A contactless payment system is protected by multiple layers of security in coordination with radio-frequency identification (RFID) and near-field communication (NFC) technologies for making a secure payment. In addition, it enables the tapping of contactless cards or payment-enabled devices for executive payments. Moreover, contactless payments are used in BFSI, retail, energy & utilities, and a number of other sectors due to benefits offered by this technology, including reduced transaction time, increased convenience, and leveraging customers’ experience at POS terminals during transactions.
One of the key drivers of the contactless payment market growth is the rise in adoption of smartphones in countries, such as Canada, China, and India. Furthermore, the massive adoption of contactless payment among merchants drives the growth of the market. In addition, with contactless payment trends, NFC card adoption has increased, with an increasing number of merchants accepting NFC-enabled cards. From local businesses to global retailers tap their cards at an expanding range of locations, including grocery stores, restaurants, and even vending machines, which has accelerated the contactless payment market’s growth. However, while downloading a payment app on a smartphone, there is a risk of malware or man-in-the-middle (MitM) attacks that access information stored on the device such as bank account numbers, personal information, or confidential work files. Therefore, these factors restrict the growth of the market. On the contrary, emerging economies, such as India and China, have high penetration of smartphones along with an increase in 5G connectivity users that provide a surge in the adoption of contactless payment services in emerging countries. Moreover, the integration of IoT in contactless payment technology and untapped potential of emerging economies are expected to provide lucrative growth opportunities to the contactless payment market in the upcoming years.
The contactless payment market is segmented on the basis of device type, application, and region. By device type, the market is divided into smartphones and wearables, smart cards, and point-of-sale (POS) terminals. By application, it is classified into food and groceries, pharmacy and drug stores, restaurants and bars, consumer electronics, media and entertainment, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the contactless payment market include Visa Inc., American Express Company, PayPal, Inc., Apple Inc., Mastercard, Amazon.com, Inc., Square, Inc., Ingenico, VeriFone, Inc., and Thales. These players have adopted various strategies to increase their market penetration and strengthen their position in the contactless payment industry.
One of the key drivers of the contactless payment market growth is the rise in adoption of smartphones in countries, such as Canada, China, and India. Furthermore, the massive adoption of contactless payment among merchants drives the growth of the market. In addition, with contactless payment trends, NFC card adoption has increased, with an increasing number of merchants accepting NFC-enabled cards. From local businesses to global retailers tap their cards at an expanding range of locations, including grocery stores, restaurants, and even vending machines, which has accelerated the contactless payment market’s growth. However, while downloading a payment app on a smartphone, there is a risk of malware or man-in-the-middle (MitM) attacks that access information stored on the device such as bank account numbers, personal information, or confidential work files. Therefore, these factors restrict the growth of the market. On the contrary, emerging economies, such as India and China, have high penetration of smartphones along with an increase in 5G connectivity users that provide a surge in the adoption of contactless payment services in emerging countries. Moreover, the integration of IoT in contactless payment technology and untapped potential of emerging economies are expected to provide lucrative growth opportunities to the contactless payment market in the upcoming years.
The contactless payment market is segmented on the basis of device type, application, and region. By device type, the market is divided into smartphones and wearables, smart cards, and point-of-sale (POS) terminals. By application, it is classified into food and groceries, pharmacy and drug stores, restaurants and bars, consumer electronics, media and entertainment, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the contactless payment market include Visa Inc., American Express Company, PayPal, Inc., Apple Inc., Mastercard, Amazon.com, Inc., Square, Inc., Ingenico, VeriFone, Inc., and Thales. These players have adopted various strategies to increase their market penetration and strengthen their position in the contactless payment industry.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the contactless payment market along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the contactless payment market size are provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the contactless payment market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Device Type
- Smartphones and Wearables
- Smart Cards
- PoS Terminals
By Application
- Food and Groceries
- Pharmacy and Drug Stores
- Restaurants and Bars
- Consumer Electronics
- Media and Entertainment
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Visa Inc.
- Apple Inc.
- Amazon.com, Inc.
- VeriFone, Inc.
- Thales
- Mastercard
- PayPal, Inc.
- Square, Inc.
- Ingenico
- American Express Company
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CONTACTLESS PAYMENT MARKET, BY DEVICE TYPE
CHAPTER 5: CONTACTLESS PAYMENT MARKET, BY APPLICATION
CHAPTER 6: CONTACTLESS PAYMENT MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, the contactless payment market was valued at $2.4 trillion in 2022, and is estimated to reach $12,476.6 billion by 2032, growing at a CAGR of 18.3% from 2023 to 2032.The contactless payment market is likely to experience a significant growth rate of 18.3% from 2022-2032 owing to the surge in demand for mobile & wearable payment devices and rise in adoption of contactless payments among merchants
A contactless payment system is protected by multiple layers of security in coordination with radio-frequency identification (RFID) and near-field communication (NFC) technologies for making a secure payment. In addition, it enables the tapping of contactless cards or payment-enabled devices for executive payments. Moreover, contactless payments are used in BFSI, retail, energy & utilities, and a number of other sectors due to benefits offered by this technology, including reduced transaction time, increased convenience, and leveraging customers’ experience at POS terminals during transactions.
According to UK Finance, nearly one in three of all payments in the UK were made using contactless cards or with a smartphone or smartwatch in 2021, a rise of 36% compared with transaction volumes in 2020. Furthermore, contactless appears to be popular with consumers, due to the speed and security of transactions. The increase in the contactless payment expanded the range of purchases that could be made this way. Retailers also encouraged the use of contactless payment during the pandemic as a way of helping to facilitate social distancing in shops. Therefore, these factors contributed to the growth of contactless payment market.
The market also offers growth opportunities to the key players in the market. Key players are adopting strategies to strengthen their market positions in the contactless payment industry, including new technology adoption, product developments, mergers and acquisitions, joint ventures, alliances, and partnerships. For instance, in February 2022, Apple introduced Tap to Pay on iPhone. The new capability empowers millions of merchants across the U. S., from small businesses to large retailers, to use their iPhone to seamlessly and securely accept Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone with no additional hardware or payment terminals needed. In addition, in April 2021, Digital Financial Services, a joint venture of Etisalat and Dubai Islamic Bank, announced its partnership with Al-Futtaim to enable secure and contactless payment options for eWallet customers across their brand network. With this agreement, eWallet customers can make purchases at selected Al-Futtaim brand stores across the UAE including leading brands such as Al Futtaim Watches and Jewelry, Watsons, IKEA, Marks & Spencer, ACE Hardware, and Toys R Us among others.
The contactless payment market is segmented into device type, application, and region. By device type, the market is divided into smartphones and wearables, smart cards, and point-of-sale (POS) terminals. By application, it is classified into food and groceries, pharmacy and drug stores, restaurants and bars, consumer electronics, media and entertainment, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Region wise, it is analyzed across North America (the U. S., and Canada), Europe (UK, Germany, France, Italy, Spain, Netherlands, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study are Visa Inc., American Express Company, PayPal, Inc., Apple Inc., Mastercard, Amazon. com, Inc., Square, Inc., Ingenico, VeriFone, Inc., and Thales. The players in the market have been actively engaged in the adoption of various strategies such as business expansion, product launch, collaboration, and partnership to remain competitive and gain an advantage over the competitors in the market. For instance, in November 2020, Mastercard and SBI Cards & Payment Services Ltd. (SBI Card) announced the launch of contactless payments on the SBI Card app. This is the first-ever app of a credit card issuer in India to use Mastercard’s tokenization platform, Mastercard Digital Enablement Service (MDES), that allows payment credentials to be securely tokenized and stored in mobile devices. With this service, SBI Card Mastercard cardholders need not carry physical cards and can transact at any contactless point of sale terminal using their mobile.
Key Market Insights
By device type, the smartphones and wearables segment was the highest revenue contributor to the market and is estimated to reach $6,447.42 billion by 2032, with a CAGR of 16.8%. However, the smart cards segment is estimated to be the fastest-growing segment with a CAGR of 21.0% during the forecast period.By application, the food and groceries segment was the highest revenue contributor to the market, and is estimated to reach $2,292.09 billion by 2032, with a CAGR of 13.2%. However, the restaurants and bars segment is estimated to be the fastest-growing segment with a CAGR of 22.5% during the forecast period.
Based on region, Europe was the highest revenue contributor, accounting for $819.81 billion in 2022, and is estimated to reach $3,831.56 billion by 2032, with a CAGR of 17.0%. However, Asia-Pacific is estimated to be the fastest-growing region with a CAGR of 21.1% during the forecast period.
Companies Mentioned
- Visa Inc.
- Apple Inc.
- Amazon.com, Inc.
- VeriFone, Inc.
- Thales
- Mastercard
- PayPal, Inc.
- Square, Inc.
- Ingenico
- American Express Company
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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