the coming years. Remote updates, semi-integrated architectures, and the expansion of unattended commerce are redefining what the endpoint can support.

The terminal is transitioning from a static appliance to a software-defined node. This raises the strategic value of the hardware layer rather than diminishing it. Greater intelligence at the edge is only useful if devices integrate cleanly into a unified global acquiring backbone.

In this environment, merchants benefit from choice, but choice that is curated: devices that meet consistent standards for performance, security, and global operability.

Building a Coherent In-Person Payments Ecosystem

Nuvei’s approach reflects this shift. Our in-person solutions form part of a broader ecosystem designed to support merchants across verticals and geographies. Partnerships with providers such as Castles extend that ecosystem without adding fragmentation. The objective is not to elevate a single device manufacturer, but to create a coherent in-person payments layer that avoids the historical tradeoff between optionality and complexity.

The physical edge of payments is entering a new phase. As terminals become more connected, more software-defined, and more central to the retail experience, the industry must treat this layer with the same architectural seriousness as any other part of the payments stack. Modernization will depend on in-person technology that functions as infrastructure and on ecosystems that give merchants flexibility without compromising operational coherence.

The rebuilding of the edge is underway. The winners in the next phase of retail payments will be those who ensure the connected, omni-channel edge accelerates modernization rather than constraining it.

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