Contactless Payment Market

Introduction: - 

Contactless payment is a combination of smart hardware, smart software and smart services that bring advances to traditional payment systems with the goal of bringing smart transactions. The demand for contactless payment technologies is driven by the demand to replace cash in society and the increase in the number of contactless payments in places ranging from grocery stores and cafes to transport networks. The contactless payment market is expected to grow rapidly with the development of new payment technologies such as HCE and NFC. These technologies enable payment transactions through contactless chips embedded in payment cards, tags, keys, mobile devices and mobile phones. These chips communicate with a contactless reader that uses either radio frequency (RF) or NFC standards. The technology also enables machine-to-machine communication, including RFID. The presence of various key players in the ecosystem has led to a competitive and diverse market.

The global Contactless Payment Market value was 50.3 billion in 2023, it is Expected to Rise 170.5 billion 2032 with CAGR of 15.93%

Contactless Payment Market

Size, by Product, - (USD Billion)

Contactless Cards

Mobile Payment

Wearable Devices

Contactless POS Terminals

Other Products

The Market will Grow

At the CAGR of:

15.93%

The Forecast Market

Size for in USD:

$170.5 billion

Market Drivers: - 

The growing trend to improve customer experience is fueling the market growth: Rising trend towards better customer experience drives Market CAGR towards contactless payments. The increase can be attributed to the increase in the global use of digital payment services, which make it faster for customers to make payments. Smart devices, creative apps and advanced services are used in contactless payments to improve traditional payment methods and provide smart transactions. In addition, card issuers around the world are rapidly adopting contactless payment card technologies, driving the industry forward.

Customers increasingly prefer electronic payments for many frequent purchases. Leading companies around the world are focusing their efforts to grow and expand in an increasingly competitive industry. The purpose of contactless payment is to eliminate friction and provide customers with a better shopping experience. Reduced transaction time gives good results depending on the number of transactions during peak hours. of.

Key stakeholders: -

• Consumers
• Retailers and Merchants
• Financial Institutions
• Payment Networks
• Technology Providers
• Regulators and Governments
• Security Experts
• Industry Associations
• Consumers' Advocacy Groups

• Mobile Network Operators

  Contactless Payment Market

  Share, by end user, (USD Billion)

  50.3 billion%

  Retail

  Transportation

  Hospitality

  Healthcare

  Other End-Users

  

  170.5 billion

  Total Market Size

  USD (Billion),

  15.93%

  CAGR

  -

Market Segmentation: -

By Types

• Contactless Cards
• Mobile Payment
• Wearable Devices
• Contactless POS Terminals
• Contactless Transport Cards

By Application

• Retail
• Transportation
• Hospitality
• Healthcare
• Entertainment

By Region

• North America
• Europe
• Asia Pacific
• Latin America

• Middle East and Africa

  Contactless Payment Market

  Size, by Product, - (USD Billion)

  The Market will Grow

  At the CAGR of:

  15.93%

  The Forecast Market

  Size for in USD:

  $170.5 billion

  

Market Key Players: -

• Wirecard AG
• Ingenico
• Giesecke+Devrient
• Identiv
• Valitor
• Mypinpad
• Idemia
• Paycore
• Alcenio
• Verifone Holdings
• CPI Card Group
• On Track Innovations

Regional Analysis: -

North America:

• High adoption of contactless payments.
• Advanced infrastructure supporting NFC technology.
• Dominance of mobile payments and contactless cards.
• Strong regulatory environment promoting security and innovation.

Europe:

• Wide acceptance of contactless payments across retail and transportation.
• Strong presence of NFC-enabled POS terminals.
• Growing use of mobile wallets and wearable devices.
• Emphasis on data protection regulations (GDPR) influencing market dynamics.

Asia Pacific:

• Rapidly growing market for mobile payments and contactless technologies.
• Significant adoption in countries like China, Japan, and South Korea.
• Diverse payment ecosystems including QR code-based payments.
• Government initiatives promoting digital payments and financial inclusion.

Latin America:

• Increasing adoption of contactless cards and mobile payments.
• Expansion of NFC infrastructure in major urban centers.
• Challenges in infrastructure development in rural areas.
• Regulatory efforts to promote electronic payments and reduce cash transactions.

Middle East and Africa:

• Emerging adoption of contactless payments driven by urbanization and digital transformation.
• Growth in mobile banking and digital wallets.
• Investment in NFC-enabled infrastructure in key cities.

• Regulatory reforms to enhance financial inclusion and digital payments.

  Contactless Payment Market TO (USD BN)

  

  CAGR OF

  15.93%

  Contactless Payment Market

  

  170.5 billion %

Market opportunity: -

Growing demand for mobile and portable payment devices: NFC-enabled mobile phones are built with smart chips that enable the phones to securely store payment applications and consumer account information. This information can easily be used as virtual payment cards. Embedded smart chips come in many forms, including subscriber identity module (SIM) cards, embedded security features in the phone, and Secure Digital (SD) memory cards. NFC chips in mobile devices can act as both a card and a reader, allowing consumer devices to securely share information and make secure payments quickly. The deployment of HCE technology specifically for mobile phones offers significant growth opportunities for providers in the contactless payment market over the next 10 years, particularly in the MEA and APAC regions..

Key Restraints: - 

High costs of implementing contactless payment technologies: NFC readers are relatively expensive compared to other readers. An industry that wants to invest in new contactless technology readers or POS terminals must lose a large amount to deploy, purchase and maintain the related machines and other equipment. While large and established companies have successfully adopted this technology, smaller companies may struggle to maintain their current revenue and increase profits by adopting the technology. Installing hardware and software and hiring technicians to maintain them can lead to increased costs for the business..

Recent development: -

1. 2024- Revolutionary Palm Vein Payment Technology at Tienda Inglesa’s Red Expres in Uruguay
2. June 11, 2024: Dutch travel documents will soon be even more secure. During the Identity Week conference in Amsterdam, the Dutch National Office for Identity Data (RvIG) presented the next generation of passports and national ID cards which includes a new security feature, unique on the market: LASINK™ Helios by IDEMIA Smart Identity (ISI). It is planned that the documents will be in circulation in Q3 and Q4 2024, and the Dutch authorities expect to produce, on average, 4 million documents per year

Frequently Asked Question (FAQ): -

Q1. How big is the Contactless Payment Market?

The Contactless Payment Market size will be worth 170.5 billion by 2032.

Q2. What is the growth rate of Contactless Payment Market?

The growth rate of the Contactless Payment Market is 15.93%.

Q3. Which region held the largest market share in the Contactless Payment Market?

North America had the largest share in the Contactless Payment Market

Q4. What are the top players operating in the Contactless Payment Market?

Wirecard AG, Ingenico, Giesecke+Devrient, Identiv, Valitor, Mypinpad, Idemia, Paycore, Alcenio, Verifone Holdings, CPI Card Group, On Track Innovations