Contactless Payment Market

Analysts at GMI Research estimates that the Contactless Payment Market is forecast to grow at a significant higher CAGR of 13.5% from 2022-2029

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Major Contactless Payment Market Drivers

The increasing demand to decrease transaction and billing among consumers and merchants stands to be one of the major factors fueling the contactless payment market. The growing emphasis of consumers on improving the efficiency of payments for many of their daily transactions will further expand the market size. Accelerating penetration of smartphones and mobile devices and proliferation of RFID tagging are anticipated to strengthen the market growth. Further, the increasing focus on decreasing transaction time and increasing convenience have stimulated the market growth. Moreover, contactless payments helps in easing out the transactions between a point-of-sale terminal and a consumer’s payment device, proliferating the contactless payment market size.

Rising adoption of contactless technologies in numerous applications, such as toll booths, ticketing, fuel stations, and vending machines, are expected to boost market growth. Other factors including strategic government initiatives and ongoing advancements in networking infrastructure to develop smart solutions, have strengthened the market growth. For instance, in October 2019, SBI introduced SBI Card Pay, a contactless mobile payment for all credit card users, which will offer a faster, convenient, and safe card payment using mobile phones. The major factors hindering the market growth is lack of trust due to safety concern, data theft, and misuse of the contactless payment methods other than the authorized user.

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Technology Segment Analysis

Near field communication technology is estimated to witness a faster CAGR during the forecast period because of the remarkable advantages of technology including user-friendliness, safety, and versatility. Accelerating penetration of NFC technology in the contactless payments, as it offers a higher customer satisfaction and helps to track connections quickly, propelling the contactless payment market share.

Payment Mode Segment Analysis

The smart cards segment is forecast to lead the market over the forecast period, due to the increasing penetration of blockchain technology amongst various smartcard providers to improve the security of the cards. Growing emphasis of merchant outlets on reducing consumer queues by encouraging consumers to use smart cards for aster transactions has augmented the prominence of smart cards, propelling the market growth.

Component Segment Analysis

Hardware segment is predicted to grow at a faster CAGR during the forecast period, because of the increasing adoption of the point of sales terminal among the customers. The point of sale sub-segment will lead the segment, owing to the low deployment cost, improved efficiency, convenience , user-friendliness, and mobility.

Vertical Segment Analysis

Retail vertical is estimated to grow at a higher CAGR during the forecast period owing to the increasing implementation of advanced technologies such as big data analytics, social networks to expand their presence in the market. The contactless payment offers enormous advantages to the retailers that include a faster transaction process and enhanced operational efficiency, which is further paving the way for the contactless payment in this vertical.

Hospital vertical is estimated to lead the market over the forecast period, as businesses have started embracing advanced technology while offering their guests a user-friendly experience. Moreover, increasing adoption of the healthcare businesses because of the fast & secure transactions and a high level of customer satisfaction will boost the market growth.

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Regional Drivers

Based on the region, Europe is anticipated to lead the market during the forecast period owing to the increase in contactless spending across several countries, especially in the UK and Spain. In addition to this, the increase in the penetration of smartphones along with the rise in the adoption of near field communication technology and several regulatory initiatives like Euro Mastercard Visa are some other factors driving the market growth in this region.

North America is forecast to witness a higher CAGR during the forecast period, because of the presence of well-established IT industry. Also, leading IT companies in the region have leveraged their attempts to encourage the adoption of a contactless payment platform which will offer enormous opportunities to the market. Moreover, increasing partnership of companies with numerous financial institutions to develop secure, transparent, decentralized, and robust platforms because of the rising incidences of cyber-crimes will boost the regional growth.
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Top Market Players

Various notable players operating in the global contactless payment market include Infineon Technologies AG, Idemia, Gemalto NV, Wirecard, Identiv Inc., Verifone, On Track Innovations LTD., Geisecke+Devrient, CPI Card Group, Valitor, Bitel, Setomatic Systems, Ingenico Group, Mobeewave, and Pax Global Technology Limited among others.

Key Market Developments: 

• • In 2019, Idemia acquired X-Core Technologies’ metal payment card business and associated patents. Through this acquisition, the company planned to increase its existing product portfolio with cards that are suitable for contactless payments.
  • In 2018, Gemalto launched EMV biometric dual interface payment card for both contactless payments and chips. This payment card is powered by a payment terminal and also does not need any embedded battery.

Segments covered in the Report:

The global contactless payment market is segmented by technology, payment mode, component, vertical, and key regions. Based on the technology, the market is segmented into Near Field Communication, Radio Frequency Identification, and Host Card Emulation. Based on the payment mode, the market is segmented into Smartcards, Smartphones, and Others. Based on the component, the market is segmented into Hardware, Services, and Solutions. Based on the hardware, the market is further segmented into Point of Sale, Cards, and Others. Based on Services, the market is segmented into Consulting. Integration & Deployment and Support & Maintenance. Based on the vertical, the market is segmented into Healthcare, Transportation & Logistics, Retail, Hospitality, BFSI, Energy & Utilities, and Other Verticals. Based on the other verticals, the market is further segmented into Education, Telecommunications, and Government.

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Market Segmentation

Global Contactless Payment Market by Technology

• • Near Field Communication
  • Radio Frequency Identification
  • Host Card Emulation

Global Contactless Payment Market by Payment Mode

• • Smartcards
  • Smartphones
  • Others

Global Contactless Payment Market by Component

• • Hardware
    • Point of Sale
    • Cards
    • Others
  • Services
    • Consulting
    • Integration & Deployment
    • Support & Maintenance
  • Solutions

Global Contactless Payment Market by Vertical

• • Healthcare
  • Transportation & Logistics
  • Retail
  • Hospitality
  • BFSI
  • Energy & Utilities
  • Other Verticals

Global Contactless Payment Market by Region

• • North America Contactless Payment Market (Option 1: As a part of the free 25% customization)

    • By Technology
    • By Payment Mode
    • By Component
    • By Vertical
    • US Market All-Up
    • Canada Market All-Up

  • Europe Contactless Payment Market (Option 2: As a part of the free 25% customization)

    • By Technology
    • By Payment Mode
    • By Component
    • By Vertical
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Contactless Payment Market (Option 3: As a part of the free 25% customization)

    • By Technology
    • By Payment Mode
    • By Component
    • By Vertical
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Contactless Payment Market (Option 4: As a part of the free 25% customization)
    • By Technology
    • By Payment Mode
    • By Component
    • By Vertical
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Contactless Payment (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Infineon Technologies AG
  • Idemia
  • Gemalto NV
  • Wirecard
  • Identiv, Inc.
  • Verifone
  • On Track Innovations LTD.
  • Geisecke+Devrient
  • CPI Card Group Inc.
  • Valitor
  • Bitel
  • Setomatic Systems
  • Ingenico Group
  • Mobeewave
  • Pax Global Technology Limited