In the last decade, self-checkout has become a defining feature of modern retail. Some places can’t imagine operating without it, while others still see it as a novelty. Having built a self-checkout technology company and worked with retailers across continents, I’ve learned that the adoption by retailers doesn’t just happen because their customers want faster checkouts.

The reality is that self-checkout adoption in any market comes down to a few key factors: labor costs, payment compatibility and technology infrastructure.

Each market has its own unique conditions. In regions where digital payments are common and labor costs are rising, self-checkout is an obvious solution that quickly proves its worth. In others, it’s a different story—sometimes it’s simply too costly, or it’s just not practical yet.

Labor Costs

Labor costs play a huge role in deciding whether self-checkout makes sense for a retailer. Where wages are high, self-checkout often becomes essential for balancing costs and efficiency. Take the UAE. In recent years, basic labor costs have risen relative to other countries, making self-checkout critical for businesses.

In Saudi Arabia, it’s a different story. Government regulations, such as the ‘Saudization’ mandate that in-store cashiers be Saudi citizens, drive up the hiring cost. Self-checkout offers a practical solution here, helping retailers stay compliant and keep costs under control. But in regions like Southeast Asia, where hiring a cashier is still affordable, the push for self-checkout isn’t as strong. There, it’s often seen as a bonus rather than an essential investment.

Payment Compatibility

Payment methods also play a vital role in self checkout adoption. Self-checkouts perform best in card-heavy societies. In cash-dependent markets like Germany, adoption has lagged since handling cash at self-checkouts introduces additional costs and operational complexity.

Each self-checkout machine in cash-heavy regions must include cash acceptance and security features, raising upfront expenses by thousands of dollars. The more reliant a market is on card and digital payments, the easier it is to implement self-checkouts at scale. In the U.K. and U.S., card penetration has driven growth, while the cultural preference for cash in other regions has kept adoption rates lower than one might expect in such developed economies.

Tech Readiness And Convenience For Consumers

Advanced technology infrastructure is crucial for effective self-checkout implementation. Markets with advanced, cloud-based POS and ERP systems make self-checkout integration more feasible, which is why we see faster adoption in regions where ERP solutions like Microsoft Dynamics and SAP are common. Conversely, integrating self-checkout into legacy systems, particularly those based on cash transactions, often becomes prohibitively costly.

High-traffic environments like gas stations and stadiums benefit tremendously from self-checkouts, as they give customers the option to scan, pay and go without waiting in line. In these settings, self-checkouts reduce abandoned purchases and free up cashiers to focus on customers who may need more assistance. Where labor costs are high, even one self-checkout can free up a cashier for other important roles like stocking shelves or providing customer service; duties that, unlike checkouts, haven’t yet been automated.

The Potential For Retail Media And Enhanced Security

Security and error prevention are top priorities for self-checkouts, particularly in high-traffic areas where theft is a concern. Many stores use staff to monitor self-checkout areas, assisting with errors and deterring theft. However, advances in AI and computer vision offer promising solutions to streamline these aspects in stores such as Home Depot. In the future, as the costs of these technologies decrease, self-checkouts will be able to handle errors more effectively and reduce the need for human intervention, making self-checkouts a more self-sustaining feature in stores.

Beyond security, self-checkouts can also present revenue opportunities. As these units become more versatile, they can double as digital advertising displays, offering retailers additional revenue streams and the means to directly engage with customers. The screens on self-checkouts can serve as in-store billboards, displaying ads that link directly to the products customers may consider purchasing.

This retail media model offers serious results—a level of insight that traditional in-store ads don’t provide. Advertisers can assess engagement by tracking who interacts with the ads and what items they purchase, creating targeted and effective campaigns for brands, especially those in fast-moving consumer goods or cosmetics. Walmart, as an example, is testing this method in some of its U.S. stores.

A Global Perspective On Self-Checkout Trends

Looking at self-checkout adoption worldwide, it’s clear that local market dynamics play a significant role. In the U.K., self-checkout found its footing earlier due to high labor costs and digital payment readiness. In the U.S., rising cashier wages have spurred growth in high-traffic areas, and in the UAE, self-checkouts are fast becoming a necessity as labor costs climb. Meanwhile, places like Germany and India consider self-checkouts more of a novelty than a need.

What we’ve learned across our work in different countries is that self-checkout isn’t a universal solution. Each market has unique factors that influence its adoption. Where digital infrastructure is robust, labor costs are high and card payments are common, self-checkouts not only reduce costs but also enhance the customer experience. Retailers operating in these regions stand to benefit the most from implementing self-checkout technology.

Self-checkouts offer retailers a powerful way to meet customer expectations for convenience while addressing operational costs. However, their success isn’t guaranteed. Retailers who understand and adapt to local conditions, such as labor cost thresholds, customer payment preferences and the state of their technology infrastructure will find the best balance of efficiency and customer service. Self-checkout’s promise goes beyond cost-saving—in the right market, it can transform the retail experience.