Proximity Payment Market Report 2024

This Proximity Payment market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

The proximity payment market size has grown rapidly in recent years. It will grow from $19.17 billion in 2023 to $22.2 billion in 2024 at a compound annual growth rate (CAGR) of 15.8%.The historical growth can be attributed to the expansion of contactless payment infrastructure, increased consumer preference for convenience, supportive regulations for digital payments, a rise in e-commerce transactions, and the impact of global events accelerating the adoption of digital payments.

The proximity payment market size is expected to see rapid growth in the next few years. It will grow to $40.6 billion in 2028 at a compound annual growth rate (CAGR) of 16.3%. Growth during the forecast period can be attributed to the rise of wearable payment options, increased demand for seamless user experiences, growth in mobile wallet usage, the incorporation of contactless payment solutions, and the growing adoption of smartphones. Key trends in the forecast period include the adoption of NFC-enabled devices, integration of advanced biometric authentication methods, the rise and popularity of wearable payment devices, increased use of Internet of Things (IoT) devices for seamless payment experiences, and continuous innovation in mobile wallet technologies.

The increasing adoption of contactless payment methods is projected to drive the growth of the proximity payment market. Contactless payment is a secure transaction method using payment devices, such as credit or debit cards, smartphones, or wearables, without the need for physical swiping, inserting, or handing over the payment instrument. The rise in contactless payment adoption is attributed to its convenience, speed, consumer preferences, and security features. Proximity payments enable quick and secure transactions when devices are in close proximity. For example, in January 2024, the European Central Bank, a Germany-based central bank serving European Union countries, reported a 24.3% increase in contactless card payments in the first half of 2023, rising to 20.9 billion transactions compared to the same period in 2022. The total transaction value also increased by 25.9% to €0.5 trillion ($545.27 billion). Consequently, the growing adoption of contactless payment methods is driving the expansion of the proximity payment market.

Key players in the proximity payment market are concentrating on developing advanced solutions, such as mobile payment technologies, to enhance transaction speed, security, and customer convenience. Mobile payment involves using a mobile device to make contactless payments by tapping it near a compatible payment terminal. For instance, in March 2022, the Reserve Bank of India, an India-based central bank and regulatory authority, partnered with the National Payment Corporation of India to launch UPI 123Pay, a new mobile payment option. This service allows users to make payments without an internet connection, making it accessible for feature phone users. By installing a UPI app, feature phone users can perform UPI functions similar to those on smartphones. This method employs sound waves for offline, contactless transactions, enabling payments through proximity to a merchant's device. The UPI123Pay process involves three simple steps, call, choose, and pay.

In September 2022, Poste Italiane S.p.A., an Italy-based postal service company, acquired LIS Holding S.p.A. for $714.5 million. This acquisition enhances PostePay’s capability to facilitate proximity payments involving mobile transactions at physical locations. The transaction aligns with Poste Italiane's 24SI plan, which focuses on developing an integrated services ecosystem to expand product offerings, particularly for small and medium-sized enterprises (SMEs), and to strengthen its overall digital services ecosystem. LIS Holding S.p.A. is an Italy-based provider of proximity payment services.

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.

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.

The countries covered in the proximity payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Proximity payment is a contactless transaction method where a payment device, such as a smartphone, contactless credit/debit card, or wearable device, is brought near a point-of-sale (POS) terminal equipped with near-field communication (NFC) technology. This approach improves security by safeguarding sensitive information and accelerates transactions, benefiting both merchants and consumers.

Proximity payment offerings primarily consist of solutions and services. A solution is a complete set of tools and technology, such as NFC or Bluetooth, designed to simplify and secure close-range transactions for consumers and businesses. Various platforms, including Android and iOS, offer these solutions for applications in grocery stores, bars and restaurants, drug stores, entertainment centers, and more.

The proximity payment market research report is one of a series of new reports that provides proximity payment market statistics, including proximity payment industry global market size, regional shares, competitors with a proximity payment market share, detailed proximity payment market segments, market trends and opportunities, and any further data you may need to thrive in the proximity payment industry. This proximity payment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The proximity payment market consists of revenues earned by entities by providing services such as digital wallet integration, loyalty and rewards programs, transaction history, and management. The market value includes the value of related goods sold by the service provider or included within the service offering. The proximity payment market also includes sales of payment cards, payment readers, and payment terminals. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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