How Is The Global Contactless Payment Market Defined?
Contactless payment refers to a method where transactions are completed by tapping or waving a contactless-enabled card, smartphone, or wearable device near a terminal, allowing for quick and secure payments without the need for physical contact or the insertion of a card. This method decreases friction at the checkout, speeds up transactions, and improves efficiency for both customers and businesses by eliminating the requirement for physical contact between the payment card or device and the POS (point-of-sale) terminal.
Contactless Payment Global Market Report 2024 provides data on the global contactless payment market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Contactless Payment market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
What Are The Projections Exist For The Global Contactless Payment Market Size And Annual Growth Rates?
The contactless payment market size has grown exponentially in recent years. It will grow from $47.87 billion in 2023 to $57.85 billion in 2024 at a compound annual growth rate (CAGR) of 20.9%. The growth in the historic period can be attributed to consumer convenience, regulatory initiatives, shift in consumer behavior, marketing and promotions, and integration with transit systems. The contactless payment market size is expected to see exponential growth in the next few years. It will grow to $124.16 billion in 2028 at a compound annual growth rate (CAGR) of 21.0%. The growth in the forecast period can be attributed to the expansion of contactless payment infrastructure, rising demand for frictionless and secure payment, increasing consumer awareness, government initiatives promoting cashless economies, and growing preference for convenient and hygienic payment methods. Major trends in the forecast period include a surge in mobile wallet adoption, expansion of wearable payments, the rise of contactless cards, integration of biometric authentication, and the emergence of QR code payments.
Which Key Drivers Are Propelling The Contactless Payment Market's Growth?
The surge in demand for mobile payment devices is expected to propel the growth of the contactless payment market going forward. Mobile payment devices typically refer to smartphones, tablets, or dedicated hardware that enable users to make transactions using digital wallets or payment apps. The rise in demand for mobile payment devices is driven by convenience, security, and the increasing digitization of commerce. Mobile payment devices enable contactless payments by utilizing near-field communication (NFC) technology, allowing users to simply tap their device at a compatible terminal to complete transactions. For instance, in February 2024, according to a report published by Uswitch Limited, a UK-based price comparison service, there were 71.8 million mobile connections in the UK, surpassing the country's population by 4.2 million. This marked a 3.8% increase from 2021, equivalent to approximately 2.6 million more connections. It is anticipated that by 2025, 95% of the UK's 68.3 million residents will be using smartphones. Therefore, the surge in demand for mobile payment devices is driving the growth of the contactless payment market.
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What Are The Key Segments Within The Global Contactless Payment Market?
The contactless payment market covered in this report is segmented –
1) By Component: Hardware, Solution, Service
2) By Technology: Near Field Communication (NFC), Radio Frequency Identification (RFID), Infrared (IR), Other Technologies
3) By Payment Mode: Smartphone, Smartcard, Other Payment Modes
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Hospitality And Travel, Media And Entertainment, Retail, Transportation And Logistics, Healthcare, Other Verticals
How Are New Trends Impacting The Size Of The Contactless Payment Market?
Major players in the contactless payments market are innovating with products like tokenizable payment wearables to improve convenience and ensure seamless transactions for consumers. These wearables utilize one-time tokens for transactions, enhancing both privacy and security. For example, in March 2024, IndusInd Bank Limited, an Indian financial services provider, introduced Indus PayWear. This device is the first of its kind in India, enabling users to tokenize their IndusInd Bank cards onto a chip-enabled wearable. This innovation allows for secure, swift tap-and-pay transactions at contactless terminals globally, eliminating the need for physical cards or payment apps.
Which Region Drives The Highest Growth In The Contactless Payment Market?
North America was the largest region in the contactless payment market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the contactless payment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
