A contactless payment refers to a method that allows customers to securely pay through debit cards, credit cards, or from payment devices by using radio frequency technology (RFID) or near-field communication (NFC). A contactless payment solution is a payment method that does not involve any physical contact with cash, menu, bill, etc. Contactless payment is considered a quick and easy method to pay and it does not require customers to input a PIN. Companies are continuously leveraging the latest technologies to make contactless payment methods more secure and easy to use. Payment companies are also focusing on eliminating the physical contact of cards by introducing new digital payment methods such as google pay, apple pay, and Samsung pay. All major financial institutions are now offering contactless payment solutions the customers, owing to the increasing demand for cashless payment across the world. These factors are expected to the driving growth of the contactless payments market in the near future.
The global contactless payment market is estimated to account for US$ 12,316.5 Mn in terms of value by the end of 2021 and is expected to grow at a CAGR of 13.2% during the forecasted period (2022-2030).
Market Opportunity
Increasing use of digitalized payment options is expected to drive market growth over the forecast period. Emerging economies are easing their tax policies and companies are providing loyalty offers on every transaction to encourage people to opt for digital transactions instead of cash transactions. The payment industry is shifting towards EMV (Europay, MasterCard, and Visa) chip cards to provide improved security and finer control for offline transactions, which is expected to be another major factor fuelling the growth of the contactless payments market. Contactless payment card offers high security as compared to cash payment. For instance, in October 2019, SBI launched SBI Card Pay, a contactless mobile payment for all credit card users. This card provides faster, more convenient, and more secure card payment using mobile phones.
Moreover, the payment industry is shifting towards contactless payment methods such as Google Pay, Samsung Pay, and others. Payment industries are using contactless payment methods to protect users from fraud and provide a seamless experience such as Omni channel (personalized user experience), improving the security of cards through EMV (Europay, MasterCard, and Visa), loyalty offers on payment, and cardholder verification method (CDCVM) to verify user identity, which is expected to increase demand for contactless payments market. All these features provide the customer/company with more security, a cashless experience, and better tracking of expenses and reports based on spending, which is expected to drive the growth of the market.
Market Restraint
Security concerns and threats while adopting Contactless payment methods.
The major factor restraining growth of the global contactless payments market is lack of trust due to security concern, data theft, and misuse of the contactless payment methods other than the authorized user. The contactless payment do not require to input PIN, which makes it less secure than the conventional methods. Such factors are expected to hinder growth of the contactless payments market over the forecast period.
| Report Coverage | Details | ||
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| Base Year: | 2021 | Market Size in 2021: | US$ 12,316.5 Mn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 13.2% | 2030 Value Projection: | US$ 36,929.05 Mn |
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| Companies covered: |
contactless payment market are Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, VeriFone, Inc., Giesecke+Devrient GmbH, IDEMIA, Track Innovations LTD., Identiv, Inc., CPI Card Group Inc., Setomatic Systems, Valitor, PAX, PINPAD, Mobeewave, alcineo, and Paycor, Inc. |
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Contactless Payment Market - Impact of Coronavirus (Covid-19) Pandemic:
The COVID-19 pandemic witnessed high growth of the market during the forecast period. This is due to increasing demand for contactless payments from various sectors such as BFSI, retail, transportation, and others. Retail sectors were using contactless payments to ensure the safety of premises & employees, and are enforcing them to follow social distancing.
Moreover, due to COVID-19, contactless payments have become a more preferred payment method, as it requires less physical Interactions and is very helpful to contain the spread of COVID-19. Due to this reason, many companies had expanded their business by offering contactless payment solutions to their customers. In January 2020, Paytm launched a contactless QR code payment method through which users were able to do direct payments by a scanning QR code from their mobile minimizing direct contact with payment devices.
Competitive Scenario
Key players operating in the global contactless payments market include Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, VeriFone, Inc., Giesecke+Devrient GmbH, IDEMIA, Track Innovations LTD., Identiv, Inc., CPI Card Group Inc., Setomatic Systems, Valitor, PAX, PINPAD, Mobeewave, alcineo, and Paycor, Inc.
Recent Developments:
Forecasted Europe is expected to hold a dominant position in Contactless Payment market in 2030
Statistics:
Europe held dominant position in the global contactless payments market in 2019, accounting for 42.8% share in terms of value, followed by Asia Pacific and North America.
Figure 1: Global Contactless Payment Market Share (%), By Region, 2021
Europe is expected to be one of the prominent regions in the global market and witness high growth during the forecast period. This is owing to the high penetration of smartphone and enhancement in the technologies.
Figure 2: Global Contactless Payment Market (US$ Mn) Analysis and Forecast, 2017 – 2030
The Global Contactless Payment Market was valued at US$ 12,316.5 Mn in 2021 and is expected to reach US$ 36,929.05 Mn by 2030, growing at a CAGR of 13.2% between 2022 and 2030.
Contactless payment is a payment method where secure payment is done by using technologies such as radio frequency identification (RFID), near field communication (NFC), Bluetooth, and infrared. Contactless payment can take one-tenth of the time as compared to other conventional payment methods. Contactless payment mainly provides more convenient way to do payment without having cash, card or other identity details. Moreover, contactless payment has become an important part of the payment process in various industries. Consumers along with businesses are accepting ways that are highly safe by making use of NFC and RFID technology. Increasing the frequency of purchases, rising awareness regarding plastic money, and rising need for fast transactions without any inconvenience are expected to drive the market growth during the forecast period.
The Global Contactless Payments Market was valued at US$ 12,316.5 Mn in 2021.
Market Dynamics
The global contactless payments market is expected to grow significantly during the forecast period, owing to increasing internet penetration in developed and emerging economies. For instance, according to Coherent Market Insights’ analysis, internet penetration reached 4.9 Million in 2020. People are now preferring digital payment and contactless payment method as it is more convenient, easy to use, and also minimizes the check-out time. Smartphone manufacturers are developing contactless payment methods such as google pay, Samsung pay, Apple pay, and others. Moreover, with increasing penetration of the internet, people are adopting new technologies and have become more technology-oriented. Various applications such as Samsung pay, google pay, apple pay, and others are driving the market growth by providing ease of use, fast transaction, security, rewards, quick money transfer, and a lot of other perks. Hence, these factors are expected to drive the market growth during the forecast period.
Moreover, major global players across different regions are focusing on developing new products with new features and latest technologies to gain competitive edge in the market. Industries are developing contactless payments with new features to cater to the demand from the end users. For instance, in January 2020, Visa Inc. announced a partnership with SAMSUNG to innovate tap to phone program. Through this partnership, tap-to-phone enable sellers to accept payment through an android smartphone.
Key features of the study:
Detailed Segmentation
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