Contactless Payment Market Size, Share, Growth, and Industry Analysis, By Type (smart cards, NFC chips, point of sale terminals, mobile handsets and other devices), By Downstream Industry (managed services, professional services and multi-channel payment) and Regional Forecast to 2032

Updated On: 04 November 2024

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CONTACTLESS PAYMENT MARKET REPORT OVERVIEW

The Contactless Payment Market Size was Valued at US$ 12975.7 Million in 2023. The Market is likely to Surpass US$ 55645.11 Million by 2032 at a CAGR of 15.67% During the Forecast period [2024-2032].

Contactless price lets in customers to pay securely the use of debit or credit playing cards, or price gadgets via RFID or NFC technology, without physical contact. This method simplifies transactions, eliminates the want for PIN access, and accelerates bills. With developing demand for cashless answers, organizations are improving contactless payments with the aid of incorporating advanced technology and digital wallets such as Google Pay, Apple Pay, and Samsung Pay. Financial institutions are an increasing number of adopting these answers to satisfy consumer choices for convenience and safety. As a result, the contactless payments marketplace is predicted to see vast boom, pushed with the aid of innovations and extensive adoption.

COVID-19 Impact: Market Growth Catalyzed by Pandemic due to Surge in the Use of Contactless Cards, Cell Wallets and Other Contact-Unfastened Payment Technology.

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic extensively increased the adoption of Contactless Payment Market growth as clients and agencies sought to limit bodily contact. Concerns over virus transmission caused a surge within the use of contactless cards, cell wallets, and other contact-unfastened payment technology. This shift became similarly pushed by way of the boom in on line purchasing and e-commerce. Governments and economic institutions additionally promoted contactless payments to make certain safer transactions. As a result, the contactless price marketplace skilled speedy increase, with an enduring impact on purchaser behavior and a permanent shift towards virtual payment answers.

LATEST TRENDS

"Use of Biometric Authentication and Mobile Wallets & Digital Currencies are Gaining Popularity"

The contactless fee marketplace is quickly moving forward with the help of NFC and QR code technology. The use of biometric authentication such as the fingerprint and facial popularity add up to the issues of safety and convenience. Mobile wallets and digital currencies are coming into utilization, due to the elevated charge of smartphone adoption for easy transactions. Mobile and wearable devices and IoT are consequent in broadening fee options.

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CONTACTLESS PAYMENT MARKET SEGMENTATION

By Type

Based on type the market can be categorized into smart cards, NFC chips, point of sale terminals, mobile handsets and other devices.

• Smart Cards: Smart cards are plastic cards embedded with a microprocessor or reminiscence chip. They are often used for steady transactions and may shop statistics, system records, and talk with a terminal through radio-frequency identity (RFID) or near-field communication (NFC) era.

• NFC Chips: NFC (Near-Field Communication) chips enable devices to talk when they're inside close proximity, usually a few centimeters.

• Point of Sale Terminals: Point of Sale (POS) terminals are the hardware structures utilized by outlets to manner transactions. Contactless POS terminals are geared up with RFID or NFC generation to just accept bills without bodily touch.

• Mobile Handsets: Mobile handsets check with smartphones and other mobile gadgets that guide contactless bills thru technologies inclusive of NFC. These gadgets commonly use digital wallets consisting of Apple Pay, Google Pay and Samsung Pay.

• Other Devices: Other gadgets within the contactless fee market encompass a whole lot of technologies that help seamless transactions Wearables, IoT Devices and others.

By Downstream Industry

Based on downstream industry the market can be categorized into managed services, professional services and multi-channel payment.

• Managed Services: Managed services offer the vital IT infrastructure, along with servers, networks, and databases, to support the contactless payment atmosphere. This ensures that the fee systems are continually operational and stable.

• Professional Services: Professional services assist integrate contactless payment solutions with current enterprise systems including POS (Point of Sale) systems, ERP (Enterprise Resource Planning) systems, and CRM (Customer Relationship Management) structures.

• Multi-Channel Payment: Multi-channel payment answers enable groups to simply accept contactless bills via diverse channels consisting of in-shop, on-line, and cell apps, supplying a unbroken patron experience.

DRIVING FACTORS

"Upward Thrust of Digital and Cellular Wallets to Boost the Marketplace"

The upward thrust of digital and cellular wallets, including Apple Pay, Google Pay, and Samsung Pay, has notably boosted the Contactless Payment Market share. These systems offer secure, handy transactions the usage of NFC generation, facilitating quick payments with smartphones and smartwatches. Their great adoption is driven with the aid of purchaser preference for seamless and green payment strategies. Integration with numerous retail and online platforms complements accessibility, at the same time as non-stop enhancements in protection, which include biometric authentication, similarly pressure their reputation. The enlargement of digital wallets is likewise supported by means of growing cellphone penetration and extended client accept as true with in contactless payment answers.

"Surge in On-Line Purchasing and Mixing of Contactless Price Options in Retail Stores to Accelerate the Market Growth"

The surge in on-line purchasing and the mixing of contactless price options in retail stores are accelerating market growth. E-commerce platforms increasingly provide seamless checkout experiences the use of contactless payments, appealing to consumers looking for convenience and speed. Retailers are adopting contactless solutions to streamline in-keep transactions and beautify client delight. The rise of omnichannel buying, wherein clients switch between on line and physical stores, drives the call for regular and green fee techniques. This trend is similarly supported by way of improvements in technology and accelerated customer confidence in steady, contactless transactions, fueling the expansion of the Contactless Payment Marketplace.

RESTRAINING FACTOR

"Fear of statistics breaches, fraud, and unauthorized transactions Pose a Giant Barrier to Market Expansion"

Fear of statistics breaches, fraud, and unauthorized transactions remains a giant barrier to the extensive adoption of contactless payments. Security concerns are heightened by reports of ability vulnerabilities in contactless systems, main to apprehension among users. The perceived danger of personal and monetary statistics being compromised can undermine customer accept as true with and deter people from embracing those fee techniques. Despite advancements in protection features, which include encryption and biometric authentication, the skepticism about the protection of contactless transactions persists. Addressing those worries through robust safety features and clear communique about protections can assist mitigate fears and build self-assurance in contactless price answers.

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CONTACTLESS PAYMENT MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Asia Pacific to Dominate the Market due to Fast Urbanization and Technological Advancements"

Asia Pacific is emerging as a dominant region in the contactless fee market because of fast urbanization, technological advancements, and large cellphone adoption. Countries such as China, Japan, and South Korea lead with strong infrastructure and excessive virtual charge penetration. Government initiatives and investments in fintech, coupled with the increasing preference for convenient and secure fee methods, are riding boom. Additionally, the proliferation of NFC generation and contactless-enabled cards and gadgets similarly supports marketplace enlargement. The region's diverse populace and developing e-trade region also make contributions to its prominence within the worldwide contactless payment landscape.

KEY INDUSTRY PLAYERS

"Key Players Offer Modern Payment Solutions and Sizable Merchant Networks"

The contactless charge market is driven with the aid of key enterprise gamers together with Visa Inc., Mastercard Incorporated, and American Express Company, which offer modern payment solutions and sizable merchant networks. Financial technology organizations such as PayPal Holdings, Inc., and Thales provide flexible digital price structures. These leaders consciousness on protection, consumer enjoy, and increasing reputation, propelling the increase of contactless bills globally.

LIST OF MARKET PLAYERS PROFILED

• Visa Inc. (U.S.)
• Verifone Systems (U.S.)
• Wirecard AG(Germany)
• PayPal Inc. (US.)
• Opus Software Solutions (India)
• Gemalto N.V.(Netherlands)
• MasterCard Worldwide (U.S.)
• American Express Co. (U.S.)
• Proxama PLC(U.K.)
• Renesas Electronics Corporation (Japan)
• Thales (France)

INDUSTRIAL DEVELOPMENT

March,2021: Thales Group has added a contactless charge answer through wearables in partnership with AXIS Bank, allowing clients to carry out transactions reliably and seamlessly. This innovation leverages Thales's know-how in steady virtual solutions to enhance comfort and safety in charge techniques. By integrating contactless fee abilities into wearable gadgets, customers can revel in brief, stable transactions without the want for bodily playing cards. This development is anticipated to power full-size growth in the contactless payments market by expanding person adoption and growing transaction performance, thereby fostering more recognition and integration of contactless charge technology.

REPORT COVERAGE

This document provides a complete assessment of the global contactless price market, breaking down the market through product type, downstream industry, and area. It includes detailed facts on income, sales, and increase fees, supplying a clean picture of the market's modern-day reputation and future traits. By inspecting numerous segments, the file provides insights into how unique product sorts and industries are acting, highlighting key drivers and demanding situations. It also explores local variations, helping stakeholders apprehend geographical trends and opportunities. The analysis goals to offer a person-friendly precis of marketplace dynamics, making it less difficult to grasp the evolving panorama of contactless payments and their sub-markets, at the same time as imparting strategic insights for knowledgeable decision-making.