by Contactless payments provide a quick, convenient, and secure payment method using radio-frequency identification (RFID) or near field communication (NFC) technology by waving payment cards or smartphones within inches of the payment terminal rather than swiping or inserting a card. Contactless payments enable consumers to make small-ticket purchases and payments under a certain limit without a PIN. This has benefits for both merchants and consumers by speeding up transactions and purchase checkout.
The global Contactless Payments Market is estimated to be valued at US$ 15 Billion in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growth in Digital Payments Technology: The global contactless payments market is primarily driven by the growth in the adoption of digital payment technologies worldwide. Rising penetration of smartphones and internet connectivity has boosted the adoption of digital payment modes such as contactless cards, mobile wallets, and digital payment apps. Growth in near field communication (NFC) technology compatible smartphones and point-of-sale (POS) terminals integrated with EMVs has accelerated contactless payments adoption globally. The proliferation of the internet of things has integrated payments into new touchpoints such as transportation, retail, and infrastructure towards shaping the future of frictionless commerce
SWOT Analysis
Strength: Contactless payments offer convenience to customers by enabling them to make quick transactions without cash or cards. They reduce the usage of cash which minimizes the risk of transmitting infections.
Weakness: Security remains a concern as payments are performed by waving cards or phones near payment terminals without requiring authentication. This could enable fraudulent activities. Lack of awareness among some customers about this technology.
Opportunity: Growing adoption of digital payments and smartphones provide an opportunity to increase the usage of contactless payments for retail purchases, transport fare and more. Developing economies moving towards a less-cash society will boost demand.
Threats: Failure to address security and privacy risks adequately could reduce customer confidence in this system. Slow modernization of payment infrastructure in some regions poses a challenge. Stringent regulations related to data storage and sharing across borders.
Key Takeaways
The Global Contactless Payments Market Size is expected to witness high growth over the forecast period of 2024 to 2028 driven by the rising penetration of smartphones and digital payment options.
North America currently dominates the market owing to increased adoption among consumers and merchants. Europe is also an early adopter and a major regional market for contactless payments.
Asia Pacific is poised to be the fastest growing regional market. Countries like India, China and others are encouraging digital and cashless transactions that will support the growth of contactless payments. Increased e-commerce activities and online shopping are further expected to fuel the demand.
Key players operating in the contactless payments market are Gemalto NV, Giesecke & Devrient GmbH, Heartland Payment Systems, Ingenico Group SA, Verifone Systems Inc. These companies are investing in technologies like NFC, open payments platforms and mobile wallets to tap opportunities in both developed and emerging markets. Partnerships with banks, card issuers and retailers help expand their merchant network coverage
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
