It can thank you for your purchase, wish to see you again and even sell you a memorial candle in a cemetery. Nayax, the Israeli company behind these machines, processes about 3.5 billion transactions a year across 120 countries. Yet despite its size, most people have never heard of it.
The firm was founded in 2005 to enable digital payments in vending machines. Since then, Nayax has expanded into nearly every type of unattended payment system, from laundry machines and coffee dispensers to gas pumps, arcade games and electric vehicle charging stations. Its payment terminals support more than 80 digital methods, including credit cards, Google Pay, Apple Pay, PayPal, QR codes and the Israeli app Bit.
Today, Nayax is one of Israel’s largest fintech players, with 1,200 employees worldwide, a valuation of more than 6 billion shekels ($1.6 billion) on the Tel Aviv Stock Exchange and over $1.8 billion on Nasdaq. But its leaders insist they remain in “survival mode.”
“I live in survival mode all the time,” said CEO and chairman Yair Nechmad. “That means always being paranoid, always paying attention. You can’t lean back for a minute. I’m never satisfied, because one small mistake and damage could be done.”
Co-founder and CTO David (Dudu) Ben-Avi agreed. “We’ve stayed hungry, maybe because we got used to working this way for more than 20 years,” he said. “No matter how successful you are, you still feel there’s more to do. You ask yourself, how do we become a truly huge company? There’s so much to do, so much to organize, it never ends.”
Growth during global crises
Nayax reported a 22 percent jump in revenue in its most recent quarterly results, along with higher gross profit and a forecast of 35 percent growth for 2025. It expects to sustain annual growth of at least 35 percent through 2028.
Like many technology firms, it has shifted in recent years to recurring revenue. Less than a third of its revenue now comes from selling payment terminals. Seventy-four percent — more than $300 million a year — comes from renting equipment and providing services, a segment that continues to grow quickly.
“When you collect just a few dollars a month from each machine across 120 countries, with 105,000 clients and 1.5 million deployed units, you don’t start the month saying, ‘I haven’t sold anything yet,’” Ben-Avi said. “You start the month with 1.5 million machines paying you.”
Executives say Nayax has shown resilience in times of economic crisis. Its sales grew during the 2008 financial crash, the coronavirus pandemic and even during wars. “If there’s a recession, maybe you won’t go to a restaurant,” Ben-Avi said. “But you’ll buy a Coke from a vending machine. Sometimes a recession even boosts vending purchases. Even war, unpleasant as it is, means more soldiers on bases, which means more sales.”
Adapting fast
Nayax grew by quickly aligning itself with new technologies and regulations. When chip-based credit cards became the standard, it adjusted immediately. When stricter European rules arrived, it complied early. That strategy brought in new clients and partners, from small machine operators in rural Turkey to large multinationals.
“The bigger we grew, the more relevant we became,” Nechmad said. “Today we’re in demand. Many acquirers come to us and say, ‘We want to work with you because you bring in a lot of business.’ That creates even more demand from suppliers who join us.”
Executives estimate there are still 50 million unattended machines worldwide that run only on cash, representing what they call a “blue ocean” of potential growth.
Acquisitions and AI
Expansion has also come through acquisitions. Nayax bought Israeli firm Weezmo, which helps retailers such as Zara, H&M, IKEA, Fox, Office Depot, McDonald’s, Pizza Hut and Yohananof issue digital receipts and track shopping behavior. It acquired Tigapo, which developed digital payment and prize systems for arcades and amusement parks, and Roseman, an Israeli company specializing in gas station and fleet management. In South America, it bought Brazilian firms VMtecnologia and UPPay to speed its entry into those markets.
“Buying these companies saves us years,” Ben-Avi said. “If we had tried to build it ourselves, it would have taken too long.”
Artificial intelligence is next on the agenda. Nayax plans to use AI to streamline internal operations, improve machine management and customize consumer interactions. At Tigapo, developers have already created a ChatGPT-based tool that advises arcade owners on how to optimize business.
In the future, executives say, vending machines may recognize customers, ask how they are doing and strike up a friendly chat — encouraging them to buy just a little more.