Contactless Payment Global Market Report 2024

The contactless payment market size has grown exponentially in recent years. It will grow from $47.87 billion in 2023 to $57.85 billion in 2024 at a compound annual growth rate (CAGR) of 20.9%. The historical growth can be attributed to factors such as consumer convenience, regulatory initiatives, shifts in consumer behavior, marketing and promotions, and integration with transit systems.

The contactless payment market size is expected to see exponential growth in the next few years. It will grow to $124.16 billion in 2028 at a compound annual growth rate (CAGR) of 21%. The forecasted growth can be attributed to the expansion of contactless payment infrastructure, a rising demand for frictionless and secure payment methods, increasing consumer awareness, government initiatives promoting cashless economies, and a growing preference for convenient and hygienic payment methods. Major trends expected in the forecast period include a surge in mobile wallet adoption, expansion of wearable payments, the rise of contactless cards, integration of biometric authentication, and the emergence of QR code payments.

The increasing demand for mobile payment devices is expected to drive the growth of the contactless payment market in the future. Mobile payment devices typically include smartphones, tablets, or specialized hardware that enable users to conduct transactions using digital wallets or payment apps. The surge in demand for these devices is fueled by factors such as convenience, security, and the growing digitalization of commerce. Contactless payments are facilitated by mobile payment devices through near-field communication (NFC) technology, allowing users to tap their device at compatible terminals to complete transactions seamlessly. For instance, a report by Uswitch Limited in February 2024 highlighted 71.8 million mobile connections in the UK, surpassing the population by 4.2 million and indicating a 3.8% increase from 2021. This growth is expected to continue, with projections suggesting that by 2025, 95% of the UK's 68.3 million residents will be using smartphones. As a result, the rising demand for mobile payment devices is propelling the expansion of the contactless payment market.

Key players in the contactless payments market are focusing on developing innovative products such as tokenizable payment wearables to improve convenience and enable seamless transactions for consumers. Tokenizable wearable devices enhance security and privacy by generating one-time tokens for transactions. For instance, in March 2024, IndusInd Bank Limited launched Indus PayWear, an all-in-one tokenizable wearable device for contactless payments using debit and credit cards in India. This device allows users to tokenize their IndusInd Bank cards onto a chip-enabled wearable, facilitating secure tap-and-pay transactions at contactless terminals globally without needing physical cards or payment apps.

In October 2022, Worldline SA acquired a 55% stake in SoftPos, a Poland-based company specializing in professional financial POS terminals for contactless payments, for an undisclosed amount. This acquisition strengthens Worldline's digital payment capabilities and introduces SoftPos's technology, leading to new offerings such as Worldline Tap on Mobile and expanding Worldline's presence in the digital payment landscape.

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.

North America was the largest region in the contactless payment market in 2023. 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. The countries covered in the contactless payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Contactless payment refers to a method where transactions are completed by tapping or waving a contactless-enabled card, smartphone, or wearable device near a terminal, allowing for quick and secure payments without the need for physical contact or the insertion of a card. This method decreases friction at the checkout, speeds up transactions, and improves efficiency for both customers and businesses by eliminating the requirement for physical contact between the payment card or device and the POS (point-of-sale) terminal.

The main components of contactless payment are hardware, solution, and service. Contactless payment hardware refers to devices equipped with technology that allow transactions to be conducted without physical contact by utilizing technologies. Contactless payment technologies encompass near-field communication (NFC), radio frequency identification (RFID), infrared (IR), and others, to facilitate payment modes through smartphones, smartcards, and others. It is used by several verticals such as banking, financial services, and insurance (BFSI), hospitality and travel, media and entertainment, retail, transportation and logistics, healthcare, and others.

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

The contactless payment market consists of revenues earned by entities by providing services such as security features, loyalty program integration, mobile wallet integration, and payment acceptance. The market value includes the value of related goods sold by the service provider or included within the service offering. The contactless payment market also includes sales of wearable devices, point-of-sale (POS) systems, payment cards, and near-field communication (NFC) readers. 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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