What Has Been the Growth of the Proximity Payment Market So Far?
The proximity payment market has seen considerable growth due to a variety of factors.
• The proximity payment market has seen substantial growth recently. It is expected to rise from $22.2 billion in 2024 to $25.83 billion in 2025, at a compound annual growth rate (CAGR) of 16.4%.
This growth can be traced back to the expansion of contactless payment systems, increased consumer preference for convenience, regulatory backing for digital payment systems, the boom in e-commerce, and global events that have sped up the adoption of digital payments.
How Will the Proximity Payment Market?
The proximity payment market is expected to maintain its strong growth trajectory in upcoming years.
• The proximity payment market is expected to grow to $47.15 billion by 2029 at a CAGR of 16.2%.
Growth is fueled by the rise of wearable payments, mobile wallet adoption, contactless payment solutions, and increased smartphone usage. Key trends include NFC-enabled devices, biometric authentication, wearable payment devices, IoT integration, and innovations in mobile wallets.
Which Factors Are Boosting Growth In The Proximity Payment Market?
The proximity payment market is anticipated to expand, fueled by the increasing utilization of touchless payment methods. These transactions are achieved securely through a payment tool, such as a credit/debit card, smartphone, or wearable device, eliminating the need for physical swiping, insertion, or handing over of the payment instrument. The surge in touchless payment adoption can be attributed to its quickness and ease, consumer choices, and safety features, which encourage the use of touchless payment systems. Through fast and safe payment processing when devices are close, proximity payments enable touchless transactions. As per the European Central Bank, a central bank based in Germany serving European Union countries, it was reported that in January 2024, the amount of touchless card payments jumped by 24.3% from 20.9 billion to €0.5 trillion (545.27 billion) in the first half of 2023, a rise of 25.9% from the previous year. Consequently, the growing utilization of touchless payment methods is catalyzing the expansion of the proximity payment market.
What Key Areas Define The Segmentation Of The Global Proximity Payment Market?
The proximity payment market covered in this report is segmented –
1) By Offering: Solution, Service
2) By Platform: Android, iPhone Operating System (iOS), Other Platforms
3) By Application: Grocery Stores, Bars And Restaurants, Drug Stores, Entertainment Centers, Other Applications
Subsegments:
1) By Solution: Payment Terminals, Near Field Communication (NFC) Software, Mobile Wallet Applications, Tokenization Platforms
2) By Service: Implementation and Integration Services, Support and Maintenance Services, Consulting Services, Managed Services
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What Trends Are Reshaping The Future Of The Proximity Payment Market?
Mainstream businesses within the proximity payment market are dedicating resources towards the creation of innovative solutions such as mobile payment, to boost transaction efficiency and safety while enhancing customer experience. Mobile payment involves using a mobile gadget to execute contactless payments by merely tapping the device near a payment terminal that supports it. A case in point is the collaboration in March 2022 between the Reserve Bank of India, a central bank and regulatory entity based in India, and the National Payment Corporation of India, an organization also based in India that implemented UPI 123Pay, a cutting-edge mobile payment system. This platform enables payments without internet connectivity, thus catering to users of feature phones. By downloading a UPI app, these users can enjoy UPI features just like smartphone users. The system employs sound wave technology for offline, contactless transactions, thus facilitating payments when in proximity to a retailer's device. The UPI123Pay procedure is efficient, involving three steps: make a call, make a selection, and then make the payment.
Who Are the Key Players In The Proximity Payment Market?
Major companies operating in the proximity payment market are:
• Amazon.com Inc.
• Apple Inc.
• Google LLC
• Samsung Group
• Wells Fargo & Company
• American Express Company
• Visa Inc.
• PayPal Holdings Inc.
• The PNC Financial Services Group Inc.
• Mastercard Inc.
• Thales Group
• Fiserv Inc.
• Stripe Inc.
• NXP Semiconductors N.V.
• Garmin Ltd.
• Revolut
• Worldpay LLC
• Adyen N.V.
• Ingenico
• SumUp Inc.
• PAX Technology
• Clover Network LLC
• VeriFone Inc.
• BitPay
• Huawei Device Co. Ltd
What Is The Most Dominant Region In The Proximity Payment Market?
North America was the largest region in the proximity payment market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the proximity payment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
