Press Release

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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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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