Crane NXT Sees Gaming as Key Market for Payment Hardware Growth

The gaming sector remains 1 of the most important end markets for Crane NXT Co’s payment hardware business, according to group chief executive Aaron Saak.

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Mr Saak said Crane NXT has a very significant market share in gaming payment hardware. This is provided by the company in the casino industry via its CPI (Crane Payment Innovations) segment.

These remarks were made recently in a fireside chat at Jefferies Global Industrials Conference.  Mr Saak appeared alongside Crane NXT chief financial officer Christina Cristiano.

Crane NXT has previously highlighted its position in the gaming payment hardware market. During the company’s second-quarter earnings call, Mr Saak said the group was the leading player globally in that market.

The payment hardware business is one of several operations within Crane NXT. It focuses on equipment used to process, validate, and authenticate cash, including technology used by casino operators.

Limited Competition in Payment Hardware

Mr Saak described the payment hardware market as an oligopoly. He said Crane NXT has only 1 or 2 natural competitors, and those competitors are also mature in terms of business development.

The executive said the payment hardware business has margins that are high compared with the group’s other segments. It also produces free-cash-flow conversion of more than 100%.

The company’s latest investor presentation showed that payment hardware represented about 25% of Crane NXT’s sales for the 12 months ended June 30, 2026.

Group sales during that period were about US$1.8 billion. Crane NXT reported an adjusted EBITDA margin of around 24%.

The company’s payment hardware activities include its CPI business, which serves the casino industry with payment and cash-processing technology.

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New US$20 Note May Drive Upgrades

Mr Saak also pointed to a potential upgrade cycle connected to the introduction of redesigned U.S. banknotes.

He said the release of the new US$20 bill would require upgrades to the hardware and software used to read and authenticate the new currency.

This could affect equipment used in a number of industries, including gaming. Casino payment systems and cash-handling equipment will need to be able to recognize and process the redesigned note.

The potential upgrade cycle is relevant to Crane NXT’s currency and payment equipment businesses. The company provides technology used for cash processing and authentication, positioning it to benefit from upgrades linked to changes in U.S. currency design.

Second-Quarter Financial Results

Crane NXT reported second-quarter net sales of US$493.2 million in August. This came to be 22.0% above that of the corresponding period last year.

Income from continuing operations attributable to common shareholders grew 42.2% to US$63.0 million.

The company also appointed Jason Lund last month as president of both the CPI business and the Detection and Traceability Technologies segment.

The appointment comes as Crane NXT pursues growth in authentication and traceability technologies alongside its established currency and payment equipment businesses.

Its most recent investor presentation repeated a target of about US$2.5 billion in annual revenue by 2028. The target includes expected contributions from possible future acquisitions.

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Source: GGR Asia