by Contactless payments technology has transformed digital commerce and modernized transactions by enabling payments to be made through contactless cards and near-field communication (NFC)-enabled devices such as smartphones, tablets, and wearables. The convenience and security of contactless payments have led to higher adoption rates.
The global Contactless Payments Market was estimated to be valued at US$ 15,782.66 million in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing penetration of smartphones has been a major growth driver for contactless payments. The convenience of making payments using smartphones through mobile wallets has boosted their adoption rate. Moreover, rapid advancements in technology have facilitated contactless transactions through smartphones integrated with NFC technology. For instance, major smartphone manufacturers such as Samsung, Apple, and Huawei have embedded NFC chips in their smartphone models enabling contactless mobile payments. The ease of carrying a smartphone compared to physical cards has led to higher preference of digital wallets. Furthermore, the shift towards hygienic touch-free payments during the COVID-19 pandemic is likely to catalyze the demand for smartphone-based contactless payments over the forecast period.
SWOT ANALYSIS
Strength: Contactless payments provide convenience and speed up transactions for consumers by eliminating the need to insert or swipe cards or enter PIN numbers.
Weakness: Concerns over data security and privacy continue to be barriers for many consumers since contactless cards or devices carry the risk of fraudulent activities like data skimming.
Opportunity: With rising adoption of digital payments and the Covid pandemic accelerating the shift towards contactless payments, there are growth opportunities for market players to expand their product portfolio and partnerships with banks and merchants.
Threats: Stiff competition from digital wallets and other emerging payment technologies poses a threat as users have many options beyond traditional contactless cards. Technological disruptions could also disrupt existing payment business models.
KEY TAKEAWAYS
The Global Contactless Payments Market Size is expected to witness high growth. The global Contactless Payments Market was estimated to be valued at US$ 15,782.66 million in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
North America currently dominates the market owing to high adoption among consumers and merchants driven by initiatives from payment networks and banks. However, Asia Pacific is expected to grow at the fastest pace during the forecast period backed by rising urbanization, increasing purchasing power, and government policies promoting digital payments across countries like India and China. Countries like India and China dominates the APAC region with high adoption of digital payments. Government initiatives to promote digital transactions through schemes like UPI in India and e-wallets in China has propelled the region’s growth. North America currently has largest share but APAC offers lucrative opportunities for payment service providers to tap the growing digital payment requirement of emerging economies.
Key players operating in the contactless payments market are F. Hoffmann-La Roche AG, Boehringer Ingelheim, Bayer AG, Pfizer Inc., Biogen, Daiichi Sankyo, Bristol-Myers Squibb, Johnson & Johnson, AstraZeneca, SanBio and Athersys Inc. These leading players are focusing on partnerships, mergers, acquisitions and new product launches to expand their market share. For instance, in 2022 F. Hoffmann-La Roche AG acquired ClinFirst to strengthen its digital healthcare platform.
*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.
