The global market for contactless payment size was valued at $1168 billion in 2019 and is predicted to reach $5,424 billion by 2027. it is increasing at a rate of 20.6 percent from 2020 until 2027.
Contactless payment is a safe way for customers to pay for goods or services through gadgets such as smart cards and key fobs, wearables, smartphones, and more. Contactless payments typically use radio-frequency Identification (RFID) along with Near Field Communication (NFC) technologies to make it easier to conduct transactions that do not require contact in the payment sector. Additionally, the embedded chip and antennas inside transaction devices allow customers to tap or wave their smart cards, keys fobs, or handheld devices on a reader near the point of sale (POS) terminal.
The market for contactless payments is growing due to fast and secure transactions and real-time transaction processing. It helps speed up the process of executing trades and other advantages offered by the contactless payment method. Additionally, the increase in demand for wearable and mobile devices for payment and the increase in the adoption of technology among merchants to process small value transactions fuel the market’s growth.
However, the increasing rules and rules imposed by banks regarding payment are among the main factors that hinder Contactless market growth. Additionally, emerging economies provide enormous opportunities for payment solution providers to grow and develop their services, specifically in emerging economies like Australia, China, India, Singapore, and South Korea. Additionally, implementing the Internet of Things (IoT) with the existing contactless payment terminal is anticipated to create profitable opportunities in the coming time.
The wearables and smartphones segment has dominated the contactless payment market in 2019 and is expected to continue its lead throughout the forecast. The increasing use of smartphones and wearable devices by young people in different countries fuels the expansion of this sector. Smart cards will likely experience substantial growth during the forecast time frame due to the growing demand for smart cards across different industries and the adoption of blockchain technology by numerous smartcard providers to improve the security of cards.
In terms of geography, the market for contactless payments was dominated by Europe in the year 2019 and is likely to maintain its leadership position throughout the forecast time. The main reason behind the expansion of the market for contactless payment in this region is the early adoption of technological advancements among consumers and the rise of government initiatives to increase the use of wearable devices and contactless payments in Germany and the U.K. and France. But, Asia-Pacific is expected to see a significant increase in the forecast period due to the increasing adoption of wearable devices and contactless payment among the emerging countries of Asia-Pacific like China as well as India.
The study focuses on the potential growth, limitations, and trends in the market share of contactless payments analysis. The report provides Porter’s Five Forces analysis to comprehend the effect of various variables like suppliers’ bargaining power and their competitors’ competitive intensity, the threat of new competitors, the risk of substitutes, and the bargaining capacity of buyers in the market for contactless payments.
The market for contactless payments is classified according to the type of device, its application, and location. According to the type of device, the market is split into wearables and smartphones, as well as smart cards and point of sale (POS) terminals. The applications are divided into food and groceries, pharmacies and drug stores, restaurants and bars, media and entertainment, and others. The market is examined in North America, Europe, Asia-Pacific, and LAMEA.
The report examines the profiles of major players in the industry. These include Gemalto, Giesecke Devrient, Ingenico, InsideSecure, Oberthur Technologies S.A., On Track Innovations, PAX Technology, Inc., Proxama Plc, Verifone, and Wirecard. They have adopted various strategies to boost their market penetration and increase their position within the industry.
Impact analysis of COVID-19
The COVID-19 virus has an enormous impact on the payment market due to the increasing use and acceptance of digital and online payment methods across the globe. To stop the spread of the virus, several regions have instituted lockdowns that have led to a decrease in cash usage. This has led to an increase in demand for payment via contactless.
Top factors that impact
In the market, there is a surge in demand for wearable and mobile payment devices.
In the wake of a massive shift in consumer behavior and preferences for payments, the demand for wearable and mobile payments is growing on the market. Thus, the increased use of wearable and mobile devices is a significant reason to use payment methods that are not requiring contact. In addition, consumers are increasingly connecting their bank accounts with mobile wallets and various other gadgets, boosting demand for contactless payment in the market. In addition, increased awareness of advanced costs and the increase in acceptance of new technologies fuel the market’s expansion.
Integration of IoT and contactless technology for payment
Contactless transactions are considered an essential factor that aids in expanding the market for contactless payments. For example, Apple Pay and Android Pay allow new technologies like NFC and contactless payments using the use of Q.R. codes as well as pre-staged mobile transactions that are growing in popularity in the marketplace. In addition, technological advancement through the integration of the Internet of Things (IoT) and contactless payment methods has created new devices for customers, likely to continue to be a significant trend in the marketplace.
Benefits for the stakeholders
- The study offers a comprehensive review of the world’s market for contactless payments share, as well as current and future trends to show the potential investment opportunities.
- Details about the critical drivers, constraints, and opportunities, as well as their impact analysis on market size for payments made through contactless, are included in the report.
- Porter’s Five Forces analysis demonstrates the potential of buyers as well as suppliers working in the industry.
- A thorough analysis of the most critical segments of the industry aids in understanding the global market for contactless payment developments.
- A quantitative analysis of the global contactless payment market from 2020 until 2027 is presented to assess the market’s potential.
Contactless Payment Market Report Scope and Segmentation
|UNIT||Value (USD Million/Billion)|
|BY REGION||North America, Europe, Asia Pacific, Latin America, Middle East and Africa|
Key market segments
by Device Type
- Smartphones & Wearables
- Smart Cards
- Point-of-sale (POS) Terminals
- Food and Groceries
- Pharmacy & Drug Stores
- Restaurants and Bars
- Consumer Electronics
- Media & Entertainment
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA
- North America
Market players with a key role
- Giesecke Devrient
- Oberthur Technologies S.A.
- On Track Innovations
- PAX Technology, Inc.
- Proxama Plc