July 17, 2024
Contactless Payments Market

Rising Adoption Of Contactless Payments To Drive The Growth Of The Global Contactless Payments Market

The global Contactless Payments Market is estimated to be valued at US$ 15782.66 Mn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Contactless payments enable customers to make secure payment transactions without physically presenting their payment cards. The transactions are completed through payment-enabled mobile devices or payment cards with an embedded chip or near field communication (NFC) technology. These offer advantages like faster transaction time, enhanced security compared to traditional card swipes, and compatibility with mobile wallets. The growing adoption of contactless payment solutions across retail as well as transit sectors is driving the demand.

Market key trends:

Contactless payments are gaining traction due to quick and convenient nature of transactions. The rise in adoption of mobile wallets led by tech giants like Apple Pay, Google Pay and Samsung Pay are a key trend boosting contactless payments. Growing infrastructure and acceptance of contactless payments cards and terminals across stores is also supporting the market growth. The Covid-19 pandemic has further accelerated the shift towards digital and contactless payment solutions over cash to reduce physical contact and limit virus spread. Integrations of contactless payments into transportation sector have aided their adoption rate in recent times.

Porter’s Analysis

Threat of new entrants: Low startup costs for contactless payments services have increased the threat of new entrants. However, existing players have established relations with banks and merchants.

Bargaining power of buyers: Buyers have high bargaining power due to the availability of alternate payment options. Switching costs are low for buyers.

Bargaining power of suppliers: Payment network brands and technology providers have considerable influence over contactless payment solutions.

Threat of new substitutes: Emerging technologies like mobile wallets and QR code payments pose a threat to contactless payments.

Competitive rivalry: The global market is dominated by banking gaints and payment tech companies. Competition is intense regarding pricing, innovation, and customer experience.

Key Takeaways

The Global Contactless Payments Market Demand is expected to witness high growth, exhibiting CAGR of 13.% over the forecast period, due to increasing adoption of digital payments and focus on contactless experience amid COVID-19.

The Asia Pacific region is expected to dominate the contactless payments market during the forecast period. Proliferation of smartphones, rapid urbanization and growing e-commerce industry are driving the adoption of contactless payments in countries like China, India.

Key players operating in the contactless payments market are Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, VeriFone, Inc., Giesecke+Devrient GmbH, IDEMIA, Track Innovations LTD., Identiv, Inc., CPI Card Group Inc., Setomatic Systems, Valitor, PAX, PINPAD, Mobeewave, alcineo, and Paycor, Inc. Thales Group and Ingenico Group captured over 20% of revenue share in 2023.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it