Contactless Payment Market to Grow with a CAGR of 15.6% Globally through 2029
The global contactless
payment market is rapidly expanding, driven by increased adoption of digital
transactions and convenience. Mobile wallets, NFC technology, and COVID-19
concerns contribute to the market's growth.
According to
TechSci Research report, “Global Contactless Payment Market - Industry Size,
Share, Trends, Competition Forecast & Opportunities, 2029”, the Global
Contactless Payment Market stood at USD 33.2 billion in 2023 and is anticipated
to grow with a CAGR of 15.6% in the forecast period, 2025-2029. The global contactless
payment market is characterized by robust growth, fueled by the convenience of
swift transactions, widespread adoption of mobile wallets and NFC technology,
and the impact of the COVID-19 pandemic. Increasing smartphone penetration and
government initiatives further drive this evolution. Biometric authentication,
wearable technology, and IoT integration are emerging trends, while challenges
include security concerns, infrastructure development, and consumer trust. The
market's future is shaped by technological innovations and regulatory
landscapes, emphasizing the need for a secure, efficient, and universally
accepted contactless payment ecosystem.
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"Global Contactless Payment Market”
The global
contactless payment market is experiencing a transformative surge, driven by a
myriad of drivers that collectively redefine the landscape of financial
transactions. First and foremost is the unrelenting quest for convenience.
Consumers, accustomed to instant gratification and seamless experiences in the
digital era, increasingly favor the swiftness and ease offered by contactless
payments. The ability to complete transactions swiftly by tapping a card or
mobile device aligns with the contemporary ethos of efficiency, influencing the
way individuals interact with their finances.
The
proliferation of mobile wallets, fortified with Near-Field Communication (NFC)
technology, represents another formidable driver. Platforms like Apple Pay,
Google Pay, and Samsung Pay have revolutionized the way people make
transactions by transforming smartphones and wearables into portable payment
instruments. The ubiquitous nature of smartphones and the inherent convenience
of these digital wallets contribute significantly to the acceleration of
contactless payment adoption. As mobile devices continue to be integral to
daily life, their role in financial transactions becomes increasingly
pronounced.
The seismic
impact of the COVID-19 pandemic is a compelling force propelling the growth of
contactless payments. Hygiene concerns, coupled with an increased awareness of
the potential transmission of pathogens through physical currency, prompted a
paradigm shift in consumer behavior. Governments and health authorities
worldwide endorsed contactless payments as a safer alternative, accentuating
the role of this technology in mitigating public health risks. This heightened
awareness and the necessity for a hygienic payment experience have not only
sustained but accelerated the adoption of contactless payments.
The surge in
smartphone penetration globally serves as another powerful driver. As the world
becomes more connected, an increasing number of individuals rely on smartphones
for diverse aspects of their daily lives. This widespread ownership of
smartphones naturally extends to the adoption of mobile payment solutions,
forming a symbiotic relationship between the growth of the contactless payment
market and the prevalence of smartphones. The ubiquity of these devices further
amplifies the accessibility and appeal of contactless payment options.
Government
initiatives and regulatory support also play a pivotal role in propelling the
contactless payment market forward. Recognizing the benefits of a cashless
economy, governments worldwide are implementing policies and campaigns to
incentivize businesses and consumers to embrace contactless payment methods.
These initiatives include regulatory frameworks that encourage innovation,
collaboration, and the development of secure payment infrastructures. The
symbiosis between government backing and market dynamics creates an environment
conducive to the sustained growth of contactless payments on a global scale.
Biometric
authentication represents a cutting-edge driver, enhancing the security and
user experience of contactless payments. Fingerprint recognition, facial
scanning, and other biometric identifiers add an additional layer of security,
reducing reliance on traditional methods like PINs or passwords. This
innovation aligns with the broader trend of biometric adoption across various
sectors, as businesses and consumers seek more secure and user-friendly
authentication methods.
Wearable
technology emerges as a distinctive driver, expanding the horizons of
contactless payments. Smartwatches, fitness trackers, and other wearables
equipped with NFC technology enable users to make payments with a simple tap.
The marriage of fashion and function in wearable devices not only enhances user
convenience but also positions them as lifestyle accessories, contributing to
their increasing popularity as payment instruments.
The integration
of the Internet of Things (IoT) amplifies the reach and potential of
contactless payments. Connected devices, from smart homes to connected cars,
are becoming payment facilitators, expanding the scope of transactions beyond
traditional retail settings. This synergy between contactless payments and IoT
creates a more seamless and interconnected financial ecosystem, offering users
novel and convenient ways to make secure transactions.
Major companies
operating in Global Contactless Payment Market are:
- Thales
- Visa Inc.
- Giesecke&Devrient
GmbH
- MasterCard
- Apple Inc.
- PayPal Holdings
Inc.
- American
Express Company
- Amazon.com,
Inc.
- Alibaba.com.
- PayU
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“The global
contactless payment market is driven by the quest for convenience, the
proliferation of mobile wallets, the impact of COVID-19, increasing smartphone
penetration, government initiatives, biometric authentication, wearable
technology, and IoT integration. The swift and secure nature of contactless
transactions, coupled with technological advancements, positions this market at
the forefront of the digital payment revolution. As governments encourage
cashless economies, businesses innovate to meet evolving consumer demands. With
biometric security, wearables, and IoT expanding the contactless landscape,
this dynamic ecosystem is set for continuous growth, reshaping the future of
global financial transactions.” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based management consulting firm.
“Contactless Payment
Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented By Device Type (Pos Terminal, Cards, Others), By Component, By
Solution (Payment Terminal Solution, Device Management Solution, Others), By
Region, By Competition, 2019-2029, has evaluated the future growth
potential of Global Contactless Payment Market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision makers
take sound investment decisions. Besides, the report also identifies and analyzes
the emerging trends along with essential drivers, challenges, and opportunities
in the Global Contactless Payment Market.
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