by The global Contactless Payments Market is estimated to be valued at US$ 15782.66 Mn or Million in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Contactless payments enable consumers to make secure payments for products and services by waving a contactless enabled card, key fob, or mobile device near a payment terminal without inserting or swiping the card. Key advantages are speed, convenience and safety from infections. With growing digital payments the need for contactless payments is increasing among consumers.
Market key trends:
One of the key trends driving the growth of contactless payments market is rising adoption of mobile payments through mobile wallets. Growing penetration of smartphones and availability of various mobile payment apps is propelling the demand for contactless payments. Ease of use of mobile payments is encouraging its adoption over traditional card payments. Furthermore, rapid urbanization and busy lifestyle of consumers is shifting preference towards fast and convenient payment methods like contactless payments. Growing retail infrastructure especially in developing countries further supports the market growth.
SWOT Analysis
Strength: Contactless payments provide a faster checkout experience compared to chip and PIN cards. They reduce queues at points of sale.
Weakness: Security and privacy concerns exist as contactless payments do not require a PIN for smaller transactions. Fraudsters can potentially make payments without cardholder consent.
Opportunity: Growing adoption of digital payments and smartphones provides an opportunity to integrate contactless payments into mobile wallets. This could further drive volumes.
Threats: Alternative payment methods such as online banking payments and digital wallets pose a threat. Strict regulations around data privacy and security also present challenges.
Key Takeaways
The Global Contactless Payments Market Size is expected to witness high growth, exhibiting a CAGR of 13% over the forecast period, due to increasing consumer preference for fast and hassle-free payment transactions.
The contactless payments market size for 2023 is estimated to be US$ 15782.66 Mn. Rapid urbanization and improving living standards are driving the adoption of digital payment methods for retail purchases and transportation payments.
Regional analysis: Europe dominated the contactless payments market in 2022, accounting for more than 30% share, followed by North America. The large consumer base, growing adoption of digital technologies, and support from governments and businesses have increased contactless payments penetration in these regions. Asia Pacific is expected to witness the fastest growth during the forecast period aided by economic development, government initiatives for financial inclusion, and expanding merchant acceptance across countries.
Key players: Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, and VeriFone, Inc. are some major players operating in the contactless payments market. These players are focusing on strategic partnerships to integrate their solutions with various digital platforms and expanding into high growth markets to strengthen their positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
