The global contactless payments market is estimated to reach a value of US$12,316.5 million in 2021 and is projected to exhibit a CAGR of 13.2% from 2023 to 2030. Contactless payments offer a convenient and secure way for consumers to make transactions without the need for physical contact with payment terminals. The increasing penetration of smartphones and the growing adoption of digital payment solutions are driving the demand for contactless payments. The advantages of contactless payments include speed, ease of use, and enhanced security, which contribute to its growing popularity among consumers. The need for contactless payment products is driven by the growing preference for cashless transactions, especially in sectors such as retail, hospitality, and transportation.
Market Key Trends:
One key trend in the contactless payments market is the integration of contactless payments in wearable devices. With the rising popularity of smartwatches, fitness trackers, and other wearable devices, manufacturers are incorporating contactless payment capabilities into these devices. This enables consumers to make payments conveniently and securely using their wearable devices, eliminating the need to carry physical payment cards or smartphones. The integration of contactless payments in wearables is expected to drive the adoption of contactless payment solutions, especially among tech-savvy consumers who prefer the convenience of wearable devices. This trend presents lucrative opportunities for market players, including Thales Group, Infineon Technologies AG, Ingenico Group, and other key players, to capitalize on the growing demand for contactless payment-enabled wearables.
The contactless payments market can be segmented based on technology, payment mode, end-user, and region. In terms of technology, the market can be divided into near-field communication (NFC), RFID, and others. Among these, NFC dominates the market as it enables users to make quick and secure payments by simply tapping their phones or cards on contactless payment terminals. NFC technology is widely adopted by smartphones, wearable devices, and credit/debit cards, making it the most preferred method for contactless transactions.
Based on the payment mode, the market is categorized into mobile devices, contactless cards, and wearable devices. Mobile devices hold the largest market share as they provide convenience and ease of use to consumers. Mobile wallets such as Apple Pay, Google Pay, and Samsung Pay are gaining popularity worldwide, contributing to the dominance of mobile devices in the contactless payments market.
In terms of end-users, the market can be segmented into retail, healthcare, transportation, hospitality, and others. The retail sector dominates the market as contactless payments offer a faster and more secure checkout experience for customers. Retailers are increasingly adopting contactless payment solutions to enhance customer satisfaction and streamline operations.
The Global Contactless Payments Market Demand is expected to witness high growth, exhibiting a CAGR of 13.2% over the forecast period. The increasing adoption of smartphones and wearable devices, growing digitalization, and the need for quick and secure payment methods are the major drivers fueling market growth. The COVID-19 pandemic has further accelerated the adoption of contactless payments due to hygiene concerns and the shift towards contactless transactions.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the contactless payments market. The presence of major market players, favorable government initiatives, and increasing consumer awareness about the benefits of contactless payments are driving the growth in this region. Europe and Asia-Pacific are also witnessing significant growth due to the rapid digitalization of payment systems and changing consumer preferences.
Key players operating in the 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. These companies are focusing on product innovation, partnerships, and mergers and acquisitions to strengthen their market presence and gain a competitive edge. The market is highly competitive, and key players are investing in research and development activities to develop advanced contactless payment solutions and expand their customer base.