What Has Been the Progress and Growth of the Contactless Payment Market in Recent Years?
The contactless payment market has seen considerable growth due to a variety of factors.
• The contactless payment market has grown exponentially in recent years. It will increase from $57.85 billion in 2024 to $70.08 billion in 2025, at a compound annual growth rate (CAGR) of 21.1%.
The growth is attributed to consumer convenience, regulatory initiatives, a shift in consumer behavior, marketing efforts, and the integration of contactless payment systems with transit systems.
What Is The Expected Growth In The Contactless Payment Market Size Evolve over the Forecast Period?
The contactless payment market is expected to maintain its strong growth trajectory in upcoming years.
• The contactless payment market will reach $150.06 billion by 2029, growing at a CAGR of 21.0%.
The growth is attributed to the expansion of contactless payment infrastructure, increasing demand for frictionless and secure payments, consumer awareness, government initiatives for cashless economies, and the preference for hygienic payments. Trends include the rise of mobile wallet adoption, wearable payments, contactless cards, biometric authentication, and QR code payments.
What Main Forces Are Fueling Expansion In The Contactless Payment Market?
The contactless payment market is anticipated to grow due to the surge in demand for mobile payment devices. Mobile payment devices, such as smartphones and tablets, are increasingly used for secure, convenient transactions through digital wallets and NFC technology. According to Uswitch Limited, the UK saw a 3.8% increase in mobile connections in 2023, with 95% of the population projected to use smartphones by 2025.
What Are The Primary Segments In 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
Subsegments:
1) By Hardware: Point Of Sale (Pos) Terminals, Contactless Card Readers, Near Field Communication (Nfc) Chips, Smartphones And Wearables (With Nfc), Contactless Payment Terminals (Mobile And Fixed)
2) By Solution: Contactless Payment Processing Solutions, Mobile Wallet Solutions, Contactless Payment Gateway Solutions, Digital Payment Platforms, Cloud-Based Payment Solutions, Security And Fraud Prevention Solutions, Tokenization Solutions
3) By Service: Consulting And Advisory Services, Integration And Implementation Services, Transaction And Payment Processing Services, Security And Compliance Services, Customer Support And Maintenance Services, Payment Authentication Services
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How Are New Trends Impacting The Size Of The Contactless Payment Market?
Leading companies in the contactless payments market are creating innovative products, such as tokenizable payment wearables, to provide consumers with convenient and seamless transaction experiences. These wearables generate one-time tokens for payments, enhancing privacy and security. For example, in March 2024, IndusInd Bank launched Indus PayWear, India's first tokenizable wearable for contactless payments, allowing users to securely tokenize their bank cards onto a wearable device for tap-and-pay transactions at contactless terminals globally, without needing physical cards or apps.
Who Are the Key Players In The Contactless Payment Market?
Major companies operating in the contactless payment market are:
• Apple Inc.
• American Express Company
• Visa Inc.
• PayPal Holdings Inc.
• Mastercard Incorporated
• Fiserv Inc.
• Square Inc.
• Stripe Inc.
• Intuit Inc.
• Adyen N.V.
• Global Payments Inc.
• Shopify Inc.
• Worldline
• Klarna Bank AB
• Ingenico Group
• SumUp Inc.
• Verifone Inc.
• PayU
• First Data Corporation
• UnionPay International Co. Ltd.
• Wirecard AG
What Is The Most Dominant Region In The Contactless Payment Market?
North America was the largest region in the contactless payment market in 2024. 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.
